Banco Santander Brasil (BSBR) AI Stock Analysis

• Market Cap: $17.02B
• Dividend Yield: 4.79%
• Average Volume (3M): 561.01K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.41
• Revenue Growth: -3.94%
• EPS Growth: 31.52%
• Country: US
• Employees: 55,646
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 0.33
• Shares Outstanding: 3,749,265,600
• 10 Day Avg. Volume: 612,217
• 30 Day Avg. Volume: 561,014
• PEG Ratio: 0.44
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.74
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: $4.80
• Price Target Upside: 5.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Banco Santander Brasil's overall score is driven by strong revenue growth and profitability, supported by a solid balance sheet. The major concern is the decline in cash flow, which raises liquidity management questions. Technical indicators show positive momentum, but caution is advised as the stock approaches overbought status. Valuation remains reasonable with a decent dividend yield.

Positive Factors

Financial Performance

Santander reported another quarter of ROE expansion, driven by improving client NII and efficiency gains.

Net Income

Net income continued to improve; ROE of 17.3% in 4Q24.

Negative Factors

Capital Ratio

Lower capital ratio, negatively impacted by the settlement of a legal dispute.

Regulatory Impact

The bank reported the negative impacts related to implementation of CMN Resolution 4,966, which demands higher provisions charges.

Banco Santander Brasil Business Overview & Revenue Model

Company Description

Banco Santander (Brasil) S.A., together with its subsidiaries, provides various banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. The company operates in two segments, Commercial Banking and Global Wholesale Banking. It offers deposits and other bank funding instruments; debit and credit cards; digital prepaid solutions; payment platform; loyalty programs; employee benefit vouchers; payroll loans; digital lending and online debt renegotiation services; mortgages; home equity financing products; consumer credit; and local loans, commercial and trade finance, guarantees, structured loans, and cash management and funding solutions, as well as on-lending transfer services. It also provides funding and financial advisory services related to projects, origination and distribution of fixed-income securities in the debt capital markets, financing of acquisitions and syndicated loans, other structured financing arrangements, and subordinated debt and energy efficiency transactions; advisory services for mergers and acquisitions, and equity capital markets transactions; and stock brokerage and advisory, equity, and equity research services. In addition, the company structures and offers foreign exchange, derivative, and investment products for institutional investors, and corporate and retail customers; and provides market making services. Further, it offers instant payment services; range of products and services focused on the agribusiness sector; microfinance services; and online automotive listing and digital car insurance solutions, as well as digital trading platform. Additionally, it provides its financial services and products to its customers through multichannel distribution network comprising branches, mini-branches, ATMs, call centers, Internet banking, and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil.

How the Company Makes Money

Banco Santander Brasil makes money primarily through interest income generated from its lending activities. This includes personal loans, mortgages, and corporate loans, where the bank charges interest on the borrowed amounts. Additionally, the bank earns revenue from non-interest income sources such as fees and commissions from services like asset management, insurance, and advisory services. Trading and investment activities also contribute to its earnings, as the bank engages in various financial markets. Partnerships with businesses for co-branded credit cards and insurance products further enhance its revenue streams. The bank's earnings are significantly influenced by macroeconomic factors in Brazil, including interest rates and economic growth, which affect loan demand and repayment capabilities.

Banco Santander Brasil Financial Statement Overview

Summary

Banco Santander Brasil demonstrates strong revenue growth and profitability, underpinned by a robust balance sheet and improved equity position. However, the significant decline in cash flow from operations raises concerns about liquidity management. Continued focus on cash flow generation and operational efficiency is essential to sustain financial health.

Income Statement

Banco Santander Brasil has shown strong revenue growth, increasing from 39.97 billion in 2023 to 48.52 billion in 2024, representing a 21.43% growth rate. The net profit margin for 2024 stands at 27.54%, up from 23.64% in 2023, indicating enhanced profitability. However, EBIT and EBITDA margins are unavailable for 2024, limiting a full profitability analysis.

Balance Sheet

The bank maintains a solid equity base with a debt-to-equity ratio of 0.19 in 2024, showing reduced leverage from 1.26 in 2023. Stockholders' equity has increased, and the equity ratio improved to 9.65% in 2024. These factors suggest a strong balance sheet, despite the banking industry's typical high leverage.

Cash Flow

Operating cash flow has turned negative in 2024, contrasting sharply with positive cash flow in 2023, indicating potential liquidity issues. The free cash flow has also declined, resulting in a -171.39% growth rate. However, the operating cash flow to net income ratio is unavailable for 2024, limiting further analysis.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
48.52B	39.97B	43.28B	48.72B	32.42B
	Gross Profit
48.52B	39.97B	43.28B	48.72B	32.42B
	EBIT
0.00	12.84B	87.24B	24.72B	9.63B
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
13.37B	9.45B	14.29B	15.53B	13.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
296.96B	253.04B	150.48B	117.90B	129.89B
	Total Assets
1.24T	1.12T	985.45B	931.21B	936.20B
	Total Debt
23.14B	144.02B	126.66B	98.68B	70.00B
	Net Debt
-181.75B	-49.97B	-22.98B	82.02B	49.85B
	Total Liabilities
1.12T	1.00T	874.77B	100.90B	74.54B
	Stockholders Equity
119.49B	114.45B	110.18B	105.64B	105.78B
Cash Flow		Free Cash Flow
-23.74B	33.26B	3.98B	4.44B	40.31B
	Operating Cash Flow
-21.13B	36.61B	6.85B	6.81B	42.32B
	Investing Cash Flow
-2.02B	-2.58B	-2.71B	-1.93B	-1.16B
	Financing Cash Flow
930.18M	5.82B	12.75B	-658.51M	-34.15B

Banco Santander Brasil Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.57
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSBR, the sentiment is Negative. The current price of 4.57 is below the 20-day moving average (MA) of 4.69, below the 50-day MA of 4.61, and below the 200-day MA of 4.72, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 42.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BSBR.

Banco Santander Brasil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIB	77 Outperform	$9.60B	11.03	15.62%	16.42%	-0.15%	8.78%
GGAL	76 Outperform	$10.82B	4.86	38.13%	4.66%	-35.65%	70.23%
ITUB	76 Outperform	$54.98B	8.50	20.84%	7.13%	-7.01%	15.18%
BSAC	73 Outperform	$10.29B	11.63	16.05%	2.55%	-22.63%	32.31%
BBD	70 Outperform	$21.54B	7.26	10.44%	1.36%	-8.55%	13.58%
BSBR	70 Neutral	$17.02B	13.75	11.61%	4.79%	-3.94%	31.52%
Sector *	64 Neutral	$13.37B	9.30	9.39%	4.85%	16.11%	-8.85%