BOVESPA:ITUB4

Stock Analysis Report

Itaú Unibanco Holding

Executive Summary

Itaú Unibanco Holding S.A. provides a range of financial products and services to individuals and corporate clients in Brazil and internationally.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Itaú Unibanco Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

ITUB4

2.1%

BR Banks

1.0%

BR Market


1 Year Return

5.8%

ITUB4

19.0%

BR Banks

24.3%

BR Market

Return vs Industry: ITUB4 underperformed the BR Banks industry which returned 19% over the past year.

Return vs Market: ITUB4 underperformed the BR Market which returned 24.3% over the past year.


Share holder returns

ITUB4IndustryMarket
7 Day3.2%2.1%1.0%
30 Day-5.5%-2.4%0.2%
90 Day-7.2%-7.1%0.5%
1 Year14.2%5.8%26.2%19.0%29.3%24.3%
3 Year69.7%39.8%95.6%66.2%68.5%50.6%
5 Year130.1%72.5%135.5%78.1%82.2%52.2%

Price Volatility Vs. Market

How volatile is Itaú Unibanco Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Itaú Unibanco Holding undervalued based on future cash flows and its price relative to the stock market?

10%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: ITUB4 (R$33.88) is trading below our estimate of fair value (R$37.84)

Significantly Undervalued: ITUB4 is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: ITUB4 is poor value based on its PE Ratio (12.6x) compared to the Banks industry average (9.8x).

PE vs Market: ITUB4 is good value based on its PE Ratio (12.6x) compared to the BR market (13.7x).


Price Based on Expected Growth

Low PEG Ratio: ITUB4 is poor value based on its PEG Ratio (1.1x)


Price Based on Value of Assets

PB vs Industry: ITUB4 is overvalued based on its PB Ratio (2.5x) compared to the BR Banks industry average (1.2x).


Next Steps

Future Growth

How is Itaú Unibanco Holding expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ITUB4's forecast earnings growth (11.9% per year) is above the savings rate (2.7%).

Earnings vs Market: ITUB4's earnings (11.9% per year) are forecast to grow slower than the BR market (15.4% per year).

High Growth Earnings: ITUB4's earnings are forecast to grow, but not significantly.

Revenue vs Market: ITUB4's revenue (8.1% per year) is forecast to grow slower than the BR market (8.6% per year).

High Growth Revenue: ITUB4's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ITUB4's Return on Equity is forecast to be high in 3 years time (21.8%)


Next Steps

Past Performance

How has Itaú Unibanco Holding performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ITUB4's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: ITUB4's earnings growth over the past year (13.6%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: ITUB4 earnings growth over the past year (13.6%) underperformed the Banks industry 15.3%.


Return on Equity

High ROE: ITUB4's Return on Equity (18.6%) is considered low.


Return on Assets

ROA vs Industry: ITUB4 has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ITUB4's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Itaú Unibanco Holding's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ITUB4 has a low level of unsold assets or inventory.

Debt Coverage by Assets: ITUB4's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: ITUB4's level of assets compared to its equity is moderate.

Allowance for Bad Loans: ITUB4 has a low allowance for bad loans.

Low Risk Liabilities: ITUB4's liabilities are made up of primarily higher risk sources of funding.

Loan Level: ITUB4 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ITUB4's loans are broadly funded by customer deposits.

Level of Bad Loans: ITUB4 has a high level of bad loans (6.55%)


Next Steps

Dividend

What is Itaú Unibanco Holding's current dividend yield, its reliability and sustainability?

5.92%

Expected Dividend Yield


Dividend Yield vs Market

company7.2%marketbottom25%1.4%markettop25%4.8%industryaverage4.8%forecastin3Years5.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ITUB4's dividend (7.2%) is higher than the bottom 25% of dividend payers in the BR market (1.44%).

High Dividend: ITUB4's dividend (7.2%) is in the top 25% of dividend payers in the BR market (4.82%)

Stable Dividend: ITUB4's dividend payments have been volatile in the past 10 years.

Growing Dividend: ITUB4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.2%), ITUB4's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ITUB4's dividends in 3 years are forecast to be covered by earnings (58.9% payout ratio).


Next Steps

Management

What is the CEO of Itaú Unibanco Holding's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Candido Bracher (61yo)

2.5yrs

Tenure

0

Mr. Candido Botelho Bracher has been the Chief Executive Officer of Itaú Unibanco Holding S.A. since June 2017 and has been its Member of Board of Directors since February 2009 to April 2017. Mr. Bracher i ...


Management Age and Tenure

4.7yrs

Average Tenure

48yo

Average Age

Experienced Management: ITUB4's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

9.8yrs

Average Tenure

65yo

Average Age

Experienced Board: ITUB4's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Márcio de Andrade Schettini (55yo)

    Retail General Director & Member of Executive Board

    • Tenure: 4.3yrs
  • Claudia Politanski (49yo)

    Executive VP of Legal & Human Resources and Member of Executive Board

    • Tenure: 10.9yrs
  • Caio Ibrahim David (51yo)

    Wholesale General Director & Member of Executive Board

    • Tenure: 0yrs
  • Candido Bracher (61yo)

    CEO, Executive President & Member of Executive Board

    • Tenure: 2.5yrs
  • Leila Cristiane Barboza de Melo (48yo)

    Executive Officer & Member of Executive Board

    • Tenure: 4.5yrs
  • Alexsandro Broedel Lopes (45yo)

    Group Executive Finance Director

    • Tenure: 7.2yrs
  • Emerson Bortoloto (42yo)

    Officer & Member of Executive Board

    • Tenure: 7.9yrs
  • Rodrigo Rosa Couto (44yo)

    Officer & Member of Executive Board

    • Tenure: 7.8yrs
  • Adriano Cabral Volpini (46yo)

    Officer & Member of Executive Board

    • Tenure: 4.7yrs
  • Milton Maluhy Filho

    Executive VP of Risks & Finance

    • Tenure: 0.8yrs

Board Members

  • Pedro Salles (60yo)

    Co-Chairman of the Board & Member of International Advisory Board

    • Tenure: 2.3yrs
  • Roberto Setubal (65yo)

    Co-Chairman of the Board & Member of International Advisory Board

    • Tenure: 2.3yrs
  • Alfredo Setubal (61yo)

    Non-Executive Director

    • Tenure: 12.3yrs
  • Pedro Malan (76yo)

    Member of International Advisory Board

    • Tenure: 0yrs
  • Pedro Bodin de Moraes (63yo)

    Independent Director

    • Tenure: 10.9yrs
  • Gustavo Laboissière Loyola (67yo)

    Independent Director

    • Tenure: 13.5yrs
  • Ricardo Villela Marino (45yo)

    Non-Executive Director

    • Tenure: 11.3yrs
  • Antonio Trindade

    Chairman of Itaú Seguros De Vida

    • Tenure: 9.8yrs
  • Fábio Barbosa (65yo)

    Independent Director

    • Tenure: 4.5yrs
  • José Caruso Henriques (72yo)

    Chairman of Fiscal Council

    • Tenure: 2.3yrs

Company Information

Itaú Unibanco Holding S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Itaú Unibanco Holding S.A.
  • Ticker: ITUB4
  • Exchange: BOVESPA
  • Founded: 1924
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R$307.173b
  • Shares outstanding: 9.74b
  • Website: https://www.itau.com.br

Number of Employees


Location

  • Itaú Unibanco Holding S.A.
  • Praça Alfredo Egydio de Souza Aranha, 100
  • Torre Olavo Setubal
  • São Paulo
  • São Paulo
  • 04344-902
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITUB4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLNov 1992
ITUB3BOVESPA (Bolsa de Valores de Sao Paulo)Common SharesBRBRLDec 1992
ITUBNYSE (New York Stock Exchange)ADR EACH REPR 1 PRF NPVUSUSDFeb 2002
BVXBDB (Deutsche Boerse AG)ADR EACH REPR 1 PRF NPVDEEURFeb 2002
ITUB NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 1 PRF NPVMXMXNFeb 2002

Biography

Itaú Unibanco Holding S.A. provides a range of financial products and services to individuals and corporate clients in Brazil and internationally. It operates in three segments: Retail Banking, Wholesale B ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 18:00
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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