Banco Bradesco (BBDO) AI Stock Analysis

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Banco Bradesco

(NYSE:BBDO)

71Outperform

Banco Bradesco's overall score reflects strong financial performance in 2024, with challenges in profitability and cash flow. While the stock shows bullish technical indicators, potential overbought conditions and cautious guidance for 2025 due to macroeconomic factors introduce risks. The low P/E ratio suggests value, but the modest dividend yield tempers this attractiveness.

Banco Bradesco (BBDO) vs. S&P 500 (SPY)

Market Cap

$23.60B

Dividend Yield1.31%

Average Volume (3M)61.86K

Price to Earnings (P/E)7.0

Beta (1Y)0.35

Revenue Growth-8.55%

EPS Growth14.81%

CountryUS

Employees72,642

SectorFinancial

Sector Strength81

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.30

Shares Outstanding5,330,304,700

10 Day Avg. Volume49,075

30 Day Avg. Volume61,862

Financial Highlights & Ratios

PEG Ratio0.47

Price to Book (P/B)N/A

Price to Sales (P/S)1.42

Price to Cash Flow (P/CF)N/A

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 TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Banco Bradesco Business Overview & Revenue Model

Company DescriptionBanco Bradesco S.A. (BBDO) is one of the largest financial institutions in Brazil, offering a wide range of banking and financial services. The company operates in several sectors, including retail banking, insurance, asset management, and investment banking. Bradesco serves millions of customers through its extensive network of branches, digital platforms, and ATMs, providing services such as deposits, loans, credit cards, savings accounts, and insurance products.

How the Company Makes MoneyBanco Bradesco makes money primarily through interest income from loans and advances made to individuals and businesses. Additionally, it generates revenue from fees and commissions associated with various banking services, such as account maintenance, transactions, and credit card services. The company also earns income from its insurance division, where it offers a variety of insurance products, including life, health, and property insurance. Investment banking and asset management services provide further revenue streams through advisory fees, trading, and portfolio management. Strategic partnerships and its strong digital banking presence contribute to expanding its customer base and enhancing its revenue potential.

Banco Bradesco Financial Statement Overview

Summary

Banco Bradesco shows strong revenue from core operations but faces profitability challenges with declining revenue and fluctuating net income margins. The balance sheet is robust, yet high leverage poses potential risks. Cash flow issues are significant, with negative operating and free cash flows indicating potential liquidity risks.

Income Statement

Positive

Banco Bradesco's income statement shows a declining revenue trend with a significant drop in revenue from 2023 to 2024. The gross profit margin is strong at 100% due to the nature of banking operations. However, net profit margin has decreased, indicating challenges in maintaining profitability. EBIT margin remains robust, but the absence of EBITDA data limits further analysis.

Balance Sheet

Positive

The balance sheet reflects a strong asset base with total assets growing year over year. However, the debt-to-equity ratio is high, suggesting potential leverage risks. The equity ratio is stable, indicating a solid capital structure, though the return on equity has shown some fluctuations, pointing to variable profitability.

Cash Flow

Neutral

Cash flow statements indicate volatility with negative operating cash flows in recent years, raising concerns about cash generation capabilities. Free cash flow has been negative, highlighting potential challenges in funding operations and growth without external financing. The operating cash flow to net income ratio is negative, reflecting issues in converting earnings to cash.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
78.89B	100.27B	106.27B	102.43B	82.37B
	Gross Profit
78.89B	0.00	0.00	0.00	0.00
	EBIT
30.81B	23.04B	39.26B	49.29B	20.65B
	EBITDA
22.02B	0.00	0.00	38.63B	11.14B
	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	41.54B	28.55B	21.28B	23.85B
	Total Assets
2.07T	1.93T	1.79T	1.68T	1.60T
	Total Debt
256.03B	631.89B	338.99B	284.55B	181.72B
	Net Debt
219.20B	264.93B	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 Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.11

Price Trends

50DMA

1.97

Positive

100DMA

1.90

Positive

200DMA

2.05

Positive

Market Momentum

MACD

0.03

Negative

RSI

64.39

Neutral

STOCH

90.93

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBDO, the sentiment is Positive. The current price of 2.11 is above the 20-day moving average (MA) of 2.02, above the 50-day MA of 1.97, and above the 200-day MA of 2.05, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.39 is Neutral, neither overbought nor oversold. The STOCH value of 90.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBDO.

Banco Bradesco Risk Analysis

Banco Bradesco disclosed 42 risk factors in its most recent earnings report. Banco Bradesco 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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMA	81 Outperform	$6.05B	16.77	9.05%	8.73%	40.86%	236.42%
CIB	77 Outperform	$10.89B	12.18	15.62%	14.88%	-0.15%	8.78%
BSAC	73 Outperform	$11.36B	12.68	16.05%	2.40%	-22.63%	32.31%
BCH	73 Outperform	$15.51B	12.10	21.96%	5.12%	-19.01%	-13.44%
BBDO	71 Outperform	$23.60B	7.00	10.44%	1.31%	-8.55%	14.81%
BSBR	70 Outperform	$18.53B	14.98	11.61%	4.55%	-3.94%	31.52%
Sector *	63 Neutral	$12.33B	9.59	8.02%	79.26%	12.87%	-4.61%

* Financial Sector Average

Performance Comparison

BBDO

Banco Bradesco

2.15

-0.04

-1.83%

BCH

Banco De Chile

30.67

9.55

45.22%

BMA

Banco Macro SA

93.79

46.88

99.94%

BSBR

Banco Santander Brasil

4.96

-0.17

-3.31%

BSAC

Banco Santander Chile

24.52

7.07

40.52%

CIB

Bancolombia

42.33

14.59

52.60%

Banco Bradesco Earnings Call Summary

Earnings Call Date: Feb 7, 2025 | % Change Since: 5.50% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Positive

Bradesco reported strong financial performance for 2024, with significant growth in net income and successful digital transformation efforts. However, the outlook for 2025 is more cautious due to macroeconomic uncertainties, reflected in conservative growth guidance.

Highlights

Record Net Income Growth

Bradesco reported a net income of BRL5.4 billion for Q4 2024, a 37% increase, and BRL19.6 billion for the full year, representing a 20% growth.

Digital Transformation Success

99% of transactions occurred through digital channels in 2024, contributing to efficiency gains and improved customer experience.

Loan Portfolio and Customer Base Expansion

Total loan portfolio grew by almost 12% year-on-year, and the customer base increased by more than 2 million clients.

Insurance Segment Performance

Insurance revenue grew by 16.6% year-on-year, with net income of BRL2.5 billion for Q4 and BRL9.1 billion for the year.

Strong Asset Under Management Growth

BRAM's assets under management reached BRL122 billion.

Lowlights

Flat NII Growth in Q4

Net interest income (NII) for Q4 was flat compared to the prior quarter, despite expectations of growth.

Cautious Guidance for 2025

Guidance for 2025 is more conservative due to the macroeconomic scenario and higher interest rates, projecting lower portfolio growth of 4-8%.

Market NII Neutrality

The expectation for market NII in 2025 is close to neutrality, indicating limited growth potential in this area.

Company Guidance

In the call, Bradesco provided guidance for 2025, highlighting a cautious approach due to macroeconomic conditions while remaining optimistic about their internal transformations and deliverables. They reported a net income of BRL 5.4 billion for Q4 2024, marking a 37% growth, and BRL 19.6 billion for the entire year, a 20% increase. Total revenue rose to BRL 32.3 billion, up by 7.9% year-on-year, driven by a 5.4% growth in net interest income (NII), a 7.9% rise in fee and commission income, and a 16.6% increase in insurance revenue. Their total loan portfolio exceeded BRL 980 billion, growing nearly 12% year-on-year, with significant growth in micro, small, and medium-sized enterprises. Bradesco's strategy included expanding their digital footprint, with 99% of transactions occurring through digital channels and growing their customer base by over 2 million clients. The bank emphasized maintaining a cost of risk around 3% while controlling expenses despite ongoing investments. They aimed for continued profitability and efficiency gains through technology investments, including cloud migration and AI implementation, anticipating a 50% increase in technological output in 2025.

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.