BOVESPA:BBDC4

Stock Analysis Report

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Executive Summary

Banco Bradesco S.A., together with its subsidiaries, provides various banking products and financial services to individuals, corporates, and businesses in Brazil and internationally. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BBDC4 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BBDC4's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

8.9%

BBDC4

7.0%

BR Banks

2.5%

BR Market


1 Year Return

-3.7%

BBDC4

-0.4%

BR Banks

15.1%

BR Market

Return vs Industry: BBDC4 underperformed the BR Banks industry which returned -0.4% over the past year.

Return vs Market: BBDC4 underperformed the BR Market which returned 15.1% over the past year.


Shareholder returns

BBDC4IndustryMarket
7 Day8.9%7.0%2.5%
30 Day-3.2%-3.8%-5.3%
90 Day-3.6%-5.2%1.1%
1 Year-1.5%-3.7%2.1%-0.4%18.7%15.1%
3 Year3.9%-7.2%5.9%-7.8%45.0%29.1%
5 Year100.4%64.3%114.9%67.9%145.4%102.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

13.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BBDC4 (R$25.04) is trading above our estimate of fair value (R$11.9)

Significantly Below Fair Value: BBDC4 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BBDC4 is poor value based on its PE Ratio (13.4x) compared to the BR Banks industry average (10.6x).

PE vs Market: BBDC4 is good value based on its PE Ratio (13.4x) compared to the BR market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: BBDC4 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BBDC4 is overvalued based on its PB Ratio (1.5x) compared to the BR Banks industry average (0.9x).


Next Steps

Future Growth

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

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBDC4's forecast earnings growth (19.4% per year) is above the savings rate (9.9%).

Earnings vs Market: BBDC4's earnings (19.4% per year) are forecast to grow slower than the BR market (24.2% per year).

High Growth Earnings: BBDC4's earnings are forecast to grow, but not significantly.

Revenue vs Market: BBDC4's revenue (21.8% per year) is forecast to grow faster than the BR market (11.5% per year).

High Growth Revenue: BBDC4's revenue (21.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BBDC4's Return on Equity is forecast to be low in 3 years time (19%).


Next Steps

Past Performance

How has Banco Bradesco performed over the past 5 years?

0.08%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBDC4 has a high level of non-cash earnings.

Growing Profit Margin: BBDC4's current net profit margins (25.2%) are lower than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: BBDC4's earnings have grown by 0.08% per year over the past 5 years.

Accelerating Growth: BBDC4's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BBDC4 had negative earnings growth (-26.6%) over the past year, making it difficult to compare to the Banks industry average (-10%).


Return on Equity

High ROE: BBDC4's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Banco Bradesco'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: BBDC4's Assets to Equity ratio (11x) is moderate.

Allowance for Bad Loans: BBDC4 has a sufficient allowance for bad loans (194%).

Low Risk Liabilities: 62% of BBDC4's liabilities are made up of primarily higher risk sources of funding.

Loan Level: BBDC4 has an appropriate level of Loans to Assets ratio (28%).

Low Risk Deposits: BBDC4's Loans to Deposits ratio (80%) is appropriate.

Level of Bad Loans: BBDC4 has a high level of bad loans (4.5%).


Next Steps

Dividend

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

0.91%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BBDC4's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.16%).

High Dividend: BBDC4's dividend (0.91%) is low compared to the top 25% of dividend payers in the BR market (5.07%).


Stability and Growth of Payments

Stable Dividend: BBDC4's dividend payments have been volatile in the past 10 years.

Growing Dividend: BBDC4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.5%), BBDC4's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBDC4's dividends in 3 years are forecast to be covered by earnings (53.7% payout ratio).


Next Steps

Management

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

3.4yrs

Average board tenure


CEO

Octavio de Lazari (57 yo)

3yrs

Tenure

Mr. Octavio de Lazari Jr., has been the Chief Executive Officer and Member of Board of Executive Officers at Banco Bradesco SA since March 13, 2018 and served as its Executive Vice President since May 2017...


Board Members

NamePositionTenureCompensationOwnership
Carlos Alberto Guilherme
Vice Chairman & Secretary3.42yrsno datano data
Luiz Carlos Cappi
Non-Executive Chairman of the Board3.42yrsno datano data
Milton Matsumoto
Non-Executive Director10yrsno datano data
Denise Aguiar Valente
Non-Executive Director31.08yrsno datano data
Paulo Roberto da Cunha
Independent Director0.17yrno datano data
Jose Maria Nunes
Sitting Member of Fiscal Council7yrsno datano data
Alexandre da Silva Gluher
Director3yrsno datano data
Samuel dos Santos
Independent Director1yrno datano data
Mauricio de Minas
Non-Executive Director3yrsno datano data
Domingos Maia
Sitting Member of Fiscal Council16yrsno datano data
Ariovaldo Pereira
Coordinator of Fiscal Councilno datano datano data
Walter Bernardes Albertoni
Independent Director1yrno datano data

3.4yrs

Average Tenure

68yo

Average Age

Experienced Board: BBDC4's board of directors are considered experienced (3.4 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Banco Bradesco S.A.
  • Ticker: BBDC4
  • Exchange: BOVESPA
  • Founded: 1943
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R$210.084b
  • Shares outstanding: 8.84b
  • Website: https://banco.bradesco

Number of Employees


Location

  • Banco Bradesco S.A.
  • Núcleo Cidade de Deus
  • Vila Yara
  • Osasco
  • São Paulo
  • 06029-900
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBDC3BOVESPA (Bolsa de Valores de Sao Paulo)Common SharesBRBRLNov 1992
BBDC4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLNov 1992
XBBDCBME (Bolsas y Mercados Espanoles)YesPreferred SharesESEURNov 1992
BREDB (Deutsche Boerse AG)YesPreferred SharesDEEURNov 1992
BBDNYSE (New York Stock Exchange)SPONS ADR EACH REPR 1 PRF NPVUSUSDNov 2001
BRECDB (Deutsche Boerse AG)SPONS ADR EACH REPR 1 PRF NPVDEEURNov 2001
BBD NBMV (Bolsa Mexicana de Valores)SPONS ADR EACH REPR 1 PRF NPVMXMXNNov 2001
0HL8LSE (London Stock Exchange)SPONS ADR EACH REPR 1 PRF NPVGBUSDNov 2001
BBDONYSE (New York Stock Exchange)SPONSORED ADRUSUSDMar 2012
BBDBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1 PRF ADRARARSOct 2018

Biography

Banco Bradesco S.A., together with its subsidiaries, provides various banking products and financial services to individuals, corporates, and businesses in Brazil and internationally. It operates through t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 22:57
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.