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Itau Unibanco Holdings (ITUB)

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Last Friday we rebalanced our ADR portfolio. We replaced a company in the financial sector by Itau Unibanco (ITUB).

Here’s a quick glimpse into our decision to add Itau to our portfolio. Its current SP Score of 70% ranks it #5 in the ADR – Large cap. Financials category. This is partly because ITUB trades at a discount to its intrinsic value (IV) at 0.8x, as well as to its future growth value (FGV) at -16%.

We witnessed a positive change in EVA for the last 12 months making us believe that better days could be on the horizon. The Return on Capital for the last quarter came in better than the same quarter last year mostly due to an improvement in the Net Operating Profit After Tax (NOPAT).

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