The long-term trend of the EPS is an important number as it indicates the present value of Banco Santander Brasil SA One Unit. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 3.10 % over the last twelve months. EPS growth is a vital measure of execution of the strategy for Banco Santander Brasil SA One Unit since it indicates how well the business is allocating resources to benefit shareholders.



Banco Santander Brasil SA One Unit is part of the financial services sector and is in the banking industry. Banco Santander Brasil SA operates as a multiple service bank. It is engaged in investment, lending and financing, mortgage lending, leasing, credit card operations and foreign exchange. The company operates in Brazil and internationally.

Previous Intraday Performance:

The BSBR shares had a previous change of -0.08% which opened at 12.58 and closed at 12.77. It moved to an intraday high of 12.77 and a low of 12.51.

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Historical Performance:

Over the last five trading days, BSBR shares returned 2.82% and in the past 30 trading days it returned 16.63%. Over three months, it changed 23.55%. In one year it has changed 32.64% and within that year its 52-week high was 12.96 and its 52-week low was 7.20. BSBR stock is 77.36% above its 52 Week Low.

Our calculations result in a 200 day moving average of 9.66 and a 50 day moving average of 11.13. Right now, BSBR stock is trading 32.25% above its 200 day moving average.

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Liquidity:

The company has a market cap of $95.4b with 7.5b shares outstanding and a float of 7.5b shares. Trading volume was 600,104 shares and has experienced an average volume of 962,564 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Banco Santander Brasil SA One Unit was 0.34 which ended on 31st of December 2017, which according to the previous close, that is a PE of 37.56. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.23. The trailing twelve month EPS is 0.85, which comes to a trailing twelve month PE of 15.02. Historically, the PE high was 41.20 and the PE low was 9.70. If the stock reached its PE low, that would represent a price of 8.25, which is a decrease of -35.42%.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.21
06-30-2018:  0.21
03-31-2018:  0.23
12-31-2017:  0.20

The dividend per share is currently 0.80, which is a dividend yield of 6.23%. BSBR stock may not have sufficient earnings to cover future dividends and still be able to invest in and grow the business, therefore in the future the dividend may be reduced.



Base on our calculations, the intrinsic value per share is 14.26, which means it might be undervalued and has a margin of safety of 10.44%

Indicators Also to Watch:

Based on the latest filings, there is 0.90% of institutional ownership. Short-interest was 7,123,703, which was 0.10% of shares outstanding. The short-interest ratio or days-to-cover ratio was 9.67. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 0.98

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Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 10.98%, return on assets is 1.47%, profit margin is 18.96%, price-to-sales is 8.12 and price-to-book is 3.89.

Company Score Card:

Results are out of six:
 3  : Growth Expectations Result
 4  : Financial Safety Result
 4  : Past Performance Result
 1  : Valuation Result
 2  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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