Banco do Brasil SA (BDORY) AI Stock Analysis

• Market Cap: $28.34B
• Dividend Yield: 6.16%
• Average Volume (3M): 542.20K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.29
• Revenue Growth: 4.66%
• EPS Growth: -43.86%
• Country: US
• Employees: 87,101
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.19
• Shares Outstanding: 5,730,834,000
• 10 Day Avg. Volume: 506,878
• 30 Day Avg. Volume: 542,195
• PEG Ratio: -0.19
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 0.82
• Enterprise Value/Market Cap: 4.12
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 0.79
• Enterprise Value/Ebitda: 10.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.81
• Revenue Forecast (FY): $29.54B

• Rating: 65 Neutral
• Price Target: $5.50 ▲(42.12% Upside)

The score is driven mainly by mixed financial performance—improved leverage and strong cash conversion offset by a notable 2025 profitability deterioration and uneven revenue. Technicals are supportive with clear upward trend signals, while valuation (11.5 P/E and ~4% yield) is reasonable. Earnings-call risks around agribusiness delinquency, higher provisions, and lowered profit guidance temper the overall outlook.

Positive Factors

Diversified interest and fee revenue model

Banco do Brasil earns from lending spreads plus a broad set of fee businesses (cards, payments, insurance, asset management). This diversified revenue mix reduces dependence on any single product or cycle, supporting more stable medium-term earnings and resilience if one segment weakens.

Improved leverage and equity base

The material decline in debt-to-equity and growth in equity provide more buffer against credit shocks and improve regulatory and funding flexibility. Lower leverage enhances long-term solvency and capacity to support lending growth or absorb additional provisions without severe capital strain.

High free-cash-flow conversion

Consistently strong FCF conversion indicates the bank can generate cash from operations to fund capital needs, dividends, and reinvestment. Over months, reliable cash conversion supports capital returns and strategic investments even when accounting profits are volatile.

Negative Factors

High agribusiness delinquency

Elevated delinquencies in agribusiness reflect structural sector stress (weather, commodity cycles, judicial recovery cases) that can persist. Sustained arrears increase loss provisioning needs, constrain new lending to key clients, and impair portfolio returns for several quarters to years.

Material margin and profit deterioration

A sharp drop in net margin signals weaker core banking profitability and less efficient conversion of revenue to earnings. If margins remain compressed, return on equity and capacity to fund growth or dividends will be impaired, reducing long-term shareholder value potential.

Rising provisions and lowered guidance

Higher expected credit costs and explicit guidance cuts indicate persistent asset-quality pressure. Elevated provisions are a recurring drag on capital and earnings, limiting strategic flexibility and potentially raising funding or pricing needs if provisioning remains structurally elevated.

Banco do Brasil SA Business Overview & Revenue Model

Company Description

Banco do Brasil S.A., together with its subsidiaries, provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company operates through Banking, Investments, Fund Management, Insurance (Insurance, Pension, and Capitalization), Payment Methods, and Other segments. The Banking segment offers various products and services, including deposits, loans, and other services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs. The Investments segment engages in the structuring and distribution of debts and equity instruments in primary and secondary markets; and provision of financial services. The Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. The Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The Payment Methods segment is involved in the capturing, transmission, processing, and financial settlement of for electronic payment transactions. The Other segment engages in the provision of credit recovery and consortium management services; development, manufacturing, sale, rental, and integration of digital electronic systems, peripherals, programs, inputs, and computing supplies; sale of airline tickets; and lodging and organization of events. Banco do Brasil S.A. was incorporated in 1808 and is headquartered in Brasília, Brazil.

How the Company Makes Money

Banco do Brasil makes money through various revenue streams, primarily derived from interest income on loans and advances to customers. The bank offers a wide array of loan products, including personal loans, mortgage loans, and credit facilities for businesses, which generate significant interest income. Additionally, Banco do Brasil earns revenue from fees and commissions associated with its retail and corporate banking services, such as account maintenance fees, transaction fees, and advisory services. The bank also generates income through its investment banking operations, including underwriting, trading, and asset management services. Furthermore, Banco do Brasil benefits from its insurance segment, offering a range of insurance products that contribute to its earnings. Strategic partnerships, particularly in the realms of digital banking and financial technology, also enhance its revenue streams by expanding its service offerings and improving operational efficiency.

Banco do Brasil SA Financial Statement Overview

Summary

Mixed fundamentals: improved leverage and solid free cash flow conversion, but 2025 saw a sharp profitability decline (net margin ~3.9% vs ~8.5% in 2024) alongside revenue weakness, signaling less consistent operating performance.

Income Statement

Profitability and growth are mixed. Revenue was up in 2024 but declined in 2025, and reported profitability weakened meaningfully in 2025 with net margin falling to ~3.9% (from ~8.5% in 2024). Earlier years showed stronger net margins, but the trajectory is uneven, suggesting higher earnings volatility and less consistent operating performance.

Balance Sheet

Balance sheet looks reasonably stable for a regional bank, with moderate leverage: debt-to-equity improved from ~1.53 (2020) to ~0.86 (2025). Equity has also grown over time, supporting the asset base. However, returns on equity have stepped down notably in 2025 versus 2022–2024 levels, indicating profitability is not translating as efficiently into shareholder returns recently.

Cash Flow

Cash generation is generally solid with strong free cash flow in 2024–2025, and free cash flow is closely aligned with net income (about ~95% in both 2024 and 2025). That said, free cash flow growth turned negative in 2025 and operating cash flow has been volatile historically (including a large outflow in 2021), which adds uncertainty around consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	342.86B	310.75B	125.47B	123.25B	168.71B
Gross Profit	59.72B	141.76B	125.47B	123.11B	99.78B
EBITDA	1.01B	32.82B	0.00	0.00	31.12B
Net Income	13.43B	26.36B	29.86B	31.11B	19.71B
Balance Sheet
Total Assets	2.46T	2.40T	2.15T	2.03T	1.93T
Cash, Cash Equivalents and Short-Term Investments	200.87B	252.07B	194.53B	168.68B	130.12B
Total Debt	163.43B	170.14B	142.19B	155.20B	171.95B
Total Liabilities	2.26T	2.21T	1.98T	1.87T	1.79T
Stockholders Equity	189.21B	179.62B	169.24B	160.57B	142.00B
Cash Flow
Free Cash Flow	151.89B	121.46B	11.71B	58.10B	-51.10B
Operating Cash Flow	159.25B	127.21B	16.74B	64.69B	-46.19B
Investing Cash Flow	-168.39B	-93.49B	21.64B	-17.88B	-53.28B
Financing Cash Flow	-6.84B	-21.36B	-34.34B	-26.98B	-23.78B

Banco do Brasil SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDORY, the sentiment is Positive. The current price of 3.87 is below the 20-day moving average (MA) of 4.84, below the 50-day MA of 4.36, and below the 200-day MA of 4.13, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 67.21 is Neutral, neither overbought nor oversold. The STOCH value of 90.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BDORY.

Banco do Brasil SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAP	74 Outperform	$27.52B	14.15	18.88%	4.82%	8.72%	27.70%
BSAC	72 Outperform	$16.75B	15.06	24.13%	4.29%	12.43%	56.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BCH	67 Neutral	$21.43B	17.13	20.74%	5.56%	-11.64%	-8.75%
BDORY	65 Neutral	$28.34B	11.43	7.93%	6.16%	4.66%	-43.86%
BBD	64 Neutral	$39.46B	9.94	14.19%	2.48%	5.89%	34.68%
BSBR	64 Neutral	$25.28B	23.60	9.34%	4.98%	1.13%	-11.93%