Banco Bradesco S.A. (BBDC3.SA) stock analysis

In our weekly check, Banco Bradesco S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7.

About Banco Bradesco S.A.

Banco Bradesco S.A. is a Financial Services company (Banks - Regional) based in Brazil, listed on SAO as BBDC3.SA.

What our checks show for BBDC3.SA

Red flags

• The net margin fell by 7.5 points over 5 years, to 7.2%: the company keeps less of each sale as profit.
• The gross margin fell by 29.7 points, to 29.3%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 27.4% a year.
• The stock has fallen as much as 61% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.4%.

Warning signs

• The net margin is only 7.2%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 3.96x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 13.4% a year over the next years.
• Analysts expect the net margin to improve by 12.2 points from today's 7.2%.
• Free cash flow is 27.3% of revenue: cash for dividends, buybacks or growth.
• The price is 7.4 times earnings (P/E), reasonable for its growth.
• A large company: market value $40.32 billion.

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Questions

What grade does Banco Bradesco S.A. (BBDC3.SA) have?

In our weekly check, Banco Bradesco S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BBDC3.SA stock?

This week's biggest flags for Banco Bradesco S.A.: Margins falling, Gross margin falling, Weak revenue forecast. In total 9 of 25 checks show a warning or a red flag.

What does Banco Bradesco S.A. do?

Banco Bradesco S.A. is a Financial Services company (Banks - Regional) based in Brazil, listed on SAO as BBDC3.SA.

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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