NYSE:ITUB
$20.88
(3/19 9:38AM)
+0.3%
| Open | $20.83 |
Mkt Cap | $33.0 Billion |
| High | $20.91 |
52Wk High | $23.95 |
| Low | $20.83 |
52Wk Low | $9.95 |
| Volume | 248,020 |
Avg Vol 10D | 9.1 Million |
Ockham's Rating/Recommendation Summary
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ITUB Revenue
As a value investing shop, we are interested in seeing how ITUB's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 2.74x and the low end of the range at 1.08x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for ITUB of 1.78x is slightly under its historical average. This level of Price to Sales gives us a fairly neutral position on the ITUB shares. We would like to see a drop in the Price to Sales ratio just a little bit more (given current sales figures) before we would become more positive on a Price to Sales basis. Such a drop would increase the attractiveness of the stock but, as always, would need to be considered in the context of all other valuation factors.
ITUB Cash Earnings
ITUB is not forecasted to produce positive Cash Earnings this year, based on recent performance. This is not a positive situation, as we would always prefer that a company is producing cash every year. However, it is important to recognize that not all companies or types of companies have the goal of producing positive Cash Earnings either early in their business cycle or following significant turnaround changes. When looking at ITUB, we hesitate to be overly negative on the company, but it is of concern that the company is not profitable at this time.
Let's face it, companies cannot remain unprofitable for very long before a change has to be made. This could mean further restructuring or corporate event such as selling assets or spinning off divisions, at any rate a company with negative cash flows is not one that often makes a great investment unless you can acquire it at an extremely depressed price.
ITUB Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In ITUB’s case, the estimated annual dividend is $0.08 resulting in a current dividend yield of 0.38%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from ITUB against the historic high and low levels over the past 10 years. The highest dividend yield from ITUB over this period was 13.98% while the lowest dividend yield was 0.00% It is never a good sign for a company to pay significantly lower dividends, in this case 94.56% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
The Outlook for Emerging Markets and Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share Discussed on Squawk On The Street
For growth, there is nowhere growing more rapidly than emerging markets. Recently, Squawk On The Street talked about emerging markets and their impact on Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on ITUB because the price has gotten too high to be justified by the fundamentals.
“… actually banking is a very good way to play the growth of brazil. ITUB, yuni banko is a really good bank to play the entire …”
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share (ITUB) Discussed on CNBC's Fast Money
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share is in the news. Find out how this impacts ITUB trading on Ockham Research.
Are the bellwethers of tomorrow. Erj is going to be the boeing of tomorrow. ITUB, that's bank of america of doctor rdy, that's glackso. I think emerging markets are in a difficult place. >> you can buy them here in the u.S. >> you can buy all of them. That's what we want to show you. >> the attractions is not just institutional, it's the retail
“… t's what we want to show you. >> the attractions is not just institutional, it's the retail …”
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share (ITUB) Discussed on CNBC's Street Signs
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share is in the news. Find out how this impacts ITUB trading on Ockham Research.
>>> check out a few stocks riding the olympic wave here. ITAU UNIBANCO. When >>> south american upset, rio winning the bid to host the 2016 olympic games. Chicago, a huge disappointment. The second city coming in fourth. It's a big loss for the u.S. But a big win for the "b" in bric and possibly for investors. We have a report of olympian proportions. Darren rovell is in chicago. Ross westgate is in copenhagen where the announcement came down about an hour ago. We begin with ross. Ross, why did chicago lose? >> steve, it wasn't because they didn't have a good bid. All the bids were technically great, but rio sold itself I think on its passion and the fact that they'd never had it before. A short while ago in the press conference you saw the passion from the president in floods of tears. They have been so passionately
“… big win for the "b" in bric and possibly for investors. We have a report of olympian proportions. Darren rovell is in chicago. Ross westgate is in copenhagen where the announcement came down about an hour ago. We begin with ross. Ross, why did chicago lose? >> steve, it wasn't because they didn't have a good bid. All the bids were technically great, but rio sold itself I think on its passion and the fact that they'd never had it before. A short while ago in the press conference you saw the passion from the president in floods of tears. They have been so passionately …”
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share (ITUB) Discussed on CNBC's Closing Bell
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share is in the news. Find out how this impacts ITUB trading on Ockham Research.
"a" were to sell columbia asset management, china construction bank, BANCO ITAU and santander serfin, they could raise $24 billion. The banks are asked to convert they want the bank to have the ability to convert if losses arise and more common is needed.
“… …”
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share (ITUB) Discussed on CNBC's Fast Money
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share is in the news. Find out how this impacts ITUB trading on Ockham Research.
Actually, a very heavily asia if you of the brazil only it's the ewz. Fane want brazil udon't just want resources, you also some of itu. Different balance sheets than western banks if you will take a bite, there the places that I will go. >> continue the conversation on the nasdaq finished the week higher by 6%.
“… conversation on the nasdaq finished the week higher by 6%. …”
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share (ITUB) Discussed on CNBC's Fast Money
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share is in the news. Find out how this impacts ITUB trading on Ockham Research.
Basis, sure, you can find names that are well run, companies that are well run and be there. >> sorry, we got long emerging banks this week. Saying brazil, bbd, or an itu. They have rates coming down in brazil which doesn't well for their margins but they don't have the same exposures. As banks are going up globally, emerging banks are trying to >> again, if you're going to be
“… don't have the same exposures. As banks are going up globally, emerging banks are trying to >> again, if you're going to be …”