Itaúsa S.A. (ITSA4.SA) stock analysis
In our weekly check, Itaúsa S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6.
About Itaúsa S.A.
Itaúsa S.A. is a Financial Services company (Financial - Conglomerates) based in Brazil, listed on SAO as ITSA4.SA.
What our checks show for ITSA4.SA
Red flags
- Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
- The gross margin fell by 54.4 points, to 22%: costs are rising faster than prices.
- Analysts expect the net margin to shrink by 113 points from today's 214%.
- Revenue grew only 0% a year over the last 3 years.
- The stock has fallen as much as 66% from a peak. Would you have held through that?
- Return on capital (ROCE) is only 0.1%.
Warning signs
- Operating cash flow is only 0.56x net profit: part of the reported profit does not arrive as cash.
- Free cash flow covers the dividend only 0.8 times.
- Recovering from its deepest fall took about 1.8 years.
Strengths
- Net debt is only 1.1x a year of EBITDA: the balance sheet has room.
- The net margin rose by 161 points over 5 years, to 214%.
- Analysts expect earnings per share to grow about 10.8% a year over the next years.
- Analysts expect revenue to grow about 49.1% a year over the next years.
- The company keeps 214% of its revenue as net profit.
- Free cash flow is 110% of revenue: cash for dividends, buybacks or growth.
Next earnings report: 2026-11-09
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Questions
What grade does Itaúsa S.A. (ITSA4.SA) have?
In our weekly check, Itaúsa S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of ITSA4.SA stock?
This week's biggest flags for Itaúsa S.A.: Weak interest cover, Gross margin falling, Margins expected to shrink. In total 9 of 25 checks show a warning or a red flag.
What does Itaúsa S.A. do?
Itaúsa S.A. is a Financial Services company (Financial - Conglomerates) based in Brazil, listed on SAO as ITSA4.SA.
When does Itaúsa S.A. report earnings next?
The next earnings report is expected on 2026-11-09. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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