LSE:0HL8

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with proven track record and pays a dividend.


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: 0HL8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

0HL8

12.6%

GB Banks

8.6%

GB Market


1 Year Return

n/a

0HL8

-39.2%

GB Banks

-19.4%

GB Market

Return vs Industry: Insufficient data to determine how 0HL8 performed against the UK Banks industry.

Return vs Market: Insufficient data to determine how 0HL8 performed against the UK Market.


Shareholder returns

0HL8IndustryMarket
7 Day0%12.6%8.6%
30 Day0%-13.1%-3.5%
90 Day-9.7%-35.7%-23.0%
1 Yearn/a-37.0%-39.2%-15.5%-19.4%
3 Yearn/a-34.2%-41.5%-8.8%-19.9%
5 Yearn/a-34.7%-46.5%4.2%-19.0%

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?

21.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0HL8 ($7.7) is trading below our estimate of fair value ($10.42)

Significantly Below Fair Value: 0HL8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0HL8 is poor value based on its PE Ratio (8.3x) compared to the Banks industry average (5.4x).

PE vs Market: 0HL8 is good value based on its PE Ratio (8.3x) compared to the UK market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: 0HL8 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 0HL8 is overvalued based on its PB Ratio (1.3x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

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

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0HL8's forecast earnings growth (13.1% per year) is above the savings rate (0.5%).

Earnings vs Market: 0HL8's earnings (13.1% per year) are forecast to grow slower than the UK market (15.5% per year).

High Growth Earnings: 0HL8's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0HL8's revenue (13.2% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: 0HL8's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0HL8's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has Banco Bradesco performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0HL8 has a large one-off loss of R$11.0B impacting its December 31 2019 financial results.

Growing Profit Margin: 0HL8's current net profit margins (24.8%) are higher than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: 0HL8's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: 0HL8's earnings growth over the past year (26.8%) exceeds its 5-year average (3.7% per year).

Earnings vs Industry: 0HL8 earnings growth over the past year (26.8%) exceeded the Banks industry 26.6%.


Return on Equity

High ROE: 0HL8's Return on Equity (15.6%) 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: 0HL8's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0HL8 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0HL8's liabilities are made up of primarily higher risk sources of funding.

Loan Level: 0HL8 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0HL8's loans are broadly funded by customer deposits.

Level of Bad Loans: 0HL8 has a high level of bad loans (6.85%)


Next Steps

Dividend

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

4.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0HL8's dividend (4.74%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).

High Dividend: 0HL8's dividend (4.74%) is low compared to the top 25% of dividend payers in the UK market (7.08%).


Stability and Growth of Payments

Stable Dividend: 0HL8's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0HL8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.6%), 0HL8's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0HL8's dividends in 3 years are forecast to be covered by earnings (52% payout ratio).


Next Steps

Management

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

2.5yrs

Average board tenure


CEO

Octavio de Lazari (56yo)

2.08s

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 Rodrigues Guilherme
Vice Chairman & Secretary2.5yrsno datano data
Joao Alvarez
Non-Executive Director30.17yrsno datano data
Luiz Trabuco Cappi
Non-Executive Chairman of the Board2.5yrsno datano data
Milton Matsumoto
Non-Executive Director9.08yrsno datano data
Denise Alvarez
Non-Executive Director30.17yrsno datano data
Josue Pancini
External Director2.08yrsno datano data
Alexandre da Silva Glüher
External Director2.08yrsno datano data
Samuel dos Santos
Independent Director0.083yrno datano data
Mauricio de Minas
External Director2.08yrsno datano data
Ariovaldo Pereira
Coordinator of Fiscal Councilno datano datano data

2.5yrs

Average Tenure

64yo

Average Age

Experienced Board: 0HL8's board of directors are not considered experienced ( 2.5 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 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: 0HL8
  • Exchange: LSE
  • Founded: 1943
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R$173.926b
  • Listing Market Cap: R$33.654b
  • Shares outstanding: 8.03b
  • Website: https://banco.bradesco

Number of Employees


Location

  • Banco Bradesco S.A.
  • 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)SP ADR PFD NEWUSUSDNov 2001
BRECDB (Deutsche Boerse AG)SP ADR PFD NEWDEEURNov 2001
BBD NBMV (Bolsa Mexicana de Valores)SP ADR PFD NEWMXMXNNov 2001
0HL8LSE (London Stock Exchange)SP ADR PFD NEWGBUSDNov 2001
BBDONYSE (New York Stock Exchange)SPONSORED ADRUSUSDMar 2012

Biography

Banco Bradesco S.A., together with its subsidiaries, provides banking and financial products and services to individuals, corporates, and businesses in Brazil and internationally. It operates through two segments, Banking and Insurance. The company accepts checking and savings accounts, demand deposits, time deposits, and interbank deposits. The company’s loan products include direct to consumer loans and leasing facilities to purchase light vehicles, heavy vehicles, and motorcycles; payroll-deducted loans for public pensioners and civil servants; housing loans and working capital loans; and overdrafts and credit cards. It also provides fund management and treasury services, foreign exchange operations, corporate finance, and investment banking services; hedge and finance operations; and insurance products, which include automobile, health, life, accident, and property insurance, as well as pension plans, real estate ventures, and capitalization bonds. In addition, the company offers mutual funds, leasing, asset management and administration, international banking, consortium administration, debit cards, telephone, and Internet banking services. It operates through a network of 4,617 branches, including 1 branch each in New York, Grand Cayman, and London; 76,200 service units; and 58,100 ATMs. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 02:55
End of Day Share Price2020/01/31 00:00
Earnings2019/12/31
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.