Bank Bradesco SA ADR BBD

Morningstar Rating
$3.34 −0.09 (2.62%)
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Company Report

Profitability Is Recovering, but Banco Bradesco Still Faces Headwinds

Banco Bradesco is seeking to complete its recovery from a period of weak performance. Credit costs rose industrywide in 2023, but the bank was a notable underperformer relative to its peers, with its more than 90-day nonperforming loan ratio reaching a peak of 5.7% in June 2023. High credit costs combined with poor loan growth and net interest margin compression led to a dramatic decrease in earnings. Banco Bradesco's results have been recovering since then, but the bank will need to prove that its operational issues have been solved before our confidence in the firm is restored.

Price vs Fair Value

BBD is trading at a 554% premium.
Price
$3.43
Fair Value
$4.60
Uncertainty
Yxg
1-Star Price
$7.92
5-Star Price
$9.40
Economic Moat
Xtsd
Capital Allocation
Twbqrzg

Bulls Say, Bears Say

Bulls

Bradesco's credit costs have been improving for over a year now, setting the stage for better performance.

Bears

Bradesco's credit quality and net interest margin have materially underperformed peers' in recent years. This underperformance could persist.

News

Trading Information

Previous Close Price
$3.43
Day Range
$3.343.44
52-Week Range
$2.744.29
Bid/Ask
$3.33 / $3.34
Shares Outstanding
10.57B
Market Cap
$35.36B
Volume/Avg
22M / 32M

Key Statistics

Price/Earnings (Normalized)
9.88
Price/Sales
1.67
Dividend Yield (Trailing)
4.73%
Dividend Yield (Forward)
4.73%
Total Yield
4.80%

Company Profile

Banco Bradesco is Brazil's second-largest private bank, with about 10%-15% of deposits, and the largest insurance provider in Brazil, with roughly 20%-25% market share. The bank is majority controlled by the Bradesco foundation, a private nonprofit institution focused on education. The bank is also a major asset manager with high-single-digit market share. In 2016, Bradesco acquired the Brazilian operations of HSBC.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Value
Total Number of Employees
80,348

Competitors

Valuation

Metric
BBD
SAN
ITUB
Price/Earnings (Normalized)
9.8812.7511.24
Price/Book Value
1.081.532.21
Price/Sales
1.672.772.97
Price/Cash Flow
4.024.085.32
Price/Earnings
BBD
SAN
ITUB

Financial Strength

Metric
BBD
SAN
ITUB
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
BBD
SAN
ITUB
Return on Assets (Normalized)
1.37%0.78%1.95%
Return on Equity (Normalized)
17.48%13.98%27.99%
Return on Invested Capital (Normalized)
Return on Assets
BBD
SAN
ITUB

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