BLX

Banco Latinoamericano

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

NYSE

County of HQ

Panama

Next Earnings Date

05/04/26

Business Summary

BLX operates as a regional banking institution focused on trade finance and cross-border banking services, generating income through lending spreads, fee-based services, and treasury operations. Its moat is built on regional expertise, established correspondent banking relationships, and specialized underwriting in cross-border transactions that are not easily replicated by generic lenders. The bank monetizes its balance sheet by efficiently allocating capital into higher-yield trade and commercial finance assets while maintaining spread discipline. Competitive advantage stems less from brand power and more from relationship networks, risk assessment capability, and regional financial infrastructure integration.

VALUATION

P/E

8.9

Market Cap ($M USD)

$2,023

Forward P/E

8

PEG

0.6

PRICE TO SALES

6.4

PRICE TO BOOK

1.2

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

4.70%

Annual Payout

$2.56

Payout Ratio

40.90%

Consecutive Years of Dividend Growth

2

5-Year Dividend Growth Rate

22.40%

Financial Health & Profitability

Earnings Per Share

$6.11

Next Year EPS Growth Estimate

$6.82

Next Year Revenue Growth Estimate

9.30%

Return on Equity (ROE)

13.50%

Operating Margin

71.90%

Debt-to-Equity

2.4

Piotroski F-Score

7

Altman Z-Score

0.3

Return on Invested Capital (ROIC)

12.60%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 8.9x earnings and 8x forward earnings with a 0.6 forward PEG, BLX screens statistically cheap, and the market is clearly discounting something meaningful. The valuation implies either earnings compression or elevated macro risk, yet ROIC at 12.60% and ROE at 9.30% suggest a business still generating respectable returns. The real tension is between the inexpensive forward multiple and an alarming 0.3 Altman Z-Score, which signals balance sheet fragility and potential stress risk. This is a classic deep value setup: priced as if deterioration is imminent, but still posting double-digit capital returns and solid margins. The market is not paying for growth, but it is also not fully trusting the balance sheet.

AI Exposure / Tech Reliance

As a regional bank within Financial Services, BLX’s AI exposure is indirect but meaningful through underwriting automation, credit analytics, and operational efficiency tools. Banks that modernize risk modeling and compliance through AI can widen operating margins, and BLX already posts a 13.50% operating margin, leaving room for tech-driven leverage. However, AI will not redefine its core economics; execution quality in risk management matters more than technological disruption.

The Bull Case

A GARP or deep value investor buys this because the math is compelling. An 8x forward P/E with a 0.6 PEG suggests the market is undervaluing forward earnings relative to expected growth, while a Piotroski F-Score of 7 indicates solid financial health and improving fundamentals. ROIC at 12.60% exceeding many cost-of-capital thresholds signals efficient capital deployment, and a 13.50% operating margin in banking is respectable, especially combined with 9.30% ROE. Institutional ownership at 66.60% shows serious capital is already involved, and a 2.4% yield with a 4.70% dividend per share USD metric and a 2% five-year average dividend rate adds income support. In short, you’re paying a single-digit multiple for a profitable, institutionally backed bank generating double-digit capital returns.

The Bear Case

The red flags are impossible to ignore. A Debt/Equity ratio of 71.90% is elevated even for financials, and the Altman Z-Score of 0.3 is deeply concerning, pointing to potential financial distress risk. Short interest at 22.40% of float signals that a meaningful portion of the market is betting against the equity, likely questioning asset quality or earnings durability. The payout ratio listed at $2.56 combined with aggressive dividend metrics raises questions about sustainability, and the lack of current EPS data paired with reliance on forward estimates adds forecasting risk. This is not a clean balance sheet story; it is a leveraged institution trading cheap for a reason.

Market Sentiment & Smart Money

Short Interest %

1.60%

Analyst Consensus

1

Average Analyst Price Target

$66.60

Institutional Ownership %

31.90%

1-Year Beta

0.65

Insider Buying % (6 Mo)

0.00%%

Distance to 52-Week High

99.70%%

Distance to 52-Week Low

157.20%%