BOC Hong Kong (Holdings) Limited
BOC Hong Kong (Holdings) Limited Fundamental Analysis
BOC Hong Kong (Holdings) Limited (BNKHF) shows strong financial fundamentals with a PE ratio of 11.29, profit margin of 57.95%, and ROE of 11.77%. The company generates $69.6B in annual revenue with strong year-over-year growth of 21.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BNKHF's fundamental strength across five key dimensions:
Efficiency Score
WeakBNKHF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBNKHF trades at attractive valuation levels.
Growth Score
ExcellentBNKHF delivers strong and consistent growth momentum.
Financial Health Score
ModerateBNKHF shows balanced financial health with some risks.
Profitability Score
WeakBNKHF struggles to sustain strong margins.
Key Financial Metrics
Is BNKHF Expensive or Cheap?
P/E Ratio
BNKHF trades at 11.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BNKHF's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values BOC Hong Kong (Holdings) Limited at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -37.07 times EBITDA. This is generally considered low.
How Well Does BNKHF Make Money?
Net Profit Margin
For every $100 in sales, BOC Hong Kong (Holdings) Limited keeps $57.95 as profit after all expenses.
Operating Margin
Core operations generate 80.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.77 in profit for every $100 of shareholder equity.
ROA
BOC Hong Kong (Holdings) Limited generates $0.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BOC Hong Kong (Holdings) Limited generates limited operating cash flow of $-239.07B, signaling weaker underlying cash strength.
Free Cash Flow
BOC Hong Kong (Holdings) Limited generates weak or negative free cash flow of $-239.96B, restricting financial flexibility.
FCF Per Share
Each share generates $-22.70 in free cash annually.
FCF Yield
BNKHF converts -52.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How BNKHF Stacks Against Its Sector Peers
| Metric | BNKHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.29 | 18.73 | Better (Cheaper) |
| ROE | 11.77% | 847.00% | Weak |
| Net Margin | 57.95% | 2562.00% | Weak |
| Debt/Equity | 0.25 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 0.92% | -21692.00% (disorted) | Weak |
BNKHF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BOC Hong Kong (Holdings) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-35.32%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
13.88%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-97.28%
Industry Style: Value, Dividend, Cyclical
Declining