Banco Bradesco Profitability Analysis

BBDO Stock  USD 1.94  0.02  1.02%   
Considering Banco Bradesco's profitability and operating efficiency indicators, Banco Bradesco SA may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Banco Bradesco's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2001-03-31
Previous Quarter
4.1 B
Current Value
4.9 B
Quarterly Volatility
2.2 B
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Banco Bradesco's Days Sales Outstanding is very stable compared to the past year. As of the 13th of December 2024, EV To Sales is likely to grow to 4.64, while Price To Sales Ratio is likely to drop 1.18. At this time, Banco Bradesco's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 13th of December 2024, Income Before Tax is likely to grow to about 14.4 B, while Operating Income is likely to drop about 19.6 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.140.1421
Fairly Down
Slightly volatile
Operating Profit Margin0.220.2298
Sufficiently Down
Very volatile
Pretax Profit Margin0.170.1018
Way Up
Slightly volatile
Return On Assets0.0070.0074
Notably Down
Slightly volatile
Return On Equity0.08140.0857
Notably Down
Slightly volatile
For Banco Bradesco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Banco Bradesco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Banco Bradesco SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Banco Bradesco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Banco Bradesco SA over time as well as its relative position and ranking within its peers.
  
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Is Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Banco Bradesco. If investors know Banco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Banco Bradesco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.436
Dividend Share
1.114
Earnings Share
0.22
Revenue Per Share
7.098
Quarterly Revenue Growth
0.429
The market value of Banco Bradesco SA is measured differently than its book value, which is the value of Banco that is recorded on the company's balance sheet. Investors also form their own opinion of Banco Bradesco's value that differs from its market value or its book value, called intrinsic value, which is Banco Bradesco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Banco Bradesco's market value can be influenced by many factors that don't directly affect Banco Bradesco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Banco Bradesco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Banco Bradesco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Banco Bradesco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Banco Bradesco SA Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Banco Bradesco's current stock value. Our valuation model uses many indicators to compare Banco Bradesco value to that of its competitors to determine the firm's financial worth.
Banco Bradesco SA is rated fifth in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about  0.09  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Banco Bradesco SA is roughly  11.66 . At this time, Banco Bradesco's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Banco Bradesco's earnings, one of the primary drivers of an investment's value.

Banco Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Banco Bradesco

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0886
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Banco Bradesco

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0076
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Banco Return On Asset Comparison

Banco Bradesco is currently under evaluation in return on asset category among its peers.

Banco Bradesco Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Banco Bradesco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Banco Bradesco will eventually generate negative long term returns. The profitability progress is the general direction of Banco Bradesco's change in net profit over the period of time. It can combine multiple indicators of Banco Bradesco, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income79.2 B83.1 B
Operating Income23 B19.6 B
Income Before Tax10.2 B14.4 B
Total Other Income Expense Net-12.8 B-12.2 B
Net Income14.3 B14.1 B
Income Tax Expense-4.3 B-4.1 B
Net Income From Continuing Ops13.4 B16.1 B
Net Income Applicable To Common Shares24.1 B17.7 B
Net Interest Income63.1 B69 B
Interest Income219 B159.5 B
Change To Netincome95.2 B61.1 B
Net Income Per Share 1.34  1.18 
Income Quality(0.01)(0.01)
Net Income Per E B T 1.40  0.82 

Banco Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Banco Bradesco. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Banco Bradesco position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Banco Bradesco's important profitability drivers and their relationship over time.

Banco Bradesco Profitability Trends

Banco Bradesco profitability trend refers to the progression of profit or loss within a business. An upward trend means that Banco Bradesco's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Banco Bradesco's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Banco Bradesco Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Banco Bradesco different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Banco Bradesco in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Banco Bradesco's future profitability.

Use Banco Bradesco in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Banco Bradesco position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Banco Bradesco will appreciate offsetting losses from the drop in the long position's value.

Banco Bradesco Pair Trading

Banco Bradesco SA Pair Trading Analysis

The ability to find closely correlated positions to Banco Bradesco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Banco Bradesco when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Banco Bradesco - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Banco Bradesco SA to buy it.
The correlation of Banco Bradesco is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Banco Bradesco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Banco Bradesco SA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Banco Bradesco can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Banco Bradesco position

In addition to having Banco Bradesco in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Services
Services Theme
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Services Theme or any other thematic opportunities.
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When determining whether Banco Bradesco SA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Banco Bradesco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Banco Bradesco Sa Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Banco Bradesco Sa Stock:
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You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Banco Bradesco's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Banco Bradesco SA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Banco Bradesco's income statement, its balance sheet, and the statement of cash flows.
Potential Banco Bradesco investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Banco Bradesco investors may work on each financial statement separately, they are all related. The changes in Banco Bradesco's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Banco Bradesco's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.