BOVESPA:BBAS3

Stock Analysis Report

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Executive Summary

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Banco do Brasil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BBAS3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BBAS3's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-7.2%

BBAS3

-6.7%

BR Banks

-2.6%

BR Market


1 Year Return

-33.7%

BBAS3

-15.4%

BR Banks

-2.2%

BR Market

Return vs Industry: BBAS3 underperformed the BR Banks industry which returned -14.5% over the past year.

Return vs Market: BBAS3 underperformed the BR Market which returned -1.4% over the past year.


Shareholder returns

BBAS3IndustryMarket
7 Day-7.2%-6.7%-2.6%
30 Day-13.4%-6.6%0.6%
90 Day0.5%15.7%14.3%
1 Year-31.0%-33.7%-12.5%-15.4%0.4%-2.2%
3 Year-1.7%-14.0%8.3%-7.3%47.3%31.4%
5 Year200.0%143.2%198.0%130.1%195.4%144.8%

Long-Term Price Volatility Vs. Market

How volatile is Banco do Brasil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Banco do Brasil undervalued compared to its fair value and its price relative to the market?

6.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BBAS3 (R$33.69) is trading above our estimate of fair value (R$14.57)

Significantly Below Fair Value: BBAS3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BBAS3 is good value based on its PE Ratio (6.4x) compared to the BR Banks industry average (10.9x).

PE vs Market: BBAS3 is good value based on its PE Ratio (6.4x) compared to the BR market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: BBAS3 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: BBAS3's PB Ratio (0.8x) is in line with the BR Banks industry average.


Next Steps

Future Growth

How is Banco do Brasil forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBAS3's forecast earnings growth (13.8% per year) is above the savings rate (9.9%).

Earnings vs Market: BBAS3's earnings (13.8% per year) are forecast to grow slower than the BR market (27.4% per year).

High Growth Earnings: BBAS3's earnings are forecast to grow, but not significantly.

Revenue vs Market: BBAS3's revenue (6.7% per year) is forecast to grow slower than the BR market (10.4% per year).

High Growth Revenue: BBAS3's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BBAS3's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Banco do Brasil performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBAS3 has a large one-off loss of R$7.1B impacting its September 30 2020 financial results.

Growing Profit Margin: BBAS3's current net profit margins (25.1%) are lower than last year (25.2%).


Past Earnings Growth Analysis

Earnings Trend: BBAS3's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: BBAS3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BBAS3 had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Banks industry average (-2.6%).


Return on Equity

High ROE: BBAS3's Return on Equity (13.8%) is considered low.


Next Steps

Financial Health

How is Banco do Brasil's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: BBAS3's Assets to Equity ratio (14.5x) is moderate.

Allowance for Bad Loans: BBAS3 has a sufficient allowance for bad loans (242%).

Low Risk Liabilities: 63% of BBAS3's liabilities are made up of primarily higher risk sources of funding.

Loan Level: BBAS3 has an appropriate level of Loans to Assets ratio (35%).

Low Risk Deposits: BBAS3's Loans to Deposits ratio (103%) is appropriate.

Level of Bad Loans: BBAS3 has a high level of bad loans (2.6%).


Next Steps

Dividend

What is Banco do Brasil current dividend yield, its reliability and sustainability?

7.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBAS3's dividend (7.13%) is higher than the bottom 25% of dividend payers in the BR market (0.96%).

High Dividend: BBAS3's dividend (7.13%) is in the top 25% of dividend payers in the BR market (5.13%)


Stability and Growth of Payments

Stable Dividend: BBAS3's dividend payments have been volatile in the past 10 years.

Growing Dividend: BBAS3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.1%), BBAS3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBAS3's dividends in 3 years are forecast to be well covered by earnings (43.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Andre Brandao (56 yo)

0.33

Tenure

Mr. Andre Guilherme Brandao serves as President and Chief Executive Officer of Banco do Brasil SA since September 22, 2020 and serves as its Director since October 15, 2020. He serves as Non-Executive Dire...


Leadership Team

NamePositionTenureCompensationOwnership
Andre Brandao
President0.33yrno datano data
Carlos da Costa Andre
Chief Financial & Investor Relations Officer0.083yrno datano data
Carlos Bonetti
Chief Internal Controls & Risk Management Officer2yrsno datano data
João Rabelo
Chief Agribusiness & Government Affairs Officer2.5yrsno datano data
Gustavo de Souza Fosse
Chief Technology & Business Development Officer and Member of Executive Board1yrno datano data
João Leocir Dal Frescura
Operations Officer1yrno datano data
Carlos dos Santos
Chief Retail Business Officer2yrsno datano data
Mauro Neto
Chief Corporate Officer & Member of Executive Boardno datano datano data
Guilherme Rossi
General Manager of the Funding & Investment Unit0.083yrno datano data
Eduardo Pasa
General Accountant & Directorno datano datano data
Daniel Maria
Head of Investor Relations and GM of Investor Relations & Sustainability3yrsno datano data
Lucinéia Possar
Director & Legal Officer3.5yrsno datano data

1.5yrs

Average Tenure

50yo

Average Age

Experienced Management: BBAS3's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andre Brandao
President0.33yrno datano data
José Monforte
Independent Director1.08yrsno datano data
Aloísio Macário de Souza
Member of Fiscal Council2yrsno datano data
Luiz Spinola Santos
Independent Director5.75yrsno datano data
Paulo Roberto de Lima
Independent Director1.75yrsno datano data
Maurício de Severiano Cardoso
Member of Fiscal Council3.75yrsno datano data
Hélio Magalhães
Independent Chairman of the Board1.75yrsno datano data
Fabio Augusto Barbosa
Independent Director0.17yrno datano data
Débora Cristina Fonseca
Director1.75yrsno datano data
Waldery Rodrigues
Vice Chairman1.42yrsno datano data
Rafael de Araújo
Member of Fiscal Council1.17yrsno datano data
Lucas Pedreira Couto Ferraz
Member of Supervisory Boardno datano datano data

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: BBAS3's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

Banco do Brasil S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Banco do Brasil S.A.
  • Ticker: BBAS3
  • Exchange: BOVESPA
  • Founded: 1808
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R$97.524b
  • Shares outstanding: 2.85b
  • Website: https://www.bb.com.br

Number of Employees


Location

  • Banco do Brasil S.A.
  • Setor de Autarquias Norte
  • Quadra 5, Lote B
  • Brasília
  • Distrito Federal
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBAS3BOVESPA (Bolsa de Valores de Sao Paulo)YesOrdinary SharesBRBRLJan 1992
BDOR.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 2009
BZLADB (Deutsche Boerse AG)SPONSORED ADRDEEURDec 2009

Biography

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company’s Banking segment offers various products and services,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 22:01
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.