Banco Santander (Brasil) S.A. Fundamental Analysis
Banco Santander (Brasil) S.A. (BSBR) shows moderate financial fundamentals with a PE ratio of 6.96, profit margin of 8.18%, and ROE of 11.23%. The company generates $354.7B in annual revenue with strong year-over-year growth of 17.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BSBR's fundamental strength across five key dimensions:
Efficiency Score
WeakBSBR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBSBR trades at attractive valuation levels.
Growth Score
ModerateBSBR shows steady but slowing expansion.
Financial Health Score
WeakBSBR carries high financial risk with limited liquidity.
Profitability Score
WeakBSBR struggles to sustain strong margins.
Key Financial Metrics
Is BSBR Expensive or Cheap?
P/E Ratio
BSBR trades at 6.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BSBR's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Banco Santander (Brasil) S.A. at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.77 times EBITDA. This is generally considered low.
How Well Does BSBR Make Money?
Net Profit Margin
For every $100 in sales, Banco Santander (Brasil) S.A. keeps $8.18 as profit after all expenses.
Operating Margin
Core operations generate 10.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.23 in profit for every $100 of shareholder equity.
ROA
Banco Santander (Brasil) S.A. generates $2.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Banco Santander (Brasil) S.A. generates limited operating cash flow of $11.93B, signaling weaker underlying cash strength.
Free Cash Flow
Banco Santander (Brasil) S.A. generates weak or negative free cash flow of $8.11B, restricting financial flexibility.
FCF Per Share
Each share generates $1.08 in free cash annually.
FCF Yield
BSBR converts 4.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.007
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How BSBR Stacks Against Its Sector Peers
| Metric | BSBR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.96 | 19.38 | Better (Cheaper) |
| ROE | 11.23% | 804.00% | Weak |
| Net Margin | 8.18% | -7623.00% (disorted) | Weak |
| Debt/Equity | 1.06 | 1.07 | Neutral |
| Current Ratio | 0.37 | 609.22 | Weak Liquidity |
| ROA | 2.24% | -20946.00% (disorted) | Weak |
BSBR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Banco Santander (Brasil) S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
197.56%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-4.94%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-88.21%
Industry Style: Value, Dividend, Cyclical
Declining