Industrial and Commercial Bank of China Limited
Industrial and Commercial Bank of China Limited Fundamental Analysis
Industrial and Commercial Bank of China Limited (1398.HK) shows moderate financial fundamentals with a PE ratio of 6.11, profit margin of 24.19%, and ROE of 9.14%. The company generates $1991.7B in annual revenue with weak year-over-year growth of 1.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 1398.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1398.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1398.HK shows balanced valuation metrics.
Growth Score
Weak1398.HK faces weak or negative growth trends.
Financial Health Score
Weak1398.HK carries high financial risk with limited liquidity.
Profitability Score
Moderate1398.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1398.HK Expensive or Cheap?
P/E Ratio
1398.HK trades at 6.11 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1398.HK's PEG of 7.08 indicates potential overvaluation.
Price to Book
The market values Industrial and Commercial Bank of China Limited at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -8.51 times EBITDA. This is generally considered low.
How Well Does 1398.HK Make Money?
Net Profit Margin
For every $100 in sales, Industrial and Commercial Bank of China Limited keeps $24.19 as profit after all expenses.
Operating Margin
Core operations generate 30.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.14 in profit for every $100 of shareholder equity.
ROA
Industrial and Commercial Bank of China Limited generates $0.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Industrial and Commercial Bank of China Limited generates strong operating cash flow of $1.48T, reflecting robust business health.
Free Cash Flow
Industrial and Commercial Bank of China Limited generates strong free cash flow of $1.42T, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.05 in free cash annually.
FCF Yield
1398.HK converts 36.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How 1398.HK Stacks Against Its Sector Peers
| Metric | 1398.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.11 | 18.99 | Better (Cheaper) |
| ROE | 9.14% | 824.00% | Weak |
| Net Margin | 24.19% | 1603.00% | Weak |
| Debt/Equity | 2.58 | 0.99 | Weak (High Leverage) |
| Current Ratio | 0.97 | 621.71 | Weak Liquidity |
| ROA | 0.69% | -24664.00% (disorted) | Weak |
1398.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Industrial and Commercial Bank of China Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
161.84%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
18.94%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-87.19%
Industry Style: Value, Dividend, Cyclical
Declining