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Inter & Company Incorporation Class A (INTR)
NASDAQ:INTR
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Inter & Company Incorporation Class A (INTR) AI Stock Analysis

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INTR

Inter & Company Incorporation Class A

(NASDAQ:INTR)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
$8.50
▼(-7.00% Downside)
Inter & Company scores well due to its strong financial performance and positive earnings call sentiment. Technical indicators show bullish momentum, though caution is advised due to overbought signals. Valuation is fair, but cash flow management challenges and operational efficiency issues present some risks.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for Inter's products and services, supporting long-term business expansion and market positioning.
Client Base Expansion
Rapid client base expansion enhances market reach and potential revenue streams, reinforcing Inter's competitive advantage in digital banking.
Product Innovation
Innovative products drive user engagement and differentiation, positioning Inter as a leader in fintech solutions and supporting sustainable growth.
Negative Factors
Operational Efficiency
Challenges in operational efficiency could hinder profitability improvements and require strategic focus to optimize cost structures.
Cash Flow Management
Volatile cash flow management may impact liquidity and financial flexibility, necessitating careful monitoring and strategic adjustments.
Cost of Risk
High cost of risk in loan portfolios could pressure margins and require increased provisioning, affecting long-term financial stability.

Inter & Company Incorporation Class A (INTR) vs. SPDR S&P 500 ETF (SPY)

Inter & Company Incorporation Class A Business Overview & Revenue Model

Company DescriptionInter & Company Incorporation Class A (INTR) is a diversified financial services company that operates primarily within the digital banking and financial technology sectors. The company offers a range of products and services including digital banking solutions, personal and business accounts, loans, investments, and insurance products. INTR is committed to providing innovative and accessible financial services by leveraging technology to enhance customer experience.
How the Company Makes MoneyInter & Company generates revenue through a variety of streams. Its primary source of income is the interest earned on loans and credit products provided to individual and business clients. Additionally, the company earns fees from account maintenance, transactions, and other banking services. Revenue is also generated from investment management fees and commissions on insurance products. Strategic partnerships with fintech companies and financial institutions further bolster its revenue by expanding its product offerings and market reach. Digital banking's low operational costs and scale advantages contribute significantly to the company's profitability.

Inter & Company Incorporation Class A Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive sentiment with significant client growth, record financial performance, and successful product innovations, despite some challenges in operational efficiency and risk management.
Q2-2025 Updates
Positive Updates
Client Growth and Engagement
Inter reached 40 million clients, with strong engagement indicated by a Net Promoter Score of 85 and high app ratings. The company consistently adds 1 to 1.1 million active clients each quarter, with a growing activation rate.
Record Financial Performance
Total gross revenues reached BRL 3.6 billion, with net revenues growing 35% year-over-year. The company achieved a record ROE of 13.9% and a record net income of BRL 315 million.
Product and Feature Innovations
Launch of 'My Credit' and 'My Piggy Bank by Savings Goals' features, showing high user engagement with 425,000 clients and 529,000 savings goals created within a month.
Credit and Loan Growth
Credit penetration among active clients reached 33.8%. The private payroll loan portfolio soared to BRL 728 million, and real estate lending grew 37% year-over-year.
Global Expansion
Global account clients grew 34% year-over-year, with deposits surpassing $294 million this quarter, up 90% year-over-year.
Negative Updates
Operational Challenges in Efficiency Ratio
While there was slight improvement, the efficiency ratio remains a focus, with efforts to improve operational leverage and renegotiate vendor contracts.
Cost of Risk and Provisioning
The cost of risk reached 5.0%, with expectations to remain between 5% to 5.25% due to growth in higher-risk segments.
Company Guidance
In Inter's Second Quarter 2025 Earnings Conference Call, significant guidance was provided regarding the company's financial health and strategic direction. Inter achieved a record net income of BRL 315 million, with a return on equity (ROE) of 13.9%, demonstrating consistent profitability. The company's client base reached 40 million, reflecting its strong brand and customer trust. Inter's Net Promoter Score was 85, with app ratings of 4.9 in the Apple Store and 4.8 in the Play Store, showcasing high customer satisfaction. The activation rate improved to 57.7%, while credit penetration grew to 33.8%. The private payroll loan portfolio surged to BRL 728 million, serving 153,000 clients. Inter's diversified loan portfolio, with a focus on collateralized products, continues to perform well, with total payment value increasing by 33% year-over-year to BRL 374 billion. The efficiency ratio improved to 47.1%, highlighting operational leverage. The company's global account clients grew 34% year-over-year, with deposits surpassing $294 million, marking a 90% increase. The strategic investments in digital features like My Credit and My Piggy Bank are driving client engagement and monetization, contributing to Inter's sustainable growth and long-term value creation for stakeholders.

Inter & Company Incorporation Class A Financial Statement Overview

Summary
Inter & Company exhibits strong financial performance with impressive revenue and profit growth, supported by robust margins and effective leverage management. However, cash flow management presents some challenges that need addressing.
Income Statement
85
Very Positive
Inter & Company has demonstrated strong revenue growth over the years, with a notable increase in total revenue from $753.7 million in 2019 to $9.71 billion in 2024. The gross profit margin has remained robust, indicating efficient cost management. Net profit margin has improved significantly, reflecting enhanced profitability. The EBIT and EBITDA margins have also shown positive trends, contributing to a strong income statement performance.
Balance Sheet
78
Positive
The company's balance sheet reflects a solid equity position with a debt-to-equity ratio improving over time, indicating prudent financial leverage. The return on equity has increased, showcasing effective use of shareholder funds. However, the equity ratio suggests a moderate reliance on liabilities, which is typical for the banking industry but warrants monitoring.
Cash Flow
72
Positive
Cash flow analysis reveals a mixed picture. While operating cash flow has been volatile, the company has managed to maintain positive free cash flow in most years. The free cash flow to net income ratio indicates efficient cash generation relative to profits, though recent negative free cash flow highlights potential cash management challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.74B9.71B7.64B5.54B2.77B1.12B
Gross Profit5.28B4.60B3.21B2.48B1.63B1.12B
EBITDA1.63B1.41B600.28M-14.60M-172.72M0.00
Net Income1.12B907.13M302.34M-11.09M-72.67M17.91M
Balance Sheet
Total Assets84.73B76.46B60.35B46.34B36.48B19.80B
Cash, Cash Equivalents and Short-Term Investments27.79B27.88B4.26B17.55B16.09B9.68B
Total Debt15.16B11.86B8.32B6.39B3.60B1.76B
Total Liabilities75.35B67.39B52.76B39.25B3.65B16.45B
Stockholders Equity9.29B8.90B7.47B6.99B8.49B3.30B
Cash Flow
Free Cash Flow929.12M-6.47B1.95B1.95B-147.56M2.41B
Operating Cash Flow1.28B-6.39B2.22B2.24B167.52M2.61B
Investing Cash Flow-5.89B-7.73B-4.67B-187.65M-7.19B-4.65B
Financing Cash Flow-316.77M10.83B8.97B4.09B5.35B1.11B

Inter & Company Incorporation Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.14
Price Trends
50DMA
8.00
Positive
100DMA
7.55
Positive
200DMA
6.37
Positive
Market Momentum
MACD
0.30
Positive
RSI
60.92
Neutral
STOCH
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTR, the sentiment is Positive. The current price of 9.14 is above the 20-day moving average (MA) of 8.86, above the 50-day MA of 8.00, and above the 200-day MA of 6.37, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INTR.

Inter & Company Incorporation Class A Risk Analysis

Inter & Company Incorporation Class A disclosed 73 risk factors in its most recent earnings report. Inter & Company Incorporation Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Inter & Company Incorporation Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$4.02B20.1712.12%0.88%19.47%48.35%
77
Outperform
3.87B14.457.56%3.05%3.00%42.78%
73
Outperform
3.96B34.403.82%6.86%-8.81%
66
Neutral
3.71B45.214.41%8.55%5.76%2.70%
63
Neutral
3.98B9.833.68%-6.63%241.66%
60
Neutral
3.88B-58.02-1.71%2.73%4.80%-111.49%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INTR
Inter & Company Incorporation Class A
9.14
2.58
39.33%
TCBI
Texas Capital Bancshares
86.51
15.05
21.06%
TFSL
TFS Financial
13.22
1.41
11.94%
UCB
United Community Banks
31.83
3.66
12.99%
AVAL
Grupo Aval Acciones y Valores SA Pfd
3.32
1.36
69.39%
EBC
Eastern Bankshares
18.34
2.43
15.27%

Inter & Company Incorporation Class A Corporate Events

Inter & Co Reports Record Growth and Innovation in 2024 Annual Report
Sep 4, 2025

On September 3, 2025, Inter & Co, Inc. released its 2024 Annual Report, highlighting significant achievements, including expanding its client base to over 36 million and launching new products like Forum, Digital Consignment, and Consumer Finance 2.0. The company emphasized its strategic focus on innovation, technology, and creating a robust ecosystem that enhances client engagement and satisfaction. This approach has led to record results and reinforced its position as a global technology company, with its securities listed on Nasdaq and BDRs on B3 in Brazil.

Inter & Co Announces Significant Equity Acquisition by Squadra Investimentos
Aug 14, 2025

On August 13, 2025, Inter & Co, Inc. announced that Squadra Investimentos now holds 9.95% of its Class A Common Shares. The acquisition by Squadra Investimentos, which includes a mix of Brazilian Depositary Receipts and Class A Common Shares, is not intended to alter the company’s control or management structure. This equity sale is significant as it reflects a substantial investment in the company, potentially impacting its market perception and stakeholder interests.

Inter & Co Announces Significant Equity Purchase by Squadra Investimentos
Aug 7, 2025

On July 18, 2025, Inter & Co, Inc. announced that Squadra Investimentos now holds 10.08% of its Class A Common Shares. This equity purchase, disclosed on August 7, 2025, signifies a notable investment but is not intended to alter the company’s control or management structure. The acquisition highlights the company’s attractiveness to investors and may impact its market perception positively.

Inter & Co Reports Strong Q2 2025 Financial Results and Brand Growth
Aug 6, 2025

Inter & Co, Inc. reported strong financial performance for the second quarter of 2025, with a net income of R$315 million excluding minority interests and a 13.9% return on equity. The company also achieved a gross revenue of R$3.6 billion and a gross loan portfolio of R$40 billion. The company continues to expand its client base, reaching 40 million total clients, and has been recognized as the 7th most powerful brand in Brazil. Inter & Co’s strategic initiatives include enhancing user experience through new features like ‘Meu Crédito’ and ‘Meu Porquinho Por Objetivos’, which have seen significant client engagement and investment. The company also focuses on sustainable credit options and financial education to reduce risks and increase customer loyalty.

Inter & Co, Inc. Announces Strong Financial Growth as of June 2025
Aug 6, 2025

Inter & Co, Inc. reported significant growth in its financial performance as of June 30, 2025. The company achieved a profit of R$ 639 million, a 52.9% increase from the previous year, and revenues of R$ 3.8 billion, up by 33.4%. The loan portfolio grew by 13% to R$ 40.2 billion, and total funding increased by 10.2% to R$ 58.1 billion. The company also saw an increase in total assets to R$ 84.7 billion and shareholder’s equity to R$ 9.4 billion. These results highlight the company’s strong market position and operational efficiency.

Inter & Co Announces Significant Equity Sale to Squadra Investimentos
Jul 29, 2025

On July 29, 2025, Inter & Co, Inc. announced that Squadra Investimentos now holds 32,169,749 securities, equivalent to 9.96% of the company’s Class A Common Shares. This acquisition, disclosed in compliance with CVM regulations, does not aim to alter the company’s control or management structure. This development reflects a significant equity sale that could impact the company’s market perception and stakeholder interests, although it does not intend to change the company’s governance.

Inter & Co Announces Change in Equity Holdings by Fidelity
Jul 23, 2025

On July 23, 2025, Inter & Co, Inc. announced that FIL Limited, also known as Fidelity Investments, has adjusted its holdings in the company. FIL now holds 16,087,177 Class A common shares, which represents 4.985% of the company’s issued shares. This change in equity does not aim to alter the company’s control or management structure. The announcement highlights compliance with Brazilian Securities Commission regulations, which require disclosure when equity participation crosses certain thresholds. This adjustment is seen as a passive investment by FIL, with no intention to influence company operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025