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Inter & Company Incorporation Class A (INTR)
NASDAQ:INTR
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Inter & Company Incorporation Class A
(NASDAQ:INTR)
Rating:69Neutral
Price Target:
$7.50
▲(4.90%Upside)
Positive Factors
Earnings Growth
EPS estimates for 2025 and 2026 have been updated to higher figures, indicating expected earnings growth.
Growth Opportunities
Management expects credit growth to accelerate to 25% to 30%, up from 21%, showcasing growth potential.
Market Share Expansion
Inter is optimistic about private payroll loans, believing its competitive advantages will allow it to capture significant market share.
Negative Factors
Customer Monetization
Stagnant customer monetization is a concern as Inter's average revenue per active customer has remained flat over the past three years.
Financial Performance
The company delivered results that were below consensus, with a 7% miss on net income and a 10% miss on pre-tax income.
Valuation Concerns
Valuation relative to profitability looks unattractive with shares trading above book value and expected ROE below the cost of capital.
Inter & Company Incorporation Class A (INTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.14B
Dividend Yield1.12%
Average Volume (3M)1.97M
Price to Earnings (P/E)17.4
Beta (1Y)0.30
Revenue Growth14.29%
EPS Growth75.98%
CountryUS
Employees4,030
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.11
Shares Outstanding322,639,600
10 Day Avg. Volume2,367,703
30 Day Avg. Volume1,970,673
Financial Highlights & Ratios
PEG Ratio-1.31
Price to Book (P/B)4.49
Price to Sales (P/S)0.00
P/FCF Ratio12.59
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-44.06% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
Inter & Company Incorporation Class A Business Overview & Revenue Model
Company DescriptionInter & Co, Inc., through its subsidiaries, engages in the banking, securities, insurance brokerage, marketplace, asset management, and services businesses. The company's Banking segment offers banking products and services, including checking accounts, cards, deposits, loans and advances, and other services. Its Securities segment provides services relating to the purchase, sale, and custody of securities; and portfolio management, as well as the establishment, organization, and management of investment funds. The company's Insurance Brokerage segment offers life, property, auto, financial, lost or stolen credit card, dental, warranties, travel, and credit protection insurance products. Its Marketplace segment operates a digital platform that offer goods and/or services to its customers. The company's Asset Management segment is involved in the operations related to the management of fund portfolios and other assets. Its Services segment provides services in the collection and management of personal information; development and licensing of customized and non-customized computer programs; and technical support, maintenance, and other information technology services. The company was founded in 1994 and is based in Belo Horizonte, Brazil.
How the Company Makes MoneyInter & Company makes money through a diversified revenue model that includes interest income from lending activities, fees from financial services, and commissions from investment products. The company generates interest income by offering loans and credit products to both individual and business clients. Additionally, it earns revenue from transaction fees and service charges associated with its banking and payment services. The company's digital platforms also enable it to offer investment services, generating commissions and management fees. Significant partnerships with other financial institutions and fintech companies may enhance its service offerings and contribute to its earnings.
Inter & Company Incorporation Class A Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q4-2024)
| % Change Since: 0.56%|
Next Earnings Date:Aug 18, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.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.75
Positive
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.60
Neutral
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.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.57B | 9.71B | 7.64B | 5.54B | 2.77B | 1.12B |
| Gross Profit | 4.91B | 4.60B | 3.21B | 2.48B | 1.63B | 1.12B |
| EBITDA | 1.52B | 1.41B | 600.28M | -14.60M | -172.72M | 0.00 |
| Net Income | 1.01B | 907.13M | 302.34M | -11.09M | -72.67M | 17.91M |
Balance Sheet | ||||||
| Total Assets | 80.56B | 76.46B | 60.35B | 46.34B | 36.48B | 19.80B |
| Cash, Cash Equivalents and Short-Term Investments | 29.07B | 27.88B | 4.26B | 17.55B | 16.09B | 9.68B |
| Total Debt | 15.00B | 3.48B | 8.32B | 6.39B | 3.60B | 1.76B |
| Total Liabilities | 71.55B | 67.39B | 52.76B | 39.25B | 3.65B | 16.45B |
| Stockholders Equity | 8.90B | 8.90B | 7.47B | 6.99B | 8.49B | 3.30B |
Cash Flow | ||||||
| Free Cash Flow | -400.36M | -6.47B | 1.95B | 1.95B | -147.56M | 2.41B |
| Operating Cash Flow | 2.56B | -6.39B | 2.22B | 2.24B | 167.52M | 2.61B |
| Investing Cash Flow | -7.36B | -7.73B | -4.67B | -187.65M | -7.19B | -4.65B |
| Financing Cash Flow | 3.29B | 10.83B | 8.97B | 4.09B | 5.35B | 1.11B |
Inter & Company Incorporation Class A Technical Analysis
Neutral
7.15
Price Trends
6.97
Positive
6.21
Positive
5.86
Positive
Market Momentum
0.13
Positive
49.09
Neutral
22.87
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 7.15 is below the 20-day moving average (MA) of 7.23, above the 50-day MA of 6.97, and above the 200-day MA of 5.86, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 22.87 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.40B | 10.45 | 9.58% | 3.82% | 8.05% | -3.31% | |
73 Outperform | $2.36B | 16.31 | 6.77% | 5.48% | 80.24% | -30.60% | |
71 Outperform | 14.88B | 17.24 | 15.69% | 4.36% | 8.25% | 25.93% | |
71 Outperform | $2.32B | 11.20 | 9.16% | 3.76% | 1.42% | 2.67% | |
71 Outperform | $2.44B | 11.54 | 7.70% | 3.55% | 24.53% | 0.16% | |
69 Neutral | $3.14B | 17.41 | 11.11% | 1.12% | 14.29% | 75.98% | |
66 Neutral | $2.25B | 22.01 | 4.33% | 2.79% | 121.00% | ― |
* Financial Sector Average
Performance Comparison
INTR
Inter & Company Incorporation Class A
6.93
0.88
14.55%
FFBC
First Financial Bancorp
25.62
4.69
22.41%
FRME
First Merchants
40.33
9.09
29.10%
BANC
Banc of California
14.60
2.20
17.74%
PFS
Provident Financial Services
18.51
5.00
37.01%
WAFD
Washington Federal
30.89
3.90
14.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.