Renta 4 Banco, S.A. (R4.MC) | Investment Case

1. Company Snapshot

1.a. Company Description

Renta 4 Banco, S.A., together with its subsidiaries, provides wealth management, brokerage, and corporate advisory services in Spain and internationally.It is involved in the management of collective investment institution (CII) and pension funds; discretionary management of equity portfolios and investment funds, or a combination of equity and investment funds; and provision of wealth management services.The company also offers security and CII custodian services; corporate advisory services, such as corporate finance or M&A; underwriting and placement services; and public debt management services, as well as outsources various services and corporate services.

In addition, it engages in the purchase and sale of securities and other financial instruments in Spain and international markets; and sale of CIIs and pension plans that are managed by the company and belonging to third parties.The company was founded in 1985 and is headquartered in Madrid, Spain.

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1.b. Last Insights on R4

Renta4 Banco's recent performance has been positively driven by favorable market conditions, characterized by easing inflation and supportive monetary policies from the European Central Bank. The pan-European STOXX Europe600 Index has climbed 2.11% on strong corporate earnings and hopes for geopolitical resolutions, creating an environment conducive to growth. As an undiscovered European gem, Renta4 Banco boasts solid fundamentals and growth potential, making it an attractive option for investors seeking opportunities in the dynamic European economic landscape.

1.c. Company Highlights

Last Price	19.1
Change Percentage	0.53%
Open	19
Previous Close	19
Market Cap ( Millions)	777
Volume	869
Year High	21
Year Low	11.6
M A 50	19.34
M A 200	16.64

FCF Yield	0.00%
Dividend Yield	2.75%
ROE	22.21%
Debt / Equity	14.32%
Net Debt / EBIDTA	-3166.04%
Price To Book	4.52
Price Earnings Ratio	21.46
Price To FCF	0
Price To sales	3.99
EV / EBITDA	-15.08

2. Transcript Summary

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3. NewsRoom

Renta 4 Banco (BME:R4) Margins Improve to 15.3%, Reinforcing Bullish Profitability Narratives

Oct -30

Source:

Undiscovered European Gems with Promising Potential In September 2025

Sep -16

Source:

Exploring Europe's Undiscovered Gems in August 2025

Aug -14

Source:

Renta 4 Banco And 2 Other Undiscovered Gems In Europe

Jul -10

Source:

Top European Dividend Stocks To Consider In July 2025

Jul -10

Source:

Renta 4 Banco And 2 Other Undiscovered European Gems For Your Portfolio

Jun -09

Source:

3 European Dividend Stocks Offering Up To 8.1% Yield

Jun -03

Source:

Uncovering Europe's Undiscovered Gems In May 2025

May -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.37%)

6. Segments

Intermediation

Expected Growth: 5.2%

Renta 4 Banco's intermediation services are poised for growth driven by increasing demand for efficient transaction facilitation, rising e-commerce adoption, and expanding financial inclusion in Spain.

Asset Management

Expected Growth: 5.5%

Growing demand for personalized financial advice and risk management strategies, increasing adoption of diversified portfolios, and rising wealth management needs among high-net-worth individuals drive growth in Renta 4 Banco's Asset Management segment.

Corporate Services

Expected Growth: 5.5%

Growing demand for cashless transactions, increasing adoption of digital payment systems, and rising need for efficient treasury management are driving the growth of corporate services segment.

7. Detailed Products

Retail Banking

Renta 4 Banco offers a range of retail banking services, including current and savings accounts, credit cards, personal loans, and mortgages.

Corporate Banking

Renta 4 Banco provides corporate banking services, including cash management, trade finance, and treasury services, to businesses and corporations.

Investment Banking

Renta 4 Banco offers investment banking services, including mergers and acquisitions, equity and debt capital markets, and restructuring advisory services.

Wealth Management

Renta 4 Banco provides wealth management services, including investment advice, portfolio management, and estate planning, to high net worth individuals and families.

Brokerage Services

Renta 4 Banco offers brokerage services, including online trading, to individual and institutional investors.

Asset Management

Renta 4 Banco provides asset management services, including mutual funds, pension plans, and discretionary portfolio management.

8. Renta 4 Banco, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Renta 4 Banco, S.A. is medium due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple banking options and the ease of switching between financial institutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the bank's strong financial position and ability to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the banking industry, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	11.89%
Debt Cost	3.95%
Equity Weight	88.11%
Equity Cost	5.34%
WACC	5.18%
Leverage	13.50%

11. Quality Control: Renta 4 Banco, S.A. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Renta 4 Banco

A-Score: 6.9/10

Value: 5.3

Growth: 5.9

Quality: 8.1

Yield: 5.6

Momentum: 10.0

Volatility: 6.3

1-Year Total Return ->

Taaleri

A-Score: 6.5/10

Value: 5.5

Growth: 4.4

Quality: 7.4

Yield: 10.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

Öresund

A-Score: 6.4/10

Value: 5.4

Growth: 2.1

Quality: 9.2

Yield: 8.8

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

Ratos

A-Score: 6.2/10

Value: 8.7

Growth: 4.4

Quality: 6.2

Yield: 5.6

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

Tatton Asset Management

A-Score: 5.9/10

Value: 1.4

Growth: 7.8

Quality: 9.8

Yield: 5.6

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

Pantheon International

A-Score: 4.4/10

Value: 2.8

Growth: 0.7

Quality: 7.1

Yield: 0.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-11.83%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.18%

Renta 4 Banco, S.A. - ES0173358039

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on R4

1.c. Company Highlights

Less Volatile

Fairly Valued

Average Growth

Average Quality

Medium Volatility

Stable Momentum

Strong Momentum

Higher Growth

Better Quality

Expensive

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.37%)

6. Segments

Intermediation

Expected Growth: 5.2%

Asset Management

Expected Growth: 5.5%

Corporate Services

Expected Growth: 5.5%

7. Detailed Products

Retail Banking

Corporate Banking

Investment Banking

Wealth Management

Brokerage Services

Asset Management

8. Renta 4 Banco, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Renta 4 Banco, S.A. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.1$

Current Price

19.1$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA