Grupo Financiero Banorte SAB de CV

Grupo Financiero Banorte maintains a capital structure characterized by significant leverage, with total liabilities of 2,349,573,000,000 MXN against total assets of 2,598,662,991,100 MXN. The debt-to-equity ratio stands at 2.74, driven by long-term debt of 682,174,000,000 MXN relative to total equity of 249,090,000,000 MXN. Liquidity is assessed as medium risk, with a key flag noting that net cash is negative after subtracting total debt. Operating cash flow is robust at 81,433,000,000 MXN, but free cash flow is constrained to 8,865,000,000 MXN due to capital expenditures of -12,007,000,000 MXN.

Profitability metrics indicate strong returns on capital, with a return on equity (ROE) of 23.67% and a return on assets (ROA) of 2.27%. The company generated net income of 58,788,000,000 MXN on revenue of 146,578,000,000 MXN, resulting in a net margin of approximately 40%. The valuation snapshot shows a price-to-earnings ratio of 9.21 and a price-to-book ratio of 2.18, suggesting the market values the equity at a premium to book value while maintaining a relatively low earnings multiple.

Segment and geographic data are not provided in the current input, preventing a detailed analysis of revenue concentration by business line or region. The classification identifies the activity as Multiline Insurance & Brokers, implying a diversified revenue stream within the insurance and financial services domain, but specific mix details are absent.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without 5-year annual or 8-quarter quarterly revenue and net income trends, it is not possible to assess the momentum or direction of top-line and bottom-line growth from the provided structured data.

Risk assessment highlights medium liquidity risk and low dilution risk. The primary financial flag is the negative net cash position after debt subtraction, which may constrain financial flexibility. The dilution risk is low, supported by the fact that basic and diluted shares outstanding are identical at 2,883,456,594, indicating no significant in-the-money options or convertible securities impacting the share count.

Recent observations from investor relations data show a mean analyst price target of 210.86 MXN, with a median of 212.50 MXN, implying upside potential from the current market price of 188.41 MXN. The mean recommendation is 2.29, with 2 strong buys, 6 buys, and 6 holds, reflecting a generally positive but cautious analyst sentiment. No specific filing, news, or transcript observations are provided in the input.

Net income grew at a 13.8% CAGR over four years, demonstrating strong historical profitability expansion for the financial institution.

Analysts project 12.2% upside to a mean price target of 210.86, reflecting positive market sentiment on future performance.

Revenue expanded by 11.8% annually over four years, highlighting consistent top-line growth driven by operating revenue increases.

The debt-to-equity ratio of 2.74 is in the bottom quartile versus the 0.21 cohort median, indicating excessive leverage risk.

Long-term debt increased to 690.4 billion MXN in 2025, raising concerns about rising financial obligations and solvency pressure.

The company faces medium liquidity risk, which could constrain its ability to meet short-term financial obligations during market stress.

Cash conversion of 1.38 falls below the 1.47 cohort median, suggesting less efficient translation of earnings into actual cash.

Revenue MXN 39.48B, +9,4% YoY; Net income +1,1% YoY.

• ▍Revenue MXN 39.48B, +9,4% YoY
• ▍Net income +1,1% YoY
• ▍Free cash flow +20,1% YoY
• ▍Net margin 39.2%

Revenue MXN 38.12B, +4,0% YoY; Net income +15,7% YoY.

• ▍Revenue MXN 38.12B, +4,0% YoY
• ▍Net income +15,7% YoY
• ▍Free cash flow −270,7% YoY
• ▍Net margin 41.6%

Revenue MXN 36.55B, +1,5% YoY; Net income −8,6% YoY.

• ▍Revenue MXN 36.55B, +1,5% YoY
• ▍Net income −8,6% YoY
• ▍Free cash flow −0,5% YoY
• ▍Net margin 35.6%

Revenue MXN 35.83B, +12,2% YoY; Net income +4,3% YoY.

• ▍Revenue MXN 35.83B, +12,2% YoY
• ▍Net income +4,3% YoY
• ▍Free cash flow −1,7% YoY
• ▍Net margin 40.8%

Revenue MXN 36.08B; Net margin 42.4%.

• ▍Revenue MXN 36.08B
• ▍Net margin 42.4%

Revenue MXN 36.64B; Net margin 37.5%.

• ▍Revenue MXN 36.64B
• ▍Net margin 37.5%

Revenue MXN 36.01B; Net margin 39.5%.

• ▍Revenue MXN 36.01B
• ▍Net margin 39.5%

Revenue MXN 31.94B; Net margin 43.9%.

• ▍Revenue MXN 31.94B
• ▍Net margin 43.9%

Revenue MXN 146.58B, +5,2% YoY; Net income +4,6% YoY.

• ▍Revenue MXN 146.58B, +5,2% YoY
• ▍Net income +4,6% YoY
• ▍Free cash flow −52,2% YoY
• ▍Net margin 40.1%

Revenue MXN 139.36B, +9,3% YoY; Net income +7,2% YoY.

• ▍Revenue MXN 139.36B, +9,3% YoY
• ▍Net income +7,2% YoY
• ▍Free cash flow +57,5% YoY
• ▍Net margin 40.3%

Revenue MXN 127.48B, +9,8% YoY; Net income +15,4% YoY.

• ▍Revenue MXN 127.48B, +9,8% YoY
• ▍Net income +15,4% YoY
• ▍Free cash flow +172,8% YoY
• ▍Net margin 41.1%

Revenue MXN 116.16B, +23,6% YoY; Net income +29,6% YoY.

• ▍Revenue MXN 116.16B, +23,6% YoY
• ▍Net income +29,6% YoY
• ▍Free cash flow −74,4% YoY
• ▍Net margin 39.1%