BBD Investment Analysis Report & Stock Research, Banco Bradesco SA ADS

Banco Bradesco SA ADS (BBD)

BBD Stock Report

2-Year Price History

View Larger BBD Chart
NYSE:BBD
$18.31
(9/25 4:00PM)
+1.0%
Open$18.11 Mkt Cap$27.8 Billion
High$18.53 52Wk High$19.01
Low$18.1 52Wk Low$7.40
Volume6.3 Million Avg Vol 10D6.6 Million

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BBD Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 9 years. For, BBD the high and low end of the Price to Sales per share ratios are 2.12x and 0.87x respectively.

Notice that BBD's current Price to Sales per share ratio is 2.17x, which is high enough compared with historical norms of BBD to cause some concern. The current Price to Sales per share is near the upper end of the historical range. In our eyes, this is a negative factor because it is more likely that it will return to the normal range than continue rising outside of the range. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 44% merely to return BBD to its historical average.

BBD Cash Earnings

Looking at BBD specifically in their Cash Earnings capabilities, Ockham views BBD as significantly above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for BBD, the current level of Cash Earnings compared to its historical levels helps identify where BBD is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 20.57 and a historical low Cash Earnings per share ratio of 8.25, an investor can relate where value becomes optimal.

Just recall that when a stock's price, as in the cases of BBD, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for BBD's Price to Cash Earnings ratio is 31% below the current ratio of 18.96. That is not an insignificant amount, and diminishes our overall outlook on BBD. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.

BBD Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

When reviewing dividend yields for BBD, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. BBD’s estimated annual dividend is $0.09 resulting in a current dividend yield of 0.48%. The highest dividend yield from BBD over recent history was 13.59% while the lowest dividend yield was 0.00%. It is never a good sign for a company to pay significantly lower dividends, in this case 92.94% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.

Peer Comparison

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Banco Bradesco SA ADS Industry Grouping

(9/24/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding BBD) 31.34 6.36 » 36.88 2.08 0.97 » 3.34 12.68% 16.92%
*10 year range does not include current year values
The Bank of New York Mellon Corp. BK $35.3 Billion $29.34 42.68 7.70 » 39.45 2.08 1.44 » 5.93 20.86% 14.12%
Itau Unibanco Holding SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share ITUB $29.1 Billion $18.33 29.38 4.02 » 23.52 2.28 0.47 » 2.18 25.85% 25.38%
Banco Bradesco SA ADS BBD $27.8 Billion $18.13 18.96 4.00 » 25.80 2.17 0.27 » 2.34 21.80% 25.70%
Bank of Montreal BMO $26.7 Billion $48.73 17.36 6.69 » 21.53 1.67 0.87 » 2.33 10.63% 15.86%
Canadian Imperial Bank of Commerce CM $22.9 Billion $59.77 27.33 6.38 » 41.92 2.44 0.70 » 2.78 -4.09% 15.42%
PNC Financial Services Group PNC $20.7 Billion $44.87 39.98 7.00 » 58.00 1.93 1.39 » 3.47 10.15% 13.80%

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The Latest Financial News
7:33:22 PM BBD $13.13 Banco Bradesco SA ADS
5/14/2009 7:33 PM
“…He worked on the subaru and mercedes. For global marketing and communications for chrysler from 2001 2006. Lee, I want to go to you first. I know you work with bbd, which is a sister agency of bbdo, which is working now but what do you think about there are some car people on this task force, obviously, …” - BBD on America's Nightly Scoreboard
2:39:30 PM BBD $14.22 Banco Bradesco SA ADS
5/6/2009 2:39 PM
“…Yet banco fredesco had barely moved. Look, we've got blooming all over. Allied, they're moving. How can bbd -- >> bbd? >> I listened to that interview. Bbd got to be up a buck and a half in the interview. We haven't had that move yet. That was the most important takeaway. >> bbd is the trade there. >> yes. >> what about the point he made for the next problem about chin fact ris are rehiring. If you take that at face value, …” - BBD on Street Signs
5:06:37 PM BBD $10.09 Banco Bradesco SA ADS
3/18/2009 5:06 PM
“…Keep your eye on goldman sachs, morgan stanley, jpmorgan. Are the biggest beneficiaries. >> emerging market banks have lagged this and meanwhile may be in different plays. Bbd, ubd, these banks did not participate in a major way. I bet they will tomorrow. >> and if jpmorgan conference today, those insurance stocks. Holy smokes. They're very comfortable. …” - BBD on Fast Money
5:09:54 PM BBD $9.37 Banco Bradesco SA ADS
3/13/2009 5:09 PM
“…Basis, sure, you can find names that are well run, companies that are well run and be there. >> sorry, we got long emerging banks this week. Saying brazil, bbd, or an itu. They have rates coming down in brazil which doesn't well for their margins but they don't have the same exposures. As banks are going up globally, emerging banks are trying to >> again, if you're going to be …” - BBD on Fast Money
12:27:26 PM BBD $9.73 Banco Bradesco SA ADS
2/13/2009 12:27 PM
“…Yesterday moving lower, today a different story. Up $1.62 at $35.63 a barrel. Trading news talking about the fact the aircraft was a bombardier, bbd the ticker symbol and also pin nicole air. Owns calgon air which was operating this aircraft. …” - BBD on Fox Business
View All Banco Bradesco SA ADS News

Key Fundamentals

BBD - Banco Bradesco SA ADS Fundamentals
Price (9/25 4:00PM) $18.31
Volume (9/25 4:00PM) 6.3 Million
Last Close Price $18.13
10 Day Average Volume 6.6 Million
13 Week Price Range $13.16 - $19.01
52 Week Price Range $7.40 - $19.01
LTM Revenue $33.1 Billion
 
Shares Outstanding (12/2008) 3.1 Billion
Market Capitalization $27.8 Billion
Shares Held By Institutions 319.3 Million
Institutional Holders 266
% Shares Held By Institutions 20.80%
Earnings Per Share (EPS) $0.98
P/E Ratio 18.50
Book Value Per Share $6.20
 
Gross Margin n/a%
Annual Dividend 0.10
Dividend Yield 0.50%
Beta 1.77
Fiscal Year Ends December

About Banco Bradesco SA ADS

Banco Bradesco SA ADS is considered to operate in the Financial sector. They specifically operate in the Foreign Regional Banks business segment contained within the Banking industry.

The Company offers a range of banking and financial products and services in Brazil and abroad to individuals, small to mid-sized companies and major local and international corporations and institutions.