Inter & Company Incorporation Class A (INTR) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: 1.03%
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.38
• Revenue Growth: 19.47%
• EPS Growth: 48.35%
• Country: US
• Employees: 4,030
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.13
• Shares Outstanding: 322,639,600
• 10 Day Avg. Volume: 2,456,567
• 30 Day Avg. Volume: 2,225,318
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 1.38
• Enterprise Value/Ebitda: 4.44
• 1Y Price Target: $8.50
• Price Target Upside: 9.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $8.50 ▲(9.54% Upside)

Inter & Company demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. Technical analysis suggests a positive trend, though caution is advised due to potential overbought conditions. Valuation is reasonable, supporting a solid overall score.

Positive Factors

Credit Growth

Management anticipates credit growth to accelerate, expecting an increase to 25% to 30%, up from 21% year-over-year in the first quarter.

Market Opportunities

Inter is optimistic about the private payroll loans opportunity, leveraging competitive advantages such as low funding costs and a fully digital distribution model to capture significant market share.

Negative Factors

Customer Monetization

Customer monetization remains weak, as indicated by a 7% decline in net average revenue per active customer quarter-over-quarter.

Financial Performance

The company delivered Q1 results that missed consensus expectations, with a 7% shortfall in net income and a 10% miss on pre-tax income.

Return on Equity

Return on equity remains limited for further expansion, as it is below the cost of equity, indicating constrained valuation growth.

Revenue Growth

Expenses continue to outpace net revenue growth year-over-year, suggesting that further efficiency gains will be challenging.

Inter & Company Incorporation Class A Business Overview & Revenue Model

Company Description

Inter & Company Incorporation Class A (INTR) is a diversified financial services company that operates primarily within the digital banking and financial technology sectors. The company offers a range of products and services including digital banking solutions, personal and business accounts, loans, investments, and insurance products. INTR is committed to providing innovative and accessible financial services by leveraging technology to enhance customer experience.

How the Company Makes Money

Inter & Company generates revenue through a variety of streams. Its primary source of income is the interest earned on loans and credit products provided to individual and business clients. Additionally, the company earns fees from account maintenance, transactions, and other banking services. Revenue is also generated from investment management fees and commissions on insurance products. Strategic partnerships with fintech companies and financial institutions further bolster its revenue by expanding its product offerings and market reach. Digital banking's low operational costs and scale advantages contribute significantly to the company's profitability.

Inter & Company Incorporation Class A Financial Statement Overview

Summary

Inter & Company Incorporation exhibits strong revenue growth and improving profitability margins, with a significant increase in revenue and a robust gross profit margin. However, cash flow challenges, highlighted by negative free cash flow and a negative operating cash flow to net income ratio, indicate potential liquidity issues. The moderate leverage and return on equity show some financial stability but leave room for improvement.

Income Statement

Inter & Company Incorporation has shown strong revenue growth over recent years, with a notable increase from $1.14 billion in 2020 to $4.60 billion in 2024. The gross profit margin remains robust at 100%, as is typical in the banking sector, and the net profit margin has improved significantly, reaching 19.71% in 2024. However, the EBIT margin has shown volatility, with a recent increase to 37.7% in 2024, indicating improved operational efficiency. The absence of EBITDA data limits a full assessment of operating performance.

Balance Sheet

The company's balance sheet shows moderate leverage with a debt-to-equity ratio of 0.39 in 2024, down from previous years, which indicates improved financial stability. The equity ratio stands at 11.63% in 2024, reflecting a conservative capital structure. However, the return on equity of 10.2% in 2024 signals moderate profitability relative to shareholders' equity, suggesting room for improvement in generating returns from equity capital.

Cash Flow

Inter & Company Incorporation's cash flow analysis reveals challenges with negative free cash flow growth, declining from $1.95 billion in 2023 to -$6.47 billion in 2024, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting operational cash flow concerns. While the financing cash flow remains positive, driven by substantial cash inflows, reliance on external financing could pose risks if not managed carefully.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.71B	7.64B	5.54B	2.77B	1.12B
Gross Profit	4.60B	3.21B	2.48B	1.63B	1.12B
EBITDA	1.41B	600.28M	-14.60M	-172.72M	0.00
Net Income	907.13M	302.34M	-11.09M	-72.67M	17.91M
Balance Sheet
Total Assets	76.46B	60.35B	46.34B	36.48B	19.80B
Cash, Cash Equivalents and Short-Term Investments	27.88B	4.26B	17.55B	16.09B	9.68B
Total Debt	3.48B	8.32B	6.39B	3.60B	1.76B
Total Liabilities	67.39B	52.76B	39.25B	3.65B	16.45B
Stockholders Equity	8.90B	7.47B	6.99B	8.49B	3.30B
Cash Flow
Free Cash Flow	-6.47B	1.95B	1.95B	-147.56M	2.41B
Operating Cash Flow	-6.39B	2.22B	2.24B	167.52M	2.61B
Investing Cash Flow	-7.73B	-4.67B	-187.65M	-7.19B	-4.65B
Financing Cash Flow	10.83B	8.97B	4.09B	5.35B	1.11B

Inter & Company Incorporation Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTR, the sentiment is Positive. The current price of 7.76 is above the 20-day moving average (MA) of 6.95, above the 50-day MA of 7.07, and above the 200-day MA of 5.91, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 67.96 is Neutral, neither overbought nor oversold. The STOCH value of 91.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INTR.

Inter & Company Incorporation Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTR	78 Outperform	$3.41B	17.41	12.12%	1.03%	19.47%	48.35%
FFBC	77 Outperform	$2.26B	9.46	9.77%	4.06%	4.62%	2.69%
PFS	75 Outperform	$2.38B	10.27	8.78%	5.30%	66.96%	67.27%
WAFD	74 Outperform	$2.34B	11.33	7.59%	3.57%	8.75%	5.16%
FRME	71 Outperform	$2.17B	9.76	9.90%	3.76%	-1.18%	23.43%
BANC	64 Neutral	$2.29B	22.51	4.32%	2.76%	49.10%	―
Sector *	58 Neutral	HK$110.80B	6.36	-4.20%	4.00%	8.89%	-46.47%