Don't Take a Position in Itau Unibanco Banco Stocks Without Knowing Its Fundamentals!

Itau Unibanco Banco logged a -2.1% change during today's afternoon session, and is now trading at a price of $5.83 per share.

Itau Unibanco Banco returned gains of 36.4% last year, with its stock price reaching a high of $6.08 and a low of $3.9. Over the same period, the stock outperformed the S&P 500 index by 23.0%. More recently, the company's 50-day average price was $5.39. Itaú Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. The large-cap Finance company is headquartered in São Paulo, Brazil. Itau Unibanco Banco has offered a 13.6% dividend yield over the last 12 months.

Growing Revenues With Increasing Reinvestment in the Business:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $112,121 $94,681 $121,833 $138,600
Interest Income (MM) $64,325 $55,420 $59,948 $51,758
Net Margins 24.18% 19.96% 21.96% 21.43%
Net Income (MM) $27,113 $18,896 $26,760 $29,702
Depreciation & Amort. (MM) -$3,561 -$3,729 -$4,233 -$4,796
Earnings Per Share $2.77 $1.93 $2.72 $0.64
EPS Growth n/a -30.32% 40.93% -76.47%
Diluted Shares (MM) 9,785 9,802 9,831 9,800
Free Cash Flow (MM) $30,912 $54,184 $51,025 $121,471
Capital Expenditures (MM) -$4,312 -$5,307 -$9,081 -$8,495
Long Term Debt (MM) $279,307 $192,351 $211,086 $275,725
Net Debt / EBITDA 2.51 1.5 0.92 2.29

Itau Unibanco Banco has growing revenues and increasing reinvestment in the business and consistent net margins with a stable trend. Additionally, the company's financial statements display generally positive cash flows and reasonable leverage. However, the firm has declining EPS growth.

Itau Unibanco Banco Has Attractive Multiples and Trades Below Its Graham Number:

Itau Unibanco Banco has a trailing twelve month P/E ratio of 8.4, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $0.79, the company has a forward P/E ratio of 6.8. The -22.2% compound average growth rate of Itau Unibanco Banco's historical and projected earnings per share yields a PEG ratio of -0.38. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Itau Unibanco Banco in terms of its equity because its P/B ratio is 0.33 while the sector average is 1.57. The company's shares are currently trading -79.3% below their Graham number.

Itau Unibanco Banco Has an Analyst Consensus of Some Upside Potential:

The 7 analysts following Itau Unibanco Banco have set target prices ranging from $5.7 to $7.2 per share, for an average of $6.57 with a buy rating. As of April 2023, the company is trading -18.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.

The largest shareholder is Goldman Sachs Group Inc, whose 2% stake in the company is worth $540,078,302.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.