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Banco Bradesco Sa (BBD)
NYSE:BBD
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Banco Bradesco SA
(NYSE:BBD)
70Outperform
Banco Bradesco SA (BBD) vs. S&P 500 (SPY)
Market Cap
$23.90B
Dividend Yield1.24%
Average Volume (3M)36.19M
Price to Earnings (P/E)8.0
Beta (1Y)0.35
Revenue Growth-8.55%
EPS Growth13.58%
CountryUS
Employees72,642
SectorFinancial
Sector Strength87
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.30
Shares Outstanding5,311,865,700
10 Day Avg. Volume28,716,827
30 Day Avg. Volume36,189,956
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.00Price Target Upside-16.67% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Banco Bradesco SA Business Overview & Revenue Model
Company DescriptionBanco Bradesco S.A., together with its subsidiaries, provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. The company operates through two segment, Banking and Insurance. It provides current, savings, click, and salary accounts; real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit; debit and business cards; financial and security services; consortium products; auto, personal accident, dental, travel, and life insurance; investment products; pension products; real estate and vehicle auctions; cash management, and foreign trade and exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.
How the Company Makes MoneyBanco Bradesco SA generates revenue primarily through interest income from its lending activities, including personal and commercial loans. The bank also earns money from fees and commissions associated with its banking services, such as transaction fees, account maintenance fees, and fees from asset management and investment services. Additionally, Bradesco's insurance segment contributes to its earnings by providing various insurance products, with revenue coming from premiums. The bank's partnerships and network of branches across Brazil, as well as its digital banking platforms, further bolster its revenue streams by expanding its customer base and enhancing service delivery.
Banco Bradesco SA Financial Statement Overview
Summary
Banco Bradesco SA demonstrates strong revenue growth and efficient operations, evident from a 15.4% revenue increase and a robust EBIT margin of 39.1%. However, high leverage with a debt-to-equity ratio of 1.52 poses risks, and significant concerns arise from negative operating cash flow, impacting financial stability.Income Statement
Banco Bradesco SA has shown a mixed performance in its income statement. The company experienced a revenue increase from 2023 to 2024, with a substantial growth rate of approximately 15.4%. However, the net profit margin was around 21.9% in 2024, which is relatively stable. The EBIT margin is strong at 39.1%, indicating efficient operational performance. However, the historical fluctuation in revenue and net income suggests some volatility in earnings.65
Positive
Balance Sheet
The balance sheet of Banco Bradesco SA presents a solid equity position with an equity ratio of approximately 8.1% in 2024. The debt-to-equity ratio is high at 1.52, reflecting significant leverage, which could pose risks if not managed properly. However, the company has maintained a stable stockholders' equity trend over the years, suggesting a strong capital base.70
Positive
Cash Flow
The cash flow statement indicates challenges for Banco Bradesco SA, with a negative operating cash flow in 2024. The free cash flow has declined significantly, showing a concerning trend in liquidity. The free cash flow to net income ratio is negative, suggesting potential cash management issues. Despite these concerns, the company has a history of positive free cash flow in earlier years, showing some potential for recovery.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 78.89B | 68.35B | 109.00B | 102.43B | 82.37B | Gross Profit |
| 78.89B | 68.35B | 106.34B | 102.43B | 82.37B | EBIT |
| 30.81B | 23.04B | 155.29B | 32.64B | 3.88B | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 17.25B | 14.25B | 21.22B | 23.17B | 15.84B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 36.83B | 0.00 | 28.55B | 21.28B | 23.85B | Total Assets |
| 2.07T | 1.93T | 1.79T | 1.68T | 1.60T | Total Debt |
| 256.03B | 359.49B | 338.99B | 284.55B | 181.72B | Net Debt |
| 219.20B | 187.64B | 310.44B | 263.27B | 157.88B | Total Liabilities |
| 1.90T | 1.76T | 1.63T | 1.53T | 1.46T | Stockholders Equity |
| 168.41B | 166.33B | 159.53B | 149.78B | 145.62B |
| Cash Flow | Free Cash Flow | |||
| -93.62B | -9.32B | 32.35B | -106.41B | 138.17B | Operating Cash Flow |
| -91.33B | -177.63M | 41.77B | -102.00B | 142.43B | Investing Cash Flow |
| -5.01B | 83.61B | -17.78B | -19.31B | 20.46B | Financing Cash Flow |
| 117.88B | -23.06B | 21.92B | -1.61B | -36.41B |
Banco Bradesco SA Technical Analysis
Positive
2.40
Price Trends
2.17
Positive
2.07
Positive
2.25
Positive
Market Momentum
0.07
Negative
63.25
Neutral
85.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBD, the sentiment is Positive. The current price of 2.4 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.17, and above the 200-day MA of 2.25, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 63.25 is Neutral, neither overbought nor oversold. The STOCH value of 85.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBD.
Banco Bradesco SA Risk Analysis
Banco Bradesco SA disclosed 42 risk factors in its most recent earnings report. Banco Bradesco SA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Bradesco SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.90B | 11.40 | 23.88% | 5.32% | -16.96% | -10.73% | |
77 Outperform | $10.62B | 11.98 | 15.62% | 15.12% | -0.15% | 8.78% | |
74 Outperform | $16.00B | 10.91 | 16.36% | 4.61% | 5.84% | 12.67% | |
73 Outperform | $11.24B | 12.40 | 16.05% | 4.23% | -22.63% | 32.31% | |
70 Outperform | $23.90B | 7.96 | 10.44% | 1.24% | -8.55% | 13.58% | |
70 Outperform | $19.13B | 15.46 | 11.61% | 4.02% | -3.94% | 31.52% | |
64 Neutral | $12.65B | 9.81 | 8.05% | 17044.60% | 12.57% | -4.75% |
* Financial Sector Average
Performance Comparison
BBD
Banco Bradesco SA
2.40
-0.12
-4.76%
BCH
Banco De Chile
29.50
8.00
37.21%
BSBR
Banco Santander Brasil
5.14
-0.49
-8.70%
BSAC
Banco Santander Chile
23.78
6.27
35.81%
CIB
Bancolombia
40.99
12.35
43.12%
BAP
Credicorp
201.21
43.18
27.32%
Banco Bradesco SA Earnings Call Summary
Earnings Call Date:Feb 07, 2025
(Q4-2024)
| % Change Since: 9.09%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant growth in net income, digital transformation, loan portfolio, and insurance sales. However, the outlook for 2025 is cautious due to macroeconomic conditions, and there are challenges related to narrowing margins in certain loan segments and restructuring costs.Q4-2024 Updates
Positive Updates
Significant Net Income Growth
For the fourth quarter, net income was BRL5.4 billion, representing a growth of 37%. For the full year 2024, net income reached BRL19.6 billion, a 20% increase.
Digital Transformation and Customer Base Expansion
99% of transactions occurred through digital channels. The customer base grew by more than 2 million clients, and the Bradesco Expresso platform contributed to a better customer experience.
Loan Portfolio and Insurance Growth
Total loan portfolio grew almost 12% year-on-year. Insurance sales increased by 49%, and the insurance company's revenue grew by 16.6% year-on-year.
Expansion in Assets Under Management
BRAM grew assets under management to BRL122 billion, and Bradesco received two awards from Infomoney for best customer experience.
Strong Performance in SME and Middle Market Lending
The portfolio for micro, small, and medium-sized companies grew by 28% during the period.
Negative Updates
Conservative Guidance for 2025
Guidance for 2025 is more cautious due to a conservative macroeconomic scenario and includes anticipated effects of regulations and investments.
Narrowing Margins in Certain Loan Segments
Personal loans grew in safer lines, but margins were lower, and there was pressure on gross margin due to INSS caps and public payroll deductible loans.
Operational Challenges and Restructuring Costs
Restructuring costs incurred due to footprint review and transformation initiatives, with a non-recurring provision of approximately BRL440 million.
Company Guidance
In the call, Marcelo de Araujo Noronha provided detailed guidance for Bradesco's financial outlook in 2025, emphasizing a cautious approach due to the macroeconomic environment. The bank's net income for the fourth quarter of 2024 was BRL5.4 billion, showing a 37% growth, with a full-year net income of BRL19.6 billion, a 20% increase. Total revenue reached over BRL32 billion, growing by 7.9% year-on-year, while the total loan portfolio exceeded BRL980 billion, marking a nearly 12% growth. The client NII rose by 5.4% year-on-year. The bank maintained a cost of risk at approximately 3% and highlighted efficiency gains and transformation efforts. Additionally, Bradesco achieved a capital ratio of 12.8% after the implementation of Resolution 4,966, and the insurance business posted a 13.6% revenue growth. Looking forward, Bradesco aims for a portfolio growth of 4% to 8% in 2025, with a focus on maintaining controlled portfolios and leveraging their digital channels, which facilitated 99% of transactions in 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.