Banco Bradesco SA (BBD) AI Stock Analysis

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Banco Bradesco SA

(NYSE:BBD)

Rating:70Outperform

Price Target:

$3.00

▼(-2.91%Downside)

Banco Bradesco SA's strong earnings growth and positive market momentum are key strengths. The technical analysis indicates bullish trends, while valuation metrics suggest the stock is reasonably priced. However, financial performance is mixed due to cash flow challenges and high leverage, which tempers the overall score.

Banco Bradesco SA (BBD) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$30.14B

Dividend Yield1.26%

Average Volume (3M)41.23M

Price to Earnings (P/E)9.6

Beta (1Y)0.32

Revenue Growth-9.78%

EPS Growth27.43%

CountryUS

Employees71,953

SectorFinancial

Sector Strength79

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.10

Shares Outstanding5,311,865,700

10 Day Avg. Volume37,354,198

30 Day Avg. Volume41,225,757

Financial Highlights & Ratios

PEG Ratio1.40

Price to Book (P/B)1.04

Price to Sales (P/S)0.00

P/FCF Ratio-1.34

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$3.00

Price Target Upside-2.91% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Banco Bradesco SA Business Overview & Revenue Model

Company DescriptionBanco Bradesco S.A., together with its subsidiaries, provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. The company operates through two segment, Banking and Insurance. It provides current, savings, click, and salary accounts; real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit; debit and business cards; financial and security services; consortium products; auto, personal accident, dental, travel, and life insurance; investment products; pension products; real estate and vehicle auctions; cash management, and foreign trade and exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.

How the Company Makes MoneyBanco Bradesco SA generates revenue through various streams primarily centered around its core banking and financial services. Its primary income sources include interest income from loans and advances to customers, fee-based income from services such as account maintenance, credit card services, and asset management. The bank also earns substantial revenue from its insurance operations, which offer life, health, and property insurance products. Additionally, Bradesco benefits from investment income through its asset management services, which manage a broad portfolio of investment funds. The bank's earnings are further supported by strategic partnerships and alliances that enhance its service offerings and market reach.

Banco Bradesco SA Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 36.12%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Positive

Banco Bradesco reported strong financial performance in Q1 2025, with significant growth in net income, revenue, and a robust loan book. The insurance group and technology investments also contributed positively. However, there are concerns about capital adequacy and future market NII conditions, along with fluctuations in wholesale banking performance. Overall, the highlights outweigh the lowlights, indicating optimism for continued growth.

Q1-2025 Updates

Positive Updates

Significant Net Income Growth

Banco Bradesco reported a recurring net income of BRL5.9 billion, marking a growth of more than 39% year-on-year and 8.6% quarter-on-quarter, with a Return on Average Equity (ROAE) of 14.4%.

Strong Revenue Performance

Total revenue was BRL32 billion, growing 15% year-on-year. Notably, fee and commission income increased by 10.3%, and the insurance segment grew by 32.7% year-on-year.

Robust Loan Book Growth

The expanded loan portfolio grew by 4.9% year-on-year and 2.4% quarter-on-quarter. Micro, small, and medium-sized enterprises saw almost 30% year-on-year growth, and individual loans grew by 16.2%.

Insurance Group Performance

The insurance group achieved a high ROAE of 22.4% with revenue growth of 25.3% year-over-year, reaching BRL30 billion in revenue from insurance premiums, pension contributions, and capitalization bonds.

Operational Efficiency and Technology Investments

Operating expenses grew by 12% year-over-year, but the bank has been reducing its footprint with 1,400 branches closed and is investing in technology and data analytics to improve productivity.

Negative Updates

Challenges with Wholesale Banking

The wholesale banking segment showed fluctuations, with a BRL7 billion year-on-year reduction in securities, indicating challenges in consistent performance.

Concerns Over Capital Adequacy

Despite strong performance, there were concerns about capital adequacy in light of potential future growth and the need for a robust capital structure to support expansion.

Market NII Caution

There is an expectation of tighter conditions for market Net Interest Income (NII) in the upcoming quarters due to peak interest rates, suggesting potential challenges in maintaining current growth momentum.

Company Guidance

In the first quarter of 2025, Banco Bradesco reported a recurring net income of nearly BRL5.9 billion, marking a year-on-year increase of over 39% and a quarter-on-quarter growth of 8.6%, with a return on average equity (ROAE) of 14.4%. The bank's total revenue reached BRL32 billion, growing 15% year-on-year, supported by a 13.7% increase in total net interest income, a 10.3% rise in fee and commission income, and a 32.7% growth in insurance revenue. The expanded loan portfolio increased by 4.9% year-on-year and 2.4% quarter-on-quarter, excluding John Deere Bank, with notable growth seen in loans to individuals (16.2%) and micro, small, and medium-sized enterprises (nearly 30% year-on-year). The bank also highlighted a reduction in operating expenses by 8.6% quarter-on-quarter. Despite these positive results, the bank maintained a cautious outlook on future growth, focusing on secured loans and leveraging technology for enhanced productivity, while considering potential revisions to its annual guidance later in the year.

Banco Bradesco SA Financial Statement Overview

Summary

Banco Bradesco SA shows strengths in revenue growth and operational efficiency, as indicated by a strong EBIT margin. However, challenges in cash flow with negative operating cash flow and high leverage pose risks, offsetting some of the financial strengths.

Income Statement

Positive

Banco Bradesco SA has shown a mixed performance in its income statement. The company experienced a revenue increase from 2023 to 2024, with a substantial growth rate of approximately 15.4%. However, the net profit margin was around 21.9% in 2024, which is relatively stable. The EBIT margin is strong at 39.1%, indicating efficient operational performance. However, the historical fluctuation in revenue and net income suggests some volatility in earnings.

Balance Sheet

Positive

The balance sheet of Banco Bradesco SA presents a solid equity position with an equity ratio of approximately 8.1% in 2024. The debt-to-equity ratio is high at 1.52, reflecting significant leverage, which could pose risks if not managed properly. However, the company has maintained a stable stockholders' equity trend over the years, suggesting a strong capital base.

Cash Flow

Neutral

The cash flow statement indicates challenges for Banco Bradesco SA, with a negative operating cash flow in 2024. The free cash flow has declined significantly, showing a concerning trend in liquidity. The free cash flow to net income ratio is negative, suggesting potential cash management issues. Despite these concerns, the company has a history of positive free cash flow in earlier years, showing some potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	221.66B	78.89B	68.35B	109.00B	102.43B	62.58B
Gross Profit	83.20B	78.69B	68.16B	106.34B	102.43B	82.37B
EBITDA	12.79B	23.63B	16.73B	0.00	0.00	10.00B
Net Income	18.74B	17.25B	14.25B	21.22B	23.17B	15.84B
Balance Sheet
Total Assets	2.05T	2.07T	1.93T	1.79T	1.68T	1.60T
Cash, Cash Equivalents and Short-Term Investments	441.94B	36.83B	522.98B	28.55B	21.28B	23.85B
Total Debt	683.00B	256.03B	359.49B	338.99B	238.94B	217.91B
Total Liabilities	1.88T	1.90T	1.76T	1.63T	1.53T	1.46T
Stockholders Equity	170.50B	168.41B	166.33B	159.53B	149.78B	145.62B
Cash Flow
Free Cash Flow	-123.21B	-93.62B	-9.32B	32.35B	-106.41B	138.17B
Operating Cash Flow	-116.13B	-91.33B	-177.63M	41.77B	-102.00B	142.43B
Investing Cash Flow	44.20B	-5.01B	83.61B	-17.78B	-19.31B	20.46B
Financing Cash Flow	47.78B	117.88B	-23.06B	21.92B	-1.61B	-36.41B

Banco Bradesco SA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3.09

Price Trends

50DMA

2.76

Positive

100DMA

2.44

Positive

200DMA

2.33

Positive

Market Momentum

MACD

0.09

Positive

RSI

68.32

Neutral

STOCH

62.54

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBD, the sentiment is Positive. The current price of 3.09 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 2.76, and above the 200-day MA of 2.33, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 68.32 is Neutral, neither overbought nor oversold. The STOCH value of 62.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAP	77 Outperform	$17.81B	11.53	16.35%	9.85%	3.89%	15.26%
BSAC	76 Outperform	$11.77B	11.07	24.02%	5.27%	18.54%	65.80%
CIB	75 Outperform	$11.58B	13.44	15.99%	14.91%	-5.45%	3.43%
BCH	73 Outperform	$15.34B	11.69	23.88%	6.92%	-17.02%	-10.73%
BBD	70 Outperform	$30.14B	9.62	10.61%	1.26%	-9.78%	27.43%
BSBR	70 Outperform	$20.12B	16.52	10.89%	4.99%	-3.94%	31.52%
Sector *	67 Neutral	¥713.20B	10.85	7.42%	3.37%	7.74%	16.12%

* Financial Sector Average

Performance Comparison

BBD

Banco Bradesco SA

3.09

0.96

45.07%

BCH

Banco De Chile

30.25

8.02

36.08%

BSBR

Banco Santander Brasil

5.51

0.74

15.51%

BSAC

Banco Santander Chile

25.03

6.85

37.68%

CIB

Bancolombia

45.72

17.37

61.27%

BAP

Credicorp

222.63

71.59

47.40%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 09, 2025