Banco do Brasil SA (BDORY) AI Stock Analysis

• Market Cap: $22.25B
• Dividend Yield: 6.18%
• Average Volume (3M): 792.15K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.33
• Revenue Growth: 4.66%
• EPS Growth: -43.86%
• Country: US
• Employees: 87,101
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.13
• Shares Outstanding: 5,730,834,000
• 10 Day Avg. Volume: 227,686
• 30 Day Avg. Volume: 792,154
• PEG Ratio: -0.44
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 1.11
• Enterprise Value/Market Cap: 9.77
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 1.51
• Enterprise Value/Ebitda: 19.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.64
• Revenue Forecast (FY): $27.62B

• Rating: 82 Outperform
• Price Target: ―

Banco do Brasil SA demonstrates robust financial performance with significant revenue growth and cash flow generation. The positive technical indicators and attractive valuation further enhance the stock's appeal. Despite minor concerns from the earnings call, such as agribusiness delinquency and conservative fee income guidance, the overall outlook remains strong.

Positive Factors

Strong Revenue Growth

Banco do Brasil's significant revenue growth of 30.9% indicates robust market demand and effective business strategies, enhancing long-term financial stability.

Cash Flow Generation

The substantial increase in free cash flow demonstrates strong operational efficiency and financial health, providing flexibility for future investments and debt management.

Sustainability Leadership

Banco do Brasil's leadership in sustainability enhances its brand reputation and aligns with global trends, potentially attracting environmentally conscious investors and clients.

Negative Factors

Rising Agribusiness Delinquency

Increased delinquency in the agribusiness sector could strain the bank's asset quality and profitability, posing a risk to its financial stability if not managed effectively.

Conservative Fee Income Guidance

Conservative fee income growth guidance may limit revenue diversification and impact future earnings, especially if regulatory changes continue to affect income streams.

Capital and Volatility Challenges

Volatility in capital levels due to interest rate movements can affect the bank's financial stability and its ability to maintain robust capital ratios, impacting long-term growth.

Banco do Brasil SA Business Overview & Revenue Model

Company Description

Banco do Brasil SA (BDORY) is one of the largest financial institutions in Latin America, headquartered in Brasília, Brazil. The bank offers a comprehensive range of financial products and services to individuals, businesses, and government entities. Its core offerings include retail banking, corporate banking, investment banking, asset management, and insurance services. As a state-controlled entity, Banco do Brasil plays a significant role in the Brazilian banking sector, catering to a diverse clientele through its extensive network of branches and digital platforms.

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

Banco do Brasil SA exhibits strong financial health with robust revenue growth of 30.9% and impressive cash flow generation. The company's low leverage and strong equity position provide stability, although some profitability metrics have slightly declined.

Income Statement

Banco do Brasil SA has demonstrated strong revenue growth, increasing from 108,252,660,000 in 2023 to 141,761,442,000 in 2024, indicating a growth rate of 30.9%. The net profit margin for 2024 is 18.6%, slightly lower than the previous year, but still robust. The absence of EBIT and EBITDA margins for 2024 is noted, but the overall revenue trend and profitability remain positive.

Balance Sheet

The company's strong equity position is evidenced by an equity ratio of 7.5% in 2024. With total debt at zero, the debt-to-equity ratio is exceptionally low, indicating low financial leverage. Return on equity remains solid at 14.7%, though it has declined slightly from the previous year.

Cash Flow

Banco do Brasil SA's cash flow statement is impressive, with a significant increase in free cash flow from 11,709,245,000 in 2023 to 121,461,858,000 in 2024, marking a growth rate of 937.9%. The operating cash flow to net income ratio of 4.8 highlights the company's strong cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	349.04B	310.75B	125.47B	123.25B	168.71B	159.65B
Gross Profit	143.73B	141.76B	125.47B	123.11B	99.78B	87.79B
EBITDA	11.17B	32.82B	0.00	0.00	31.12B	17.54B
Net Income	12.82B	26.36B	29.86B	31.11B	19.71B	12.70B
Balance Sheet
Total Assets	2.54T	2.40T	2.15T	2.03T	1.93T	1.73T
Cash, Cash Equivalents and Short-Term Investments	195.65B	252.07B	194.53B	168.68B	130.12B	121.39B
Total Debt	450.48B	170.14B	142.19B	155.20B	171.95B	190.05B
Total Liabilities	2.35T	2.21T	1.98T	1.87T	1.79T	1.60T
Stockholders Equity	182.12B	179.62B	169.24B	160.57B	142.00B	124.57B
Cash Flow
Free Cash Flow	172.44B	121.46B	11.71B	58.10B	-51.10B	205.56B
Operating Cash Flow	179.70B	127.21B	16.74B	64.69B	-46.19B	209.33B
Investing Cash Flow	-193.73B	-93.49B	21.64B	-17.88B	-53.28B	-95.65B
Financing Cash Flow	361.88M	-21.36B	-34.34B	-26.98B	-23.78B	-19.75B

Banco do Brasil SA Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDORY, the sentiment is Negative. The current price of 3.87 is below the 20-day moving average (MA) of 4.22, below the 50-day MA of 4.10, and below the 200-day MA of 4.25, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BDORY.

Banco do Brasil SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDORY	82 Outperform	$22.25B	10.09	6.81%	6.18%	4.66%	-43.86%
BAP	73 Outperform	$21.66B	12.21	18.12%	5.11%	8.72%	27.70%
BBD	72 Outperform	$32.72B	9.35	11.78%	2.51%	5.89%	34.68%
BCH	71 Outperform	$19.16B	14.66	21.29%	5.67%	-11.64%	-8.75%
BSAC	69 Neutral	$14.37B	12.50	24.13%	4.47%	12.43%	56.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BSBR	66 Neutral	$22.86B	21.74	9.34%	4.99%	1.13%	-11.93%