Regional SAB de CV (RA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Regional SAB de CV

Invex Controladora SAB de CV

Grupo Financiero Multiva SAB de CV

Grupo Financiero Banorte SAB de CV

Grupo Elektra SAB de CV

Grupo Financiero Inbursa SAB de CV

Why is Regional SAB de CV ?

Strong Long Term Fundamental Strength with a 17.52% CAGR growth in Net Profits

Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 17.52%

Flat results in Dec 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
CASH AND EQV(HY) Lowest at MXN 7,459.32 MM
DIVIDEND PER SHARE(HY) Lowest at MXN 0

With ROA of 1.67%, it has a fair valuation with a 1.33 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 14.40%, its profits have risen by 2.5% ; the PEG ratio of the company is 2.8
At the current price, the company has a high dividend yield of 4.1

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 14.40% in the last 1 year, much lower than market (Mexico IPC) returns of 31.40%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Regional SAB de CV should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Regional SAB de CV for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Regional SAB de CV

14.4%

0.54

33.75%

Mexico IPC

31.4%

1.71

18.32%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.85%

EBIT Growth (5y)

23.57%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.33

EV to EBIT

11.26

EV to EBITDA

9.73

EV to Capital Employed

1.15

EV to Sales

2.82

PEG Ratio

2.79

Dividend Yield

4.12%

ROCE (Latest)

10.22%

ROE (Latest)

19.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

NII(Q)

Highest at MXN 4,021.64 MM

OPERATING PROFIT(Q)

Highest at MXN 2,473.17 MM

OPERATING PROFIT MARGIN(Q)

Highest at 32.69 %

PRE-TAX PROFIT(Q)

Highest at MXN 2,478.85 MM

NET PROFIT(Q)

Highest at MXN 1,815.59 MM

-4What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

CASH AND EQV(HY)

Lowest at MXN 7,459.32 MM

DIVIDEND PER SHARE(HY)

Lowest at MXN 0

EPS(Q)

Lowest at MXN 0

Here's what is working for Regional SAB de CV

NII

Highest at MXN 4,021.64 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (MXN MM)

Operating Profit

Highest at MXN 2,473.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (MXN MM)

Operating Profit Margin

Highest at 32.69 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at MXN 2,478.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (MXN MM)

Net Profit

Highest at MXN 1,815.59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

Here's what is not working for Regional SAB de CV

EPS

Lowest at MXN 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Cash and Eqv

Lowest at MXN 7,459.32 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at MXN 0

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (MXN)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)