Banco do Brasil S.A. (BBAS3.SA) stock analysis

In our weekly check, Banco do Brasil S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8.

About Banco do Brasil S.A.

Banco do Brasil S.A. is a Financial Services company (Banks - Regional) based in Brazil, listed on SAO as BBAS3.SA.

What our checks show for BBAS3.SA

Red flags

• The net margin fell by 8.3 points over 5 years, to 3.3%: the company keeps less of each sale as profit.
• The gross margin fell by 30.6 points, to 28.6%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 24.9% a year.
• The net margin is only 3.3%: little room if costs rise.
• The stock has fallen as much as 66% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.2%.

Warning signs

• Earnings per share fell 23.8% a year over the last 3 years.
• Net profit fell 26.7% a year over the last 3 years.
• Recovering from its deepest fall took about 1.7 years.

Strengths

• Operating cash flow is 18.64x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 41.7% a year over the next years.
• Analysts expect the net margin to improve by 12.9 points from today's 3.3%.
• Free cash flow is 60.5% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 22% of profit: there is a cushion.
• The price is 11.5 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-11-11

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Questions

What grade does Banco do Brasil S.A. (BBAS3.SA) have?

In our weekly check, Banco do Brasil S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BBAS3.SA stock?

This week's biggest flags for Banco do Brasil S.A.: Margins falling, Gross margin falling, Weak revenue forecast. In total 11 of 25 checks show a warning or a red flag.

What does Banco do Brasil S.A. do?

Banco do Brasil S.A. is a Financial Services company (Banks - Regional) based in Brazil, listed on SAO as BBAS3.SA.

When does Banco do Brasil S.A. report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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