Bank of China (BACHY) AI Stock Analysis

• Market Cap: $209.98B
• Dividend Yield: 4.49%
• Average Volume (3M): 3.43K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.15
• Revenue Growth: 0.48%
• EPS Growth: 1.85%
• Country: US
• Employees: 312,757
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Diversified
• EPS (TTM): 0.62
• Shares Outstanding: 3,344,891,000
• 10 Day Avg. Volume: 7,831
• 30 Day Avg. Volume: 3,428
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.60
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: 2.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ―

Bank of China's strong financial performance and attractive valuation are key strengths, supported by steady revenue growth and a robust balance sheet. Strategic initiatives in technology and green finance, along with a high dividend yield, enhance its investment appeal. However, the decline in operating cash flow and bearish technical indicators warrant cautious optimism.

Bank of China Business Overview & Revenue Model

Company Description

Bank of China Limited, together with its subsidiaries, provides various banking and financial services. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other Operations. The Corporate Banking segment offers current accounts, deposits, overdrafts, loans, trade-related products and other credit facilities, foreign currency, derivatives, and wealth management products to corporate customers, government authorities, and financial institutions. The Personal Banking segment provides savings deposits, personal loans, credit and debit cards, payments and settlements, wealth management products, and funds and insurance agency services to retail customers. The Treasury Operations segment is involved in foreign exchange transactions, customer-based interest rate and foreign exchange derivative transactions, money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment offers debt and equity underwriting, financial advisory, stock brokerage, investment research and asset management, and private equity investment services, as well as sells and trades in securities. The Insurance segment underwrites general and life insurance products; and provides insurance agency services. As of December 31, 2021, the company had 10,382 branches and outlets, which include 520 institutions in the Chinese mainland and 550 institutions in Hong Kong, Macao, Taiwan, and other countries. It is also involved in the aircraft leasing business. The company was founded in 1912 and is headquartered in Beijing, China.

How the Company Makes Money

Bank of China generates revenue primarily through interest income from loans and advances to customers, which is a significant portion of its earnings. Additionally, the bank earns income from fees and commissions related to services like wealth management, trade financing, and transaction banking. Another important revenue stream is its trading and investment activities, which involve dealing in securities, foreign exchange, and derivatives. The bank also benefits from strategic partnerships and collaborations with other financial institutions and corporations, enhancing its service offerings and expanding its market reach. Furthermore, its global operations allow for diversification of revenue sources across different regions.

Bank of China Financial Statement Overview

Summary

Bank of China demonstrates strong financial performance with steady revenue growth and a solid balance sheet. While profitability remains high, the decline in operating cash flow suggests a need to monitor cash generation. Overall, the bank is well-positioned with low leverage and strong equity.

Income Statement

Bank of China has shown a solid revenue growth trajectory with a significant increase in total revenue from 2023 to 2024. The net profit margin remains strong, reflecting consistent profitability. However, EBIT and EBITDA margins are not available for the most recent year, which limits a comprehensive assessment of operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with a high equity ratio, indicating strong financial stability. The absence of total debt in the latest year further enhances the debt-to-equity profile. Historically, the bank has maintained a growing stockholders' equity, underscoring its financial strength.

Cash Flow

There is a notable decline in operating cash flow from 2023 to 2024, but free cash flow remains positive, illustrating effective capital expenditure management. The free cash flow to net income ratio suggests that cash generation supports profit levels, though the drop in operating cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	946.87B	629.41B	518.28B	488.48B	503.06B	450.76B
Gross Profit	633.32B	629.41B	518.28B	584.72B	604.08B	450.76B
EBITDA	303.63B	0.00	0.00	312.51B	302.94B	273.52B
Net Income	236.22B	237.84B	231.90B	226.52B	216.56B	192.87B
Balance Sheet
Total Assets	35.99T	35.06T	32.43T	28.91T	26.72T	24.40T
Cash, Cash Equivalents and Short-Term Investments	3.91T	4.14T	2.27T	4.10T	3.90T	3.81T
Total Debt	6.38T	1.03T	907.17B	1.89T	1.72T	1.20T
Total Liabilities	33.02T	32.11T	29.68T	26.33T	24.37T	22.24T
Stockholders Equity	2.83T	2.82T	2.63T	2.43T	2.23T	2.04T
Cash Flow
Free Cash Flow	651.54B	523.73B	787.30B	-39.08B	813.09B	33.41B
Operating Cash Flow	681.37B	550.97B	816.45B	-11.34B	843.26B	73.03B
Investing Cash Flow	-1.03T	-805.99B	-539.43B	-11.72B	-395.56B	-17.07B
Financing Cash Flow	-151.16B	111.86B	2.78T	2.07T	74.34B	126.62B

Bank of China Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BACHY, the sentiment is Neutral. The current price of 14.14 is below the 20-day moving average (MA) of 14.46, below the 50-day MA of 14.68, and above the 200-day MA of 13.54, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 39.05 is Neutral, neither overbought nor oversold. The STOCH value of 15.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BACHY.

Bank of China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	81 Outperform	$220.76B	12.65	10.69%	5.02%	-2.96%	-13.66%
SAN	78 Outperform	$142.57B	9.88	12.85%	2.44%	-14.74%	17.03%
BACHY	78 Outperform	$209.98B	5.06	9.57%	4.49%	0.48%	1.85%
MUFG	76 Outperform	$172.83B	14.16	9.43%	2.30%	0.82%	28.48%
SMFG	76 Outperform	$107.57B	13.55	8.23%	2.44%	0.67%	11.85%
C	73 Outperform	$172.57B	13.86	6.64%	2.45%	0.52%	89.25%
Sector *	68 Neutral	$17.49B	11.70	10.34%	3.85%	9.75%	0.63%