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Banco do Brasil SA (BDORY) AI Stock Analysis
Banco do Brasil SA
(Other OTC:BDORY)
The score is held back primarily by sharply eroding profitability: despite strong revenue growth, net income has more than halved and return on equity has fallen from the high teens to mid-single digits, signalling an ongoing credit and margin down-cycle. Technicals compound the caution, with the stock trading well below all major moving averages and a negative MACD, although deeply oversold readings suggest the decline is extended. Offsetting these risks are robust cash generation that fully backs reported earnings, a large and adequately capitalised balance sheet, and an inexpensive valuation at roughly 7.7x earnings with a ~3.9% dividend yield. A recovery in earnings and return on equity is the key catalyst to watch.
Banco do Brasil SA (BDORY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $17.70B
- Dividend Yield
- 3.88%
- Average Volume (3M)
- 942.60K
- Price to Earnings (P/E)
- 7.7
- Beta (1Y)
- 0.40
- Revenue Growth
- 20.12%
- EPS Growth
- -16.71%
- Country
- US
- Employees
- 85,953
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Banks - Regional
Banco do Brasil SA Business Overview & Revenue Model
Company Description
Banco do Brasil S.A. (BDORY) is a prominent financial institution that, through its various subsidiaries, offers a comprehensive range of banking and financial services. Its operations span both Brazil and international territories, serving a diverse...
How the Company Makes Money
Banco do Brasil makes money primarily through a mix of interest-based income and fee-based financial services across its banking and related businesses. A major driver is net interest income: it earns interest and similar revenue on loans and credit...
Banco do Brasil SA Earnings Call Summary
The earnings call highlighted Banco do Brasil's resilience and strategic focus on personal loans and technological advancements. However, significant challenges persist in the agribusiness segment, particularly with high delinquency rates and increased provisions impacting profitability.
Q3-2025 Updates
Positive Updates
Negative Updates
Company Guidance
During the call, Banco do Brasil provided guidance on several key financial metrics. The bank adjusted its forecast for the cost of credit to be between BRL 59 billion and BRL 62 billion and projected adjusted profit to range from BRL 18 billion to BRL 21 billion. The bank also discussed its capital strength, with a principal capital ratio of 11.16%, and an ambition to achieve 20% market participation. Additionally, the bank highlighted its efforts to manage delinquency rates, especially in the agribusiness sector, with provisions for credit risk adjustments and a focus on the renegotiation of loans under the BB Regulariza Agro program, leveraging MP 1314. The bank is targeting BRL 24 billion in renegotiated loans as part of this initiative. The discussion also touched on the bank's strategy to navigate regulatory changes and its commitment to generating shareholder value while maintaining a payout ratio of 30% for dividends.
Banco do Brasil SA Financial Statement Overview
Summary
A mixed and deteriorating profile. Revenue continues to expand strongly (~R$362bn TTM, +74% y/y), but net income has more than halved over two years to ~R$12bn and net margin has compressed from ~25% to ~4%, with operating margins barely above breakeven — consistent with rising funding costs and credit provisions. The balance sheet is large (~R$2.58trn assets) with an adequate ~7% equity-to-assets cushion, but return on equity has collapsed from the high teens to ~6.6%, equity has edged lower, and reported leverage jumped to ~6.1x, adding opacity. The clearest strength is cash generation: ~R$98bn operating cash flow and ~R$92bn free cash flow, covering ~97% of net income, though free cash flow fell roughly 63% versus the prior period and remains volatile.
Income Statement
42NeutralBalance Sheet
52NeutralCash Flow
63Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 293.59B | 342.86B | 310.75B | 125.47B | 123.25B | 168.71B |
| Gross Profit | 125.58B | 59.72B | 141.76B | 125.47B | 123.11B | 99.78B |
| EBITDA | 11.34B | 3.78B | 32.82B | 1.20B | 49.98B | 31.12B |
| Net Income | 12.23B | 13.43B | 26.36B | 29.86B | 31.11B | 19.71B |
Balance Sheet | ||||||
| Total Assets | 2.58T | 2.46T | 2.40T | 2.15T | 2.03T | 1.93T |
| Cash, Cash Equivalents and Short-Term Investments | 144.80B | 200.87B | 252.07B | 194.53B | 168.68B | 130.12B |
| Total Debt | 1.14T | 163.43B | 170.14B | 142.19B | 155.20B | 171.95B |
| Total Liabilities | 2.40T | 2.26T | 2.21T | 1.98T | 1.87T | 1.79T |
| Stockholders Equity | 181.70B | 189.21B | 179.62B | 169.24B | 160.57B | 142.00B |
Cash Flow | ||||||
| Free Cash Flow | 91.97B | 151.89B | 121.46B | 11.71B | 58.10B | -51.10B |
| Operating Cash Flow | 97.90B | 159.25B | 127.21B | 16.74B | 64.69B | -46.19B |
| Investing Cash Flow | -105.54B | -168.39B | -93.49B | 21.64B | -17.88B | -53.28B |
| Financing Cash Flow | 3.55B | -6.84B | -21.36B | -34.34B | -26.98B | -23.78B |
Banco do Brasil SA Technical Analysis
Price Trends
Market Momentum
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 3.10 is below the 20-day moving average (MA) of 4.37, below the 50-day MA of 4.35, and below the 200-day MA of 4.35, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 28.16 is Positive, neither overbought nor oversold. The STOCH value of 4.28 is Positive, 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
BSAC79Outperform
CIB75Outperform
BCH71Outperform
BBD64Neutral
BSBR57Neutral- BDORY53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| BSAC | 79Outperform | $14.72B | 13.48 | 22.03% | 4.69% | 7.69% | 9.88% |
| CIB | 75Outperform | $23.93B | 9.16 | 19.85% | 4.25% | 7.13% | -22.31% |
| BCH | 71Outperform | $18.91B | 15.57 | 21.27% | 5.78% | 3.94% | 3.40% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| BBD | 64Neutral | $27.28B | 5.23 | 14.24% | 11.98% | 29.04% | 34.36% |
| BSBR | 57Neutral | $16.51B | 29.20 | 10.09% | 3.27% | 18.27% | 16.65% |
| BDORY | 53Neutral | $17.32B | 7.66 | 6.55% | 3.88% | 20.12% | -16.71% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| BDORY | Banco do Brasil S.A. | 3.10 | -0.99 | -24.28% | |
| BBD | Banco Bradesco | 2.56 | -0.67 | -20.64% | |
| BCH | Banco De Chile | 37.82 | 4.14 | 12.28% | |
| BSBR | Banco Santander Brasil SA | 4.51 | -1.07 | -19.10% | |
| BSAC | Banco Santander-Chile | 31.59 | 4.21 | 15.36% | |
| CIB | Grupo Cibest S.A. | 92.07 | 37.27 | 68.02% |
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.
Date of analysis: Oct 30, 2026