Bank of Queensland (BOQ) AI Stock Analysis

• Market Cap: $4.92B
• Dividend Yield: 4.71%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.97
• Revenue Growth: 9.76%
• EPS Growth: 11.92%
• Country: AU
• Employees: 3,105
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 0.28
• Shares Outstanding: 661,469,500
• 10 Day Avg. Volume: 3,103,473
• 30 Day Avg. Volume: 2,526,883
• PEG Ratio: 2.34
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.31
• 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: $6.31
• Price Target Upside: -16.49% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

Bank of Queensland faces significant challenges with high leverage and cash flow inefficiencies, impacting its financial stability. Despite strong profitability margins, the declining revenue growth is concerning. The stock's bearish trend from a technical perspective further reduces its attractiveness. However, a fair valuation and high dividend yield offer some appeal for income-focused investors.

Positive Factors

Net interest margin

A better outcome on Net Interest Margin (NIM) has somewhat offset weak mortgage volume growth.

Transformation program

The company is making progress on its transformation program.

Negative Factors

Cost management

The focus on cost management indicates ongoing challenges in managing expenses.

Earnings

Cash earnings are expected to decrease by 28% compared to the previous period.

Return on equity

Revised FY26 ROE target remains hard to achieve and below cost of capital.

Bank of Queensland Business Overview & Revenue Model

Company Description

Bank of Queensland Limited, together with its subsidiaries, provides various financial products and services in Australia. The company operates in Retail Banking, BOQ Business, and Other segments. It offers personal banking services comprises savings and term deposits, and transactional accounts; debit and credit cards; home, personal, and car loans; and travel, home and content, landlord, and car insurance, as well as investment services comprising online share trading services, and self-managed superannuation funds. The company's business banking services include transaction accounts, and savings and investment accounts; loans and finance products, such as business loans, equipment and vehicle finance, and dealer finance; merchant and payment products; and financial market and international services. It also offers internet and mobile banking services. As of August 31, 2022, the company operated 36 corporate branches; 111 owner managed branches; and 7 transaction centers. Bank of Queensland Limited was founded in 1874 and is based in Newstead, Australia.

How the Company Makes Money

Bank of Queensland Limited makes money through a variety of revenue streams primarily centered around interest income and fee-based income. The bank earns interest income from loans and advances provided to individuals and businesses, such as home loans, personal loans, and business loans. This interest income forms the bulk of the bank's revenues. Additionally, BOQ generates fee-based income from services such as account maintenance fees, transaction fees, and financial advisory services. The bank also earns money from its wealth management services, which include investment products and insurance. Key partnerships with financial institutions, technology providers, and third-party service vendors enhance BOQ's ability to offer competitive products and services, contributing to its overall earnings.

Bank of Queensland Financial Statement Overview

Summary

Bank of Queensland exhibits strong profitability margins but faces headwinds in revenue growth and cash flow management. The high leverage and low equity ratio pose financial stability concerns, while cash flow statements indicate operational inefficiencies.

Income Statement

The Bank of Queensland's income statement reveals both strengths and challenges. The gross profit margin remains robust at approximately 98.0%, highlighting effective cost management. However, the net profit margin has shown volatility, currently at 17.9%, down from the prior year's 7.3%. The revenue growth rate is negative at -5.6%, indicating a contraction in top-line growth. EBIT and EBITDA margins are healthy at 34.4% and 34.9%, respectively, despite a slight decline from the previous year.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio is high at 3.20, suggesting significant leverage, which could pose risks in a rising interest rate environment. Return on equity is modest at 4.7%, indicating room for improvement in generating shareholder returns. The equity ratio stands at 5.8%, reflecting a low proportion of equity financing relative to total assets.

Cash Flow

The cash flow statement highlights substantial challenges, with negative free cash flow growth at -52.5%, indicating increased cash outflows. The operating cash flow to net income ratio is negative, showing operational cash flow inefficiencies. Additionally, the free cash flow to net income ratio is negative, further underscoring liquidity concerns.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2019
Income Statement		Total Revenue
3.39B	1.56B	1.69B	1.63B	1.27B	1.03B
	Gross Profit
2.62B	1.60B	1.69B	1.63B	1.27B	1.03B
	EBIT
472.00M	567.00M	630.00M	676.00M	589.00M	485.00M
	EBITDA
472.00M	557.00M	0.00	0.00	0.00	492.00M
	Net Income Common Stockholders
305.00M	285.00M	124.00M	409.00M	368.00M	298.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	3.15B	2.58B	2.45B	2.35B	1.27B
	Total Assets
100.44B	103.04B	105.35B	99.91B	91.44B	55.60B
	Total Debt
18.11B	19.25B	21.03B	21.01B	18.31B	12.27B
	Net Debt
18.11B	16.10B	18.45B	18.56B	15.95B	11.00B
	Total Liabilities
94.39B	97.02B	99.22B	93.25B	85.24B	51.74B
	Stockholders Equity
6.05B	6.02B	6.13B	6.67B	6.20B	3.86B
Cash Flow		Free Cash Flow
287.00M	-1.05B	-2.20B	-6.40B	-3.30B	-1.81B
	Operating Cash Flow
297.00M	-865.00M	-2.20B	-6.36B	-3.29B	-1.79B
	Investing Cash Flow
1.53B	14.00M	-142.00M	-192.00M	-873.00M	-110.00M
	Financing Cash Flow
-995.00M	-1.46B	5.13B	6.44B	5.37B	1.96B

Bank of Queensland Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BOQ, the sentiment is Positive. The current price of 7.56 is above the 20-day moving average (MA) of 7.06, above the 50-day MA of 6.68, and above the 200-day MA of 6.43, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 76.51 is Negative, neither overbought nor oversold. The STOCH value of 81.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BOQ.

Bank of Queensland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%
BOQ	54 Neutral	$4.92B	16.04	5.20%	4.71%	9.76%	11.92%
CBA	54 Neutral	AU$283.64B	29.05	13.22%	2.84%	17.35%	0.73%

Bank of Queensland Corporate Events

Bank of Queensland Director Increases Shareholding

Bank of Queensland Limited has announced a change in the director’s interest, with Andrew Peter Fraser acquiring an additional 6,293 ordinary shares through an on-market trade, bringing his total indirect holding to 11,533 shares. This acquisition reflects a strategic move in the company’s governance, potentially impacting shareholder confidence and market perception positively.

Bank of Queensland Appoints New Director

Bank of Queensland Limited has announced the appointment of Paul George Riordan as a director, effective from April 16, 2025. The initial director’s interest notice reveals that Riordan currently holds no relevant interests in securities, indicating a fresh start in his role, which could influence the company’s strategic direction and governance.

Bank of Queensland Releases Quarterly APRA Basel III Report

Bank of Queensland Limited has released its quarterly APRA Basel III Pillar 3 report for the period ending 28 February 2025. This report is crucial for stakeholders as it provides insights into the bank’s capital adequacy and risk management practices, reflecting its commitment to transparency and regulatory compliance.

Bank of Queensland Releases 2025 Half Year Results

Bank of Queensland Limited has released its 2025 Half Year Results, presenting general background information about its activities and financial performance. The announcement highlights the company’s strategic positioning and operational insights, although it cautions that the information should not be solely relied upon for investment decisions due to potential risks and uncertainties in the market.

BOQ Reports Strong 1H25 Financial Results and Strategic Progress

Bank of Queensland Limited (BOQ) reported a statutory net profit after tax of $171 million for the half-year ended February 28, 2025, marking a 13% increase from the previous year. The company achieved significant milestones in its strategic transformation, including branch consolidations and digital platform advancements, which contributed to improved customer experiences and stable financial performance. BOQ’s strategic focus on higher-return segments and digital transformation is yielding positive outcomes, positioning the bank as a scalable, low-cost digital institution while maintaining strong capital and liquidity positions.

Bank of Queensland Announces Dividend Distribution for Shareholders

Bank of Queensland Limited has announced a dividend distribution of AUD 0.18 per ordinary fully paid share, related to the six-month period ending February 28, 2025. The ex-dividend date is set for April 30, 2025, with a record date of May 1, 2025, and payment scheduled for May 23, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors and impacting its market positioning positively.

Bank of Queensland Reports Strong Half-Year Financial Results

Bank of Queensland Limited reported a 1% increase in revenues to $802 million and a 13% rise in profit after tax to $171 million for the half-year period ending February 28, 2025. The company declared a fully franked interim dividend of 18 cents per share, reflecting its strong financial performance and commitment to returning value to shareholders.

BOQ to Announce Half-Year Financial Results

Bank of Queensland Limited (BOQ) announced it will release its financial results for the half year ended 28 February 2025 on 16 April 2025. The announcement will be accompanied by a market briefing led by Managing Director & CEO, Patrick Allaway, and Chief Financial Officer, Racheal Kellaway. This event is significant for stakeholders as it provides insights into the company’s financial health and strategic direction.

Bank of Queensland Issues Unquoted Equity Securities for Employee Incentives

Bank of Queensland Limited announced the issuance of unquoted equity securities, including performance rights and deferred award rights, as part of their employee incentive scheme. This move is likely aimed at enhancing employee engagement and retention, potentially impacting the company’s operational efficiency and aligning employee interests with shareholder value.

Bank of Queensland Limited Announces Cessation of Securities

Bank of Queensland Limited announced the cessation of several securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This cessation involves various performance rights, deferred award rights, and options, which may impact the company’s capital structure and stakeholder interests.

Bank of Queensland Appoints New Non-Executive Director

Bank of Queensland Limited has announced the appointment of Paul Riordan as a Non-Executive Director, effective from April 16, 2025. Riordan brings over 40 years of experience in financial services, with expertise in corporate governance, risk management, and financial markets, enhancing BOQ’s board capabilities. His appointment is subject to shareholder approval at the Annual General Meeting on December 2, 2025.

Bank of Queensland Announces New Dividend Distribution

Bank of Queensland Limited has announced a new dividend distribution for its security BOQPG, with a distribution amount of AUD 1.3113. The ex-date for this dividend is set for May 28, 2025, with a record date of May 29, 2025, and payment scheduled for June 16, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its investors, potentially enhancing its market position and investor confidence.

Bank of Queensland Announces New Dividend Distribution

Bank of Queensland Limited announced a new dividend distribution for its security, BOQPF, with a distribution amount of AUD 1.33050000. The key dates for this distribution include an ex-date of 28 April 2025, a record date of 29 April 2025, and a payment date of 15 May 2025. This announcement may influence shareholder value and reflect the bank’s financial health and commitment to rewarding its investors.

Bank of Queensland Addresses Late Submission of Director’s Interest Notice

The Bank of Queensland Limited, in a recent news release, addressed the late lodgement of an Appendix 3Y form for Director Patrick Allaway, submitted one business day after the deadline due to an administrative oversight. The company reassured stakeholders of its awareness and compliance with listing rules, affirming the adequacy of its systems in handling securities transactions and notifications, thus mitigating concerns regarding operational integrity.