Banco Bradesco Sa Stock Beneish M Score

BBD Stock  USD 1.95  0.04  2.01%   
This module uses fundamental data of Banco Bradesco to approximate the value of its Beneish M Score. Banco Bradesco M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Banco Bradesco Piotroski F Score and Banco Bradesco Altman Z Score analysis.
  
At present, Banco Bradesco's Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 391.6 B, whereas Long Term Debt Total is forecasted to decline to about 92.7 B. At present, Banco Bradesco's Dividend Yield is projected to slightly decrease based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 109.48, whereas Book Value Per Share is forecasted to decline to 7.32.
At this time, it appears that Banco Bradesco SA is an unlikely manipulator. The earnings manipulation may begin if Banco Bradesco's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Banco Bradesco executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Banco Bradesco's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.63
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.17

Focus
Asset Quality

1.0

Focus
Expense Coverage

0.72

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.72

Focus
Depreciation Resistance

0.75

Focus
Net Sales Growth

0.85

Focus
Financial Leverage Condition

0.97

Focus

Banco Bradesco Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Banco Bradesco's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables22.9 B23 B
Slightly Down
Slightly volatile
Total Revenue66.8 B78.6 B
Fairly Down
Slightly volatile
Total Assets2.3 T2.2 T
Sufficiently Up
Slightly volatile
Total Current Assets45.4 B47.8 B
Notably Down
Slightly volatile
Non Current Assets Total3.1 TT
Sufficiently Up
Slightly volatile
Property Plant Equipment5.2 B9.1 B
Way Down
Slightly volatile
Selling General Administrative25.4 B41.4 B
Way Down
Slightly volatile
Total Current Liabilities45.9 B56.2 B
Significantly Down
Slightly volatile
Non Current Liabilities Total2.2 T2.1 T
Sufficiently Up
Slightly volatile
Net Debt319.9 B304.7 B
Sufficiently Up
Slightly volatile
Long Term Debt429.7 B409.2 B
Sufficiently Up
Slightly volatile
Operating Income23.4 B26.5 B
Fairly Down
Slightly volatile
Short Term Investments94.1 B184.9 B
Way Down
Slightly volatile

Banco Bradesco SA Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Banco Bradesco's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Banco Bradesco in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Banco Bradesco's degree of accounting gimmicks and manipulations.

About Banco Bradesco Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

54.71 Billion

At present, Banco Bradesco's Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

Banco Bradesco Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Banco Bradesco. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
202020212022202320242025 (projected)
Net Receivables23.8B22.5B25.8B25.6B23.0B22.9B
Total Revenue82.4B102.4B109.0B68.4B78.6B66.8B
Total Assets1.6T1.7T1.8T1.9T2.2T2.3T
Total Current Assets335.7B344.4B384.3B41.5B47.8B45.4B
Net Debt91.8B110.5B206.2B264.9B304.7B319.9B
Short Term Debt321.4B331.4B333.7B324.3B372.9B391.6B
Long Term Debt212.8B234.3B344.6B355.9B409.2B429.7B
Operating Income3.9B32.6B155.3B23.0B26.5B23.4B
Investments4.8B(28.2B)(17.8B)80.3B92.3B97.0B

About Banco Bradesco Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Banco Bradesco SA's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Banco Bradesco using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Banco Bradesco SA based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Banco Bradesco SA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Banco Bradesco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Banco Bradesco Sa Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Banco Bradesco Sa Stock:
Check out Banco Bradesco Piotroski F Score and Banco Bradesco Altman Z Score analysis.
You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Banco Bradesco. If investors know Banco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Banco Bradesco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.899
Earnings Share
0.22
Revenue Per Share
7.432
Quarterly Revenue Growth
0.193
Return On Assets
0.0088
The market value of Banco Bradesco SA is measured differently than its book value, which is the value of Banco that is recorded on the company's balance sheet. Investors also form their own opinion of Banco Bradesco's value that differs from its market value or its book value, called intrinsic value, which is Banco Bradesco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Banco Bradesco's market value can be influenced by many factors that don't directly affect Banco Bradesco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Banco Bradesco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Banco Bradesco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Banco Bradesco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.