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Banco do Brasil S.A. (BDORY)
:BDORY
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Banco do Brasil SA
(OTC:BDORY)
Rating:82Outperform
Price Target:―
Banco do Brasil SA (BDORY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.78B
Dividend Yield6.64%
Average Volume (3M)733.63K
Price to Earnings (P/E)5.3
Beta (1Y)0.21
Revenue Growth-2.58%
EPS Growth-43.79%
CountryUS
Employees87,101
SectorFinancial
Sector Strength72
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.10
Shares Outstanding5,730,834,000
10 Day Avg. Volume947,169
30 Day Avg. Volume733,633
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)0.66
Price to Sales (P/S)0.00
P/FCF Ratio1.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.40Price Target Upside18.92% Upside
Rating ConsensusHold
Number of Analyst Covering1
Banco do Brasil SA Business Overview & Revenue Model
Company DescriptionBanco do Brasil SA (BDORY) is one of the largest financial institutions in Latin America, headquartered in BrasÃlia, 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 MoneyBanco 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 Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -30.32%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call revealed strong achievements in new product offerings and technological advancements, but these were overshadowed by significant challenges in the Agribusiness segment, increased funding costs, and the impact of new accounting regulations. The overall sentiment reflects a cautious approach as the bank navigates these challenges.Q1-2025 Updates
Positive Updates
Record Net Income and Shareholder Value
Banco do Brasil delivered BRL73.5 billion in adjusted net income over the past two years, adding BRL171.5 billion in value to shareholders.
Introduction of Crédito do Trabalhador
Banco do Brasil launched a new product called Crédito do Trabalhador, expanding payroll loans to employees from 68,000 companies with disbursements exceeding BRL3 billion in under two months.
Expansion in Loan Portfolio
The bank's loan portfolio grew at an adequate pace, with special focus on individuals' loans, including payroll accounts, which provide higher spreads.
Technological Advancements
Banco do Brasil invested 30% more in technology compared to the previous year, enhancing customer experience and security with innovations like CRM 360 and omnichannel banking.
Negative Updates
Agribusiness Delinquency and Provisioning Challenges
The Agribusiness segment experienced worse-than-expected delinquency rates, leading to BRL5 billion in provisions in the first quarter, impacting overall results.
Impact of Resolution 4966
New accounting regulations under Resolution 4966 affected the bank's ability to recognize interest income on problematic assets, resulting in a significant impact on net interest margin.
Increased Funding Costs
The bank faced challenges from rising Selic rates, resulting in increased funding costs that could not be offset by treasury results in the short term.
Pressure on Net Income Guidance
Due to the combined effects of increased delinquency in Agribusiness and new accounting rules, Banco do Brasil put its guidance under review, indicating uncertainty in maintaining previous profitability levels.
Company Guidance
In the recent earnings call for Banco do Brasil, CEO Tarciana Medeiros highlighted several key metrics and strategic directions. Over the past two years, the bank delivered BRL73.5 billion in adjusted net income and contributed an additional BRL171.5 billion to society, achieving a return of about 20% each quarter. In the first quarter of 2025, the bank reported BRL7.4 billion in net income with a 16.7% return, influenced by the implementation of Resolution 4966 and increased agribusiness delinquency. The bank's loan portfolio saw significant growth, with Crédito do Trabalhador disbursing over BRL3 billion to employees from 68,000 companies within two months. Despite challenges, the bank remains focused on sustainable value creation, supported by a strong balance sheet and strategic investments in technology. The bank maintained its 40% payout ratio for dividends, aiming for a long-term ROE of 20%, while addressing the impacts of higher Selic rates and regulatory changes.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.85
Very 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.78
Positive
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.92
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 310.75B | 125.47B | 123.25B | 99.78B | 87.33B |
| Gross Profit | 102.27B | 125.47B | 123.11B | 99.78B | 87.33B |
| EBITDA | 32.82B | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 26.36B | 29.86B | 31.11B | 19.71B | 12.70B |
Balance Sheet | |||||
| Total Assets | 2.40T | 2.15T | 2.03T | 1.93T | 1.73T |
| Cash, Cash Equivalents and Short-Term Investments | 252.07B | 46.79B | 168.68B | 130.12B | 121.39B |
| Total Debt | 0.00 | 1.00T | 155.20B | 172.43B | 183.96B |
| Total Liabilities | 2.21T | 1.98T | 1.87T | 1.79T | 1.60T |
| Stockholders Equity | 179.62B | 169.24B | 160.28B | 142.00B | 124.57B |
Cash Flow | |||||
| Free Cash Flow | 121.46B | 11.71B | 58.10B | -51.10B | 205.56B |
| Operating Cash Flow | 127.21B | 16.74B | 64.69B | -46.19B | 209.33B |
| Investing Cash Flow | -93.49B | 21.77B | -17.88B | -53.28B | -95.65B |
| Financing Cash Flow | -21.36B | -34.34B | -26.98B | -23.78B | 101.11B |
Banco do Brasil SA Technical Analysis
Negative
3.70
Price Trends
4.09
Negative
4.48
Negative
4.40
Negative
Market Momentum
-0.13
Positive
40.32
Neutral
52.72
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 3.7 is below the 20-day moving average (MA) of 3.89, below the 50-day MA of 4.09, and below the 200-day MA of 4.40, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 52.72 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $20.78B | 5.31 | 12.25% | 6.64% | -2.58% | -43.79% | |
74 Outperform | $64.57B | 9.18 | 20.65% | 0.96% | -6.74% | 5.13% | |
74 Outperform | $28.03B | 7.72 | 10.61% | 1.01% | -9.78% | 28.44% | |
70 Outperform | $28.03B | 9.14 | 10.61% | 0.70% | -9.78% | 27.43% | |
70 Outperform | $17.92B | 15.06 | 10.89% | 1.22% | -3.94% | 31.52% | |
69 Neutral | $14.28B | 11.01 | 23.88% | 0.28% | -17.02% | -10.73% | |
68 Neutral | $17.10B | 11.44 | 9.70% | 3.58% | 11.11% | -4.78% |
* Financial Sector Average
Performance Comparison
BDORY
Banco do Brasil SA
3.73
-0.83
-18.20%
BBD
Banco Bradesco SA
2.80
0.72
34.62%
BCH
Banco De Chile
27.64
5.14
22.84%
BSBR
Banco Santander Brasil
4.76
-0.02
-0.42%
ITUB
Itau Unibanco
6.37
1.25
24.41%
BBDO
Banco Bradesco
2.49
0.55
28.35%
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.