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Banco Bradesco (BBDO)
NYSE:BBDO
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Banco Bradesco
(NYSE:BBDO)
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Rating:74Outperform
Price Target:
$3.00
â–²(9.09% Upside)
Banco Bradesco's overall stock score is driven by strong technical indicators and attractive valuation, despite concerns over financial performance due to high leverage and weak cash flow. The positive sentiment from the earnings call further supports the stock's potential, although economic challenges and high operating expenses remain risks.
Banco Bradesco (BBDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.85B
Dividend Yield0.82%
Average Volume (3M)34.15K
Price to Earnings (P/E)8.0
Beta (1Y)0.32
Revenue Growth-4.58%
EPS Growth38.70%
CountryUS
Employees71,953
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.10
Shares Outstanding5,303,870,600
10 Day Avg. Volume69,787
30 Day Avg. Volume34,145
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.70
Price to Sales (P/S)1.49
P/FCF Ratio-1.26
Enterprise Value/Market Cap4.46
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit1.52
Enterprise Value/Ebitda5.09
Forecast
1Y Price Target
$3.00Price Target Upside9.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Banco Bradesco 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 generates revenue through several key streams. The primary source of income is interest income from loans and advances to customers, alongside income from securities and other financial instruments. Additionally, the bank earns significant revenue from fees and commissions, which are derived from services such as account management, credit card operations, and investment fund management. Bradesco's insurance division also contributes a substantial portion of its earnings, offering products like life, health, and property insurance. The bank maintains strategic partnerships and investments that enhance its service offerings and expand its market reach, further bolstering its financial performance. Economic conditions, regulatory environment, and consumer behavior are factors that influence its earnings.
Banco Bradesco Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant growth in revenue, net income, and loan portfolios. The company highlighted improvements in technology and efficiency, especially through Gen AI integration. However, challenges such as high operating expenses, economic slowdown concerns, and low margins in certain segments were noted. Overall, the positive aspects of revenue growth and strategic improvements outweigh the challenges.Q2-2025 Updates
Positive Updates
Strong Revenue and Net Income Growth
Recurring net income reached BRL 6.1 billion, representing a 28.6% growth year-over-year. Total revenue was BRL 34 billion, up 15.1% year-on-year and 5.2% quarter-on-quarter.
Robust Loan Portfolio Growth
Expanded loan book reached BRL 1.018 trillion, growing 1.3% quarter-on-quarter and 11.3% year-on-year, with significant growth in Individuals and SMEs segments.
Fee and Commission Income Increase
Fee and commission income grew 10.6% year-on-year and 5.5% quarter-on-quarter, with notable increases in card income (almost 20% year-on-year) and consortium management (almost 21% year-on-year).
Insurance Group Performance
Insurance, pension plans, and saving bonds grew 6.5% quarter-on-quarter and 21.7% year-on-year, contributing to robust revenue streams.
Technology and Efficiency Improvements
Significant productivity gains through the use of Gen AI, leading to a 58% improvement in efficiency and a 94% increase in productivity.
Negative Updates
Challenges in Large Corporate Segment
Limited growth in the large corporates segment due to settlement issues and a more cautious approach in origination.
High Operating Expenses
Operating expenses were BRL 15.9 billion, reflecting a year-over-year growth and quarter-on-quarter growth, with expenses growing at the same pace as inflation.
Economic Slowdown Concerns
Expected slowdown in economic activity and credit demand in the second half of the year, attributed to high real interest rates and a peak in the Selic rate.
Low Margin in Mass Market Segment
The low-income segment is operating well below the cost of capital, requiring structural changes to improve profitability.
Company Guidance
In the second quarter of 2025, Bradesco reported a recurring net income of BRL 6.1 billion, marking a significant 28.6% increase year-over-year, with an ROAE of 14.6%, up 3.2 percentage points from the previous year. The bank's total revenue reached BRL 34 billion, showing a 15.1% year-on-year growth and a 5.2% increase quarter-on-quarter. Fee and commission income rose over 10% year-on-year and more than 5% quarter-on-quarter. The Insurance, pension plans, and saving bonds grew by 6.5% quarter-on-quarter and 21.7% year-on-year. The expanded loan book stood at BRL 1.018 trillion, with a 1.3% quarter-on-quarter and 11.3% year-on-year increase. Bradesco also highlighted the traction in micro and SMEs, growing by 25.2%, and Individuals, growing almost 16% year-over-year. Operating expenses were BRL 15.9 billion, with personnel and administrative expenses growing by 4.9%. Additionally, the bank's fee and commission income grew to BRL 10.3 billion, a 10.6% year-on-year and 5.5% quarter-on-quarter increase. Bradesco maintained a strong focus on improving productivity and efficiency through the use of Gen AI, aiming for enhanced customer experience and streamlined operations across various segments.Banco Bradesco Financial Statement Overview
Summary
Banco Bradesco demonstrates strong core banking revenue but faces profitability challenges due to declining revenue and fluctuating net income margins. The balance sheet is robust but high leverage and negative cash flows pose 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.75
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 141.69B | 78.89B | 100.27B | 83.16B | 92.84B | 130.94B |
| Gross Profit | 87.93B | 78.69B | 68.16B | 32.00K | 11.00K | 62.58B |
| EBITDA | 26.21B | 23.63B | 16.73B | 30.28B | 38.63B | 11.14B |
| Net Income | 20.69B | 17.25B | 14.25B | 21.22B | 23.17B | 15.84B |
Balance Sheet | ||||||
| Total Assets | 2.15T | 2.07T | 1.93T | 1.79T | 1.68T | 1.60T |
| Cash, Cash Equivalents and Short-Term Investments | 263.87B | 476.88B | 522.98B | 367.61B | 394.23B | 497.78B |
| Total Debt | 728.14B | 689.53B | 631.89B | 571.92B | 238.94B | 217.91B |
| Total Liabilities | 1.97T | 1.90T | 1.76T | 1.63T | 1.53T | 1.46T |
| Stockholders Equity | 174.05B | 168.41B | 166.33B | 159.53B | 149.78B | 145.62B |
Cash Flow | ||||||
| Free Cash Flow | 21.65B | -93.62B | -9.32B | 32.35B | -106.41B | 138.17B |
| Operating Cash Flow | 27.57B | -91.33B | -177.63M | 41.77B | -102.00B | 142.43B |
| Investing Cash Flow | 56.74B | -5.01B | 83.61B | -17.78B | -19.31B | 20.46B |
| Financing Cash Flow | 1.54B | 117.88B | -23.06B | 21.92B | -1.61B | -36.41B |
Banco Bradesco Technical Analysis
Neutral
2.75
Price Trends
2.70
Positive
2.60
Positive
2.27
Positive
Market Momentum
0.03
Positive
47.23
Neutral
37.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBDO, the sentiment is Neutral. The current price of 2.75 is below the 20-day moving average (MA) of 2.84, above the 50-day MA of 2.70, and above the 200-day MA of 2.27, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 37.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $29.85B | 8.00 | 11.76% | 0.82% | -4.58% | 38.70% | |
73 Outperform | $15.68B | 12.34 | 22.07% | 6.89% | -13.16% | -8.10% | |
70 Outperform | $19.21B | 19.35 | 9.43% | 6.05% | -3.77% | -10.59% | |
68 Neutral | $12.57B | 11.08 | 24.13% | 5.05% | 12.43% | 56.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $23.89B | 7.54 | 8.58% | 2.38% | -3.83% | 4.06% | |
59 Neutral | $29.77B | 7.78 | 10.14% | 2.43% | -3.11% | 28.74% |
* Financial Sector Average
BBDO
Banco Bradesco
2.75
0.53
23.87%
BCH
Banco De Chile
30.52
7.06
30.09%
BSBR
Banco Santander Brasil
5.08
0.12
2.42%
BSAC
Banco Santander Chile
26.33
6.97
36.00%
KB
Kb Financial Group
77.50
7.51
10.73%
SHG
Shinhan Financial Group Co
49.33
6.13
14.19%
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.