Bank of China (BACHY) AI Stock Analysis

• Market Cap: $213.11B
• Dividend Yield: 7.28%
• Average Volume (3M): 801.00
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.33
• Revenue Growth: 6.84%
• EPS Growth: -0.66%
• Country: US
• Employees: 312,757
• Sector: Financial
• Sector Strength: 80
• Industry: Banks - Diversified
• EPS (TTM): 2.74
• Shares Outstanding: 3,344,891,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 801
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.37
• Price to Cash Flow (P/CF): 10.00
• P/FCF Ratio: 3.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Bank of China shows a strong financial foundation with robust revenue growth and a solid balance sheet. The stock is technically stable and undervalued, offering a high dividend yield. While challenges exist in real estate and personal loans, the bank's strategic focus on technology and green finance positions it well for future growth.

Bank of China Business Overview & Revenue Model

Company Description

Bank of China (BACHY) is one of the largest and oldest banks in China, established in 1912. It operates globally, providing a comprehensive range of financial services, including corporate banking, personal banking, investment banking, and insurance. The bank is a key player in the Chinese banking sector, offering products such as loans, deposits, wealth management, credit cards, and foreign exchange services. With a strong international presence, Bank of China also facilitates cross-border transactions and trade finance, serving both domestic and international clients.

How the Company Makes Money

Bank of China generates revenue through a diversified range of financial services. The primary revenue streams include interest income from loans and advances to customers, fees and commissions from services like wealth management, foreign exchange trading, and transaction banking. The bank also earns income from its investment portfolio, which consists of securities and other financial assets. Additionally, Bank of China benefits from its international operations, capturing earnings from global trade finance and cross-border transactions. Strategic partnerships with other financial institutions and corporations further enhance its income potential by expanding its service offerings and customer base.

Bank of China Financial Statement Overview

Summary

Bank of China demonstrates solid financial health with strong profitability and efficient equity utilization. The income statement shows robust revenue growth and profitability. The balance sheet reflects a stable equity base with high leverage, typical for banks. Cash flow indicates good cash generation, but declining free cash flow suggests the need for better capital management.

Income Statement

The income statement shows strong profitability with a net profit margin of approximately 24.7% for TTM (Trailing-Twelve-Months). Revenue has grown by 82% from the previous year, indicating robust growth. The EBIT margin is also healthy at 14.5%. However, there was a decline in EBIT margin from the previous year, suggesting increased costs or decreased efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 8% and a relatively high debt-to-equity ratio of 2.43, which is typical for the banking industry. The return on equity is strong at 8.5%, indicating effective use of equity to generate profits. However, the high leverage ratio may pose risks if not managed carefully.

Cash Flow

Cash flow analysis indicates a strong operating cash flow to net income ratio of 2.13, showing good cash generation relative to net income. Free cash flow growth is negative, with a significant decrease compared to the previous year, highlighting potential issues in capital expenditure management or revenue collection.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
942.54B	518.28B	617.36B	604.08B	565.37B	548.13B
	Gross Profit
1.10T	1.20T	617.36B	604.08B	565.37B	548.13B
	EBIT
136.59B	340.77B	696.13B	265.84B	234.15B	236.16B
	EBITDA
235.37B	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
232.81B	231.90B	226.52B	216.56B	192.87B	187.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
-3.01T	2.27T	4.10T	3.90T	3.81T	3.60T
	Total Assets
32.43T	32.43T	28.91T	26.72T	24.40T	22.77T
	Total Debt
6.27T	6.27T	1.89T	1.72T	1.55T	1.58T
	Net Debt
1.81T	-4.46T	-2.22T	-2.18T	-2.26T	-2.02T
	Total Liabilities
29.96T	29.68T	1.89T	1.72T	1.55T	1.58T
	Stockholders Equity
2.35T	2.63T	2.43T	2.23T	2.04T	1.85T
Cash Flow		Free Cash Flow
468.85B	787.30B	-39.08B	813.09B	33.41B	-523.28B
	Operating Cash Flow
495.19B	816.45B	-11.34B	843.26B	73.03B	-484.27B
	Investing Cash Flow
-1.38T	-539.43B	-22.24B	-395.56B	-17.07B	-165.68B
	Financing Cash Flow
435.16B	2.78T	2.07T	74.34B	126.62B	293.11B

Bank of China Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BACHY, the sentiment is Positive. The current price of 14.86 is above the 20-day moving average (MA) of 14.85, above the 50-day MA of 14.11, and above the 200-day MA of 12.08, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 34.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BACHY.

Bank of China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BACHY	81 Outperform	$213.11B	5.42	9.71%	7.28%	6.84%	-0.66%
HSBC	81 Outperform	$173.36B	7.98	13.74%	6.58%	6.79%	8.57%
SAN	73 Outperform	$91.06B	7.03	13.16%	2.56%	6.56%	19.02%
MUFG	71 Outperform	$128.47B	10.10	9.70%	3.20%	13.21%	-12.06%
BAC	70 Neutral	$261.52B	10.70	9.24%	2.96%	13.06%	4.94%
C	66 Neutral	$109.41B	9.78	6.04%	3.80%	8.20%	49.26%
Sector *	63 Neutral	$12.86B	9.19	9.16%	4.78%	16.31%	-8.97%