Banco Santander Brasil (BSBR) AI Stock Analysis

• Market Cap: $22.78B
• Dividend Yield: 5.34%
• Average Volume (3M): 511.26K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.42
• Revenue Growth: 1.13%
• EPS Growth: -11.93%
• Country: US
• Employees: 55,303
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.20
• Shares Outstanding: 3,749,265,600
• 10 Day Avg. Volume: 477,460
• 30 Day Avg. Volume: 511,256
• PEG Ratio: 0.34
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 1.40
• P/FCF Ratio: -7.62
• Enterprise Value/Market Cap: 3.38
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 2.43
• Enterprise Value/Ebitda: 5.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ―

Banco Santander Brasil's solid revenue growth and improved profitability are significant strengths, supported by a strong balance sheet. However, liquidity concerns due to declining cash flow pose a risk. The stock's moderate valuation and technical indicators suggest stability, appealing to conservative investors.

Positive Factors

Balance Sheet Strength

A strong balance sheet with reduced leverage enhances financial stability, providing resilience against economic fluctuations and supporting sustainable growth.

Profitability Improvement

Improved profitability margins indicate efficient cost management and robust revenue generation, contributing to long-term financial health and shareholder value.

Revenue Growth

Strong revenue growth reflects successful market strategies and increased demand for services, positioning the company for continued expansion and competitive advantage.

Negative Factors

Declining Cash Flow

Negative cash flow indicates potential liquidity issues, which could constrain the bank's ability to invest in growth opportunities and meet short-term obligations.

Liquidity Concerns

A significant decline in free cash flow may limit the bank's operational flexibility and ability to respond to market changes, posing risks to financial stability.

Revenue Growth Challenges

Negative revenue growth challenges the bank's ability to maintain market share and profitability, potentially impacting its competitive position and long-term prospects.

Banco Santander Brasil Business Overview & Revenue Model

Company Description

Banco Santander Brasil S.A. (BSBR) is one of the leading financial institutions in Brazil, offering a wide array of banking products and services. Operating under the larger umbrella of the Spanish Santander Group, the bank specializes in retail banking, corporate banking, and investment banking. It provides services such as loans, credit cards, asset management, insurance, and financial advisory to individual and corporate clients across the country.

How the Company Makes Money

Banco Santander Brasil makes money primarily through interest income generated from its lending activities. This includes personal loans, mortgages, and corporate loans, where the bank charges interest on the borrowed amounts. Additionally, the bank earns revenue from non-interest income sources such as fees and commissions from services like asset management, insurance, and advisory services. Trading and investment activities also contribute to its earnings, as the bank engages in various financial markets. Partnerships with businesses for co-branded credit cards and insurance products further enhance its revenue streams. The bank's earnings are significantly influenced by macroeconomic factors in Brazil, including interest rates and economic growth, which affect loan demand and repayment capabilities.

Banco Santander Brasil Financial Statement Overview

Summary

Banco Santander Brasil demonstrates strong revenue growth and profitability, supported by a solid balance sheet with reduced leverage. However, the significant decline in cash flow raises concerns about liquidity, needing focus on improving cash flow generation.

Income Statement

Banco Santander Brasil has shown strong revenue growth, increasing from 39.97 billion in 2023 to 48.52 billion in 2024, representing a 21.43% growth rate. The net profit margin for 2024 stands at 27.54%, up from 23.64% in 2023, indicating enhanced profitability. However, EBIT and EBITDA margins are unavailable for 2024, limiting a full profitability analysis.

Balance Sheet

The bank maintains a solid equity base with a debt-to-equity ratio of 0.19 in 2024, showing reduced leverage from 1.26 in 2023. Stockholders' equity has increased, and the equity ratio improved to 9.65% in 2024. These factors suggest a strong balance sheet, despite the banking industry's typical high leverage.

Cash Flow

Operating cash flow has turned negative in 2024, contrasting sharply with positive cash flow in 2023, indicating potential liquidity issues. The free cash flow has also declined, resulting in a -171.39% growth rate. However, the operating cash flow to net income ratio is unavailable for 2024, limiting further analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.86B	129.02B	121.36B	110.90B	75.34B	50.88B
Gross Profit	31.74B	43.92B	35.54B	41.96B	46.50B	30.90B
EBITDA	14.63B	21.92B	14.66B	22.16B	27.18B	12.24B
Net Income	9.31B	13.37B	9.45B	14.29B	15.53B	13.42B
Balance Sheet
Total Assets	1.59B	1.24T	1.12T	985.45B	931.21B	933.58B
Cash, Cash Equivalents and Short-Term Investments	844.00M	296.96B	253.04B	205.07B	202.81B	188.67B
Total Debt	0.00	135.37B	144.02B	126.66B	98.68B	70.00B
Total Liabilities	406.00M	1.12T	1.00T	874.77B	825.23B	827.49B
Stockholders Equity	1.19B	119.49B	114.45B	110.18B	105.64B	105.78B
Cash Flow
Free Cash Flow	27.59B	-23.74B	33.26B	3.98B	4.44B	40.31B
Operating Cash Flow	29.07B	-21.13B	36.61B	6.85B	6.81B	42.32B
Investing Cash Flow	-18.08B	-2.02B	-2.58B	-2.71B	-1.93B	-1.16B
Financing Cash Flow	381.88M	930.18M	5.82B	12.75B	-658.51M	-34.15B

Banco Santander Brasil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSBR, the sentiment is Positive. The current price of 5.39 is below the 20-day moving average (MA) of 5.90, below the 50-day MA of 5.55, and above the 200-day MA of 5.00, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 73.39 is Negative, neither overbought nor oversold. The STOCH value of 76.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSBR.

Banco Santander Brasil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIB	79 Outperform	$15.59B	12.68	17.06%	10.43%	-6.79%	16.13%
BBD	71 Outperform	$35.75B	10.39	11.78%	1.80%	5.89%	34.68%
BCH	71 Outperform	$17.69B	13.82	21.29%	5.72%	-11.64%	-8.75%
BSBR	70 Outperform	$22.78B	21.60	9.34%	5.34%	1.13%	-11.93%
BSAC	69 Neutral	$13.55B	12.10	24.13%	4.54%	12.43%	56.30%
BBDO	69 Neutral	$35.75B	8.97	11.78%	0.83%	5.89%	34.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%