Analysis Oversea-Chinese Banking Corporation Limited (OVCHF)

6/4/2024

Analysis of Oversea-Chinese Banking Corporation Limited (OVCHF)

Based on the provided data for Oversea-Chinese Banking Corporation Limited (OVCHF), we can observe the following:

1. Price Movement:
- The closing price has been relatively stable at around 10.68 CHF over the past few days.
- There was a slight increase in price to 10.80 CHF on June 3, 2024.

2. Technical Indicators:
- The Relative Strength Index (RSI) indicates that the stock is not currently overbought or oversold, with values around 63.75 to 68.96.
- The Moving Average Convergence Divergence (MACD) shows a decreasing trend, with the MACD line below the signal line and a negative MACD histogram.

3. Moving Averages:
- The Simple Moving Average (SMA), Exponential Moving Average (EMA), and Weighted Moving Average (WMA) are all above the current price, indicating a potential downward trend.

Overall, based on the technical indicators and moving averages, the stock of Oversea-Chinese Banking Corporation Limited (OVCHF) appears to be in a consolidation phase with a slightly bearish bias. Traders and investors may want to monitor the price levels and the MACD indicator for potential trend reversals or continuation.

Balance Sheet

These are balance sheets. Here are the conclusions:

1. The total assets have been increasing over the years, reaching the highest value of $365,725,000,000 in 2018.
2. Current assets include cash, inventory, and receivables, with cash and cash equivalents forming a significant portion of current assets.
3. Non-current assets consist of leases, land, machinery, and investments, with investments and advances being the most substantial component.
4. Total liabilities have also been increasing, but at a slower pace compared to assets.
5. Shareholders' equity has shown fluctuations but has generally been on an upward trend, indicating a healthy financial position.
6. The company has been investing in non-current assets and maintaining a balance between current and non-current liabilities.
7. Retained earnings have been positive in most years, contributing to the growth of shareholders' equity.
8. The company has been managing its short-term and long-term debts effectively, with a focus on maintaining a strong equity position.

Earnings

The company's results for the most recent quarter, ending on April 30, 2025, have not been provided at this time. The previous results were reported on February 27, 2025, by the Transfer Agent. Before that, on January 31, 2025, the results were released after hours. The results from October 31, 2024, were not provided at the time. On August 1, 2024, the company reported an earnings per share (EPS) estimate of 1.32.

Main Statystic 🧠

The data provided includes financials, stock statistics, valuation metrics, stock price summary, and dividends and splits information for a specific company.

In terms of financials, the company has strong operating cash flow and levered free cash flow, with a positive current ratio and a high total debt to equity ratio. The profit margin and operating margin are also healthy, indicating efficient operations. The company's fiscal year ends in September 2023, and the most recent quarter reported is March 2024. The company shows good returns on assets and equity.

Looking at stock statistics, the company has a low short ratio and a significant percentage of shares held by institutions. The stock price summary shows volatility within a fifty-two week range and provides moving averages for 50 and 200 days.

Valuation metrics suggest the stock may be overvalued based on the PEG ratio and price to earnings ratios. The company's market capitalization and enterprise value are substantial, with high price to book and price to sales ratios.

Lastly, dividends and splits information reveal the company's dividend history, payout ratio, and dividend yield metrics. The company has a regular dividend payment schedule and has undergone a stock split in the past.

Income statement 💸

These are the revenue figures. Here are the conclusions:

1. The company's sales revenue has been increasing steadily over the years, from $274.5 billion in 2020 to $383.3 billion in 2023.
2. The gross profit margin has been relatively stable, with gross profit ranging from around $105 billion to $169 billion.
3. Operating income has also shown an increasing trend, reaching $114.3 billion in 2023 from $66.3 billion in 2020.
4. Net income has been growing consistently, with the company reporting a net income of $57.4 billion in 2020 and $97 billion in 2023.
5. Earnings per share (EPS) have shown a slight fluctuation but have generally increased over the years.
6. The company has been able to maintain a healthy EBITDA margin, with EBITDA reaching $129.2 billion in 2023.
7. Despite an increase in income tax expenses, the company has managed to improve its profitability over the years.
8. Overall, the financial performance of the company seems to be on an upward trajectory, indicating positive growth and financial health.

Cash Flow 💶

This is the cash flow statement. Here are some conclusions we can draw from the data:

1. The company's free cash flow has been fluctuating over the years, with the highest value recorded in 2022 and the lowest in 2020.
2. Operating cash flow has generally been increasing year over year, indicating improved operational efficiency.
3. Financing activities show a pattern of common stock repurchases and long-term debt issuances, with significant variations in amounts each year.
4. Investing activities reflect a mix of acquisitions, capital expenditures, and investments, with notable changes in the sale and purchase of investments.
5. The end cash position has also varied, reaching its peak in 2020 and its lowest point in 2022.
6. Interest paid and income tax paid have fluctuated over the years, impacting the company's overall cash flow position.
7. Stock-based compensation has been a consistent component of operating activities, reflecting the company's approach to employee incentives.

These conclusions provide insights into the company's financial performance and strategic decisions over the years.

Earnings estimate

Based on the analysts' estimates for future quarterly and annual earnings per share (EPS), we can draw the following conclusions:

1. For the current quarter ending on June 30, 2024, the average EPS estimate is $1.23, with a low estimate of $1.18 and a high estimate of $1.26. This shows an improvement compared to the EPS of $1.17 from the same quarter a year ago.

2. Looking ahead to the next quarter ending on September 30, 2024, analysts project an average EPS of $1.42, ranging from a low estimate of $1.33 to a high estimate of $1.51. This is higher than the EPS of $1.35 reported in the previous year's quarter.

3. For the current fiscal year ending on September 30, 2024, the average EPS estimate is $6.10, with a low estimate of $5.95 and a high estimate of $6.41. This reflects growth compared to the EPS of $5.67 from the previous fiscal year.

4. Looking further ahead to the next fiscal year ending on September 30, 2025, analysts anticipate an average EPS of $6.69, with a low estimate of $5.92 and a high estimate of $7.31. This shows a potential increase from the EPS of $6.10 in the current fiscal year.

Overall, the analysts' estimates suggest a positive outlook for the company's earnings per share, with expected growth in both the quarterly and annual results over the specified periods.

Revenue estimate

Based on the analysts' estimates for the future quarterly and annual sales of the company, we can draw the following conclusions:

1. For the current quarter ending on June 30, 2024, the average sales estimate is $77,545,400,000, with a sales growth of 2% compared to the same quarter last year. The number of analysts providing estimates is 25.

2. For the next quarter ending on September 30, 2024, the average sales estimate is $85,501,800,000, with a sales growth of 3% compared to the same quarter last year. The number of analysts providing estimates is 25.

3. For the current fiscal year ending on September 30, 2024, the average sales estimate is $357,772,000,000, with a sales growth of 1% compared to the previous fiscal year. The number of analysts providing estimates is 38.

4. For the next fiscal year ending on September 30, 2025, the average sales estimate is $380,772,000,000, with a sales growth of 6% compared to the current fiscal year. The number of analysts providing estimates is 38.

These estimates suggest a moderate growth trend in both quarterly and annual sales for the company, with slightly higher growth expected in the next fiscal year compared to the current one.

Growth estimates

Based on the consensus estimates provided:
- The current year growth rate is 7.6%
- The next quarter growth rate is 5.1%
- The current quarter growth rate is 5.1%
- The next year growth rate is 9.7%
- The average annual growth rate for the next 5 years is 9.7%
- The average annual growth rate for the past 5 years is 20.1%

It can be observed that the company is expected to experience a significant increase in growth compared to the past 5 years, with a particularly strong growth rate projected for the next year. The next 5 years also show a positive growth trend according to analyst estimates.

Price target

The analysts' forecast for the future price of the security is as follows:
- Low: $164
- High: $275
- Median: $201.43
- Average: $204.58
- Current price: $192.25

Based on these forecasts, it appears that the analysts are generally optimistic about the future price of the security, with a median forecast above the current price. However, there is a wide range of estimates, from a low of $164 to a high of $275, indicating some uncertainty in the predictions.