DB:BVXB

Stock Analysis Report

Itaú Unibanco Holding

Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


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

Stable Share Price: BVXB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

BVXB

-10.4%

DE Banks

-5.7%

DE Market


1 Year Return

-19.3%

BVXB

-8.4%

DE Banks

6.1%

DE Market

Return vs Industry: BVXB underperformed the German Banks industry which returned -8.4% over the past year.

Return vs Market: BVXB underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

BVXBIndustryMarket
7 Day-2.9%-10.4%-5.7%
30 Day-8.8%8.1%-5.7%
90 Day-7.5%10.0%-3.6%
1 Year-14.7%-19.3%-5.4%-8.4%9.3%6.1%
3 Year-1.9%-16.2%-10.7%-15.1%8.9%-0.7%
5 Year40.9%10.6%-8.4%-31.4%13.6%-2.0%

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 compared to its fair value and its price relative to the market?

11.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BVXB (€6.75) is trading above our estimate of fair value (€6.04)

Significantly Below Fair Value: BVXB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BVXB is good value based on its PE Ratio (11.7x) compared to the Banks industry average (17.8x).

PE vs Market: BVXB is good value based on its PE Ratio (11.7x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: BVXB is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: BVXB is overvalued based on its PB Ratio (2.3x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

How is Itaú Unibanco Holding forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVXB's forecast earnings growth (8.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: BVXB's earnings (8.7% per year) are forecast to grow slower than the German market (13% per year).

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

Revenue vs Market: BVXB's revenue (12.8% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: BVXB's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BVXB's Return on Equity is forecast to be high in 3 years time (21.5%)


Next Steps

Past Performance

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

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVXB has high quality earnings.

Growing Profit Margin: BVXB's current net profit margins (27.5%) are higher than last year (26.5%).


Past Earnings Growth Analysis

Earnings Trend: BVXB's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: BVXB's earnings growth over the past year (8.9%) exceeds its 5-year average (1.4% per year).

Earnings vs Industry: BVXB earnings growth over the past year (8.9%) exceeded the Banks industry -7%.


Return on Equity

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


Return on Assets


Return on Capital Employed


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: BVXB has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: BVXB has a high level of bad loans (6.65%)


Next Steps

Dividend

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

6.15%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Itaú Unibanco Holding before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.2%marketbottom25%1.4%markettop25%3.8%industryaverage2.9%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: BVXB's dividend (6.15%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: BVXB's dividend (6.15%) is in the top 25% of dividend payers in the German market (3.8%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.3%), BVXB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BVXB's dividends in 3 years are forecast to be covered by earnings (51.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Candido Bracher (61yo)

2.8yrs

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 w ...


Leadership Team

NamePositionTenureCompensationOwnership
Candido Bracher
CEO, Executive President & Member of Executive Board2.8yrsno datano data
Milton Maluhy Filho
Executive VP of Risks & Finance1.1yrsno datano data
Claudia Politanski
Executive VP of Legal & Human Resources and Member of Executive Board11.3yrsno datano data
Caio Ibrahim David
Senior VP & Member of Executive Board0yrsno datano data
Emerson Bortoloto
Officer & Member of Executive Board8.3yrsno datano data
Rodrigo Rosa Couto
Officer & Member of Executive Board8.1yrsno datano data
Alexsandro Broedel Lopes
Group Executive Finance Director7.5yrsno datano data
Marcio de Andrade Schettini
Senior VP & Member of Executive Board4.6yrsno datano data
Leila Cristiane Barboza de Melo
Executive Officer & Member of Executive Board4.8yrsno datano data
Adriano Cabral Volpini
Officer & Member of Executive Board5yrsno datano data

5.0yrs

Average Tenure

47yo

Average Age

Experienced Management: BVXB's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pedro Salles
Co-Chairman of the Board & Member of International Advisory Board2.7yrsno datano data
Roberto Setubal
Co-Chairman of the Board & Member of International Advisory Board2.7yrsno datano data
Alfredo Setubal
Non-Executive Director12.7yrsno datano data
Pedro Malan
Member of International Advisory Board0yrsno datano data
Pedro Bodin de Moraes
Independent Director11.3yrsno datano data
Gustavo Laboissiere Loyola
Independent Director13.8yrsno datano data
Ricardo Villela Marino
Non-Executive Director11.7yrsno datano data
Marco Crespi Bonomi
Independent Director2.8yrsno datano data
Antonio Trindade
Chairman of Itaú Seguros De Vida10.2yrsno datano data
Jose Caruso Henriques
Chairman of Fiscal Council2.7yrsno datano data

10.2yrs

Average Tenure

63yo

Average Age

Experienced Board: BVXB's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: BVXB
  • Exchange: DB
  • Founded: 1924
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R$302.124b
  • Listing Market Cap: R$63.431b
  • Shares outstanding: 9.75b
  • 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 in Brazil and internationally. The company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It offers various deposit products, as well as loans and credit cards; investment banking services; real estate lending services; financing and investment services; and leasing and foreign exchange services. The company also provides property and casualty insurance covering loss, damage, or liabilities for assets or persons, as well as life insurance covering death and personal accidents; and reinsurance products. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and companies. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was founded in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. is a subsidiary of Itau Unibanco Participacões S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:03
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.