Banorte Banks On Mexico

Today I'm reviewing a large-cap bank - regional -Latin America.

It's name is Grupo Financiero Banorte SAB de CV. It's trading ticker symbol is GBOOF . 

Grupo Financiero Banorte SAB de CV through its subsidiaries, provides banking and financial products and services in Mexico. 

It offers deposits, which include savings accounts, checking accounts, mutual funds,  credit products, and mortgages.

The company also provides individual accounts, specialized services, integration of resources, and infonavit advice; insurance, and pensions. 

In addition, it offers a fund operator, asset administration, investment banking, investment funds, stock market, money market, Internet banking, mobile phone banking, and cash management services.

The company operates through a network of approximately 1,191 branches, 7,425 ATMs, 6,989 third-party correspondents, and 155,893 point of sale terminals. 

Grupo Financiero Banorte, S.A.B. de C.V. was founded in 1899 and is headquartered in Mexico City, Mexico.

I use three key data points to gauge the value of any dividend equity or fund like Grupo Financiero Banorte: 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys  will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

GBOOF Price

GBOOF's price per share was $6.90 at Friday's market close. A year ago its price was $6.30 for a gain of $0.60 per share.  

Assuming GBOOF's price will trade in the range of $3.50 to $7.50 next year, its price could make that same $0.60 gain from its current $6.30 price to $6.90 or even $7.00 by late July, or early August 2019. 

GBOOF Dividends

Banorte's most recent variable semi-annual dividend was $0.1546  paid in June 2017

It has not paid a dividend since.

Gains For GBOOF?

Adding no potential annual dividend to the $0.60 potential year over year price gain for Banorte makes a $0.60 projected gross annual per share gain, which will be reduced by costs to trade the shares.  

A little over $1,000.00 invested today at the $6.90 recent price buys 145 shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.07 per share

Subtracting that $0.07 brokerage cost from the estimated $0.60 gross gain leaves a net gain of $0.53 X 145 shares 

= $76.85

or a nearly 7.7% net gain on a $1,000.50 investment.

Therefore, Grupo Financiero Banorte SAB de CV, whose trading ticker symbol is GBOOF, now shows a possible near 7.7% net gain including no dividend yield. 

No analysts cover this stock:

So, there is no analyst consensus recommendation nor any price target set by the brokers. 

Y Charts has limited data. Y Charts has not yet rated GBOOF for an overall "Y" rating; it has "insufficient data" for a Value score, but ranks GBOOF "strong" for a Fundamental mark as well as "6.57% undervalued" for a  Historic Valuation score based on a $7.39 valuation.

You could look at all those numbers this way, Grupo Financiero Banorte has made money, is making money, and could net a nearly 7.7% net gain including no dividend yield. It could be more, it could be far less.

The above speculation is based on past year performance. Actual results remain to be seen.  Results could turn out to be far higher or lower. More study is required for you to determine if  Grupo Financiero Banorte is worth your time and money.