Banco Bradesco S.A. (BBD): a likely value trap?

Avoid — Bradesco just did a dilutive capital raise priced above the market because rising bad loans are eating into its profits.

⚠ TRAP Fundamentals65/100

Down 76% from its all-time high of $12.83 — now $3.14

Why BBD dropped

The stock's decade-long decline is mostly currency/macro (Brazilian real depreciation, high domestic interest rates) rather than a single crash, but the recent slide is driven by a real, current problem: rising credit costs and loan losses forced Bradesco into a rights issue (equity raise) priced above the trading price, which dilutes shareholders precisely because the bank needs more capital cushion.

Fwd P/E 5.6Op margin 34.5%Rev growth 7.2%Debt/equity —Analyst upside 44.8%

How this scored 65/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 26.1%

✅ Generates cash Free cash flow unknown

✅ Not drowning in debt Debt/equity unknown — exempt (banks run on leverage by design)

✅ Can pay its bills Exempt (financials)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 21/25

Operating margin 34.5% 9/9

Net profit margin 26.1% 8/8

Return on equity 13.8% 4/8

Growth Is it getting bigger, or dying? 17/25

Revenue growth 7.2% 4/9

Earnings growth 17.8% 6/8

Expected profit change 33.6% 8/8

Value Is it cheap right now? 19/25

Forward P/E 5.6 10/10

PEG ratio 1.7 4/8

Analyst target upside 44.8% 5/7

Balance sheet Will it survive? 8/25

Debt / equity unknown 3/10

Current ratio unknown 2/8

Free cash flow unknown 2/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-17. Research only — not financial advice.