Inter & Co, Inc. (INTR) | Investment Case

1. Company Snapshot

1.a. Company Description

Inter & Co, Inc., through its subsidiaries, engages in the banking, securities, insurance brokerage, marketplace, asset management, and services businesses.The company's Banking segment offers banking products and services, including checking accounts, cards, deposits, loans and advances, and other services.Its Securities segment provides services relating to the purchase, sale, and custody of securities; and portfolio management, as well as the establishment, organization, and management of investment funds.

The company's Insurance Brokerage segment offers life, property, auto, financial, lost or stolen credit card, dental, warranties, travel, and credit protection insurance products.Its Marketplace segment operates a digital platform that offer goods and/or services to its customers.The company's Asset Management segment is involved in the operations related to the management of fund portfolios and other assets.

Its Services segment provides services in the collection and management of personal information; development and licensing of customized and non-customized computer programs; and technical support, maintenance, and other information technology services.The company was founded in 1994 and is based in Belo Horizonte, Brazil.

Show Full description

1.b. Last Insights on INTR

Inter & Co. Inc.'s recent performance was driven by strong Q2 earnings, beating estimates with $0.13 per share, a 44% year-over-year increase. Revenue surged 35% YoY, with a growing loan portfolio (22% YoY) and increasing return on equity. The company was recognized as a "Most Honored Company" by Extel, showcasing standout management and investor relations. With 40 million clients and 53% net income growth, Inter & Co. is on track to meet its 2027 targets, boasting a valuation of 12x P/E, indicating a potential 16% upside.

1.c. Company Highlights

Last Price	8.25
Change Percentage	-9.74%
Open	9.13
Previous Close	9.14
Market Cap ( Millions)	3632
Volume	2714892
Year High	10.22
Year Low	3.88
M A 50	9.06
M A 200	7.43

FCF Yield	24.73%
Dividend Yield	0.97%
ROE	13.20%
Debt / Equity	280.71%
Net Debt / EBIDTA	1670.10%
Price To Book	2.08
Price Earnings Ratio	16.59
Price To FCF	4.04
Price To sales	1.84
EV / EBITDA	32.06

2. Inter & Co's Q3 2025 Earnings: Strong Growth Across Key Metrics

Inter & Co reported a robust financial performance in Q3 2025, with net revenue reaching 2.1 billion reais, up 29% year on year and 8% sequentially. The company's net interest margins consistently showed growth quarter after quarter and achieved new record levels. Earnings per share (EPS) came in at 0.14 reais, in line with analyst estimates. The loan book grew 30% year on year, with quarterly growth accelerating to 9%. As João Vitor Menin noted, "We're exceptionally well positioned within the evolving banking trends in Brazil," highlighting the company's strong growth trajectory.

Publication Date: Nov -15

                                    📋 Highlights
                                    Loan Book Growth:
                                                Inter's loan book grew 30% YoY, with quarterly growth accelerating to 9%, driven by credit card (23% portfolio) and mortgage portfolios.
Funding Franchise Expansion:
                                                Transactional deposits surged 7%, and funding reached BRL 68 billion (+35% YoY), with average deposits per client surpassing R$2,000.
Net Revenue Surge:
                                                Net revenue hit BRL 2.1 billion (+29% YoY), supported by consistent net interest margin growth and record net promoter score (85).
Client Acquisition:
                                                Added 2 million new active clients in Q3, achieving 58% activation rate, with 1.2 million now classified as active users.
ROE Progress:
                                                Achieved 15% ROE in three years (up from 0%), on track for 30% target, despite Selic rate headwinds at 15%.

                                

Loan Portfolio and Credit Quality

The company's loan portfolio continues to expand, driven by growth in credit card, home equity, and mortgage portfolios. The credit card portfolio has shown significant improvement, with IEPs now representing over 23% of the credit card portfolio. However, the company is cautious about being too aggressive in credit underwriting due to market conditions, aiming to build exposure to credit in a balanced way. Stage 3 delinquencies increased, mainly driven by private payroll loans, but the company expects the cost of risk to stabilize around 5.5% as delinquencies increase.

Funding and Transactional Deposits

Inter & Co's funding franchise grew 35% year on year, reaching BRL 68 billion. Transactional deposits grew 7% this quarter, and active clients surpassed an average of 2,000 reais in deposits for the first time ever. This growth in deposits is a positive indicator of the company's ability to attract and retain clients.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of 2.31, the company's valuation appears reasonable given its strong growth prospects. The Net Interest Margin (NIM) expansion trend is expected to continue, driving further growth in net revenue. Analysts estimate next year's revenue growth at 22.2%, indicating a positive outlook for the company. The Dividend Yield stands at 0.87%, providing a relatively stable return for investors.

Conclusion on Growth Prospects

The company's commitment to innovation, customer centricity, and operational excellence positions it well for continued growth. With a strong track record of execution and a well-diversified loan portfolio, Inter & Co is poised to maintain its growth momentum, driven by its digital experience and market-based pricing. As the company continues to expand its product offerings and improve credit quality, it is likely to remain an attractive investment opportunity in the Brazilian banking sector.

3. NewsRoom

Intrepid Metals Zeroes in on Potential Porphyry Discovery Beneath Corral Copper CRD System and Continues Delivering Strong Results at Ringo

Nov -18

Source: newsfilecorp.com

Inter & Co. Inc. (INTR) Meets Q3 Earnings Estimates

Nov -13

Source: zacks.com

Inter&Co Reports Record 3Q25 Results, Driven by 30% Credit Expansion and 39% Net Income Growth

Nov -13

Source: globenewswire.com

State of New Jersey Common Pension Fund D Has $1.13 Million Holdings in Inter & Co. Inc. $INTR

Nov -03

Source: defenseworld.net

VIDEO - Intrepid Metals: Zeroing in on Arizona's Copper Sweet Spot

Oct -27

Source: newsfilecorp.com

Inter & Co: Thesis Holds, Even If Targets Still Far Off

Oct -26

Source: seekingalpha.com

Intrepid Metals Intersects 177.25m of 0.58% Copper Equivalent from Ringo Zone at Corral Copper

Oct -22

Source: newsfilecorp.com

Intrepid Metals Announces Upsize of Private Placement Financing to $6.7 Million

Oct -14

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.23%)

6. Segments

Banking & Spending

Expected Growth: 10.42%

The 10.42% growth in Banking & Spending from Inter & Co, Inc. is driven by increasing adoption of digital payment systems, rising e-commerce transactions, and growing demand for contactless payment methods. Additionally, strategic partnerships and investments in fintech innovations have contributed to the segment's expansion.

Intershop

Expected Growth: 10.27%

Intershop's 10.27% growth is driven by increasing e-commerce adoption, omnichannel retailing, and digital transformation in the retail industry. Strong demand for cloud-based e-commerce platforms, strategic partnerships, and geographic expansion also contribute to its growth.

Eliminations

Expected Growth: 9.27%

Inter & Co, Inc.'s 9.27% eliminations growth is driven by strategic divestitures, improved operational efficiency, and a focus on high-margin businesses. Additionally, the company's efforts to streamline its portfolio and reduce non-core assets have contributed to this growth.

Insurance Brokerage

Expected Growth: 8.37%

Strong demand for insurance products, strategic partnerships, and expansion into new markets drive Inter & Co, Inc.'s 8.37% growth in Insurance Brokerage. Additionally, the company's digital platform and data analytics capabilities enhance customer experience, increasing retention and attracting new clients.

Investments

Expected Growth: 8.4%

Inter & Co, Inc.'s 8.4% growth is driven by increasing demand for their diversified portfolio of financial services, strategic expansion into emerging markets, and effective cost management. Additionally, their investments in digital transformation and innovative products have enhanced customer experience, leading to increased revenue and market share.

OtherS

Expected Growth: 5.6%

Inter & Co, Inc.'s OtherS segment growth of 5.6% is driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the segment benefits from the company's investments in technology and innovation, enhancing its product offerings and improving operational efficiency.

7. Detailed Products

Digital Banking Platform

A comprehensive digital banking solution that enables customers to manage their finances, pay bills, and transfer funds securely.

Core Banking System

A robust core banking system that manages daily banking operations, including account management, loan processing, and transaction processing.

Payment Gateway

A secure payment gateway that enables online transactions, including credit card processing, e-wallets, and other payment methods.

Digital Wallet

A digital wallet that enables customers to store their payment information, loyalty cards, and rewards, and make transactions online or in-store.

Risk Management Solution

A risk management solution that identifies and mitigates potential risks, including fraud detection and prevention.

Data Analytics Platform

A data analytics platform that provides insights and analytics on customer behavior, transaction patterns, and market trends.

8. Inter & Co, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate due to the presence of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the large number of customers and their ability to switch to alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large size and negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the large number of competitors and the high stakes in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	70.35%
Debt Cost	10.94%
Equity Weight	29.65%
Equity Cost	10.94%
WACC	10.94%
Leverage	237.30%

11. Quality Control: Inter & Co, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

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

Regions Financial

A-Score: 6.6/10

Value: 5.1

Growth: 4.8

Quality: 7.8

Yield: 8.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

First Horizon

A-Score: 6.4/10

Value: 5.8

Growth: 4.7

Quality: 5.8

Yield: 7.0

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

PKO Bank Polski

A-Score: 6.2/10

Value: 5.4

Growth: 5.2

Quality: 7.2

Yield: 7.5

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

Santander Bank Polska

A-Score: 6.2/10

Value: 5.3

Growth: 6.0

Quality: 8.0

Yield: 8.8

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

Banco BBVA Argentina

A-Score: 5.3/10

Value: 7.6

Growth: 9.5

Quality: 6.5

Yield: 5.0

Momentum: 1.5

Volatility: 1.7

1-Year Total Return ->

Inter & Co

A-Score: 4.4/10

Value: 2.5

Growth: 6.3

Quality: 4.4

Yield: 0.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-10.58%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.94%

Inter & Co, Inc. - KYG4R20B1074

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on INTR

1.c. Company Highlights

Lower Quality

Average Yield

Medium Volatility

Revenues Beats

Earnings Beats

Lower Yield

Fairly Valued

Earnings Miss

Revenues Miss

Average Quality

Cheaper

Average Growth

Stable Momentum

2. Inter & Co's Q3 2025 Earnings: Strong Growth Across Key Metrics

Loan Portfolio and Credit Quality

Funding and Transactional Deposits

Valuation and Outlook

Conclusion on Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.23%)

6. Segments

Banking & Spending

Expected Growth: 10.42%

Intershop

Expected Growth: 10.27%

Eliminations

Expected Growth: 9.27%

Insurance Brokerage

Expected Growth: 8.37%

Investments

Expected Growth: 8.4%

OtherS

Expected Growth: 5.6%

7. Detailed Products

Digital Banking Platform

Core Banking System

Payment Gateway

Digital Wallet

Risk Management Solution

Data Analytics Platform

8. Inter & Co, Inc.'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: Inter & Co, Inc. passed 2 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

8.25$

Current Price

12.e Scoring ^Insights

12.f DCF ^BETA