Banco do Brasil SA (BDORY) AI Stock Analysis

• Market Cap: $22.34B
• Dividend Yield: 6.16%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.27
• Revenue Growth: -4.71%
• EPS Growth: -40.70%
• Country: US
• Employees: 87,101
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.12
• Shares Outstanding: 5,730,834,000
• 10 Day Avg. Volume: 761,743
• 30 Day Avg. Volume: 1,162,870
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 8.86
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 14.15
• 1Y Price Target: $4.40
• Price Target Upside: 10.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• 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.

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

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	289.06B	310.75B	125.47B	123.25B	99.78B	87.33B
Gross Profit	132.11B	102.27B	125.47B	123.11B	99.78B	87.33B
EBITDA	13.99B	32.82B	0.00	0.00	0.00	0.00
Net Income	15.85B	35.44B	29.86B	31.11B	19.71B	12.70B
Balance Sheet
Total Assets	2.44T	2.40T	2.15T	2.03T	1.93T	1.73T
Cash, Cash Equivalents and Short-Term Investments	173.87B	252.07B	46.79B	168.68B	130.12B	121.39B
Total Debt	445.08B	231.15B	1.00T	155.20B	172.43B	183.96B
Total Liabilities	2.25T	2.21T	1.98T	1.87T	1.79T	1.60T
Stockholders Equity	181.99B	179.62B	169.24B	160.28B	142.00B	124.57B
Cash Flow
Free Cash Flow	89.24B	121.46B	11.71B	58.10B	-51.10B	205.56B
Operating Cash Flow	96.60B	127.21B	16.74B	64.69B	-46.19B	209.33B
Investing Cash Flow	-109.31B	-93.49B	21.77B	-17.88B	-53.28B	-95.65B
Financing Cash Flow	-7.51B	-21.36B	-34.34B	-26.98B	-23.78B	101.11B

Banco do Brasil SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.97 is above the 20-day moving average (MA) of 3.78, above the 50-day MA of 3.79, and below the 200-day MA of 4.30, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 59.71 is Neutral, 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
BDORY	82 Outperform	$22.34B	8.16	8.74%	6.16%	-4.71%	-40.70%
BSAC	76 Outperform	$11.98B	10.53	24.13%	5.18%	12.43%	56.30%
BCH	73 Outperform	$15.31B	11.98	22.07%	6.92%	-13.16%	-8.10%
BAP	72 Outperform	$20.68B	12.26	18.54%	5.33%	5.16%	27.77%
BBD	71 Outperform	$30.59B	8.99	11.76%	1.93%	-4.58%	39.03%
BSBR	70 Outperform	$19.52B	19.10	9.43%	5.65%	-3.77%	-10.59%
Sector *	68 Neutral	$17.81B	11.87	10.24%	3.74%	9.75%	1.30%