Itaú Unibanco Holding S.A.
Itaú Unibanco Holding S.A. Fundamental Analysis
Itaú Unibanco Holding S.A. (ITUB) shows strong financial fundamentals with a PE ratio of 11.61, profit margin of 11.66%, and ROE of 21.64%. The company generates $384.6B in annual revenue with moderate year-over-year growth of 6.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ITUB's fundamental strength across five key dimensions:
Efficiency Score
WeakITUB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentITUB trades at attractive valuation levels.
Growth Score
ExcellentITUB delivers strong and consistent growth momentum.
Financial Health Score
WeakITUB carries high financial risk with limited liquidity.
Profitability Score
ModerateITUB maintains healthy but balanced margins.
Key Financial Metrics
Is ITUB Expensive or Cheap?
P/E Ratio
ITUB trades at 11.61 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ITUB's PEG of 1.86 indicates fair valuation.
Price to Book
The market values Itaú Unibanco Holding S.A. at 2.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -8.53 times EBITDA. This is generally considered low.
How Well Does ITUB Make Money?
Net Profit Margin
For every $100 in sales, Itaú Unibanco Holding S.A. keeps $11.66 as profit after all expenses.
Operating Margin
Core operations generate 13.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.64 in profit for every $100 of shareholder equity.
ROA
Itaú Unibanco Holding S.A. generates $1.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Itaú Unibanco Holding S.A. generates strong operating cash flow of $123.33B, reflecting robust business health.
Free Cash Flow
Itaú Unibanco Holding S.A. generates strong free cash flow of $117.59B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.66 in free cash annually.
FCF Yield
ITUB converts 22.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ITUB Stacks Against Its Sector Peers
| Metric | ITUB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.61 | 18.73 | Better (Cheaper) |
| ROE | 21.64% | 847.00% | Weak |
| Net Margin | 11.66% | 3919.00% | Weak |
| Debt/Equity | 4.95 | 0.93 | Weak (High Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 1.46% | -21563.00% (disorted) | Weak |
ITUB outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Itaú Unibanco Holding S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.45%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
37.06%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-81.81%
Industry Style: Value, Dividend, Cyclical
Declining