Bank of China Limited
Bank of China Limited Fundamental Analysis
Bank of China Limited (3988.HK) shows moderate financial fundamentals with a PE ratio of 5.52, profit margin of 23.37%, and ROE of 8.12%. The company generates $1461.8B in annual revenue with weak year-over-year growth of 2.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3988.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak3988.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent3988.HK trades at attractive valuation levels.
Growth Score
Weak3988.HK faces weak or negative growth trends.
Financial Health Score
Moderate3988.HK shows balanced financial health with some risks.
Profitability Score
Moderate3988.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 3988.HK Expensive or Cheap?
P/E Ratio
3988.HK trades at 5.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3988.HK's PEG of -0.24 indicates potential undervaluation.
Price to Book
The market values Bank of China Limited at 0.44 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.40 times EBITDA. This signals the market has high growth expectations.
How Well Does 3988.HK Make Money?
Net Profit Margin
For every $100 in sales, Bank of China Limited keeps $23.37 as profit after all expenses.
Operating Margin
Core operations generate 28.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.12 in profit for every $100 of shareholder equity.
ROA
Bank of China Limited generates $0.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bank of China Limited generates strong operating cash flow of $1.14T, reflecting robust business health.
Free Cash Flow
Bank of China Limited generates strong free cash flow of $1.07T, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.52 in free cash annually.
FCF Yield
3988.HK converts 40.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 3988.HK Stacks Against Its Sector Peers
| Metric | 3988.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.52 | 18.59 | Better (Cheaper) |
| ROE | 8.12% | 801.00% | Weak |
| Net Margin | 23.37% | -498.00% (disorted) | Strong |
| Debt/Equity | 0.91 | 0.98 | Neutral |
| Current Ratio | 0.17 | 661.40 | Weak Liquidity |
| ROA | 0.63% | -21324.00% (disorted) | Weak |
3988.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews 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
15.04%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
22.95%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
53.38%
Industry Style: Value, Dividend, Cyclical
High Growth