Banco Bradesco (BBDO) AI Stock Analysis

• Market Cap: $33.03B
• Dividend Yield: 0.78%
• Average Volume (3M): 45.53K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.35
• Revenue Growth: -4.58%
• EPS Growth: 38.70%
• Country: US
• Employees: 71,953
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 5,303,870,600
• 10 Day Avg. Volume: 46,563
• 30 Day Avg. Volume: 45,529
• PEG Ratio: 0.24
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 1.49
• P/FCF Ratio: -1.26
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $3.00 ▲(2.04% Upside)

Banco Bradesco's overall stock score is driven by strong revenue growth and a positive technical outlook. However, concerns about high leverage, declining profit margins, and weak cash flow position weigh on the score. The stock's low P/E ratio suggests potential undervaluation, providing a balanced view.

Banco Bradesco Business Overview & Revenue Model

Company Description

Banco 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 Money

Banco 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 2.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 above the 20-day moving average (MA) of 2.86, above the 50-day MA of 2.80, and above the 200-day MA of 2.36, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 67.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBDO.

Banco Bradesco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCH	―	$17.76B	13.75	22.07%	6.03%	-13.16%	-8.10%
BBDO	―	$33.03B	8.47	11.76%	0.78%	-4.58%	38.70%
BSBR	―	$21.72B	21.10	9.43%	5.80%	-3.77%	-10.59%
SHG	―	$24.32B	7.58	―	2.27%	-5.54%	5.77%
BSAC	―	$13.66B	12.08	24.13%	4.63%	12.43%	56.30%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KB	―	$29.72B	7.58	―	2.31%	-0.03%	24.32%

Banco Bradesco Corporate Events

Banco Bradesco Reports Strong Q2 2025 Earnings

Banco Bradesco S.A. is a leading financial institution in Brazil, providing a wide range of banking and financial services, including loans, insurance, and asset management. In its latest earnings report for the second quarter of 2025, Banco Bradesco reported a recurring net income of R$6.1 billion, marking a 3.5% increase quarter-over-quarter and a 28.6% rise year-over-year. The bank’s revenue reached R$34.0 billion, driven by growth in net interest income, fee and commission income, and income from insurance. The expanded loan portfolio grew by 11.7% year-over-year, with a stable delinquency ratio of 4.1%. Operating expenses increased by 5.9% quarter-over-quarter, reflecting ongoing investments in technology and infrastructure. Looking ahead, Banco Bradesco remains focused on sustainable growth, with a cautious approach to loan origination and a commitment to supporting clients in transitioning to a greener economy.