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Inter & Company Incorporation Class A (INTR)
:INTR
RESEARCH TOOLSreports
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Inter & Company Incorporation Class A
(NASDAQ:INTR)
69Neutral
Positive Factors
Customer Engagement
The growing number of credit active clients, reaching 5.1 million in the second quarter of 2024, shows positive customer engagement.
Earnings
EPS estimates for 2025 and 2026 have been updated to higher figures, indicating expected earnings growth.
Portfolio Growth
The company is pleased with the current level of portfolio growth, having delivered a +35% y/y expansion in 3Q24.
Negative Factors
Monetization
Inter's average revenue per active customer has remained flat over the past three years, despite offering a comprehensive range of products and services.
Profitability
Valuation relative to profitability looks unattractive with shares trading above book value and expected ROE below the cost of capital.
Valuation
With ROE below the cost of equity, the valuation appears limited for further expansion.
Inter & Company Incorporation Class A (INTR) vs. S&P 500 (SPY)
Market Cap
$2.32B
Dividend Yield<0.01%
Average Volume (3M)3.43M
Price to Earnings (P/E)15.0
Beta (1Y)0.47
Revenue Growth17.46%
EPS Growth153.58%
CountryUS
Employees4,030
SectorFinancial
Sector Strength84
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.39
Shares Outstanding285,153,440
10 Day Avg. Volume2,184,618
30 Day Avg. Volume3,425,143
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)N/A
Price to Sales (P/S)3.12
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside-30.80% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
Inter & Company Incorporation Class A Business Overview & Revenue Model
Company DescriptionInter & Company Incorporation Class A (INTR) is a diversified financial services company operating primarily in the fintech sector. It provides a comprehensive suite of digital banking services, including personal banking, credit offerings, and investment products, primarily through its digital platform. The company aims to simplify financial services for consumers by leveraging technology to offer seamless, accessible, and affordable financial solutions.
How the Company Makes MoneyInter & Company Incorporation makes money through various revenue streams, primarily driven by its digital banking platform. Key revenue sources include interest income from loans and credit products, fees from banking transactions, and service charges from investment products. Additionally, the company generates revenue from partnerships with other financial institutions and service providers that leverage its platform for additional services. Its digital-first approach and extensive use of technology enable it to operate with lower costs, thus enhancing its profitability.
Inter & Company Incorporation Class A Financial Statement Overview
Summary
The company demonstrates strong revenue growth and high gross profit margins, indicating effective cost management. However, lower profitability ratios and a decline in free cash flow highlight areas for improvement in operational efficiency and liquidity management.Income Statement
The company shows strong revenue growth with a significant jump from $3.21 billion in 2023 to $7.17 billion in TTM. The Gross Profit Margin is exceptionally high due to high gross profit figures relative to revenue, indicating cost efficiency. However, the EBIT Margin and Net Profit Margin are lower, which suggests higher operational costs or other expenses affecting profitability.75
Positive
Balance Sheet
Balance sheet analysis reveals a moderate Debt-to-Equity Ratio, implying manageable leverage. However, the equity ratio shows equity financing is relatively lower compared to total assets. The Return on Equity is positive and improving, which is favorable, yet the low equity ratio could pose potential risks.70
Positive
Cash Flow
The cash flow situation is stable with positive operating cash flow, though free cash flow shows a decrease from the previous period. The Operating Cash Flow to Net Income Ratio indicates efficient cash generation relative to net earnings, but free cash flow to net income shows a decline, which might suggest higher capital expenditures or investments impacting free cash flow.68
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.17B | 3.21B | 3.56B | 2.58B | 1.14B | 753.67M | Gross Profit |
| 8.31B | 7.85B | 3.56B | 2.58B | 1.14B | 753.67M | EBIT |
| 894.53M | 798.47M | 1.80B | -58.98M | -61.86M | 80.42M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 782.84M | 302.34M | -14.08M | 64.70M | 5.58M | 78.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.76B | 4.26B | 17.55B | 16.09B | 9.68B | 3.76B | Total Assets |
| 10.02B | 60.35B | 46.34B | 36.48B | 19.80B | 10.02B | Total Debt |
| 696.01M | 8.32B | 6.39B | 3.60B | 1.76B | 696.01M | Net Debt |
| -3.06B | 2.04B | -1.46B | -1.36B | -2.64B | -3.06B | Total Liabilities |
| 7.82B | 52.76B | 39.25B | 3.65B | 16.45B | 7.82B | Stockholders Equity |
| 2.20B | 7.47B | 6.99B | 8.49B | 3.30B | 2.20B |
| Cash Flow | Free Cash Flow | ||||
| 740.26M | 1.95B | 1.95B | -147.56M | 2.41B | 783.26M | Operating Cash Flow |
| 1.17B | 2.22B | 2.24B | 167.52M | 2.61B | 859.47M | Investing Cash Flow |
| -10.41B | -4.67B | -187.65M | -7.19B | -4.65B | -538.68M | Financing Cash Flow |
| 4.41B | 8.97B | 4.09B | 5.35B | 1.11B | 1.24B |
Inter & Company Incorporation Class A Technical Analysis
Neutral
5.78
Price Trends
5.21
Positive
5.15
Positive
5.85
Negative
Market Momentum
0.17
Negative
53.41
Neutral
65.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTR, the sentiment is Neutral. The current price of 5.78 is above the 20-day moving average (MA) of 5.51, above the 50-day MA of 5.21, and below the 200-day MA of 5.85, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 65.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INTR.
Inter & Company Incorporation Class A Risk Analysis
Inter & Company Incorporation Class A disclosed 73 risk factors in its most recent earnings report. Inter & Company Incorporation Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Inter & Company Incorporation Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $55.41B | 28.35 | 28.07% | ― | 47.34% | 89.96% | |
74 Outperform | $69.43B | 17.75 | 20.00% | ― | 7.10% | 4.45% | |
73 Outperform | $38.77B | 13.75 | 14.50% | ― | 10.06% | 38060.98% | |
69 Neutral | $2.32B | 14.97 | 11.24% | <0.01% | 17.46% | 153.58% | |
68 Neutral | $11.19B | 20.25 | 6.63% | 3.29% | 3.41% | -12.41% | |
64 Neutral | $14.11B | 35.91 | 8.26% | ― | 29.33% | ― | |
64 Neutral | $14.46B | 10.12 | 8.75% | 4.25% | 17.00% | -11.86% |
* Financial Sector Average
Performance Comparison
INTR
Inter & Company Incorporation Class A
5.61
-0.19
-3.28%
ALLY
Ally Financial
37.88
-0.36
-0.94%
PYPL
PayPal Holdings
70.97
4.97
7.53%
XYZ
Block
62.58
-20.04
-24.26%
SOFI
SoFi Technologies
13.72
6.27
84.16%
NU
Nu Holdings
11.69
-0.48
-3.94%
Inter & Company Incorporation Class A Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 11.15% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, with strong growth in net income, client acquisition, and various business segments. Global expansion and product innovation were highlighted as significant achievements. However, challenges in improving the efficiency ratio and capital ratio were noted, though they did not significantly detract from the overall positive sentiment of the call.Highlights
Record Net Income for 2024
2024 net income was more than the company's prior years combined, showcasing the success of their business model and profitability.
Significant Client Growth
The company added over four million clients in 2024, finishing the year with over 36 million clients and a 57% activation rate.
Strong Performance in Banking and TPV
TPV increased by 45% year over year, reaching a 1.5 trillion reais run rate in 4Q24. Inter & Co gained 14 basis points in PIX market share, reaching 8.3%.
Record Growth in Insurance and Marketplace
Insurance vertical achieved a 312% growth in active contracts, and the marketplace saw a 79% year-over-year growth in net revenues.
Global Expansion Milestone
The global account reached 3.9 million clients, with a 52% increase in deposit balance over the year.
Lowlights
Slight Efficiency Ratio Improvement
Despite a slight improvement, expense growth remained elevated, affecting the efficiency ratio and progress towards the 30% long-term target.
Core Tier One Ratio Concerns
The core Tier one ratio decreased to 15.2%, raising questions about capital adequacy despite excess capital at the holding level.
Company Guidance
In the fourth quarter of 2024, Inter & Co, Inc. delivered significant financial achievements, surpassing all prior years' combined net income. With an impressive annual net income of 973 million reais, the company achieved a 33% year-over-year growth in loan portfolios, with standout performances in FGTS and home equity products, each growing over 50%. They also reported a total gross revenue exceeding 10 billion reais and a net revenue of 6.4 billion reais, with a notable 37% increase in net interest income (NII) and a 31% rise in net fees. Customer growth was robust, with over 36 million clients and a 57% activation rate, contributing to a total payment volume (TPV) increase of 45% year-over-year, reaching a 1.5 trillion reais run rate. The company's NIM expanded significantly, and the cost of risk stabilized at 5.0%, reflecting improved asset quality metrics. Inter & Co, Inc. also celebrated a strong ROE of 11.7% and maintained a cost of funding at 64% of CDI. Additionally, they expanded their global client base to 3.9 million and enhanced their marketplace, achieving a 79% year-over-year growth in net revenues.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.