Bank of East Asia (BKEAY) AI Stock Analysis

• Market Cap: $3.93B
• Dividend Yield: 3.66%
• Average Volume (3M): 1.05K
• Price to Earnings (P/E): 76.6
• Beta (1Y): 0.56
• Revenue Growth: 18.01%
• EPS Growth: -37.93%
• Country: US
• Employees: 7,880
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.20
• Shares Outstanding: 2,630,112,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,053
• PEG Ratio: 4.85
• 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 overall stock score of 64 reflects the strong gross profitability and attractive valuation offset by significant challenges in revenue growth and cash flow. Technical analysis shows a positive trend, but caution is advised due to potential overbought conditions. Lack of guidance and sentiment from the earnings call adds uncertainty to the outlook.

Bank of East Asia Business Overview & Revenue Model

Company Description

The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services. Its personal banking services include corporate, individual, savings, current, time deposit, and supreme accounts; and fixed and call deposits, foreign currency deposits, MAS services, and auto-payroll products, as well as safe deposit boxes and remittance services. The company also provides corporate banking services, such as SME loans and financing guarantee schemes; corporate and commercial financing products, including syndicated and construction loans, acquisition and structured financing, working capital financing, share financing and IPO-related loans, and commercial mortgages; trade finance services and expert trade solutions; factoring services; import and export trade finance; guarantee services; eTradeConnect that allows buyers and sellers to connect, transact, share information, and submit applications for financing through a single platform; cash management services; corporate wealth management products; foreign exchange and treasury products; trade settlement and financing services; onshore and offshore loans; and marine cargo, property, trade credit, employee compensation, pet, medical, life, savings, and endowment insurance plans. In addition, it offers private banking services comprising investment advisory services; investment solutions, such as unit trusts, linked deposits, currency trading and management, global equities and bonds investments, structured products, and options and derivatives; portfolio management services; securities and futures broking services; cyber banking, credit cards, and ATM; and various international services. The company operates 150 outlets in Hong Kong, rest of Greater China, Southeast Asia, the United Kingdom, and the United States. The Bank of East Asia, Limited was incorporated in 1918 and is headquartered in Central, Hong Kong.

How the Company Makes Money

The Bank of East Asia generates revenue primarily through its diversified banking operations. Key revenue streams include interest income from loans and advances, fees and commissions from services such as wealth management, trade finance, and credit card services, as well as income from its insurance and investment products. The bank also earns from its treasury operations, which involve managing its own investment portfolio and foreign exchange trading. Strategic partnerships and joint ventures in Mainland China, as well as its international subsidiaries, also contribute significantly to its earnings, allowing BEA to tap into broader markets and customer bases.

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: 1.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.49 is below the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.38, and above the 200-day MA of 1.25, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of -1.21 is Positive, 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
HSBC	81 Outperform	$203.64B	9.26	13.74%	5.24%	6.79%	8.57%
BMO	77 Outperform	$69.48B	12.36	10.01%	4.72%	15.63%	66.95%
C	66 Neutral	$132.37B	11.83	6.04%	3.14%	8.20%	49.26%
BKEAY	64 Neutral	$3.93B	76.62	4.04%	3.66%	18.01%	-37.93%
Sector *	63 Neutral	$14.20B	10.11	9.01%	4.34%	16.34%	-11.27%