Banco do Brasil SA (BDORY) AI Stock Analysis

• Market Cap: $26.06B
• Dividend Yield: 6.16%
• Average Volume (3M): 608.86K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.36
• 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: 453,030
• 30 Day Avg. Volume: 608,863
• 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: 3.75
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: 8.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.8
• Revenue Forecast (FY): $29.90B

• Rating: 62 Neutral
• Price Target: $5.00 ▲(29.20% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by mixed financial performance—2025 profitability and revenue weakened meaningfully despite improved leverage and strong free cash flow conversion. Valuation is a clear positive with a low P/E and healthy dividend yield, while technicals are moderate due to near-term weakness (below the 20-DMA and RSI in the low 40s) despite longer-term moving averages remaining supportive.

Positive Factors

Improving leverage

The decline in debt-to-equity to about 0.86 indicates materially lower financial leverage versus prior years. That structurally reduces solvency risk, increases capacity for lending or buybacks, and provides a steadier capital base to absorb cyclical credit or market shocks over the next several quarters.

High free cash flow conversion

FCF converting at roughly 95% of net income demonstrates durable cash generation from operations. Strong conversion supports sustainable dividends, organic investment, and shock absorption even if accounting earnings fluctuate, underpinning long-term financial flexibility and capital allocation.

Diversified domestic franchise

A wide product mix and an extensive domestic distribution network create structural advantages: diversified fee and interest streams, cross-sell opportunities, stable deposit funding from retail and government-linked clients, and resilience to single-market shocks over a multi-quarter horizon.

Negative Factors

Profitability deterioration

A sharp decline in net margin more than halves prior profitability levels, signaling pressure on core interest spreads or rising costs/impairments. Persistently lower margins weaken return on equity and limit internal capital generation, constraining reinvestment and payout capacity over coming quarters.

Revenue decline in 2025

The reversal from revenue growth to decline indicates inconsistent top-line momentum, which undermines scale economics in lending and fee businesses. If structural, this trend reduces the bank’s ability to offset margin pressure and may reflect weaker loan demand or competitive fee compression across segments.

Earnings and cash generation volatility

Material negative EPS growth and a history of operating cash-flow swings point to earnings volatility from credit cycles or market exposures. Such variability complicates capital planning and raises execution risk for multi-quarter strategies like credit expansion or sustained dividend policies.

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 primarily makes money by earning interest income and fees from a broad set of financial products and services. The largest driver is net interest income: it lends to customers (including individuals, small and medium enterprises, large corporations, and agribusiness clients) and invests in interest-earning assets, generating interest revenue; it funds these assets largely with customer deposits and other funding sources and pays interest on that funding, with the spread (after funding costs) forming a core earnings stream. It also generates non-interest income through service fees and commissions, such as account maintenance and service charges, payment processing, acquiring and other payments-related fees, card-related fees, loan origination and other credit-related fees, and fees linked to cash management and other corporate banking services. Additional earnings come from insurance, pension, and capitalization-bond-related activities and asset management/distribution, where the bank and its affiliates earn premiums, commissions, and management/administration fees (where applicable). Trading and treasury activities can contribute via results from the management of the securities portfolio, derivatives, foreign exchange, and other market-related activities, though these are typically more sensitive to market conditions. Profitability is influenced by Brazil’s interest-rate environment, credit demand (notably in agribusiness), funding mix (share of low-cost deposits), credit quality and loan-loss provisions, and the scale of its distribution network and digital channels.

Banco do Brasil SA Financial Statement Overview

Summary

Mixed fundamentals: 2025 revenue declined and profitability weakened sharply (net margin ~3.9% vs ~8.5% in 2024). Offsetting that, leverage improved (debt-to-equity down to ~0.86 by 2025) and free cash flow remained strong with high conversion to net income (~95%), though cash flow growth turned negative and historical operating cash flow has been volatile.

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: Neutral
• Last Price: 3.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDORY, the sentiment is Neutral. The current price of 3.87 is below the 20-day moving average (MA) of 4.97, below the 50-day MA of 4.66, and below the 200-day MA of 4.12, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 10.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$26.61B	11.79	19.28%	4.82%	8.72%	27.70%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BCH	67 Neutral	$19.55B	14.56	21.25%	5.56%	-11.64%	-8.75%
BBD	64 Neutral	$35.76B	8.31	13.55%	2.48%	5.89%	34.68%
BDORY	62 Neutral	$26.06B	9.24	7.45%	6.16%	4.66%	-43.86%
BSBR	57 Neutral	$21.73B	9.97	11.15%	4.98%	1.13%	-11.93%
BSAC	56 Neutral	$14.95B	12.58	21.37%	4.29%	12.43%	56.30%