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Banco Bradesco S.A. (BBDO)
:BBDO
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Banco Bradesco
(NYSE:BBDO)
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Rating:69Neutral
Price Target:
$3.50
â–²(19.05% Upside)
Banco Bradesco's overall stock score is driven by strong earnings call performance and positive technical indicators. Financial performance is mixed with growth in revenue but declining margins and high leverage. Valuation suggests potential undervaluation, but liquidity concerns remain.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust market demand and effective business strategies, enhancing long-term financial stability.
Loan Portfolio Expansion
Expansion in the loan portfolio suggests increased lending activity and market penetration, supporting future interest income growth.
Technology and Efficiency
Adoption of Gen AI enhances operational efficiency and customer experience, providing a competitive edge and cost savings.
Negative Factors
High Operating Expenses
Rising operating expenses can pressure margins, reducing profitability and limiting the ability to invest in growth initiatives.
Economic Slowdown Concerns
An economic slowdown could dampen credit demand and impact revenue growth, posing challenges to maintaining financial performance.
Low Margin in Mass Market
Operating below cost of capital in the mass market segment indicates inefficiencies, potentially requiring strategic adjustments to improve profitability.
Banco Bradesco (BBDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.45B
Dividend Yield2.57%
Average Volume (3M)57.54K
Price to Earnings (P/E)9.0
Beta (1Y)0.26
Revenue Growth5.89%
EPS Growth34.01%
CountryUS
Employees71,953
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.10
Shares Outstanding5,303,870,600
10 Day Avg. Volume49,392
30 Day Avg. Volume57,537
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)0.73
Price to Sales (P/S)1.56
P/FCF Ratio-1.31
Enterprise Value/Market Cap4.01
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.63
Enterprise Value/Ebitda5.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Banco Bradesco Business Overview & Revenue Model
Company DescriptionBanco Bradesco S.A. is one of the largest and most diversified financial institutions in Brazil, offering a wide range of banking and financial services to individuals, companies, and institutions. Established in 1943, the bank operates through various segments including retail banking, corporate banking, investment banking, asset management, and insurance. Its core products and services include savings and checking accounts, credit cards, loans, investment products, and insurance solutions, catering to both domestic and international clients.
How the Company Makes MoneyBanco Bradesco generates revenue primarily through interest income from loans and credit products, which constitutes a significant portion of its earnings. The bank earns interest on various types of loans, including personal loans, mortgages, and commercial credit. Additionally, Bradesco collects fees from its banking services, such as account maintenance fees, transaction fees, and commissions on financial products. The bank also generates revenue through its asset management and insurance services, charging management fees and premiums. Key partnerships with other financial institutions and businesses enhance its product offerings and customer reach, contributing to its overall profitability. Furthermore, Bradesco's diversified business model allows it to mitigate risks associated with market fluctuations.
Banco Bradesco Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
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's financial performance is mixed. Revenue growth is positive, but declining margins indicate cost pressures. High leverage poses financial risk, though improved return on equity suggests efficient equity use. Cash flow challenges with negative operating and free cash flows raise liquidity concerns.Income Statement
Banco Bradesco's income statement shows a moderate performance with a TTM revenue growth rate of 6.71%, indicating a positive trend compared to the previous year. However, the gross profit margin has decreased significantly from 99.76% in 2024 to 59.26% in TTM, suggesting increased cost pressures. The net profit margin also declined from 21.87% in 2024 to 14.49% in TTM, reflecting reduced profitability. Despite these challenges, the company maintains a positive EBIT margin of 13.62% and an EBITDA margin of 18.39%, indicating operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 4.26 in TTM, up from 4.09 in 2024, indicating significant leverage which could pose financial risk. However, the return on equity improved to 12.38% in TTM from 10.24% in 2024, demonstrating effective use of equity to generate profits. The equity ratio remains stable, reflecting a balanced asset structure.70
Positive
Cash Flow
The cash flow statement highlights challenges with negative operating cash flow and free cash flow in TTM, indicating liquidity issues. The free cash flow growth rate is negative at -14.07%, and the operating cash flow to net income ratio is also negative, suggesting difficulties in converting income into cash. However, the free cash flow to net income ratio is strong at 4.66, indicating that despite cash flow challenges, the company is generating substantial cash relative to its net income.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 293.70B | 249.61B | 254.71B | 239.65B | 157.55B | 130.94B |
| Gross Profit | 87.18B | 78.69B | 68.16B | 82.50B | 93.07B | 63.66B |
| EBITDA | 25.58B | 23.63B | 16.73B | 30.28B | 38.63B | 10.00B |
| Net Income | 21.32B | 17.25B | 14.25B | 21.22B | 23.17B | 15.84B |
Balance Sheet | ||||||
| Total Assets | 2.20T | 2.07T | 1.93T | 1.79T | 1.68T | 1.60T |
| Cash, Cash Equivalents and Short-Term Investments | 265.44B | 476.88B | 522.98B | 367.61B | 394.23B | 497.78B |
| Total Debt | 747.48B | 689.53B | 631.89B | 571.92B | 238.94B | 217.91B |
| Total Liabilities | 2.03T | 1.90T | 1.76T | 1.63T | 1.53T | 1.46T |
| Stockholders Equity | 175.64B | 168.41B | 166.33B | 159.53B | 149.78B | 145.62B |
Cash Flow | ||||||
| Free Cash Flow | -41.85B | -93.62B | -9.32B | 40.36B | -106.41B | 138.17B |
| Operating Cash Flow | -32.43B | -91.33B | -177.63M | 49.77B | -102.00B | 142.43B |
| Investing Cash Flow | 59.17B | -5.01B | 83.61B | -17.78B | -19.31B | 20.46B |
| Financing Cash Flow | -13.68B | 117.88B | -23.06B | 21.92B | -1.61B | -36.41B |
Banco Bradesco Technical Analysis
Positive
2.94
Price Trends
2.97
Positive
2.77
Positive
2.48
Positive
Market Momentum
0.06
Positive
59.89
Neutral
64.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBDO, the sentiment is Positive. The current price of 2.94 is below the 20-day moving average (MA) of 3.14, below the 50-day MA of 2.97, and above the 200-day MA of 2.48, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 59.89 is Neutral, neither overbought nor oversold. The STOCH value of 64.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $19.12B | 14.99 | 21.29% | 5.55% | -11.64% | -8.75% | |
70 Outperform | $31.32B | 7.96 | 9.99% | 2.90% | -4.64% | 24.98% | |
70 Outperform | $25.18B | 8.00 | 8.58% | 2.71% | -4.88% | 4.84% | |
69 Neutral | $35.45B | 9.02 | 11.78% | 2.57% | 5.89% | 34.01% | |
69 Neutral | $13.55B | 12.10 | 24.13% | 4.40% | 12.43% | 56.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $23.73B | 22.70 | 9.34% | 4.78% | 1.13% | -11.93% |
* Financial Sector Average
BBDO
Banco Bradesco
3.20
1.43
80.79%
BCH
Banco De Chile
38.52
16.62
75.89%
BSBR
Banco Santander Brasil
6.55
2.54
63.34%
BSAC
Banco Santander Chile
30.66
12.41
68.00%
KB
Kb Financial Group
90.21
22.93
34.08%
SHG
Shinhan Financial Group Co
56.13
18.10
47.59%
Banco Bradesco Corporate Events
Banco Bradesco S.A. Reports Strong Q3 2025 Results
Oct 31, 2025
Banco Bradesco S.A. is a leading financial institution in Brazil, offering a wide range of banking and financial services including loans, insurance, and asset management, with a focus on innovation and sustainability.
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.