| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1.80 | -81 |
| Intrinsic value (DCF) | 39.52 | 324 |
| Graham-Dodd Method | 4.90 | -47 |
| Graham Formula | 13.20 | 41 |
Inter & Co, Inc. (NASDAQ: INTR) is a Brazil-based financial services powerhouse offering a diversified portfolio of banking, securities, insurance brokerage, marketplace, asset management, and IT services. Founded in 1994 and headquartered in Belo Horizonte, the company operates as a digital-first financial platform, integrating traditional banking with fintech innovation. Its Banking segment provides checking accounts, cards, loans, and deposits, while its Securities segment handles investment funds and portfolio management. The Insurance Brokerage segment covers life, auto, and travel insurance, and its Marketplace segment connects customers with digital goods and services. With a market cap of $3.15 billion, Inter & Co stands out in Latin America's competitive financial sector by leveraging technology to deliver seamless, customer-centric solutions. Its asset-light model and digital ecosystem position it as a key player in Brazil's rapidly evolving fintech landscape.
Inter & Co presents a compelling investment case due to its diversified revenue streams, strong digital banking presence, and growth potential in Brazil's underpenetrated financial market. The company reported $4.6B in revenue and $907M in net income, with a diluted EPS of $2.07, reflecting profitability despite macroeconomic challenges. However, negative operating cash flow (-$6.39B) and high total debt ($3.48B) raise liquidity concerns. Its beta of 1.197 suggests higher volatility compared to the market, which may deter risk-averse investors. The modest dividend yield (dividend per share: $0.08) is offset by growth prospects in digital banking and cross-selling opportunities across its ecosystem. Investors should weigh its fintech innovation against regulatory risks in Brazil's banking sector.
Inter & Co’s competitive advantage lies in its integrated digital platform, combining banking, investments, insurance, and marketplace services—a rare hybrid model in Latin America. Unlike traditional banks, Inter leverages low-cost digital acquisition and a tech-driven customer experience to capture market share in Brazil’s underbanked regions. Its asset-light approach reduces branch overhead, while cross-selling across segments (e.g., banking customers adopting insurance) boosts lifetime value. However, it faces stiff competition from both incumbent banks (e.g., Itaú) and pure-play fintechs like Nubank. Inter’s edge is its regulatory licenses (banking, securities, insurance), which allow broader monetization than fintech peers. Yet, its reliance on Brazil’s economy (85% of revenue) exposes it to local volatility. The company’s ability to scale its ecosystem while maintaining margins will determine long-term positioning against global fintech entrants.