Banco Bradesco (BOVESPA:BBDC4) - Share price, News & Analysis

Q: What is the Fair Price of BBDC4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BBDC4 (R$17.33) is trading below our estimate of [[fair value]] (R$19.19)

BBDC4 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	4/6
Financial Health	4/6
Dividends	3/6

BBDC4 Stock Overview

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

Rewards

Trading at 9.7% below our estimate of its fair value

Earnings are forecast to grow 11.34% per year

Earnings grew by 29.1% over the past year

Risk Analysis

High level of non-cash earnings

Banco Bradesco Competitors

Itaú Unibanco Holding

BOVESPA:ITUB4

R$207.2b

Banco Santander (Brasil)

BOVESPA:SANB4

R$108.7b

Banco do Brasil

BOVESPA:BBAS3

R$94.6b

Itaúsa

BOVESPA:ITSA4

R$76.2b

Price History & Performance

Summary of all time highs, changes and price drops for Banco Bradesco
Historical stock prices
Current Share Price	R$17.33
52 Week High	R$23.64
52 Week Low	R$16.94
Beta	1.14
1 Month Change	-13.91%
3 Month Change	-13.27%
1 Year Change	-26.68%
3 Year Change	-41.47%
5 Year Change	9.33%
Change since IPO	1,006,287.92%

Shareholder Returns

	BBDC4	BR Banks	BR Market
7D	-3.3%	-2.0%	-0.04%
1Y	-26.7%	-28.1%	-30.1%

Return vs Industry: BBDC4 matched the BR Banks industry which returned -27.5% over the past year.

Return vs Market: BBDC4 exceeded the BR Market which returned -29.3% over the past year.

Price Volatility

Is BBDC4's price volatile compared to industry and market?
BBDC4 volatility
BBDC4 Average Weekly Movement	3.4%
Banks Industry Average Movement	4.3%
Market Average Movement	5.8%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.8%

Stable Share Price: BBDC4 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BBDC4's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1943	75,476	Octavio de Lazari	https://banco.bradesco

Banco 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 Fundamentals Summary

How do Banco Bradesco's earnings and revenue compare to its market cap?
BBDC4 fundamental statistics
Market Cap	R$169.12b
Earnings (TTM)	R$24.03b
Revenue (TTM)	R$95.45b

7.7x

P/E Ratio

1.2x

P/B Ratio

Is BBDC4 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBDC4 income statement (TTM)
Revenue	R$95.45b
Cost of Revenue	R$1.33b
Gross Profit	R$94.12b
Other Expenses	R$70.09b
Earnings	R$24.03b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	2.25
Gross Margin	98.60%
Net Profit Margin	25.17%
Debt/Equity Ratio	346.9%

How did BBDC4 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

31%

Payout Ratio

Does BBDC4 pay a reliable dividends?

See BBDC4 dividend history and benchmarks

When do you need to buy BBDC4 by to receive an upcoming dividend?
Banco Bradesco dividend dates
Ex Dividend Date	Jul 04 2022
Dividend Pay Date	Aug 01 2022
Days until Ex dividend	1 day
Days until Dividend pay date	29 days

Does BBDC4 pay a reliable dividends?

See BBDC4 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is BBDC4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BBDC4?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BBDC4. This is calculated by dividing BBDC4's market cap by their current preferred multiple.
What is BBDC4's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$169.12b

BBDC4 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does BBDC4's PE Ratio compare to its peers?

BBDC4 PE Ratio vs Peers

The above table shows the PE ratio for BBDC4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	6.4x
ITUB4 Itaú Unibanco Holding	8.1x	11.0%	R$207.2b
SANB4 Banco Santander (Brasil)	7.5x	9.9%	R$108.7b
BBAS3 Banco do Brasil	4.6x	7.1%	R$94.6b
ITSA4 Itaúsa	5.5x	-6.3%	R$76.2b
BBDC4 Banco Bradesco	7.7x	11.3%	R$169.1b

Forward PE

Price-To-Earnings vs Peers: BBDC4 is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (6.4x).

Price to Earnings Ratio vs Industry

How does BBDC4's PE Ratio compare vs other companies in the South American Banks Industry?

Price-To-Earnings vs Industry: BBDC4 is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the BR Banks industry average (7.2x)

Price to Earnings Ratio vs Fair Ratio

What is BBDC4's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BBDC4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.7x
Fair PE Ratio	8.6x

Price-To-Earnings vs Fair Ratio: BBDC4 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (8.6x).

Share Price vs Fair Value

What is the Fair Price of BBDC4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BBDC4 (R$17.33) is trading below our estimate of fair value (R$19.19)

Significantly Below Fair Value: BBDC4 is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBDC4's forecast earnings growth (11.3% per year) is above the savings rate (9.2%).

Earnings vs Market: BBDC4's earnings (11.3% per year) are forecast to grow faster than the BR market (6.7% per year).

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

Revenue vs Market: BBDC4's revenue (9.4% per year) is forecast to grow faster than the BR market (5.6% per year).

High Growth Revenue: BBDC4's revenue (9.4% per year) is forecast to grow slower 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 (18.3%).

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Past Performance

How has Banco Bradesco performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.5%

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 higher than last year (22.8%).

Past Earnings Growth Analysis

Earnings Trend: BBDC4's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: BBDC4's earnings growth over the past year (29.1%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: BBDC4 earnings growth over the past year (29.1%) exceeded the Banks industry 25.7%.

Return on Equity

High ROE: BBDC4's Return on Equity (16%) is considered low.

Discover strong past performing companies

Financial Health

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

Financial Health Score

4/6

Financial Health Score 4/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

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 (124%).

Low Risk Liabilities: 64% 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 (31%).

Low Risk Deposits: BBDC4's Loans to Deposits ratio (95%) is appropriate.

Level of Bad Loans: BBDC4 has a high level of bad loans (6.3%).

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.09%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: BBDC4's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.76%).

High Dividend: BBDC4's dividend (1.09%) is low compared to the top 25% of dividend payers in the BR market (7.84%).

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

Earnings Coverage: With its reasonably low payout ratio (31.1%), 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 well covered by earnings (49.7% payout ratio).

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Management

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

4.3yrs

Average board tenure

CEO

Octavio de Lazari (59 yo)

4.25yrs

Tenure

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

Board Members

Experienced Board: BBDC4's board of directors are considered experienced (4.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31