Banco Bradesco S.A. (BBD) is listed on NYSE and operates in the Banks - Regional industry (Financial Services sector).
Banco Bradesco S.A., together with its subsidiaries, provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. The company operates through two segment, Banking and Insurance. It provides current, savings, click, and salary accounts; real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit; debit and business cards; financial and security services; consortium products; auto, personal accident, dental, travel, and life insurance; investment products; pension products; real estate and vehicle auctions; cash management, and foreign trade and exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 5 |
| Hold | 9 |
| Sell | 1 |
| Strong Sell | 0 |
Banco Bradesco S.A., along with its subsidiaries, offers a range of banking products and services to individuals, corporations, and businesses both in Brazil and internationally. The company operates through two main segments: Banking and Insurance. Its banking services include various types of accounts such as current, savings, and salary accounts, as well as credit options like real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal loans. The company also provides debit and business cards, financial and security services, and consortium products. In the insurance sector, Banco Bradesco offers auto, personal accident, dental, travel, and life insurance. Additionally, it provides investment and pension products, real estate and vehicle auctions, cash management, foreign trade and exchange services, capitalization bonds, and internet banking services. Founded in 1943, Banco Bradesco is headquartered in Osasco, Brazil, and continues to serve a diverse clientele with its comprehensive financial solutions.
Over the past three fiscal years, the company has experienced significant fluctuations in its financial performance. Revenue showed an inconsistent pattern but ultimately grew at a robust CAGR of 15.9%, rising from BRL 254.7 billion in 2023 to BRL 342.2 billion in 2025. Despite this growth, the company's profitability metrics tell a more complex story. Gross margin consistently improved by 7.8 percentage points, reaching 34.6% in 2025, indicating better cost management or pricing power. However, operating margin deteriorated, dropping from 4.0% in 2023 to -1.1% in 2025, suggesting challenges in scaling operations efficiently. Net margin, on the other hand, showed a slight improvement, increasing by 1.2 percentage points to 6.8% in 2025, possibly due to non-operational factors.
The company's cash flow situation has been concerning, with both operating cash flow (OCF) and free cash flow (FCF) consistently decreasing. OCF fell from -BRL 177.6 million in 2023 to a staggering -BRL 310.8 billion in 2025, while FCF plummeted from -BRL 9.3 billion to -BRL 315.8 billion over the same period. This decline in cash generation is reflected in the FCF margin, which worsened by 88.6 percentage points to -92.3% in 2025, highlighting severe cash burn issues. Despite these challenges, earnings per share (EPS) consistently increased at a CAGR of 27.8%, reaching BRL 2.19 in 2025, partly due to a slight reduction in share count, which can enhance per-share metrics.
The company's net debt position increased from BRL 187.6 billion in 2023 to BRL 223.9 billion in 2025, indicating a growing reliance on debt financing. Liquidity remains a concern, with both the current and quick ratios below 1, and interest coverage is thin at -0.03x, suggesting potential difficulties in meeting short-term obligations. Overall, while the company has managed to grow its revenue and EPS, the deteriorating cash flow and operating margins, coupled with increasing debt, present significant challenges that need to be addressed.
Recent developments for Banco Bradesco (BBD) have been marked by a significant analyst upgrade and notable institutional trading activity. On April 14, Banco Bradesco was upgraded to a 'Buy' rating by Zacks Investment Research, suggesting a positive outlook for the stock. This upgrade follows a period of critical analysis and re-rating discussions earlier in the year. In terms of institutional trading, Massachusetts Financial Services Co. MA sold shares of Banco Bradesco, while Orbis Allan Gray Ltd acquired a new position valued at $250.4 million in the second quarter. Additionally, Arrowstreet Capital Limited Partnership increased its holdings by 2.8 million shares, now owning 65.3 million shares valued at $220.6 million. Fisher Asset Management LLC also expanded its position, now holding 88.4 million shares worth $298.8 million. These transactions indicate active portfolio management among institutional investors. Furthermore, Banco Bradesco's shares have been identified as a strong dividend stock, adding to its attractiveness for income-focused investors. Despite these positive signals, the stock has experienced short interest, with 4% of shares short sold as of late March. Overall, the recent analyst upgrade and institutional interest suggest a cautiously optimistic outlook for Banco Bradesco.