Is INTR a good stock to buy? We came across a bullish thesis on Inter & Co, Inc. on Emerging Value’s Substack. In this article, we will summarize the bulls’ thesis on INTR. Inter & Co, Inc.’s share was trading at $5.38 as of June 29th. INTR’s trailing and forward P/E were 8.86 and 9.79 respectively according to Yahoo Finance.
Inter&Co (INTR) is a Brazilian fintech and digital banking platform operating within one of the most attractive emerging market valuation environments, currently trading at a market capitalization of approximately 2.4 billion USD and a share price near 5.30 USD. The company has evolved from a traditional financial institution into a full-scale digital super app, offering banking accounts, credit cards, lending, savings, investing, insurance, and payments, while progressively embedding itself deeper into Brazil’s rapidly digitising financial ecosystem.
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With a client base of roughly 44 million users, Inter&Co continues to expand engagement through a highly personalised app experience that integrates Pix payments, credit, investments, and commerce features, positioning itself alongside other leading Brazilian fintech players such as Nu Holdings and Mercado Pago in a highly competitive but structurally growing market.
The company’s revenue model is primarily driven by net interest income, which accounts for around 77% of revenues, supported by fee income. A key structural shift in Inter&Co’s credit portfolio is its move toward secured lending, which now represents approximately 67% of total loans, including mortgages, home equity, payroll loans, and SME credit. This transition improves risk quality while supporting scalable growth.
The firm is also targeting improved profitability, with management aiming to raise return on equity from around 15.5% to 28% by 2029 through improved underwriting, operational efficiency, and leverage expansion. International expansion, particularly in the United States, is already underway with over 5 million users of its USD-based services, creating additional optionality for cross-border growth.
Despite competitive pressures and macroeconomic risks in Brazil’s credit cycle, Inter&Co continues to demonstrate strong growth momentum, with earnings expansion expectations of 40% in 2026 and 30% in 2027. At approximately 6.5x forward earnings and around 1.2x price-to-book, the valuation reflects a significant discount relative to its long-term profitability potential.
