Renta 4 Banco, S.A. (R4) AI Stock Analysis

• Market Cap: €779.92M
• Dividend Yield: 2.8%
• Average Volume (3M): 5.40K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.14
• Revenue Growth: 16.79%
• EPS Growth: 31.55%
• Country: ES
• Employees: 728
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.29
• Shares Outstanding: 40,693,203
• 10 Day Avg. Volume: 7,068
• 30 Day Avg. Volume: 5,398
• PEG Ratio: 0.59
• Price to Book (P/B): 4.65
• Price to Sales (P/S): 2.74
• P/FCF Ratio: 19.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 69 Neutral
• Price Target: €21.00 ▲(8.25% Upside)
• Action: Downgraded Date: 03/06/26
• Date: Action: Downgraded 03/06/26

The score is driven primarily by solid profitability/returns and a conservative leverage profile, offset by volatile cash-flow consistency. Technicals are mildly constructive but not strong, and valuation appears reasonable with a moderate dividend yield.

Positive Factors

Strong profitability and ROE

Sustained high ROE (~18–24%) and steady equity growth indicate efficient capital use and persistent profitability. This supports the bank’s ability to fund dividends, reinvest in client services, and compete for talent and mandates, creating a durable earnings base that underpins long-term wealth-management operations.

Conservative leverage and balance-sheet flexibility

Low debt-to-equity and conservative leverage provide financial flexibility and reduce solvency risk in stress. For a bank/asset manager this means more capacity to absorb market shocks, support client outflows, pursue selective growth or acquisitions, and maintain regulatory buffers over the medium term.

Diversified fee-based revenue model

A multi-line fee-driven model (brokerage, custody, advisory, asset management plus banking income) creates recurring revenue linked to AUM and client relationships. This reduces reliance on single volatile revenue streams and supports predictable fees and cross-sell opportunities, strengthening long-term earnings resilience.

Negative Factors

Inconsistent cash-flow generation

Significant year-to-year swings in operating and free cash flow undermine confidence in cash conversion and funding predictability. This variability complicates dividend policy, capital allocation and investment planning, and may force reliance on external funding when internal cash is weak.

Volatile revenue growth and margin pressure

Large swings in revenue and recent margin compression signal sensitivity to market cycles and client flows. This makes earnings less predictable, pressures operating leverage and strategic investment, and raises execution risk for sustaining long-term profit growth in a competitive asset-management market.

High asset base relative to equity increases sensitivity

A large asset base vs equity amplifies the impact of market value shifts on capital ratios and regulatory metrics. Even with low debt, asset-value volatility can erode buffers, potentially forcing asset sales or capital raises in stressed markets, limiting strategic flexibility over time.

Renta 4 Banco, S.A. Business Overview & Revenue Model

Company Description

Renta 4 Banco, S.A., together with its subsidiaries, provides wealth management, brokerage, and corporate advisory services in Spain and internationally. It is involved in the management of collective investment institution (CII) and pension funds; discretionary management of equity portfolios and investment funds, or a combination of equity and investment funds; and provision of wealth management services. The company also offers security and CII custodian services; corporate advisory services, such as corporate finance or M&A; underwriting and placement services; and public debt management services, as well as outsources various services and corporate services. In addition, it engages in the purchase and sale of securities and other financial instruments in Spain and international markets; and sale of CIIs and pension plans that are managed by the company and belonging to third parties. The company was founded in 1985 and is headquartered in Madrid, Spain.

How the Company Makes Money

Renta 4 Banco generates revenue through various streams primarily focused on fees and commissions from its financial services. Key revenue sources include brokerage fees from executing trades for clients, management fees from its asset management services, and advisory fees for financial planning and investment advice. Additionally, the company earns interest income from its banking operations, such as loans and deposits. R4 also benefits from strategic partnerships with other financial entities and asset managers, which can enhance its service offerings and client base, thereby contributing to its overall earnings.

Renta 4 Banco, S.A. Financial Statement Overview

Summary

Strong profitability and returns with conservative leverage and steadily growing equity, supported by a sharp 2025 revenue rebound. The main drag is cash-flow inconsistency (notable 2022 outflow and weaker 2025 vs. prior years), which reduces confidence in earnings-to-cash conversion stability.

Income Statement

Profitability is solid with consistently positive earnings and healthy operating profitability, while 2025 shows a sharp revenue rebound (+57.8% YoY) and higher absolute profit. That said, margins in 2025 compressed versus 2024 (lower gross and net profitability), and revenue growth has been more volatile over time (declines in 2022 and 2024), which slightly lowers the quality of the growth profile.

Balance Sheet

Leverage looks conservative overall, with low debt relative to equity across the period (and 2024 debt-to-equity around 0.16), providing balance-sheet flexibility. Shareholders’ equity has grown steadily from 2022–2025 and returns on equity are strong (roughly ~18%–24%), signaling efficient capital use. A watch item is that total assets are large relative to equity (typical for financial firms), which can amplify sensitivity to market/asset-value swings even when stated debt is modest.

Cash Flow

Cash generation is mixed: operating and free cash flow were very strong in 2021–2024, but 2022 saw a large negative operating and free cash flow, and 2025 cash flow is much lower than the prior two years. While free cash flow has often been high relative to net income (near ~1x in 2020–2024), the sharp year-to-year swings reduce confidence in consistency and make cash conversion less predictable.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	190.29M	300.33M	183.97M	200.18M	113.90M	120.19M
Gross Profit	159.16M	153.61M	152.80M	131.54M	110.01M	115.56M
EBITDA	59.80M	72.43M	56.80M	48.24M	39.42M	41.96M
Net Income	34.09M	42.63M	32.14M	26.13M	21.54M	25.34M
Balance Sheet
Total Assets	2.50B	2.56B	2.48B	2.19B	2.41B	2.20B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.35B	1.55B	1.10B	779.88M	1.20B
Total Debt	0.00	48.52M	25.46M	23.95M	21.80M	19.72M
Total Liabilities	2.33B	2.38B	2.32B	2.05B	2.29B	2.07B
Stockholders Equity	161.55M	176.88M	157.95M	140.08M	116.48M	129.21M
Cash Flow
Free Cash Flow	0.00	41.51M	474.30M	356.71M	-404.64M	469.01M
Operating Cash Flow	0.00	55.05M	487.61M	366.21M	-396.20M	476.58M
Investing Cash Flow	0.00	-275.78M	-16.77M	-14.03M	-8.44M	-7.57M
Financing Cash Flow	0.00	28.09M	4.28M	-30.20M	-18.50M	-17.74M

Renta 4 Banco, S.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:R4, the sentiment is Neutral. The current price of 19.4 is above the 20-day moving average (MA) of 19.08, above the 50-day MA of 19.04, and above the 200-day MA of 18.26, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 76.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:R4.

Renta 4 Banco, S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
R4	69 Neutral	€779.92M	17.20	22.49%	2.80%	16.79%	31.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SAB	66 Neutral	€15.12B	10.53	7.75%	7.43%	-6.77%	-39.63%
BKT	64 Neutral	€12.08B	11.67	16.71%	3.64%	-7.12%	15.96%
UNI	62 Neutral	$6.51B	11.30	8.76%	5.80%	-9.39%	45.60%