tiprankstipranks
Trending News
More News >
Inter & Company Incorporation Class A (INTR)
NASDAQ:INTR
US Market

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

Compare
187 Followers

Top Page

IN

Inter & Company Incorporation Class A

(NASDAQ:INTR)

Rating:70Neutral
Price Target:
Inter & Co, Inc. demonstrates strong financial performance with notable revenue and profitability growth, yet faces liquidity challenges and moderate leverage. The stock's technical indicators show positive momentum, and the valuation is reasonable despite a low dividend yield. The recent earnings call was predominantly positive, showcasing significant achievements, although efficiency and capital adequacy remain areas for improvement. These factors collectively contribute to a moderately strong overall stock score.
Positive Factors
Competitive Advantages
Inter is optimistic about the private payroll loans opportunity, citing low cost of funding and fully digital distribution as competitive advantages.
Credit Growth
Management expects credit growth to accelerate to 25% to 30%.
Earnings Growth
EPS estimates for 2025 and 2026 have been updated to higher figures, indicating expected earnings growth.
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.
Earnings Performance
The company delivered 1Q results that came in well below consensus with a 7% miss on net 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)

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 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 Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q4-2024)
|
% Change Since: 1.97%|
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 & Co, Inc. is experiencing significant revenue growth and improving profitability margins, with a strong income statement score due to increased net profit margins and operational efficiency. However, the balance sheet indicates moderate leverage and room for improvement in ROE, while cash flow challenges suggest potential liquidity issues, affecting the overall financial performance.
Income Statement
75
Positive
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
60
Neutral
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
55
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.60B3.21B3.56B2.58B1.14B
Gross Profit
4.60B3.21B3.56B2.58B1.14B
EBIT
1.73B798.47M1.80B-58.98M-61.86M
EBITDA
0.000.000.000.000.00
Net Income Common Stockholders
907.13M302.34M-14.08M64.70M5.58M
Balance SheetCash, Cash Equivalents and Short-Term Investments
983.20M4.26B17.55B16.09B9.68B
Total Assets
76.46B60.35B46.34B36.48B19.80B
Total Debt
3.48B8.32B6.39B3.60B1.76B
Net Debt
2.50B2.04B-1.46B-1.36B-2.64B
Total Liabilities
67.39B52.76B39.25B3.65B16.45B
Stockholders Equity
8.90B7.47B6.99B8.49B3.30B
Cash FlowFree Cash Flow
-6.47B1.95B1.95B-147.56M2.41B
Operating Cash Flow
-6.39B2.22B2.24B167.52M2.61B
Investing Cash Flow
-7.73B-4.67B-187.65M-7.19B-4.65B
Financing Cash Flow
10.83B8.97B4.09B5.35B1.11B

Inter & Company Incorporation Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.25
Price Trends
50DMA
6.47
Positive
100DMA
5.90
Positive
200DMA
5.85
Positive
Market Momentum
MACD
0.12
Positive
RSI
61.51
Neutral
STOCH
43.08
Neutral
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 7.25 is above the 20-day moving average (MA) of 7.02, above the 50-day MA of 6.47, and above the 200-day MA of 5.85, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 43.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
$2.34B10.169.58%3.93%8.05%-3.31%
75
Outperform
$2.20B10.649.16%3.81%1.42%2.77%
71
Outperform
$2.35B11.137.70%3.68%24.53%0.16%
70
Neutral
$3.01B16.6811.11%<0.01%17.46%153.58%
PFPFS
68
Neutral
$2.23B15.406.77%5.62%80.24%-30.60%
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
61
Neutral
$2.25B21.954.33%2.80%121.04%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INTR
Inter & Company Incorporation Class A
7.25
1.70
30.63%
FFBC
First Financial Bancorp
24.03
3.73
18.37%
FRME
First Merchants
37.32
7.04
23.25%
BANC
Banc of California
14.11
1.37
10.75%
PFS
Provident Financial Services
17.08
4.29
33.54%
WAFD
Washington Federal
29.10
3.42
13.32%
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.