Industrial & Commercial Bank of China Ltd.
Industrial & Commercial Bank of China Ltd. Fundamental Analysis
Industrial & Commercial Bank of China Ltd. (IDCBY) shows moderate financial fundamentals with a PE ratio of 5.60, profit margin of 39.03%, and ROE of 9.12%. The company generates $938.3B in annual revenue with weak year-over-year growth of 0.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IDCBY's fundamental strength across five key dimensions:
Efficiency Score
WeakIDCBY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIDCBY trades at attractive valuation levels.
Growth Score
WeakIDCBY faces weak or negative growth trends.
Financial Health Score
WeakIDCBY carries high financial risk with limited liquidity.
Profitability Score
ModerateIDCBY maintains healthy but balanced margins.
Key Financial Metrics
Is IDCBY Expensive or Cheap?
P/E Ratio
IDCBY trades at 5.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IDCBY's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Industrial & Commercial Bank of China Ltd. at 0.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -23.68 times EBITDA. This is generally considered low.
How Well Does IDCBY Make Money?
Net Profit Margin
For every $100 in sales, Industrial & Commercial Bank of China Ltd. keeps $39.03 as profit after all expenses.
Operating Margin
Core operations generate 48.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.12 in profit for every $100 of shareholder equity.
ROA
Industrial & Commercial Bank of China Ltd. generates $0.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Industrial & Commercial Bank of China Ltd. generates strong operating cash flow of $310.04B, reflecting robust business health.
Free Cash Flow
Industrial & Commercial Bank of China Ltd. generates strong free cash flow of $273.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.36 in free cash annually.
FCF Yield
IDCBY converts 13.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
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 IDCBY Stacks Against Its Sector Peers
| Metric | IDCBY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.60 | 18.73 | Better (Cheaper) |
| ROE | 9.12% | 847.00% | Weak |
| Net Margin | 39.03% | 2562.00% | Weak |
| Debt/Equity | 2.53 | 0.93 | Weak (High Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 0.69% | -21692.00% (disorted) | Weak |
IDCBY 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 & Commercial Bank of China Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.02%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
14.04%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
17.13%
Industry Style: Value, Dividend, Cyclical
High Growth