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Banco Bradesco (BBDO)
NYSE:BBDO
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Banco Bradesco
(NYSE:BBDO)
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Rating:61Neutral
Price Target:
$3.50
â–²(16.28% Upside)
Banco Bradesco's overall stock score is driven by moderate financial performance and valuation. Revenue growth is offset by declining margins and high leverage, posing financial risks. The stock's valuation is attractive with a low P/E ratio and reasonable dividend yield. Technical indicators suggest mixed short-term momentum.
Positive Factors
Diversified revenue model
Bradesco's multi-pronged revenue mix (interest spread, fees, insurance, treasury) provides structural resilience across cycles. Diversification reduces reliance on any single income source, supports cross-sell economics, and stabilizes cash flows as different streams react differently to macro shifts.
Improving return on equity
A rising ROE indicates more effective deployment of shareholder capital and stronger profitability dynamics. Sustained ROE improvement can signal disciplined lending/pricing, efficient capital allocation, and the ability to generate internal capital to support growth and shareholder distributions over the medium term.
Large physical and digital distribution
A broad omni-channel distribution network is a durable competitive advantage in Brazilian retail and SME banking. Physical branches aid deposit gathering and trust in less-digitized segments, while digital platforms lower marginal servicing costs and enable scale of fee and product penetration over time.
Negative Factors
High financial leverage
Elevated leverage increases sensitivity to funding costs and economic stress, constraining capital flexibility and raising refinancing risk. Over months this can limit the bank's ability to expand lending, absorb credit losses, or pursue strategic investments without raising additional capital or reducing payouts.
Negative operating and free cash flow
Persistent negative operating and free cash flow signals difficulty converting reported earnings into liquidity. Structurally weak cash conversion can force reliance on wholesale funding or asset sales, constrain reinvestment and dividend capacity, and raise solvency concerns during stress periods.
Material margin deterioration
Significant margin compression reduces earnings durability and the bank's buffer against credit shocks. If driven by higher funding costs, competition on lending spreads, or rising operating expenses, sustained lower margins will limit profit reinvestment and capital accumulation over the medium term.
Banco Bradesco (BBDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.93B
Dividend Yield2.8%
Average Volume (3M)47.97K
Price to Earnings (P/E)9.8
Beta (1Y)0.24
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. Volume57,685
30 Day Avg. Volume47,969
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)0.73
Price to Sales (P/S)0.49
P/FCF Ratio-1.31
Enterprise Value/Market Cap20.80
Enterprise Value/Revenue2.76
Enterprise Value/Gross Profit9.29
Enterprise Value/Ebitda31.65
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 05, 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 shows moderate financial performance with revenue growth but declining margins, indicating 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
3.01
Price Trends
3.04
Positive
2.93
Positive
2.65
Positive
Market Momentum
0.11
Negative
77.31
Negative
96.58
Negative
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 3.01 is below the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.04, and above the 200-day MA of 2.65, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 77.31 is Negative, neither overbought nor oversold. The STOCH value of 96.58 is Negative, 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 | $22.30B | 17.07 | 21.29% | 5.56% | -11.64% | -8.75% | |
69 Neutral | $17.06B | 15.27 | 24.13% | 4.29% | 12.43% | 56.30% | |
69 Neutral | $34.32B | 8.75 | 9.99% | 2.79% | -4.64% | 24.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $26.99B | 8.62 | 8.58% | 2.86% | -4.88% | 4.84% | |
64 Neutral | $25.28B | 24.13 | 9.34% | 4.98% | 1.13% | -11.93% | |
61 Neutral | $38.93B | 9.81 | 11.78% | 2.80% | 5.89% | 34.01% |
* Financial Sector Average
BBDO
Banco Bradesco
3.48
1.72
97.50%
BCH
Banco De Chile
44.17
20.99
90.54%
BSBR
Banco Santander Brasil
6.79
2.70
65.93%
BSAC
Banco Santander Chile
36.34
17.19
89.77%
KB
Kb Financial Group
95.16
33.33
53.91%
SHG
Shinhan Financial Group Co
57.92
22.70
64.45%
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.