BANESTES S.A. - BANCO DO ESTADO DO ESPÍRITO SANTO (BEES4.SA)

Saturday

7:32 PM

Thesis: Despite strong loan demand, rising non-performing loans and high leverage are raising concerns about the bank's stability and future profitability.

Revenue Outlook

Metric	FY2024	FY2025
Revenue	$4.9B	$6.2B
Rev. Growth	-9.1%	+27.1%
EPS	$1.36	$0.98
EPS Growth	+33.3%	-27.9%
P/E	6.7×	9.3×

What Moves the Stock

1Changes in interest rates impacting net interest margins
2Local economic performance in Espírito Santo affecting loan demand
3Regulatory changes in the Brazilian banking sector
4Credit quality and default rates on loans
5Interest income from loans (estimated 70%)
6Fee income from banking services (estimated 20%)
7Investment income (estimated 10%)
8Digital transformation in banking

FY2025 Snapshot

Revenue: $6.2B
Rev. Growth: +27.1%
Gross Margin: 32.6%
Op. Margin: 6.5%
Net Margin: 5.5%
Net Income: $340M
NI Growth: -20.7%
EPS: $0.98
1Y Return: +29.5%

BEES4.SA Chart

My Notes

"Management has acknowledged the challenges posed by increasing defaults, emphasizing a need for tighter credit controls."
Moat: Banestes has a strong local presence, but its competitive advantage may weaken as larger banks expand their footprint.
value - due to its low Price/Sales ratio (0.5x) and potential for recovery in profitability as economic conditions improve.
Rising interest rates typically enhance net interest margins, positively impacting profitability.
Watch on earnings: Net interest margin, Loan growth rate, Non-performing loan ratio.

One Sentence Summary:

Banestes S.A. - Banco do Estado do Espírito Santo: the story is balanced — changes in interest rates impacting net interest margins.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

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