Intercorp Financial Services Inc (IFS, Financial) has experienced a notable fluctuation in its stock price recently. With a market capitalization of $2.9 billion, the current stock price stands at $25. Over the past week, the stock has seen an 11.19% decline, yet when looking at the past three months, there is a 13.81% gain. This presents a mixed picture for investors, as the short-term volatility contrasts with medium-term growth. According to GF Value, the stock is currently fairly valued at $24.63, a slight adjustment from the past GF Value of $27.96, which indicated the stock was significantly undervalued. This shift in valuation suggests that the stock's recent gains have brought it closer to its intrinsic value as defined by GuruFocus.com.
Company Overview
Intercorp Financial Services Inc, operating in the banking industry, provides a comprehensive range of financial services. These include banking, insurance, wealth management, and payment services through its recent integration of Izipay. The company's operations are segmented into banking, insurance, wealth management, and payments, with a geographical presence in Peru and Panama. This diversified business model allows IFS to cater to a broad spectrum of financial needs in its markets. 
Assessing Profitability
IFS's profitability is robust, with a Profitability Rank of 6/10. The company's return on equity (ROE) is 11.19%, outperforming 56.65% of 1,467 companies in the same industry. Its return on assets (ROA) stands at 1.21%, which is better than 68.3% of 1,470 companies. Impressively, IFS has maintained profitability over the past 10 years, a feat better than 99.93% of 1,469 companies. These figures underscore the company's ability to generate profits consistently, which is a positive sign for investors. 
Growth Trajectory
When it comes to growth, IFS has a Growth Rank of 4/10. The company's 3-year revenue growth rate per share is 4.80%, which is better than 40.56% of 1,403 companies. Over a 5-year period, the revenue growth rate per share increases slightly to 5.30%, surpassing 45.72% of 1,356 companies. More notably, the 3-year EPS without NRI growth rate is an impressive 34.90%, outperforming 82.92% of 1,294 companies. However, the 5-year EPS without NRI growth rate is more modest at 4.70%, which is better than 39.91% of 1,165 companies. These growth metrics indicate that while IFS is not the fastest-growing company, it has shown the ability to increase its earnings significantly over time. 
Investor Holdings
Among the holders of IFS stock, Dodge & Cox stands out with 27,010 shares, representing a 0.02% share percentage. This investment by a notable firm suggests a level of confidence in the company's financial health and future prospects.
Competitive Landscape
IFS operates in a competitive banking industry, with close rivals including Banco Internacional del Peru - Interbank (LIM:INTERBC1, Financial) with a market cap of $2.87 billion, Scotiabank Peru SAA (LIM:SCOTIAC1, Financial) at $2.86 billion, and Banco BBVA Peru (LIM:BBVAC1, Financial) leading with a market cap of $3.73 billion. These competitors are closely matched in terms of market capitalization, indicating a highly competitive environment for IFS.
Conclusion
In conclusion, Intercorp Financial Services Inc's stock performance over the past three months has been impressive, with a 13.81% gain, despite a recent weekly loss of 11.19%. The company is currently fairly valued according to GF Value, reflecting its recent price movements. IFS's financial health is solid, with a good profitability rank and consistent profitability over the past decade. Growth rates in revenue and EPS suggest a stable, if not aggressive, growth trajectory. In the competitive banking landscape of Peru, IFS holds its own, with market capitalization comparable to its peers. For value investors, IFS presents a case of a stable financial institution with a balanced approach to growth and profitability.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
