Banco Bradesco Preference Shares (BBDC4: R$13.77) in 4th consecutive fall; -29 centavos [2.1%] Vol Index 1.5 [1 is avg] 06 May 2024

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Banco Bradesco SA's (SA: BBDC4 R$13.77) preference stock price slipped further on Monday, sliding an additional 1.0 centavos (0.1%) to close at R$13.77.

This brought its 4-day fall to 2.1%; compared with the Bovespa Index which rose 1,113.9 points (0.9%) in the four days for a relative price change of -2.9%.

The fall was exacerbated by a cumulative 4-day volume of 1.5 times the average 4-day volume of 38.1 million preference shares. There were 30,120,000 preference shares worth R$414.8 million ($81.8 million) traded today.

Banco Bradesco SA is Brazil's 4th largest Bank by market cap.

BANCO BRADESCO PREFERENCE SHARES (BBDC4) Stock Dashboard [traded in Brazilian Real, BRL] End-of-Day Mon, May 06

http://www.bradesco.com.br/

LastBRL13.77Market CapBRL73 billion [US$14 billion]
P/E10.8Dividend Yield % (TTM)6.6
EPS (FY2023)BRL1.27DPS (past 12 months)BRL1.5 or 146 centavos
Shares Outstanding5,311,865,547ExchangeBRAZILIAN [Sao Paulo]
BBDC4 in IndicesBovespa [of 85 stocks]SectorBank [of 26 stocks]
EPS Growth (FY2023 vs FY2022)-32.8%Today's VI*0.8
Today's Volume30,120,000Currency1.000 USD = 5.07 Brazilian Real (BRL)
Ave Daily Volume38,061,240 sharesPV$1000 (1 yr)BRL1,095
US$1,083
52-Week Price Range13.10 - 17.13

A year ago the exchange rate was USD 1 = 5.01 BRL. USD1000 would have bought BRL5,014. A year ago the Banco Bradesco Preference Shares preference share price was BRL13.31. BRL5,014 would have bought 376.8 Banco Bradesco Preference Shares preference shares on that day. Those 376.8 preference shares would be worth BRL5,188 at today's preference share price of BRL13.77. At today's exchange rate of USD1=5.07 BRL this is equivalent to USD1,023. Dividends reinvested are worth BRL60 ($60). PV$1000= $1,083.

Price Volume Snapshot past 3 months (BRL)

Past month to HighLowVWAPVolume Index *
06 May 202414.813.413.90.9
05 Apr 202414.614.414.20.8
06 Mar 202413.913.713.81.6

[*Volume Index of 0.9 means volume for the month was 0.9 times its 12-month average]

[VWAP is defined as the Volume Weighted Average Price]

INDEX

SECTION 1 RECENT NEWS AND RESEARCH

SECTION 2 THE PAST QUARTER: PRESS RELEASES

SECTION 3 TODAY'S BEARISH SIGNALS

SECTION 4 ONGOING BEARISH PARAMETERS

SECTION 5 TODAY'S BULLISH SIGNALS

SECTION 6 ONGOING BULLISH PARAMETERS

SECTION 7 CORPORATE PROFILE

SECTION 8 BANK METRICS

SECTION 9 DIVIDEND

SECTION 10 TOP MANAGEMENT

SECTION 11 TOP SHAREHOLDERS

Read more...

ANNEXURE

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

APPENDIX II STOCK IDENTIFIERS

GLOSSARY

SECTION 1 RECENT NEWS AND RESEARCH

BANCO BRADESCO PREFERENCE SHARES EX-DIVIDENDS SINCE MAY 3

The preference shares have fallen 0.1% in the 1 trading session since the ex-dividend date of May 03. The company paid a dividend of 1.61 centavos per share. Based on dividends of 90.42 centavos per share for the trailing twelve months and the last price of R$13.77 the dividend yield is 6.6%.

Financial News

Annual Report (FY 2023):

Release Date: February 29, 2024

FY2023 Annual Report: Banco Bradesco Preference Shares profits hit by 33% fall

Banco Bradesco Preference Shares (SA:BBDC4) reported net profit for the year-ended 31 December 2023 [FY2023] of BRL14.3b ($2.9b), down 33% from BRL21.2b ($4.0b) in the previous year [FY2022]. Earnings per share (EPS) were down -33% from BRL1.89 (US35.77c) in FY2022 to BRL1.27 (US26.17c) in FY2023.

Annual growth in Net Profit and EPS

Year-ended31 December [FY/2023]31 December [FY/2022]
Net Profit, BRL Billion14.321.2
Net Profit, $ Billion2.94.4
Growth in Net Profit %-32.9-8.4
EPS, BRL1.271.89
Growth in EPS %-32.8-8.7

VI* Volume Index = Number of shares traded today/Average number of shares traded per day.

SECTION 2 THE PAST QUARTER: PRESS RELEASES

2.1 Press Releases and Corporate Wire

Press Release article 1 of 1, Source: WEC, 56 words

April 11: Banco Bradesco Preference Shares announces dividend

Banco Bradesco Preference Shares today announced a cash dividend of 1.61 centavos per share. The ex-dividend date is Friday, May 03, 2024 and the record date is Thursday, May 02, 2024 and it is payable on Monday, June 03.

SECTION 3 TODAY'S BEARISH SIGNALS

Price/Earnings of 10.8 > Bank sector (of 26 preference stocks) avg of 5.4:

- The price-to-earnings ratio of 10.8 indicates overvaluation compared with sector average of 5.4 and market average of 6.3.

3.1 Relative Value Indicators: Overvaluation compared with Index averages and bond yield

- Earnings yield of 9.2% is less attractive compared with the Brazilian average earning yield of 15.9%.

- The earnings yield of 9.2% is below the 10-year bond yield of 11.4%.

(All figures in %)

Earnings Yield9.2
Brazilian avg15.9
Dividend Yield6.6
Bond Yield11.4

3.2 3-DAY: MODERATE MOMENTUM DOWN

BBDC4 dips 1.4% on robust volume 1.5 times average. Compared with the Bovespa Index which rose 2,431.3 points (or 1.9%) in the 3-days, the relative price change was -3.3%.

Banco Bradesco Preference Shares (BBDC4) underperformed the Bovespa Index in 3 out of 3 days. The price ranged between a low of R$13.77 on Monday May 06 and a high of R$13.80 on Thursday May 02.

MayBanco Bradesco Preference SharesClose [BRL]Change %Comment
Mon 06In 4th consecutive fall13.77-0.1Price/MAP50 below 1 and falling
Fri 03Decreases, 2 days' volume in a day13.78-0.2VI*=1.6
Thu 02Loses R$850 million ($164 million) (1.1%) in MCap, steepest heavyweight fall in Bank sector13.8-1.1Steepest Fall; VI*=2.1

* RPC - Relative Price Change is % price change of stock less % change of the Bovespa Index.

[Volume Index (VI); 1 is average]

3.3 Downtrend

Beta < 1 combined with price fall. The Beta of the preference stock is 0.9.

Price/Moving Average Price of 0.94 and negative MACD:

- The Price/MAP 200 for Banco Bradesco Preference Shares is 0.94. Being less than 1 is a bearish indicator. It is lower than the Price/MAP 200 for the Bovespa Index of 1.04, a second bearish indicator. The stock is trading below both its MAPs and the 50-day MAP of R$13.97 is lower than the 200-day MAP of R$14.69, a third bearish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 13.84 minus the 26-day EMA of 13.93 is negative, suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.

Past Month:

- Falls to Rises: In the past month the number of falls outnumbered rises 14:5 or 2.8:1.

Past Quarter:

- The shares had their worst quarter in five quarters since the quarter ended February 06, 2023.

The Worst 3 weeks in the past quarter

The past month witnessed the worst 2 weeks in the past quarter. In the past quarter the steepest fall of 12.1% took place in the week beginning Monday February 05. The fall was exacerbated by volume of 3.6 times average.

Mon-FriChange %Bovespa Index Change %Vol Ind [1 is avg]
Feb 05-09-12.10.73.6
Apr 15-19-4-0.71
Apr 08-12-2.1-0.70.6

Trailing Relative Strength (6 months) at 35 percentile:

- The preference stock has a 6-month relative strength of 35 in the Brazilian market of 263 stocks and 79 preference stocks which means it has underperformed 65% of the market.

3.4 Other Bearish Signals

- Return on Equity of 8.7% versus sector average of 13.9% and market average of 10.8%.

SECTION 4 ONGOING BEARISH PARAMETERS

4.1 Present Value of R$1000 Invested in the Past [3 Mo, 3 Yrs]; The Worst Periods with PVR$1000 < 908

PVR$1,0003 mo ago3 yrs ago
BBDC4.SAR$892R$907
Bank sectorR$937R$1,104
Bovespa IndexR$1,001R$1,071

4.2 The Worst Periods [3 Mo, 3 Yrs] with Price Change % < -11.2

3-Year price change of -25.8% for Banco Bradesco Preference Shares underperformed the change of 7.4% in the Bovespa Index for a relative price change of -33.3%.

Price Change %Quarter3 Years
Banco Bradesco Preference Shares-11.3-25.8
Bank sector-6.310.4
Bovespa Index-1.57.4

4.3 MCap: 5-Year Decrease of R$72 B [$14B] (50%)

In the past 5 years Market Capitalization has decreased by R$71.8 billion (50%) from R$145 billion to R$73.1 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 4 out of 5 years.

PriceMCap (BRL B)MCap ($ B)
LastR$13.7773.114.4
1 Year agoR$13.3174.715.1
2 Years agoR$15.7587.617.4
3 Years agoR$18.57119.121.4
4 Years agoR$12.8685.216
5 Years agoR$20.6314536.5

4.4 EPS growth [FY2023 vs FY2022] of -32.8%:

FYEPS (R$)Growth %
20231.27-32.8
20221.89-8.7

4.5 Annualised Period-based Total preference Shareholder Returns [TSR %]: The Worst Periods with TSR < -1.8%

TSR %3 yrs5 yrs
BBDC4.SA-3.2-1.9

4.6 Declining VWAP, down 18% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has decreased by 18.1% to R$14.79. Based on a dynamic start date of five years ago, there have been declines in VWAP in 3 out of 5 years.

Past five years, 12 months ended May 06 (BRL)

YearHigh PriceVWAPLow Price
202417.1314.7913.1
202319.4514.7211.69
202221.8317.214.79
202119.4615.6210.8
202023.0518.0610.52

4.7 Satisfies 1 out of 9 criterion of Joseph Piotroski [pass mark 5]:

- Positive net income.

But does not meet the following 8 criteria of Joseph Piotroski:

- Positive operating cashflow.

- Return on Assets improvement.

- Good quality of earnings [operating cashflow exceeds net income].

- Improvement in long-term debt to total assets.

- Improvement in current ratio.

- Total shares on issue unchanged (or reduction in total shares on issue).

- Improvement in gross margin.

- Improvement in asset turnover.

SECTION 5 TODAY'S BULLISH SIGNALS

Price/Earnings:

Banco Bradesco Preference Shares stock is trading at the eighteenth lowest P/E multiple in the Bovespa Index.Banco Bradesco Preference Shares stock is the eighteenth highest dividend yielding stock in the Bovespa Index.

5.1 Rank in the top 23% by Relative Valuation in the Brazilian market

DescriptionValueRank
Price to Book Value0.5In Top 23%

SECTION 6 ONGOING BULLISH PARAMETERS

6.1 Rank in the top 99% by Liquidity in the Brazilian market

DescriptionValueRank
Ave daily turnoverR$558 million ($110 million)In top 99%

6.2 Present Value of R$1000 Invested in the Past Year; The Best Period with PVR$1000 > 1,094

PVR$1,0001 yr ago
BBDC4.SAR$1,095
Bank sectorR$1,135
Bovespa IndexR$1,222

6.3 Annualised Period-based Total preference Shareholder Returns [TSR %]: The Best Periods with TSR > 8.6%

TSR %1 yr10 yrs
BBDC4.SA9.58.7

6.4 Increased Volume, up 82% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 81.5% to 38.1 million preference shares.

Avg. Daily Volume Traded 12 months ended May 06, million preference shares

YearADVT
202438.1
202343.0
202238.3
202143.4
202021.0

6.5 Increased preference share turnover, up 12% in 5 years

In the past five years, average daily preference share turnover has increased 12.0% to R$556.1 million ($109.7 million). This suggests increased liquidity.

Past five years, 12 months ended May 06 (BRL million)

YearAverage Daily Turnover
2024556.1
2023627.6
2022716.8
2021806.3
2020496.5

6.6 Satisfies one criterion of Benjamin Graham

- The P/E of 10.8 multiplied by the P/NTA of 0.5 is 5.4. Being less than the Benjamin Graham benchmark of 22.5 the preference stock appears undervalued.

SECTION 7 CORPORATE PROFILE

7.1 Activities

Banco Bradesco S.A. attracts deposits and offers commercial banking services. The Bank offers business loans, personal credit, mortgages, lease financing, mutual funds, securities brokerage, and Internet banking services. Bradesco operates in Brazil and Argentina, the United States, the Cayman Islands, and the United Kingdom. Bradesco offers credit cards, insurance, and pension funds. It is Brazil's 4th largest Bank by market capitalisation.

7.2 Contact Details

Websitehttp://www.bradesco.com.br/
Physical AddressCidade de Deus s/n Vila Yara Osasco, SP 06029-900 Brazil
Phone(11)3684 3749
Fax(11)3684 2714
Email4000.mvargas@bradesco.com.br

7.3 Industry & Sector [of 95 stocks]

Classification LevelName of Sector
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials

SECTION 8 BANK METRICS

8.1 Bank Metrics (FY2023)

All values are in R$ billion

DescriptionFY2023FY2022Change
Interest Income211.5 200.6 Up 5.4%
Interest Expense156.4 130.8 Up 19.6%
Net Interest Income55.1 69.8 Down 21.1%
Bank Other Revenue18.2 9.3 Up 95.4%

Favourable Changes:

- Interest Income up 5.4% from R$200.6b to R$211.5b

- Bank Other Revenue up 95.4% from R$9.3b to R$18.2b

Unfavourable Changes:

- Interest Expense up 19.6% from R$130.8b to R$156.4b

- Net Interest Income down 21.1% from R$69.8b to R$55.1b

SECTION 9 DIVIDEND

9.1 Dividend History

In the past 2 years annual dividends have increased by 18.8 centavos from 71.6 centavos to 90.4 centavos. Based on a start date of 2 years ago, there has been no decline in dividends over the last 2 years.

Date PaidValue ( centavos)Type
03 May 20241.9Special
03 May 20241.61Cash
02 Apr 20241.9Special
02 Apr 20241.61Cash
04 Mar 20241.9Special
02 Feb 20241.9Special
03 Jan 20241.9Special
22 Dec 202344.73Special
04 Dec 20231.9Special
03 Nov 20231.9Special
03 Oct 20231.9Special
04 Sep 20231.9Special
02 Aug 20231.9Special
04 Jul 20231.9Special
27 Jun 202319.69Special
02 Jun 20231.9Special
Tr 12 Months90.44
2022 - 202371.64

SECTION 10 TOP MANAGEMENT

10.1 Top Management

NameDesignation
Luiz Carlos Trabuco CappiChief Executive Officer
Domingos Figueiredo de AbreuExecutive Vice President
Mauricio Machado de MinasExecutive Vice President
Octavio de Lazari JuniorExecutive Vice President
Andre Rodrigues CanoExecutive Vice President
Alexandre da Silva GluherExecutive Vice President, Chief Risk Officer
Marcelo de Araujo NoronhaExecutive Vice President
Josue Augusto PanciniExecutive Vice President

SECTION 11 TOP SHAREHOLDERS

Top 3 shareholders

Name of the Share HolderNumber Of Shares% of Capital
Cidade de Deus Cia Cial Participacoes122119788923.0
Fundacao Bradesco4562892508.6
Ncf Participacoes S.A.2852471805.4

% held by Top 3 shareholders 37.0%

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

BBDC4: EXPORT DATA TO EXCEL:

+ PRICE VOLUME - 5-YEAR HISTORY

+ PEER COMPARISON

BBDC4: OTHER INFORMATION:

+ NEWS ARCHIVES - BBDC4 PAST 4 YEARS:

+ PRICE VOLUME CHARTS

+ USD vs BRL EXCHANGE RATE CHARTS IN HTML

+ BOARD OF DIRECTORS

APPENDIX II STOCK IDENTIFIERS

ISIN: BRBBDCACNPR8

PermID: 5035095906

RIC: BBDC4.SA

LEI: 549300CTUU1RFXHQJE44

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabilities (times)

Dividend Yield: Dividend Per Share/Share Price (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TTM: Trailing 12 Months

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.

Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.

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