NYSE:BBDO

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

Fundamentals

Reasonable growth potential with adequate balance sheet 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


Market Performance


7 Day Return

4.8%

BBDO

1.7%

US Banks

1.3%

US Market


1 Year Return

16.6%

BBDO

0.3%

US Banks

5.9%

US Market

Return vs Industry: BBDO exceeded the US Banks industry which returned 0.3% over the past year.

Return vs Market: BBDO exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

BBDOIndustryMarket
7 Day4.8%1.7%1.3%
30 Day-0.5%-2.4%-1.9%
90 Day-14.7%1.0%-1.8%
1 Year19.5%16.6%3.2%0.3%8.3%5.9%
3 Year23.7%14.8%52.1%41.7%45.6%36.2%
5 Year26.9%8.5%69.8%51.4%66.1%47.9%

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?

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BBDO ($7.64) is trading below our estimate of fair value ($9.44)

Significantly Undervalued: BBDO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BBDO is poor value based on its PE Ratio (14.2x) compared to the Banks industry average (12.5x).

PE vs Market: BBDO is good value based on its PE Ratio (14.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: BBDO is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: BBDO is overvalued based on its PB Ratio (2.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Banco Bradesco forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBDO's forecast earnings growth (15.1% per year) is above the savings rate (2.7%).

Earnings vs Market: BBDO's earnings (15.1% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: BBDO's revenue (10.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BBDO's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BBDO's Return on Equity is forecast to be high in 3 years time (20.1%)


Next Steps

Past Performance

How has Banco Bradesco performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BBDO's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: BBDO's earnings growth over the past year (7.5%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: BBDO earnings growth over the past year (7.5%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: BBDO's Return on Equity (14.6%) is considered low.


Return on Assets

ROA vs Industry: BBDO has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BBDO's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: BBDO has a low level of unsold assets or inventory.

Debt Coverage by Assets: BBDO's debt is not covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: BBDO's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: BBDO has a high level of bad loans (7.16%)


Next Steps

Dividend

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

2.52%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Banco Bradesco before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BBDO's dividend (2.52%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: BBDO's dividend (2.52%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41%), BBDO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBDO's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

What is the CEO of Banco Bradesco's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average board tenure


CEO

Octavio de Lazari (56yo)

1.6yrs

Tenure

0

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 Age and Tenure

2.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: BBDO's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Carlos Rodrigues Guilherme (76yo)

    Vice Chairman & Secretary

    • Tenure: 2yrs
  • Cassiano Scarpelli (51yo)

    Executive VP & Member of Board of Executive Officers

    • Tenure: 0yrs
  • Antonio da Barbara (51yo)

    Executive Deputy Officer & Member of Board of Executive Officers

    • Tenure: 0yrs
  • Moacir Nachbar (54yo)

    Chief Risk Officer

    • Tenure: 0yrs
  • Marcelo de Araújo Noronha (54yo)

    Executive VP & Member of Board of Executive Officers

    • Tenure: 0yrs
  • André Rodrigues Cano (61yo)

    CFO, Executive VP

    • Tenure: 0yrs
  • José Rocha Neto (51yo)

    Executive Deputy Officer & Member of Board of Executive Officers

    • Tenure: 0yrs
  • João Carlos da Silva (58yo)

    Executive Managing Officer & Member of Board of Executive Officers

    • Tenure: 0yrs
  • Glaucimar Peticov (56yo)

    Executive Deputy Officer & Member of Board of Executive Officers

    • Tenure: 0yrs
  • Octavio de Lazari (56yo)

    CEO & Member of Board of Executive Officers

    • Tenure: 1.6yrs

Board Members

  • João Alvarez (59yo)

    Director

    • Tenure: 29.7yrs
  • Luiz Trabuco Cappi (68yo)

    Chairman of the Board

    • Tenure: 2yrs
  • Carlos Rodrigues Guilherme (76yo)

    Vice Chairman & Secretary

    • Tenure: 2yrs
  • Milton Matsumoto (74yo)

    External Director

    • Tenure: 8.6yrs
  • Denise Alvarez (61yo)

    Director

    • Tenure: 29.7yrs
  • Josué Pancini (59yo)

    Director

    • Tenure: 1.6yrs
  • Alexandre da Silva Glüher (59yo)

    External Director

    • Tenure: 1.6yrs
  • Maurício de Minas (60yo)

    Director

    • Tenure: 1.6yrs
  • Ariovaldo Pereira (67yo)

    Coordinator of Fiscal Council

    • Tenure: 0yrs
  • José Augusto Miranda (39yo)

    Departmental Director & Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Banco Bradesco S.A.
  • Ticker: BBDO
  • Exchange: NYSE
  • Founded: 1943
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R$266.447b
  • Listing Market Cap: R$64.442b
  • 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)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

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 s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:23
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.