Banco Santander Brasil SA American Depositary Shares each representing one unit (BSBR)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 10.5% above cost of capital
• Attractive 6.3% dividend yield providing steady income returns
• Established organization with 49,661 employees providing operational scale

Concerns

• Revenue declining at 3.6% year-over-year signals potential demand weakness or market share loss
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Banco Santander Brasil SA American Depositary Shares each representing one unit is a mid-cap financial services company valued at $45.5 billion. The business generates $45.9 billion in annual revenue with a 8.8% net margin. From a quality standpoint, Banco shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.1 warrants caution. On valuation, the stock is reasonably priced at 16.1x earnings, with offers a 45% margin of safety vs Graham Number of $11. Growth dynamics show revenue growing at -3.6% and profit growth of 27.5%. The 6.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Sluggish -4% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer