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

• Market Cap: €775.85M
• Dividend Yield: 2.78%
• Average Volume (3M): 5.40K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.07
• Revenue Growth: 16.79%
• EPS Growth: 31.55%
• Country: ES
• Employees: 728
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.26
• Shares Outstanding: 40,693,203
• 10 Day Avg. Volume: 7,068
• 30 Day Avg. Volume: 5,398
• PEG Ratio: 0.68
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 1.07
• 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: 70 Outperform
• Price Target: €21.00 ▲(11.11% Upside)

Renta 4 Banco, S.A. maintains a stable financial position with a strong balance sheet and solid cash flow generation. The technical indicators suggest neutral market sentiment, while the valuation metrics indicate moderate attractiveness. The absence of earnings call data and corporate events does not impact the overall assessment.

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

Renta 4 Banco, S.A. demonstrates a generally stable financial condition. The income statement shows some volatility in revenue and profit metrics, but the balance sheet is strong with zero debt, and cash flow generation is solid. The company should focus on improving operational efficiency and converting earnings into cash.

Income Statement

Renta 4 Banco, S.A. has shown a mixed performance in recent years. The company experienced a decline in total revenue from 2023 to 2024, but net income increased, resulting in an improved net profit margin. The gross profit margin is strong, indicating effective cost management. However, the absence of EBIT and EBITDA in 2024 suggests potential challenges in operating efficiency.

Balance Sheet

The balance sheet reveals a solid financial position with zero total debt as of 2024, providing financial stability. The equity ratio indicates a healthy portion of the company's assets is financed by equity. Return on equity has improved, reflecting better utilization of shareholder funds. Overall, the company maintains a strong balance sheet with low leverage risk.

Cash Flow

The cash flow statement shows strong operating cash flow in 2024, significantly increasing compared to the previous year, leading to a robust free cash flow. However, the lack of growth in free cash flow relative to net income may suggest inefficiencies in converting earnings to cash. Despite this, the company maintains positive cash flow trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	190.29M	183.97M	200.18M	113.90M	120.19M	99.64M
Gross Profit	159.16M	152.80M	131.54M	110.01M	115.56M	95.61M
EBITDA	59.80M	56.80M	48.24M	39.42M	41.96M	32.97M
Net Income	34.09M	32.14M	26.13M	21.54M	25.34M	18.14M
Balance Sheet
Total Assets	2.50B	2.48B	2.19B	2.41B	2.20B	1.78B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.55B	1.10B	779.88M	1.20B	744.90M
Total Debt	0.00	25.46M	23.95M	21.80M	19.72M	20.64M
Total Liabilities	2.33B	2.32B	2.05B	2.29B	2.07B	1.66B
Stockholders Equity	161.55M	157.95M	140.08M	116.48M	129.21M	120.77M
Cash Flow
Free Cash Flow	0.00	474.30M	356.71M	-404.64M	469.01M	106.61M
Operating Cash Flow	0.00	487.61M	366.21M	-396.20M	476.58M	113.16M
Investing Cash Flow	0.00	-16.77M	-14.03M	-8.44M	-7.57M	-6.56M
Financing Cash Flow	0.00	4.28M	-30.20M	-18.50M	-17.74M	-13.78M

Renta 4 Banco, S.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.90
• 50DMA: Negative
• 100DMA: Positive
• 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 18.9 is below the 20-day moving average (MA) of 19.09, below the 50-day MA of 19.14, and above the 200-day MA of 16.52, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 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
UNI	76 Outperform	$6.76B	10.81	8.76%	5.96%	-9.39%	45.60%
BKT	75 Outperform	€12.27B	11.87	16.71%	3.77%	-7.12%	15.96%
R4	70 Outperform	€775.85M	19.63	22.49%	2.78%	16.79%	31.55%
GCO	68 Neutral	€5.85B	8.76	11.53%	2.46%	4.70%	18.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%