Bank of East Asia (BKEAY) AI Stock Analysis

• Market Cap: $3.54B
• Dividend Yield: 5.55%
• Average Volume (3M): 124.00
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.30
• Revenue Growth: 2.10%
• EPS Growth: 15.73%
• Country: US
• Employees: 7,880
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.11
• Shares Outstanding: 2,636,467,000
• 10 Day Avg. Volume: 55
• 30 Day Avg. Volume: 124
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.56
• Price to Cash Flow (P/CF): 24.80
• P/FCF Ratio: -12.80
• 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

The Bank of East Asia's stock score is driven by stable financial performance with strong profitability and a solid balance sheet. However, technical indicators suggest bearish momentum, which lowers the overall score. The attractive valuation, with a low P/E ratio and high dividend yield, adds a positive aspect to the stock's outlook.

Bank of East Asia Business Overview & Revenue Model

Company Description

The Bank of East Asia (BKEAY) is a prominent financial institution headquartered in Hong Kong, offering a comprehensive range of banking and financial services. Founded in 1918, it is one of the largest independent local banks in Hong Kong and operates through a network of branches and offices across Asia, North America, and the United Kingdom. The bank provides various services including retail banking, corporate banking, wealth management, and investment services, catering to both individual and business clients.

How the Company Makes Money

The Bank of East Asia generates revenue through multiple streams, primarily from interest income, fees, and commissions. Interest income is derived from lending activities, including personal loans, mortgages, and corporate loans, where the bank earns interest on the principal amount lent to borrowers. Fees and commissions contribute significantly to revenue, originating from services such as account management, transaction processing, investment advisory, and wealth management. Additionally, the bank engages in treasury operations, involving foreign exchange trading and investment in securities, which also contribute to its earnings. Strategic partnerships and a focus on digital banking initiatives further enhance revenue generation by expanding customer reach and streamlining operations.

Bank of East Asia Financial Statement Overview

Summary

Bank of East Asia shows strong gross profitability with a high gross profit margin of 304.3%, but faces significant challenges such as a negative revenue growth rate of -51.1% and substantial declines in cash flow. The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.54, yet low return on equity and equity ratio suggest potential financial risks.

Income Statement

The gross profit margin for the latest year was 304.3%, indicating strong profitability on revenue. However, the net profit margin decreased to 28.3% from the previous year's 14.7%, which suggests improved net income relative to revenue. The revenue growth rate was negative at -51.1%, highlighting a significant decline in revenue year-over-year. The EBIT margin was 40.8%, showing operational profitability, but the absence of EBITDA data makes it difficult to assess cash earnings fully.

Balance Sheet

The debt-to-equity ratio is 0.54, reflecting a moderate leverage level. The return on equity is 4.2%, indicating a modest return on shareholders' investments. The equity ratio is 11.4%, suggesting a relatively low proportion of equity in the asset base, which could imply higher financial risk if asset values fluctuate.

Cash Flow

The free cash flow growth rate was negative at -278.5%, indicating a substantial decline. The operating cash flow to net income ratio was negative, implying cash flow challenges relative to net earnings. The free cash flow to net income ratio was also negative, pointing to difficulties in converting earnings to cash flow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
30.24B	14.54B	29.70B	23.86B	27.34B	34.70B
	Gross Profit
45.70B	44.25B	29.70B	23.86B	27.34B	34.70B
	EBIT
2.74B	5.93B	4.27B	6.51B	3.36B	2.62B
	EBITDA
5.56B	0.00	5.82B	0.00	0.00	0.00
	Net Income Common Stockholders
3.00B	4.12B	4.36B	5.27B	2.82B	2.58B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
84.35B	91.47B	112.15B	120.64B	113.68B	94.63B
	Total Assets
839.45B	860.36B	882.83B	907.47B	884.42B	865.20B
	Total Debt
12.92B	52.52B	51.16B	58.95B	61.41B	56.40B
	Net Debt
-71.43B	-89.59B	-60.99B	-61.69B	-52.27B	-38.23B
	Total Liabilities
735.88B	752.03B	786.57B	805.39B	784.59B	769.52B
	Stockholders Equity
100.72B	97.97B	95.99B	101.78B	98.89B	95.31B
Cash Flow		Free Cash Flow
10.70B	-17.60B	9.86B	1.71B	13.91B	14.34B
	Operating Cash Flow
11.44B	-16.92B	10.41B	2.32B	14.51B	15.35B
	Investing Cash Flow
-7.36B	-511.00M	3.17B	-42.20B	-5.67B	-30.64B
	Financing Cash Flow
-21.02B	-1.74B	-30.04B	43.10B	5.53B	17.16B

Bank of East Asia Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.35
• 50DMA: Negative
• 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 BKEAY, the sentiment is Neutral. The current price of 1.35 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.42, and above the 200-day MA of 1.27, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 45.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BKEAY.

Bank of East Asia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNB	76 Outperform	$4.64B	10.21	7.39%	3.71%	10.18%	2.27%
OZK	76 Outperform	$4.31B	6.18	12.85%	4.02%	13.85%	2.51%
BBAR	74 Outperform	$4.06B	10.48	16.83%	7.93%	-40.21%	-16.07%
IBOC	73 Outperform	$3.75B	9.17	15.60%	2.32%	7.33%	-0.55%
ABCB	73 Outperform	$3.73B	10.40	9.99%	1.34%	8.49%	33.58%
BKEAY	63 Neutral	$3.54B	6.89	4.04%	5.55%	2.10%	15.73%
Sector *	63 Neutral	$12.06B	9.31	8.10%	79.51%	12.80%	-4.67%