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Banco Bradesco Sa (BBD)
NYSE:BBD
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Banco Bradesco SA
(NYSE:BBD)
70Outperform
Banco Bradesco SA (BBD) vs. S&P 500 (SPY)
Market Cap
$20.06B
Dividend Yield1.58%
Average Volume (3M)47.00M
Price to Earnings (P/E)6.9
Beta (1Y)0.33
Revenue Growth-8.06%
EPS Growth3.79%
CountryUS
Employees86,222
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)0.30
Shares Outstanding5,311,865,700
10 Day Avg. Volume46,495,892
30 Day Avg. Volume47,001,404
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)N/A
Price to Sales (P/S)1.26
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.40Price Target Upside20.00% Upside
Rating ConsensusHold
Number of Analyst Covering3
Banco Bradesco SA Business Overview & Revenue Model
Company DescriptionBanco Bradesco SA (BBD) is one of Brazil's largest private sector banks, offering a wide range of financial products and services. Established in 1943, the bank operates through various segments including banking, insurance, and asset management. Bradesco provides comprehensive banking solutions such as personal and corporate banking, loans, credit cards, and investment services, catering to both individual and institutional clients. The bank has an extensive network of branches and ATMs across Brazil, complemented by digital banking platforms to enhance customer accessibility and convenience.
How the Company Makes MoneyBanco Bradesco SA generates revenue through multiple streams. The primary source is interest income from loans and advances to customers, which includes personal loans, mortgages, and corporate loans. Another significant revenue stream is derived from fees and commissions on banking services such as account maintenance, transaction processing, and credit card services. The bank also earns through its insurance segment, offering life, health, and property insurance products. Additionally, Bradesco benefits from its asset management services, which involve managing investment portfolios for clients. The bank's partnerships with other financial institutions and technology providers enhance its service offerings and contribute to its earnings. Overall, Bradesco's diversified portfolio across financial sectors supports its revenue generation and market presence.
Banco Bradesco SA Financial Statement Overview
Summary
Banco Bradesco SA demonstrates solid profitability and strong cash flow generation, with robust free cash flow and efficient cash generation as highlighted by strong ratios. However, challenges include inconsistent revenue growth and high leverage typical of the banking industry.Income Statement
Gross profit margin and net profit margin show strong profitability, with the TTM (Trailing-Twelve-Months) period reflecting a gross profit margin of 128.1%, indicating efficient cost management. However, revenue growth has been inconsistent, with a significant drop from 2022 to the TTM period. The net profit margin for the TTM is 7.6%, indicating modest profitability. EBIT margin is low, suggesting operational challenges.68
Positive
Balance Sheet
The balance sheet shows a relatively high debt-to-equity ratio of 2.34 in the TTM period, which is typical in banking but indicates high leverage. Return on equity is 8.7%, showing decent returns to shareholders. The equity ratio of 8.3% shows a modest proportion of equity financing, typical for banks.72
Positive
Cash Flow
Cash flow statements indicate strong free cash flow in the TTM period, with growth from previous periods. Operating cash flow to net income ratio is robust at 8.8, demonstrating efficient cash generation. Free cash flow to net income ratio is high at 8.1, showing strong cash profitability.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 191.53B | 68.35B | 109.00B | 102.43B | 82.37B | 99.28B | Gross Profit |
| 245.38B | 302.79B | 106.34B | 102.43B | 82.37B | 99.28B | EBIT |
| 1.20B | 23.04B | 155.29B | 32.64B | 3.88B | 13.23B | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 14.54B | 14.25B | 21.22B | 23.17B | 15.84B | 21.02B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 19.61B | 0.00 | 28.55B | 21.28B | 23.85B | 18.99B | Total Assets |
| 1.31T | 1.93T | 1.79T | 1.68T | 1.60T | 1.38T | Total Debt |
| 200.11B | 359.49B | 338.99B | 284.55B | 181.72B | 200.66B | Net Debt |
| 180.49B | 187.64B | 310.44B | 263.27B | 157.88B | 181.67B | Total Liabilities |
| 1.18T | 1.76T | 1.63T | 1.53T | 1.46T | 1.24T | Stockholders Equity |
| 124.28B | 166.33B | 159.53B | 149.78B | 145.62B | 135.10B |
| Cash Flow | Free Cash Flow | ||||
| 118.20B | -9.32B | 32.35B | -106.41B | 138.17B | -24.78B | Operating Cash Flow |
| 128.25B | -177.63M | 41.77B | -102.00B | 142.43B | -19.45B | Investing Cash Flow |
| -165.20B | 83.61B | -17.78B | -19.31B | 20.46B | -15.33B | Financing Cash Flow |
| 21.16B | -23.06B | 21.92B | -1.61B | -36.41B | -14.32B |
Banco Bradesco SA Technical Analysis
Negative
2.00
Price Trends
2.01
Negative
2.13
Negative
2.28
Negative
Market Momentum
-0.01
Positive
45.31
Neutral
60.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBD, the sentiment is Negative. The current price of 2 is below the 20-day moving average (MA) of 2.06, below the 50-day MA of 2.01, and below the 200-day MA of 2.28, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.31 is Neutral, neither overbought nor oversold. The STOCH value of 60.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBD.
Banco Bradesco SA Risk Analysis
Banco Bradesco SA disclosed 42 risk factors in its most recent earnings report. Banco Bradesco SA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Bradesco SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $51.81B | 7.23 | 20.84% | 3.02% | 1.25% | 20.03% | |
72 Outperform | $14.40B | 9.77 | 16.36% | 5.14% | 7.16% | 2.56% | |
70 Outperform | $20.06B | 6.87 | 10.44% | 1.58% | -8.06% | 3.79% | |
70 Outperform | $10.40B | 6.33 | 15.62% | 8.38% | 10.45% | 8.04% | |
68 Neutral | $20.05B | 6.27 | 10.44% | 1.51% | -8.55% | 14.81% | |
66 Neutral | $16.15B | ― | 11.61% | 4.98% | -3.94% | ― | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% |
* Financial Sector Average
Performance Comparison
BBD
Banco Bradesco SA
2.00
-0.70
-25.93%
BSBR
Banco Santander Brasil
4.35
-1.15
-20.91%
CIB
Bancolombia
41.37
11.96
40.67%
BAP
Credicorp
181.00
19.66
12.19%
ITUB
Itau Unibanco
5.65
-0.90
-13.74%
BBDO
Banco Bradesco
1.87
-0.54
-22.41%
Banco Bradesco SA Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -10.31% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant growth in net income, digital transformation, loan portfolio, and insurance sales. However, the outlook for 2025 is cautious due to macroeconomic conditions, and there are challenges related to narrowing margins in certain loan segments and restructuring costs.Highlights
Significant Net Income Growth
For the fourth quarter, net income was BRL5.4 billion, representing a growth of 37%. For the full year 2024, net income reached BRL19.6 billion, a 20% increase.
Digital Transformation and Customer Base Expansion
99% of transactions occurred through digital channels. The customer base grew by more than 2 million clients, and the Bradesco Expresso platform contributed to a better customer experience.
Loan Portfolio and Insurance Growth
Total loan portfolio grew almost 12% year-on-year. Insurance sales increased by 49%, and the insurance company's revenue grew by 16.6% year-on-year.
Expansion in Assets Under Management
BRAM grew assets under management to BRL122 billion, and Bradesco received two awards from Infomoney for best customer experience.
Strong Performance in SME and Middle Market Lending
The portfolio for micro, small, and medium-sized companies grew by 28% during the period.
Lowlights
Conservative Guidance for 2025
Guidance for 2025 is more cautious due to a conservative macroeconomic scenario and includes anticipated effects of regulations and investments.
Narrowing Margins in Certain Loan Segments
Personal loans grew in safer lines, but margins were lower, and there was pressure on gross margin due to INSS caps and public payroll deductible loans.
Operational Challenges and Restructuring Costs
Restructuring costs incurred due to footprint review and transformation initiatives, with a non-recurring provision of approximately BRL440 million.
Company Guidance
In the call, Marcelo de Araujo Noronha provided detailed guidance for Bradesco's financial outlook in 2025, emphasizing a cautious approach due to the macroeconomic environment. The bank's net income for the fourth quarter of 2024 was BRL5.4 billion, showing a 37% growth, with a full-year net income of BRL19.6 billion, a 20% increase. Total revenue reached over BRL32 billion, growing by 7.9% year-on-year, while the total loan portfolio exceeded BRL980 billion, marking a nearly 12% growth. The client NII rose by 5.4% year-on-year. The bank maintained a cost of risk at approximately 3% and highlighted efficiency gains and transformation efforts. Additionally, Bradesco achieved a capital ratio of 12.8% after the implementation of Resolution 4,966, and the insurance business posted a 13.6% revenue growth. Looking forward, Bradesco aims for a portfolio growth of 4% to 8% in 2025, with a focus on maintaining controlled portfolios and leveraging their digital channels, which facilitated 99% of transactions in 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.