Banco Santander Brasil (BSBR) AI Stock Analysis

• Market Cap: $15.13B
• Dividend Yield: 5.06%
• Average Volume (3M): 776.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -3.94%
• EPS Growth: N/A
• Country: US
• Employees: 55,611
• Sector: Financial
• Sector Strength: 93
• Industry: Banking
• EPS (TTM): N/A
• Shares Outstanding: 3,749,265,600
• 10 Day Avg. Volume: 555,001
• 30 Day Avg. Volume: 776,521
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 16.40
• 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: 9.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Banco Santander Brasil shows robust financial performance with strong revenue growth and an improved balance sheet. However, liquidity concerns due to negative cash flow and technical indicators suggest potential downside risks. The high dividend yield provides some appeal, though valuation lacks clarity without a P/E ratio.

Positive Factors

Net Income

Recurring net income of R$3.7bn rose 34% YoY and 10% QoQ.

ROE Expansion

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

Negative Factors

Capital Ratio

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

Higher Selic Rates

Higher Selic should limit ROE expansion in ‘25.

Loan Growth Deceleration

Loan growth decelerated for the second consecutive quarter, reflecting a focus on higher profitability products and a sharp drop in large corporates.

Banco Santander Brasil Business Overview & Revenue Model

Company Description

Banco Santander Brasil S.A. (BSBR) is one of the leading financial institutions in Brazil, offering a wide array of banking products and services. Operating under the larger umbrella of the Spanish Santander Group, the bank specializes in retail banking, corporate banking, and investment banking. It provides services such as loans, credit cards, asset management, insurance, and financial advisory to individual and corporate clients across the country.

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.

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: 4.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.39 is below the 20-day moving average (MA) of 4.60, above the 50-day MA of 4.28, and below the 200-day MA of 4.78, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 9.28 is Positive, 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
ITUB	81 Outperform	$47.35B	7.03	19.38%	3.10%	1.25%	20.03%
GGAL	80 Outperform	$10.48B	6.30	16.71%	4.44%	30.54%	97.65%
BSAC	76 Outperform	$10.30B	11.40	19.98%	2.59%	-22.63%	32.31%
BBD	70 Outperform	$18.99B	6.47	8.70%	1.59%	-8.06%	3.79%
CIB	70 Outperform	$10.06B	6.36	14.80%	8.30%	10.45%	8.04%
BSBR	66 Neutral	$15.13B	―	11.19%	5.06%	-3.94%	―
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%