Fact based stock research
Itau Unibanco (BOVESPA:ITUB4)
BRITUBACNPR1
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Itau Unibanco stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Itau Unibanco (Diversified Banks, Brazil) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Itau Unibanco are a good value (attractively priced) with a consolidated Value Rank of 81 (better than 81% of alternatives), show above-average growth (Growth Rank of 65) but are riskily financed (Safety Rank of 7), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Itau Unibanco's financial characteristics. As the company Itau Unibanco's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 81) and above-average growth (Obermatt Growth Rank of 65), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 7) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Brazil |
| Industry | Diversified Banks |
| Index | BOVESPA, Human Rights, Independent Boards Growth Markets |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Itau Unibanco
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 52 |
|
75 |
|
57 |
|
81 |
|
| GROWTH | ||||||||
| GROWTH | 98 |
|
7 |
|
79 |
|
65 |
|
| SAFETY | ||||||||
| SAFETY | 62 |
|
1 |
|
33 |
|
7 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
9 |
|
49 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
3 |
|
63 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Itau Unibanco (Diversified Banks, Brazil) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Itau Unibanco are a good value (attractively priced) with a consolidated Value Rank of 81 (better than 81% of alternatives), show above-average growth (Growth Rank of 65) but are riskily financed (Safety Rank of 7), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Itau Unibanco's financial characteristics. As the company Itau Unibanco's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 81) and above-average growth (Obermatt Growth Rank of 65), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 7) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 52 |
|
75 |
|
57 |
|
81 |
|
| GROWTH | ||||||||
| GROWTH | 98 |
|
7 |
|
79 |
|
65 |
|
| SAFETY | ||||||||
| SAFETY | 62 |
|
1 |
|
33 |
|
7 |
|
| COMBINED | ||||||||
| COMBINED | 83 |
|
3 |
|
73 |
|
49 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 81 (better than 81% compared with alternatives) for 2024, Itau Unibanco shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Itau Unibanco. Price-to-Sales (P/S) is 74, which means that the stock price compared with what market professionals expect for future sales is lower than for 74% of comparable companies, indicating a good value concerning Itau Unibanco's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 79% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 94 (dividends are expected to be higher than 94% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 63% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Itau Unibanco to 37. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 81, is a buy recommendation based on Itau Unibanco's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 79 |
|
77 |
|
66 |
|
74 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 56 |
|
87 |
|
63 |
|
79 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 36 |
|
41 |
|
41 |
|
37 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 22 |
|
58 |
|
61 |
|
94 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 52 |
|
75 |
|
57 |
|
81 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), Itau Unibanco shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Itau Unibanco. Profit Growth, with a rank of 75 (better than 75% of its competitors), and Capital Growth, with a rank of 87, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 42, which means that, currently, professionals expect the company to grow less than 58% of its competitors, and Stock Returns are at a rank of 33. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 100 |
|
42 |
|
37 |
|
42 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 1 |
|
54 |
|
52 |
|
75 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
3 |
|
95 |
|
87 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 48 |
|
19 |
|
87 |
|
33 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 98 |
|
7 |
|
79 |
|
65 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 7 (better than 7% compared with alternatives), the company Itau Unibanco has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Itau Unibanco is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Itau Unibanco. Liquidity is at 29, meaning that the company generates less profit to service its debt than 71% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 6, meaning the company has an above-average debt-to-equity ratio. It has more debt than 94% of its competitors. Finally, Refinancing is at a rank of 47 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 53% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 7 (worse than 93% compared with alternatives), Itau Unibanco has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Itau Unibanco because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 34 |
|
4 |
|
8 |
|
6 |
|
| REFINANCING | ||||||||
| REFINANCING | 92 |
|
36 |
|
95 |
|
47 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 36 |
|
10 |
|
31 |
|
29 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 62 |
|
1 |
|
33 |
|
7 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
60 |
|
44 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
42 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
25 |
|
82 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
10 |
|
20 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
9 |
|
49 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Itau Unibanco from December 19, 2024.
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