Stock of the Day

September 21, 2021

Banco Santander (Brasil) (BSBR)

$4.63
-$0.09 (-1.8%)
Market Cap: $17.53B

About Banco Santander (Brasil)

Banco Santander (Brasil) S.A., together with its subsidiaries, provides various banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. The company operates through Commercial Banking and Global Wholesale Banking segments. It offers local loans, commercial financing options, development bank funds, and cash management services; export and import financing, guarantees, structuring of asset services. In addition, the company provides financing and advisory services for infrastructure projects and capital markets instruments, as well as offers equity transactions and mergers and acquisitions services. Further, it offers foreign exchange products, derivatives, and investments to institutional investors, corporate clients, and individuals. Additionally, the company provides research services, as well as offers brokerage services for corporate, institutional, and individual investors. Furthermore, it provides deposits and other bank funding instruments, and debit and credit cards. The company provides financial services and products to its customers through multichannel distribution network comprising branches, mini-branches, ATMs, call centers, Internet banking, and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil. The company operates as a subsidiary of Banco Santander, S.A.

Banco Santander (Brasil) Bull Case

Here are some ways that investors could benefit from investing in Banco Santander (Brasil) S.A.:

  • The stock is currently trading at $4.50, which is above its 1-year low of $3.75, indicating potential for growth.
  • Banco Santander (Brasil) S.A. has a dividend yield of 5.86%, providing a steady income stream for investors through its quarterly dividend of $0.066 per share.
  • Recent analyst upgrades, such as JPMorgan Chase & Co. raising its rating from "neutral" to "overweight," suggest positive sentiment and potential for stock appreciation.
  • The company is expected to announce earnings of $0.18 per share, which reflects a positive outlook for profitability in the upcoming quarter.
  • With a debt-to-equity ratio of 0.25, Banco Santander (Brasil) S.A. demonstrates a relatively low level of debt compared to its equity, indicating financial stability and lower risk for investors.

Banco Santander (Brasil) Bear Case

Investors should be bearish about investing in Banco Santander (Brasil) S.A. for these reasons:

  • The company has recently faced downgrades from analysts, including a reduction from "buy" to "hold" by StockNews.com, which may indicate concerns about future performance.
  • Banco Santander (Brasil) S.A. has a quick ratio of 0.30, suggesting potential liquidity issues, as it may struggle to meet short-term obligations without selling inventory.
  • The stock's 50-day simple moving average is $4.13, which is lower than the current price, indicating that the stock may be overvalued in the short term.
  • Recent cuts to dividends may signal financial strain or a conservative approach to cash management, which could concern income-focused investors.
  • Market volatility and economic conditions in Brazil could impact the bank's performance, making it a riskier investment in uncertain times.

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