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Banco Bradesco (BBDO)
NYSE:BBDO
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Banco Bradesco
(NYSE:BBDO)
68Neutral
Banco Bradesco (BBDO) vs. S&P 500 (SPY)
Market Cap
$20.09B
Dividend Yield1.53%
Average Volume (3M)66.21K
Price to Earnings (P/E)6.2
Beta (1Y)0.44
Revenue Growth-8.55%
EPS Growth14.81%
CountryUS
Employees86,222
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)0.30
Shares Outstanding5,330,304,700
10 Day Avg. Volume91,399
30 Day Avg. Volume66,207
Financial Highlights & Ratios
PEG Ratio0.42
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Banco Bradesco Business Overview & Revenue Model
Company DescriptionBanco Bradesco is Brazil's fourth-largest bank, with about 15% of deposits, and the largest insurance provider in Brazil, with roughly 25% market share. The bank provides services through a network of more than 4,600 branches, the largest footprint of all privately controlled banks in Brazil. Banking provides roughly 70% of profits, while the insurance segment contributes the remaining 30%.
How the Company Makes MoneyBanco Bradesco makes money primarily through interest income from loans and advances made to individuals and businesses. Additionally, it generates revenue from fees and commissions associated with various banking services, such as account maintenance, transactions, and credit card services. The company also earns income from its insurance division, where it offers a variety of insurance products, including life, health, and property insurance. Investment banking and asset management services provide further revenue streams through advisory fees, trading, and portfolio management. Strategic partnerships and its strong digital banking presence contribute to expanding its customer base and enhancing its revenue potential.
Banco Bradesco Financial Statement Overview
Summary
Banco Bradesco shows strong revenue from core banking operations but faces profitability challenges due to declining revenue and fluctuating net income margins. The balance sheet is robust but high leverage could pose risks. Cash flow issues present significant concerns, especially with negative operating and free cash flows, indicating potential liquidity risks.Income Statement
Banco Bradesco's income statement shows a declining revenue trend with a significant drop in revenue from 2023 to 2024. The gross profit margin is strong at 100% due to the nature of banking operations. However, net profit margin has decreased, indicating challenges in maintaining profitability. EBIT margin remains robust, but the absence of EBITDA data limits further analysis.72
Positive
Balance Sheet
The balance sheet reflects a strong asset base with total assets growing year over year. However, the debt-to-equity ratio is high, suggesting potential leverage risks. The equity ratio is stable, indicating a solid capital structure, though the return on equity has shown some fluctuations, pointing to variable profitability.65
Positive
Cash Flow
Cash flow statements indicate volatility with negative operating cash flows in recent years, raising concerns about cash generation capabilities. Free cash flow has been negative, highlighting potential challenges in funding operations and growth without external financing. The operating cash flow to net income ratio is negative, reflecting issues in converting earnings to cash.58
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 78.89B | 100.27B | 106.27B | 102.43B | 82.37B | Gross Profit |
| 78.89B | 0.00 | 0.00 | 0.00 | 0.00 | EBIT |
| 30.81B | 23.04B | 39.26B | 49.29B | 20.65B | EBITDA |
| 22.02B | 0.00 | 0.00 | 38.63B | 11.14B | Net Income Common Stockholders |
| 17.25B | 14.25B | 21.22B | 23.17B | 15.84B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 36.83B | 41.54B | 28.55B | 21.28B | 23.85B | Total Assets |
| 2.07T | 1.93T | 1.79T | 1.68T | 1.60T | Total Debt |
| 256.03B | 631.89B | 338.99B | 284.55B | 181.72B | Net Debt |
| 219.20B | 264.93B | 310.44B | 263.27B | 157.88B | Total Liabilities |
| 1.90T | 1.76T | 1.63T | 1.53T | 1.46T | Stockholders Equity |
| 168.41B | 166.33B | 159.53B | 149.78B | 145.62B |
| Cash Flow | Free Cash Flow | |||
| -93.62B | -9.32B | 32.35B | -106.41B | 138.17B | Operating Cash Flow |
| -91.33B | -177.63M | 41.77B | -102.00B | 142.43B | Investing Cash Flow |
| -5.01B | 83.61B | -17.78B | -19.31B | 20.46B | Financing Cash Flow |
| 117.88B | -23.06B | 21.92B | -1.61B | -36.41B |
Banco Bradesco Technical Analysis
Negative
1.88
Price Trends
1.89
Negative
1.96
Negative
2.08
Negative
Market Momentum
>-0.01
Positive
45.91
Neutral
38.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBDO, the sentiment is Negative. The current price of 1.88 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 1.89, and below the 200-day MA of 2.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBDO.
Banco Bradesco Risk Analysis
Banco Bradesco disclosed 42 risk factors in its most recent earnings report. Banco Bradesco 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 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% | 3.01% | 1.25% | 20.03% | |
80 Outperform | $10.10B | 5.96 | 32.82% | 4.62% | 30.54% | 97.65% | |
70 Outperform | $20.09B | 6.63 | 10.44% | 1.58% | -8.06% | 3.79% | |
70 Outperform | $10.45B | 6.47 | 15.62% | 8.20% | 10.45% | 8.04% | |
68 Neutral | $20.09B | 6.20 | 10.44% | 1.53% | -8.55% | 14.81% | |
66 Neutral | $16.18B | ― | 11.61% | 5.03% | -3.94% | ― | |
64 Neutral | $13.79B | 10.52 | 9.20% | 4.24% | 17.25% | -7.60% |
* Financial Sector Average
Performance Comparison
BBDO
Banco Bradesco
1.88
-0.53
-21.99%
BBD
Banco Bradesco SA
2.00
-0.70
-25.93%
BSBR
Banco Santander Brasil
4.32
-1.18
-21.45%
CIB
Bancolombia
42.39
12.98
44.13%
GGAL
Grupo Financiero Galicia SA
57.78
35.23
156.23%
ITUB
Itau Unibanco
5.65
-0.90
-13.74%
Banco Bradesco Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -7.39% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
Bradesco reported strong financial performance for 2024, with significant growth in net income and successful digital transformation efforts. However, the outlook for 2025 is more cautious due to macroeconomic uncertainties, reflected in conservative growth guidance.Highlights
Record Net Income Growth
Bradesco reported a net income of BRL5.4 billion for Q4 2024, a 37% increase, and BRL19.6 billion for the full year, representing a 20% growth.
Digital Transformation Success
99% of transactions occurred through digital channels in 2024, contributing to efficiency gains and improved customer experience.
Loan Portfolio and Customer Base Expansion
Total loan portfolio grew by almost 12% year-on-year, and the customer base increased by more than 2 million clients.
Insurance Segment Performance
Insurance revenue grew by 16.6% year-on-year, with net income of BRL2.5 billion for Q4 and BRL9.1 billion for the year.
Strong Asset Under Management Growth
BRAM's assets under management reached BRL122 billion.
Lowlights
Flat NII Growth in Q4
Net interest income (NII) for Q4 was flat compared to the prior quarter, despite expectations of growth.
Cautious Guidance for 2025
Guidance for 2025 is more conservative due to the macroeconomic scenario and higher interest rates, projecting lower portfolio growth of 4-8%.
Market NII Neutrality
The expectation for market NII in 2025 is close to neutrality, indicating limited growth potential in this area.
Company Guidance
In the call, Bradesco provided guidance for 2025, highlighting a cautious approach due to macroeconomic conditions while remaining optimistic about their internal transformations and deliverables. They reported a net income of BRL 5.4 billion for Q4 2024, marking a 37% growth, and BRL 19.6 billion for the entire year, a 20% increase. Total revenue rose to BRL 32.3 billion, up by 7.9% year-on-year, driven by a 5.4% growth in net interest income (NII), a 7.9% rise in fee and commission income, and a 16.6% increase in insurance revenue. Their total loan portfolio exceeded BRL 980 billion, growing nearly 12% year-on-year, with significant growth in micro, small, and medium-sized enterprises. Bradesco's strategy included expanding their digital footprint, with 99% of transactions occurring through digital channels and growing their customer base by over 2 million clients. The bank emphasized maintaining a cost of risk around 3% while controlling expenses despite ongoing investments. They aimed for continued profitability and efficiency gains through technology investments, including cloud migration and AI implementation, anticipating a 50% increase in technological output in 2025.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.