Inter & Co, Inc. (INTR) Stock Analysis

Company Overview

Inter & Co, Inc. operates as a financial institution that engages in the banking and spending, investments, insurance brokerage, and inter shop businesses across Brazil and the United States through its various subsidiaries. This entity is categorized within the Financial Services sector and specifically functions in the Banks - Regional industry, which characterizes it as a provider of localized banking solutions rather than a global systemic bank. The company possesses a substantial market capitalization of $3.40B and generates annual revenue of $5.98B, while the employee count is listed as N/A in available public data. These valuation and revenue figures indicate that Inter & Co, Inc. maintains a significant scale within the regional banking landscape, reflecting a robust operational footprint capable of managing billions in assets and serving a diverse client base in multiple jurisdictions.

Financial Health

The company reports a Trailing Twelve Months revenue of $5.98B and a Net Income of $1.31B, while the EBITDA figure is not available in the provided financial data. The substantial gap between the $5.98B revenue and the $1.31B net income reveals a cost structure where operating expenses consume a significant portion of top-line growth, yet the entity still achieves profitability. Free Cash Flow is listed as N/A, which limits the immediate assessment of financial flexibility derived from cash generation but does not preclude the company from utilizing its existing liquidity. The balance sheet holds $4.13B in cash against $18.14B in debt, indicating a leveraged position where the company relies on borrowed capital to fund its lending and operational activities. Regarding liquidity ratios, the Current Ratio is N/A, meaning short-term liquidity status cannot be quantified with the provided metrics, though the high cash balance suggests a buffer for immediate obligations. Management effectiveness is further illuminated by a Return on Equity of 14.4% and a Return on Assets of 1.6%, showing that the company generates strong returns for shareholders relative to its equity base while maintaining asset yields typical for the banking sector.

Valuation Assessment

The stock trades at a Trailing Twelve Months P/E Ratio of 13.53 and a Forward P/E of 7.21, implying that the market expects earnings to grow significantly in the coming period to justify the lower forward multiple. The Price to Book ratio stands at 1.75, indicating that the market values the company at a premium of 75% over its tangible book value, which often reflects the quality of its loan portfolio and intangible assets. Alternative valuation metrics include a Price to Sales ratio of 0.57 and an EV/EBITDA of N/A, suggesting that the company is valued at a fraction of its sales revenue, a common characteristic for financial institutions where earnings power is the primary driver of value. The 52-week high is $10.36 and the 52-week low is $4.86, providing a trading range that contextualizes the current stock price movement over the past year. The Beta value is 1.20, which indicates that the stock price is 20% more volatile than the broader market, suggesting that price swings in Inter & Co, Inc. tend to be amplified relative to general market movements.

Growth & Income

Revenue growth year-over-year is recorded at 26.4% while earnings growth year-over-year is 35.5%, demonstrating that earnings are expanding at a faster pace than revenue, which implies improved operational efficiency or cost management during the expansion period. For dividend payers, the company offers a Dividend Yield of 1.5% with a Payout Ratio of 15.8%, indicating a highly sustainable dividend policy where only a small fraction of earnings is distributed to shareholders. Given the low payout ratio, the majority of earnings are retained to fuel internal growth initiatives, such as expanding lending volumes or enhancing digital banking capabilities in Brazil and the United States. The overall growth and income profile presents a hybrid model characterized by double-digit earnings expansion and a modest, conservative dividend yield that supports total shareholder return without compromising capital retention.