Fact based stock research
Banco do Brasil (BOVESPA:BBAS3)

BRBBASACNOR3

How to read the free ranks

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 do Brasil stock research in summary

bb.com.br

ANALYSIS: With an Obermatt Combined Rank of 31 (worse than 69% compared with investment alternatives), Banco do Brasil (Diversified Banks, Brazil) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Banco do Brasil are a good value (attractively priced) with a consolidated Value Rank of 100 (better than 100% of alternatives) but show below-average growth (Growth Rank of 25), and are riskily financed (Safety Rank of 3), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 31, is a hold recommendation based on Banco do Brasil's financial characteristics. As the company Banco do Brasil's key financial metrics exhibit good value (Obermatt Value Rank of 100) but low growth (Obermatt Growth Rank of 25) and risky financing practices (Obermatt Safety Rank of 3), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 100% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. 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	100
Growth Rank	25
Safety Rank	3
Combined Rank	31

Country	Brazil
Industry	Diversified Banks
Index	BOVESPA, Independent Boards Growth Markets, Renewables Users
Size class	XX-Large

This stock has achievements: Top 10 Stock.

19-Dec-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 do Brasil

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	85	100	100	100
GROWTH
GROWTH	64	11	75	25
SAFETY
SAFETY	17	23	3	3
SENTIMENT
SENTIMENT	n/a	21	59	^new
360° VIEW
360° VIEW	n/a	13	81	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Banco do Brasil is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	85	100	100	100
GROWTH
GROWTH	64	11	75	25
SAFETY
SAFETY	17	23	3	3
COMBINED
COMBINED	47	35	81	31

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Banco do Brasil the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 100 (better than 100% compared with alternatives) for 2024, Banco do Brasil 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 do Brasil. Price-to-Sales is 97 which means that the stock price compared with what market professionals expect for future sales is lower than for 97% of comparable companies, indicating a good value for Banco do Brasil's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 100% 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 87. Compared with other companies in the same industry, dividend yields of Banco do Brasil are expected to be higher than for 100% of all competitors (a Dividend Yield rank of 100). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 100, is a buy recommendation based on Banco do Brasil'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 do Brasil 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)	94	97	95	97
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	75	100	97	100
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	76	100	74	87
DIVIDEND YIELD
DIVIDEND YIELD	70	100	98	100
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	85	100	100	100

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Banco do Brasil; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), Banco do Brasil shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Banco do Brasil. Only Capital Growth has a good rank of 65, which means that currently professionals expect the company to grow its invested capital more than 32% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 38 which means that currently professionals expect the company to grow less than 62% of its competitors. Profit Growth with a rank of 32 and Stock Returns with a rank of 25 are also low (below 75% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Banco do Brasil is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. 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, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	81	38	29	38
PROFIT GROWTH
PROFIT GROWTH	62	60	34	32
CAPITAL GROWTH
CAPITAL GROWTH	n/a	15	97	65
STOCK RETURNS
STOCK RETURNS	20	15	97	25
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	64	11	75	25

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Banco do Brasil.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 3 (better than 3% compared with alternatives), the company Banco do Brasil 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 do Brasil 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 all three metrics below average for Banco do Brasil. Liquidity is at 26, meaning that the company generates less profit to service its debt than 74% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 1, meaning the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. Finally, Refinancing is at a rank of 37 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 3 (worse than 97% compared with alternatives), Banco do Brasil has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Banco do Brasil because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	1	1	2	1
REFINANCING
REFINANCING	100	76	41	37
LIQUIDITY
LIQUIDITY	4	44	26	26
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	17	23	3	3

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Banco do Brasil 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	1	75	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	40	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	100	88	^new
MARKET PULSE
MARKET PULSE	n/a	16	8	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	21	59	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Banco do Brasil.
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