Oversea-Chinese Banking Corporation Limited Fundamental Analysis (SES: O39.SI)
Oversea-Chinese Banking Corporation Limited Fundamental Analysis (SES: O39.SI)
Oversea-Chinese Banking Corporation Limited (SES: O39.SI) shows moderate financial fundamentals with a PE ratio of 18.24, profit margin of 30.38%, and ROE of 13.01%. The company generates $26.1B in annual revenue with weak year-over-year growth of -4.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze O39.SI's fundamental strength across five key dimensions:
Efficiency Score
WeakO39.SI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentO39.SI trades at attractive valuation levels.
Growth Score
WeakO39.SI faces weak or negative growth trends.
Financial Health Score
ModerateO39.SI shows balanced financial health with some risks.
Profitability Score
ModerateO39.SI maintains healthy but balanced margins.
Key Financial Metrics
Is O39.SI Expensive or Cheap?
P/E Ratio
O39.SI trades at 18.24 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, O39.SI's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Oversea-Chinese Banking Corporation Limited at 2.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.55 times EBITDA. This is generally considered low.
How Well Does O39.SI Make Money?
Net Profit Margin
For every $100 in sales, Oversea-Chinese Banking Corporation Limited keeps $30.38 as profit after all expenses.
Operating Margin
Core operations generate 39.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.01 in profit for every $100 of shareholder equity.
ROA
Oversea-Chinese Banking Corporation Limited generates $1.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oversea-Chinese Banking Corporation Limited generates limited operating cash flow of $1.43B, signaling weaker underlying cash strength.
Free Cash Flow
Oversea-Chinese Banking Corporation Limited generates weak or negative free cash flow of $207.00M, restricting financial flexibility.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
O39.SI converts 0.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How O39.SI Stacks Against Its Sector Peers
| Metric | O39.SI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.24 | 21.05 | Better (Cheaper) |
| ROE | 13.01% | 646.00% | Weak |
| Net Margin | 30.38% | -1512.00% (disorted) | Strong |
| Debt/Equity | 1.10 | 0.90 | Weak (High Leverage) |
| Current Ratio | 1.20 | 832.14 | Neutral |
| ROA | 1.08% | -578.00% (disorted) | Weak |
O39.SI 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 Oversea-Chinese Banking Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
212.58%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
100.91%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
86.37%
Industry Style: Value, Dividend, Cyclical
High Growth