Oversea-Chinese Banking Corporation Limited
Oversea-Chinese Banking Corporation Limited Fundamental Analysis
Oversea-Chinese Banking Corporation Limited (OVCHF) shows strong financial fundamentals with a PE ratio of 12.58, profit margin of 41.84%, and ROE of 12.03%. The company generates $17.3B in annual revenue with moderate year-over-year growth of 9.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.4/100 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 OVCHF's fundamental strength across five key dimensions:
Efficiency Score
WeakOVCHF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOVCHF trades at attractive valuation levels.
Growth Score
ModerateOVCHF shows steady but slowing expansion.
Financial Health Score
ModerateOVCHF shows balanced financial health with some risks.
Profitability Score
WeakOVCHF struggles to sustain strong margins.
Key Financial Metrics
Is OVCHF Expensive or Cheap?
P/E Ratio
OVCHF trades at 12.58 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OVCHF's PEG of -0.46 indicates potential undervaluation.
Price to Book
The market values Oversea-Chinese Banking Corporation Limited at 1.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.34 times EBITDA. This signals the market has high growth expectations.
How Well Does OVCHF Make Money?
Net Profit Margin
For every $100 in sales, Oversea-Chinese Banking Corporation Limited keeps $41.84 as profit after all expenses.
Operating Margin
Core operations generate 69.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.03 in profit for every $100 of shareholder equity.
ROA
Oversea-Chinese Banking Corporation Limited generates $1.13 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 $353.69M, signaling weaker underlying cash strength.
Free Cash Flow
Oversea-Chinese Banking Corporation Limited generates weak or negative free cash flow of $-309.85M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.07 in free cash annually.
FCF Yield
OVCHF converts -0.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How OVCHF Stacks Against Its Sector Peers
| Metric | OVCHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.58 | 18.73 | Better (Cheaper) |
| ROE | 12.03% | 847.00% | Weak |
| Net Margin | 41.84% | 2562.00% | Weak |
| Debt/Equity | 0.59 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.11 | 674.76 | Weak Liquidity |
| ROA | 1.13% | -21692.00% (disorted) | Weak |
OVCHF outperforms its industry in 2 out of 6 key metrics, 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
139.28%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
47.72%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-54.08%
Industry Style: Value, Dividend, Cyclical
Declining