Stocks/BSBR

BSBR

Banco Santander (Brasil) S.A.
Financial Services·Banks - Regional
$5.44
$40.7B market cap
Claude Rating
4/10UNDERWEIGHT
Revenue
$160.3B
Free Cash Flow
$11.5B
Rev Growth
+6.7%
FCF Margin
7.2%
P/FCF
17.8x
EV/FCF
3.5x
Fwd EV/EBITDA
2.1x
Fair Value
$5.20
Upside
-4.4%

Banco Santander (Brasil) S.A., together with its subsidiaries, provides various banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. The company operates in two segments, Commercial Banking and Global Wholesale Banking. It offers deposits and other bank funding instruments; debit and credit cards; digital prepaid solutions; payment platform; loyalty programs; employee benefit vouchers; payroll loans; digital lending an

2-Year Price History

$5.39+16.9%
$4.0$4.5$5.0$5.5$6.0$6.5$7.0volJun 24Oct 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall (BRL M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q443,5005,873--3,915---1,305-1,088304,089----------
Est2027-Q343,0005,590--3,784--5,160-774.0305,394----------
Est2027-Q242,0005,040--3,276---3,360-840.0300,234----------
Est2027-Q141,5005,188--3,445--3,320-622.5303,594----------
Est2026-Q441,0005,330--3,485---2,050-1,025300,274----------
Est2026-Q340,5005,063--3,321--6,075-729.0302,324----------
Est2026-Q239,2004,508--2,940---3,920-784.0296,249----------
Est2026-Q138,5004,620--3,080--1,925-577.5300,169----------
Act2026-Q138,3615,3734,7103,21839,60338,937-666.0298,244133,9097,4907.3%0.2x--
Act2025-Q442,4665,6895,0403,901-19,835-21,348-1,513271,429129,9563,8049.0%0.2x3.5x
Act2025-Q344,8844,8594,8593,7483,2366,646-46.9844.0177,7567,4716.6%0.2x21.8x
Act2025-Q234,5682,6061,9851,928-11,816-12,706-889.6296,119182,8947,4713.5%0.1x3.5x
Act2025-Q135,9435,3234,6203,10933,40832,908-499.9323,668149,8547,4716.6%0.2x--
Act2024-Q435,3374,8094,1173,059789.5740.8-48.8296,963135,3727,4606.9%0.2x1.6x
Act2024-Q333,6956,0735,3843,63728,70827,905-803.2328,717279,4667,4604.6%0.3x6.5x
Act2024-Q229,2465,9405,2713,61713,89513,259-635.3268,379259,8797,4604.8%0.3x10.8x
Act2024-Q130,7455,0994,4173,052-21,504-21,956-452.5249,254257,3647,4444.1%0.3x15.3x
Act2023-Q431,7013,2932,6202,046-12,538-13,352-814.1253,042144,0247,4444.5%0.2x5.5x
Act2023-Q330,8114,1903,4972,77160,21159,474-737.5275,722258,9257,4443.7%0.2x14.7x
Act2023-Q229,9163,7683,0821,593-12,323-13,228-904.8211,311146,0517,4444.3%0.2x7.8x
Act2023-Q128,9363,4112,7223,0401,265368.3-896.320,014146,9547,4465.9%0.2x16.7x
Act2022-Q430,2524,2983,6252,889271.5-394.0-665.5205,065126,6587,4907.1%0.2x7.0x
Act2022-Q329,1265,2434,5883,4542,046903.3-1,143154,736120,2497,4908.7%0.3x--
Act2022-Q226,7755,9475,2944,143-6,843-7,447-604.685,787114,8117,49011.1%0.4x--
Act2022-Q124,7426,6726,0673,80111,37210,921-450.6108,657108,4047,49011.0%0.5x--
Historical Valuation

Multiples vs the company's own history — cheap or rich relative to itself? Historical fiscal years, then TTM, then forward projections (E). Forward rows hold today's price against projected earnings, so the multiple compresses if the company grows into it.

YearPriceRev GrEBITDA %EBITDAEV/EBITDAEV/FCFP/EP/S
20224.4320.0%22,1603.2×0.4×
20235.72+9.4%12.1%14,6634.0×0.3×
20243.62+6.3%17.0%21,9212.9×0.3×
20256.03+22.4%11.7%18,4783.2×0.3×
TTM5.44+19.4%11.6%18,5280.0×0.0×0.0×0.0×
2026E5.44-0.7%0.1%1950.0×0.0×0.0×0.0×
2027E5.44+6.8%0.1%2170.0×0.0×0.0×0.0×

EBITDA in reporting-currency $M. Historical multiples use year-end market cap (split-adjusted price history); TTM & forward years use today's.

AI Analysis

LLM Evaluations

Claude4/10UNDERWEIGHTFV: $5.20

Banco Santander Brasil is a well-capitalized but increasingly challenged franchise caught between structural competitive disruption from Nubank and cyclical headwinds from Brazil's aggressive rate tightening cycle. While the bank trades at a seemingly reasonable ~1.0x book value and offers a 6%+ dividend yield, the quality of earnings is deteriorating: impaired assets are growing faster than revenue, the efficiency ratio is worsening, loan book growth significantly lags nominal GDP, and management is using accounting reclassifications to mask balance sheet volatility. The incoming CEO change introduces execution risk at a critical juncture. At current ADR prices around $6.30, the stock prices in modest improvement that may not materialize given the macro backdrop and competitive intensity. Standard DCF approaches are unreliable for banks; on a P/BV and dividend discount basis, fair value is closer to $5.20 per ADR, suggesting the stock is modestly overvalued for the risk profile.

Catalyst Potential rate cuts by the Brazilian central bank in late 2026/2027 could relieve credit cost pressure and expand NIMs; new CEO Gilson Finkelsztain could bring a more digital-forward strategy and improved capital allocation. Any significant BRL appreciation would boost USD-denominated returns for ADR holders.
Risk Continued deterioration in Brazilian credit quality as high Selic rates persist, combined with Nubank's accelerating market share gains in high-margin segments, could compress ROE toward cost of equity and make the dividend unsustainable.
Trend
DETERIORATING
Mgmt
6/10
Quarter
4/10
Exp. Move
-5.0%

Valuation & Metrics

Market Stats

Price$5.44
Market Cap$40.7B
Enterprise Value$40.9B
P/S Ratio1.3x
P/FCF17.8x
EV/FCF3.5x
FCF Margin (TTM)7.2%
FCF Yield5.6%
Dividend Yield (TTM)5.9%
Annual Dilution0.3%
CurrencyUSD

TTM Financial Snapshot

Revenue$160.3B
Net Income$12.8B
Free Cash Flow$11.5B

Revenue Growth (YoY)+6.7%
EBITDA Margin11.6%
Net Margin8.0%
FCF Margin7.2%
CapEx % of Revenue1.9%
SBC % of Revenue0.0%
ROIC6.6%
WC Change % Rev8.4%
Interest Coverage0.2x

DCF Fair Value Estimate

$5.21
-4.1% upside
Fair Enterprise Value$32.5B
− Net Debt$-164.3B
= Fair Equity$196.8B
Revenue Growth6.8% → 4.0%
FCF Margin7.2% → 5.0%
Discount Rate15.0%
Terminal EV/FCF8.0x

Forward Outlook & Risk

Short Interest

Short % of Float0.4%
Short Shares3.0M
Days to Cover3.6
Change (vs Prior)-13.2%
Short % Float History
0.40%+0.00pp
0.1%0.2%0.3%0.4%0.5%0.6%04-3007-1509-1511-1401-1504-30

Options

Call IV (ATM)52%
Put IV (ATM)--
ATM Spread13.9%
Call $OI (near money)$11K
Put $OI (near money)$885
ATM ExpiryJuly 17, 2026 (56D)
ATM Strike$5.0
Major Expirations3
Near-money chain · July 17, 2026
StrikeCall Bid/AskCall OIPut Bid/AskPut OI
$2.50$2.50/$3.700--/$0.750
$5.00$0.30/$1.050--/$0.750
$7.50--/$0.750$1.70/$5.000
$10.00--/$0.200$4.00/$7.000
Snapshot: 2026-05-22

Forward Projections & Estimates

NTM Revenue Growth-0.7%
Forward FCF Margin1.3%
Forward EBITDA Margin12.3%
Forward P/FCF101.1x
Forward EV/FCF20.2x
Forward Int. Coverage0.2x
Model Risk Score7/10
Bankruptcy Odds2%
Est. Borrow Rate8.5%
Terminal EV/FCF8.0x
LT Growth4.0%
LT FCF Margin5.0%

Employees

Headcount55,303
Revenue / Employee$2,898,201
Gross Profit / Employee$786,808
2022: 52,603 → 2023: 55,611 → 2024: 55,646 → 2025: 49,661 (-2% CAGR)

Institutional Ownership

Headline & net flow

BALANCED

In Q1 2026 so far (quarter still filing), institutions are roughly balanced — bought 0.5% of float, sold 0.4%.

Net flow · Q1 2026still filing
+0.0% of float (net)
Bought 0.5% · Sold 0.4%
54 filers reported (last quarter: 84)

Ownership composition

Active
7.8%(+1.7% YoY)
83 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
0.1%(+0.0% YoY)
5 filers
Vanguard, iShares, SPDR
Market makers
0.0%(+0.0% YoY)
2 filers
Citadel, Susquehanna
Insiders
0.1%
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
Banco Santander, S.A.$3.08B$6.07+$0+$0-0.4%$12.40B
Aquamarine Financial (Cayman) Ltd$58.2M$5.49+$282K+$58.2M+19.6%$1.37B
NOMURA ASSET MANAGEMENT INTERNATIONAL INC.$20.3M$6.03−$1.1M+$20.3M+1.4%$58.02B
VANGUARD CAPITAL MANAGEMENT LLCPassive$18.4M$5.93+$18.4M+$18.4M$4.04T
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$12.5M$4.59−$3.5M−$1.7M+0.1%$184.72B
AMERICAN CENTURY COMPANIES INC$6.1M$5.06+$491K+$2.5M+0.7%$193.48B
GOLDMAN SACHS GROUP INC$4.8M$5.36+$4.6M+$3.3M-0.2%$760.93B
Alpine Global Management, LLC$4.6M$6.03+$0+$4.6M+3.0%$566M
Qube Research & Technologies Ltd$4.4M$5.90+$4.3M+$4.4M+0.3%$70.36B
UBS Group AG$2.8M$5.54+$1.3M+$2.5M-0.3%$562.11B
Jump Financial, LLC$2.4M$5.43+$1.2M+$2.0M+0.5%$6.09B
MARSHALL WACE, LLP$2.2M$4.56+$885K−$3.1M+0.6%$92.71B
ALLIANCEBERNSTEIN L.P.$2.1M$5.47+$629K+$2.1M-0.3%$307.70B
MORGAN STANLEY$1.8M$5.09+$0+$1.1M-0.3%$1.65T
Connor, Clark & Lunn Investment Management Ltd.$1.7M$5.96+$717K+$1.7M+0.6%$43.38B
Invesco Ltd.$1.6M$5.55+$226K+$488K-0.2%$652.04B
BANK OF AMERICA CORP /DE/$1.5M$4.92−$1.3M+$397K-0.1%$1.36T
DEUTSCHE BANK AG\$1.5M$6.07+$0+$0-0.3%$302.17B
JANE STREET GROUP, LLCMM$1.5M$4.74+$1.0M+$1.3M-0.1%$92.10B
CITADEL ADVISORS LLC$1.4M$4.83+$352K+$273K-0.4%$138.22B
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)NEUTRAL
Holders
-0.41%
avg per quarter
Holders (ex-self)
-0.00%
excl. this stock
Buyers (this Q)
+0.05%
43 buyers · $0.04B in
Sellers (this Q)
+0.26%
25 sellers · $0.01B out
alpha coverage: 99% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
-21.0%
how holders react when this stock falls
On quiet Qs
-15.7%
−10% to +10% baseline
On rallies (+10%+)
-3.6%
how they react when this stock rises
Holders' portfolio flow this Q
-2.4%
outflows — trims may be forced
Sellers' portfolio flow this Q
+1.0%
Sellers grew AUM elsewhere — opinionated cut of this stock.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
-3.5%
Holder mid (any stock)
+1.2%
Holder rally (any stock)
-4.5%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

0134.7M269.3M404.0M538.7M$3.62$4.23$4.85$5.46$6.072021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
Banco Santander, S.A.520.2MAquamarine Financial (Cayman) Ltd9.8MInvesco Ltd.271KMACQUARIE GROUP LTDMARSHALL WACE, LLP365KNOMURA ASSET MANAGEMENT INTERNATIONAL INC.3.4MARROWSTREET CAPITAL, LIMITED PARTNERSHIP2.1MMORGAN STANLEY297KGOLDMAN SACHS GROUP INC803KEmpowered Funds, LLC

Analyst Coverage

Analyst Coverage
Analyst Ratings
5
2
4
Buy: 5Hold: 2Sell: 4Consensus: Buy
Consensus Estimates
QuarterRevenueEBITDANet IncEPSEPS Range# Analysts
2026 Q323.3B4.6B8.9B$1.19$1.16 – $1.223
2026 Q423.9B4.7B9.2B$1.23$1.22 – $1.241
2027 Q124.1B4.7B9.2B$1.22$1.21 – $1.231
2027 Q224.4B4.8B9.6B$1.28$1.27 – $1.291
2027 Q324.8B4.8B9.5B$1.27$1.26 – $1.281
2027 Q425.5B5.0B10.1B$1.35$1.34 – $1.361
2028 Q125.6B5.0B10.6B$1.41$1.40 – $1.431
2028 Q226.0B5.1B11.4B$1.52$1.51 – $1.531
2028 Q326.4B5.2B12.2B$1.63$1.62 – $1.641
2028 Q426.9B5.3B12.7B$1.70$1.69 – $1.721

Corporate

Insider Trading (last 12mo)

Open-market only (Form 4 P-Purchase + S-Sale). Excludes grants, option exercises, tax withholding, gifts.
Officers & directors
Buys ($, 12mo)
$0
0 txns · 0 insiders · 0 sh
Sells ($, 12mo)
$1.58M
10 txns · 9 insiders · 269,605 sh
Recent transactions
DateSideInsiderTitleSharesPriceDollarsOwned $
2026-05-20SELLGarrido Eduardo Alvarezofficer: Officer w/o Specific Desig7,500$5.43$41K$134K
2026-03-26SELLGarrido Eduardo Alvarezofficer: Officer w/o Specific Desig16,500$5.95$98K$192K
2026-03-24SELLAraujo Alexandre Teixeira deofficer: Officer w/o Specific Desig20,156$5.94$120K$107K
2026-03-24SELLIshii Michele Soaresofficer: Officer w/o Specific Desig12,000$5.95$71K$84
2026-03-24SELLde Abreu Germanuela de Almeidaofficer: VP Exec Officer55,000$5.92$326K$272K
2026-03-19SELLJanikian Cezar Augustoofficer: VP Exec Officer17,000$5.87$100K$315K
2026-03-19SELLKambourakis Jean Pauloofficer: Officer w/o Specific Desig36,721$5.89$216K$186K
2026-03-19SELLSoares Alexandre Guimaraesofficer: Officer w/o Specific Desig35,443$5.92$210K$173K
2026-03-19SELLVescovi Ana Paula Vitali Janesofficer: Officer w/o Specific Desig38,000$5.79$220K$196K
2026-03-18SELLKappaz Rafael Abujamraofficer: Officer w/o Specific Desig31,285$5.76$180K$202K

Order Flow (FINRA, ~3w lag)

9.5%retail-3.3pp
21.2%dark+2.6pp
week of 2026-04-13
10%20%30%40%50%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Filing Risk Analysis

Filing Risk Scores

BANCO SANTANDER (BRASIL) S.A.: Reclassification shell games and worsening loan quality behind a stable facade

Overall Risk
6/10
Fraud
3/10
Dilution
2/10
Insolvency
3/10
Earnings Overstated
6/10
Hidden Liabilities
5/10
Legal
7/10
Audit Warnings
2/10
Hidden Upside
4/10
Contextually Acceptable
7/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

In early 2026, Banco Santander Brasil reported a 1.9% year-over-year revenue decline for Q4 2025, alongside a 4.0% drop in overall Net Interest Income (NII). Itau BBA recently downgraded the stock to 'Hold,' citing unfavorable valuation asymmetries and reduced earnings estimates. Additionally, a major leadership transition was announced in March 2026, with Gilson Finkelsztain (formerly CEO of B3) tapped to replace Mario Leão as CEO, signaling a shift in strategy amid cooling growth (TipRanks, Intellectia.AI, StockInvest.us).

🐻 Bear Case

The core bear case rests on a deteriorating credit cycle in Brazil and stagnant loan book growth, which at 3.7% YoY is significantly lagging behind the country's nominal GDP growth and its 15% interest rate. Riskier segments like SMEs and credit cards are expanding while non-performing loans (NPLs) are rising, suggesting a mismatch in risk-adjusted spreads. Furthermore, the bank’s reliance on BRL-denominated earnings leaves it highly exposed to currency depreciation in a volatile fiscal environment where Brazil's public debt is projected to exceed 90% of GDP (Seeking Alpha, Capital Economics).

🚩 Red Flags

Operational efficiency is slipping, with the efficiency ratio climbing to 38.8% in Q4 2025. The bank has also reported recurring losses of approximately R$1.5 billion in market securities over consecutive quarters. Perhaps most concerning for short-sellers, short interest in BSBR recently spiked by nearly 66%, indicating a sharp shift in professional investor sentiment against the stock (MarketBeat, Intellectia.AI).

⚔️ Competitive Threats

Digital-native competitor Nubank has effectively 'eaten Santander’s lunch' by achieving a 31% ROE and becoming Brazil's most valuable company as of late 2025. Santander’s defensive 'Start Now!' initiative for low-income accounts is viewed by analysts as a late-stage reaction to Nubank’s dominant 60% adult population penetration. While Santander maintains physical infrastructure costs, neobanks are scaling with lower digital overhead and high-income products (Ultravioleta) that threaten Santander's traditional profit centers (Euromoney, Reddit/Companies Market Cap).

💬 Customer Sentiment

Customer sentiment is increasingly focused on fee-avoidance and digital ease, pressuring Santander to launch fee-free accounts that threaten its legacy fee-based income model. Internal reports also noted a rise in customer privacy breach complaints in 2024, highlighting potential regulatory and reputational friction as the bank tries to modernize its digital security infrastructure (Euromoney, Santander 2024 Integrated Report).