Union Bank of India
Union Bank of India Fundamental Analysis
Union Bank of India (UNIONBANK.NS) shows moderate financial fundamentals with a PE ratio of 7.07, profit margin of 14.48%, and ROE of 15.38%. The company generates $1308.4B in annual revenue with moderate year-over-year growth of 9.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.3/100 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 UNIONBANK.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakUNIONBANK.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateUNIONBANK.NS shows balanced valuation metrics.
Growth Score
ExcellentUNIONBANK.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateUNIONBANK.NS shows balanced financial health with some risks.
Profitability Score
ModerateUNIONBANK.NS maintains healthy but balanced margins.
Key Financial Metrics
Is UNIONBANK.NS Expensive or Cheap?
P/E Ratio
UNIONBANK.NS trades at 7.07 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UNIONBANK.NS's PEG of 2.90 indicates potential overvaluation.
Price to Book
The market values Union Bank of India at 1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.71 times EBITDA. This is generally considered low.
How Well Does UNIONBANK.NS Make Money?
Net Profit Margin
For every $100 in sales, Union Bank of India keeps $14.48 as profit after all expenses.
Operating Margin
Core operations generate 18.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.38 in profit for every $100 of shareholder equity.
ROA
Union Bank of India generates $1.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Union Bank of India produces operating cash flow of $240.84B, showing steady but balanced cash generation.
Free Cash Flow
Union Bank of India generates strong free cash flow of $232.41B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $30.45 in free cash annually.
FCF Yield
UNIONBANK.NS converts 17.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How UNIONBANK.NS Stacks Against Its Sector Peers
| Metric | UNIONBANK.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.07 | 18.89 | Better (Cheaper) |
| ROE | 15.38% | 818.00% | Weak |
| Net Margin | 14.48% | 2453.00% | Weak |
| Debt/Equity | 0.60 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 0.07 | 692.63 | Weak Liquidity |
| ROA | 1.26% | -24468.00% (disorted) | Weak |
UNIONBANK.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Union Bank of India's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
170.75%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
615.80%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
303.20%
Industry Style: Value, Dividend, Cyclical
High Growth