Bull Rankings model

Banco de Chile (BCH) stock analysis

Banks - Regional. Scored on the same transparent model behind the daily rankings.

★
BCH
Banco de Chile · Banks - Regional
85.7Financial strength
$39.10Oct 13 close$19.7B
1Y Target$41.03Analyst consensus · 12 analysts
5Y Target$60.07Compound horizon
10Y Target$89.10Long-dated conviction
Rev-1.6%
D+
Revenue -1.6% — shrinking; needs a catalyst to reverse
P/E15.0x
C+
P/E 15.0 — above the Financial Services median (≈75th pctile)
ROE21.6%
A-
ROE 21.6% — a high bar (above 20%)
P/B0.69
A
P/B 0.69 — below book value; deep value (verify asset quality)
Yield5.6%
A-
Yield 5.6% — strong income

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Financial strength · 85.7 / 100
Profitability91.6
Value (P/B)96.5
Income62.3

A peer-relative read for financials on profitability (ROE), valuation, and covered income — the quality-growth (FCF/ROIC) screen doesn't apply to balance-sheet businesses. Not comparable to the 0–100 quality-growth score shown on other stocks.

Entry · Margin of safety
52-week rangeMid-range
16% off the 12-month high

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Banks - Regional · market cap $19.7b. 16% off the 52-week high of $46.77. 12 sell-side analysts rate this a Hold with a mean 1-yr target of $41.03 (implying +5% upside).
Moat
Net margin 45% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 22% is above 15% — the equity base is compounding at a rate the market struggles to discount accurately. Financial moat — scale of deposit base / underwriting franchise plus regulatory capital advantages. The largest players compound book value through cycles that erase smaller competitors.
Risk
Dividend payout 85% of earnings on a 5.6% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.
Horizon
1-3 yr $41.03 (12-analyst consensus) — fundamentals + valuation re-rating. 5 yr $60.07 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $89.10 if current growth sustains into durable earnings power.

Not enough history yet — the model records BCH's score after each daily run, and the chart appears once a few days have accumulated.

BCH at a glance

FINANCIAL STRENGTH · BANKPROFITABILITY92VALUE97COVERED INCOME6285.7/100 on our peer scale — not the quality-growth score.
ONE-YEAR MOVE VS ITS BETAFLATThis stock+25%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.
PRICE IN ITS 52-WEEK RANGE$39.1LOW $30.6HIGH $46.8Trading at the 52nd percentile of its 52-week range ($30.6–$46.8).

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change-0.2%
90-day change-0.4%
Forward EPS estimate$3.13

Over the last 90 days, what analysts expect BCH to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
51
Position size
$1,994
4.0% of portfolio
Stop price
$29.33
25% below $39.10
$ at risk if stopped
$498.53
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

Banco de Chile (BCH): score, valuation & FAQ

Banco de Chile (BCH) is a Banks - Regional company. As a bank, insurer or REIT it runs on a different financial model from the rest of the market, so Bull Rankings grades it on a sector-appropriate card — price-to-book, dividend yield, payout ratio and cash-flow coverage — rather than the 0–100 quality-growth score used elsewhere. The read below is a transparent screen, not a buy recommendation.

Its strongest graded signals are P/B (A), ROE (A-) and Yield (A-), while Rev (D+) rate weaker.

Is BCH a good stock to buy?

Bull Rankings grades BCH on a sector-appropriate card — price-to-book, dividend yield, payout and cash-flow coverage — rather than a single quality-growth score. That is driven by P/B (A), ROE (A-) and Yield (A-). A score is a quantitative screen of Banco de Chile's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

How does Bull Rankings grade BCH?

As a bank, insurer or REIT, BCH isn't given a quality-growth score — signals like free cash flow, debt-to-equity and P/E don't translate cleanly to a balance-sheet business. Instead it's graded on a sector-appropriate card: price-to-book, dividend yield, payout ratio and operating-cash-flow coverage, where it rates strongest on P/B (A), ROE (A-) and Yield (A-) and weakest on Rev (D+).

Is BCH overvalued or undervalued?

We don't publish a discounted-cash-flow value for BCH, and not because the business is unprofitable. For a lender, insurer or property trust, "free cash flow" measures balance-sheet growth rather than owner earnings — loan originations and repayments run through operating cash flow — so discounting it would produce a confident-looking number with nothing behind it. BCH is judged on book value, return on equity and income cover instead, which is what the financial-strength card shows.

What are the main risks of investing in BCH?

Dividend payout 85% of earnings on a 5.6% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.

New to these metrics? See the guides and the methodology.

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