Fact based stock research
Banco Bradesco (BOVESPA:BBDC4)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Banco Bradesco stock research in summary

banco.bradesco

ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Banco Bradesco (Diversified Banks, Brazil) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Banco Bradesco are a good value (attractively priced) with a consolidated Value Rank of 93 (better than 93% of alternatives), show above-average growth (Growth Rank of 57) but are riskily financed (Safety Rank of 5), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Banco Bradesco's financial characteristics. As the company Banco Bradesco's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 93) and above-average growth (Obermatt Growth Rank of 57), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 5) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	93
Growth Rank	57
Safety Rank	5
Combined Rank	49

Country	Brazil
Industry	Diversified Banks
Index	BOVESPA, BOVESPA
Size class	XX-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Banco Bradesco

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	46	91	69	93
GROWTH
GROWTH	91	17	57	57
SAFETY
SAFETY	67	5	37	5
SENTIMENT
SENTIMENT	n/a	35	7	^new
360° VIEW
360° VIEW	n/a	9	33	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Banco Bradesco is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	46	91	69	93
GROWTH
GROWTH	91	17	57	57
SAFETY
SAFETY	67	5	37	5
COMBINED
COMBINED	91	15	69	49

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Banco Bradesco the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 93 (better than 93% compared with alternatives) for 2024, Banco Bradesco shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Banco Bradesco. Price-to-Sales is 89 which means that the stock price compared with what market professionals expect for future sales is lower than for 89% of comparable companies, indicating a good value for Banco Bradesco's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 85% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 76. Compared with other companies in the same industry, dividend yields of Banco Bradesco are expected to be higher than for 84% of all competitors (a Dividend Yield rank of 84). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 93, is a buy recommendation based on Banco Bradesco's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Banco Bradesco based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	58	81	83	89
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	56	93	69	85
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	40	55	59	76
DIVIDEND YIELD
DIVIDEND YIELD	16	84	65	84
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	46	91	69	93

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Banco Bradesco; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Banco Bradesco shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Banco Bradesco. Sales Growth has a value of 64 which means that currently professionals expect the company to grow more than 64% of its competitors. Profit Growth with a value of 79 and Capital Growth with a rank of 61 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 17, which means that stock returns have recently been below 83% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. Banco Bradesco has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Banco Bradesco, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	94	58	32	64
PROFIT GROWTH
PROFIT GROWTH	56	54	15	79
CAPITAL GROWTH
CAPITAL GROWTH	n/a	7	85	61
STOCK RETURNS
STOCK RETURNS	40	15	79	17
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	91	17	57	57

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Banco Bradesco.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 5 (better than 5% compared with alternatives), the company Banco Bradesco has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Banco Bradesco is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Banco Bradesco and the other two below average. Refinancing is at 69, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 69% of its competitors. But Leverage is high with a rank of 2, meaning the company has an above-average debt-to-equity ratio. It has more debt than 98% of its competitors. Liquidity is also on the riskier side with a rank of 1, meaning the company generates less profit to service its debt than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 5 (worse than 95% compared with alternatives), Banco Bradesco has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Banco Bradesco are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Banco Bradesco and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	50	18	4	2
REFINANCING
REFINANCING	74	46	58	69
LIQUIDITY
LIQUIDITY	43	15	78	1
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	67	5	37	5

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Banco Bradesco and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	74	19	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	11	40	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	93	58	^new
MARKET PULSE
MARKET PULSE	n/a	2	2	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	35	7	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Banco Bradesco.
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