Banco Bradesco (BBDO) AI Stock Analysis

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Banco Bradesco

(NYSE:BBDO)

Rating:74Outperform

Price Target:

$3.00

▲(14.07% 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

$29.64B

Dividend Yield1.67%

Average Volume (3M)40.38K

Price to Earnings (P/E)7.6

Beta (1Y)0.33

Revenue Growth-4.58%

EPS Growth38.70%

CountryUS

Employees71,953

SectorFinancial

Sector Strength72

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.10

Shares Outstanding5,330,304,700

10 Day Avg. Volume40,218

30 Day Avg. Volume40,377

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 Cap4.50

Enterprise Value/Revenue0.94

Enterprise Value/Gross Profit1.52

Enterprise Value/Ebitda5.09

Forecast

1Y Price Target

$3.00

Price Target Upside14.07% 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

Positive

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

Positive

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

Neutral

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 Price2.63

Price Trends

50DMA

2.57

Positive

100DMA

2.43

Positive

200DMA

2.16

Positive

Market Momentum

MACD

0.02

Negative

RSI

56.19

Neutral

STOCH

70.83

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 2.63 is above the 20-day moving average (MA) of 2.57, above the 50-day MA of 2.57, and above the 200-day MA of 2.16, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIB	81 Outperform	$13.22B	14.05	16.25%	13.21%	-8.82%	4.87%
BSAC	74 Outperform	$11.18B	10.00	24.13%	5.61%	12.43%	56.30%
BBDO	74 Outperform	$29.64B	7.56	11.76%	1.67%	-4.58%	38.70%
BMA	74 Outperform	$3.81B	875.91	0.11%	1.33%	-62.73%	-99.74%
BCH	73 Outperform	$14.41B	11.26	22.07%	7.41%	-13.16%	-8.10%
BSBR	70 Outperform	$18.98B	18.59	9.43%	5.97%	-3.77%	-10.59%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%

* Financial Sector Average

Performance Comparison

BBDO

Banco Bradesco

2.63

0.23

9.58%

BCH

Banco De Chile

28.40

4.50

18.83%

BMA

Banco Macro SA

57.43

2.30

4.17%

BSBR

Banco Santander Brasil

5.15

-0.20

-3.74%

BSAC

Banco Santander Chile

23.71

4.03

20.48%

CIB

Bancolombia

49.55

21.61

77.34%

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.Date of analysis: Aug 19, 2025