Bank of East Asia (BKEAY) AI Stock Analysis

• Market Cap: $3.79B
• Dividend Yield: 5.15%
• Average Volume (3M): 197.00
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.27
• 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: 592
• 30 Day Avg. Volume: 197
• PEG Ratio: -1.34
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.99
• 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

• Rating: 63 Neutral
• Price Target: ―

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, 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 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

The Bank of East Asia exhibits stable revenue growth and solid profitability margins, reinforcing efficient operational management. The balance sheet is strong, with low leverage and a solid equity foundation, indicative of sound financial health. However, the negative operating cash flow highlights potential operational challenges, which need addressing for improved cash management. Overall, the bank is well-positioned but should focus on enhancing cash flow efficiency.

Income Statement

The Bank of East Asia has shown a modest increase in total revenue from 2023 to 2024, with a revenue growth rate of 6.08%. The gross profit margin is solid at 100%, indicative of no cost of goods sold, typical for a bank. The net profit margin improved slightly to 29.88% from the previous year, reflecting effective cost management. EBIT margin increased to 42.60%, suggesting efficient core operations. However, the absence of EBITDA data limits deeper profitability analysis.

Balance Sheet

The bank maintains a strong equity position with a debt-to-equity ratio of 0.22, indicating low leverage and financial stability. Return on equity improved to 4.37%, showing better utilization of shareholder capital. The equity ratio stands at 12.01%, underscoring a robust capital base, essential in the banking industry. Overall, the balance sheet reflects a stable financial structure with prudent management of liabilities.

Cash Flow

The bank experienced a substantial improvement in free cash flow from 2023 to 2024, with a positive growth rate of 52.94%. However, the operating cash flow remains negative, which could indicate potential issues in cash-generating operations. The free cash flow to net income ratio is negative, suggesting that the bank needs to enhance its operational efficiency to convert profits into cash effectively.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.49B	14.54B	29.70B	23.86B	27.34B
	Gross Profit
20.49B	44.25B	29.70B	23.86B	27.34B
	EBIT
10.86B	5.93B	4.27B	6.51B	3.36B
	EBITDA
0.00	0.00	5.82B	0.00	0.00
	Net Income Common Stockholders
4.61B	4.12B	4.36B	5.27B	2.82B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.30B	91.47B	112.15B	120.64B	113.68B
	Total Assets
877.76B	860.36B	882.83B	907.47B	884.42B
	Total Debt
23.48B	52.52B	51.16B	58.95B	61.41B
	Net Debt
-17.83B	-89.59B	-60.99B	-61.69B	-52.27B
	Total Liabilities
772.02B	752.03B	786.57B	805.39B	784.59B
	Stockholders Equity
105.46B	97.97B	95.99B	101.78B	98.89B
Cash Flow		Free Cash Flow
-8.28B	-17.60B	9.86B	1.71B	13.91B
	Operating Cash Flow
-7.74B	-16.92B	10.41B	2.32B	14.51B
	Investing Cash Flow
-318.00M	-511.00M	3.17B	-42.20B	-5.67B
	Financing Cash Flow
4.94B	-1.74B	-30.04B	43.10B	5.53B

Bank of East Asia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKEAY, the sentiment is Positive. The current price of 1.44 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.43, and above the 200-day MA of 1.29, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 80.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKEAY.

Bank of East Asia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OZK	79 Outperform	$5.04B	7.28	12.85%	3.74%	13.85%	2.43%
IBOC	79 Outperform	$3.89B	9.55	15.20%	2.17%	4.24%	0.38%
FNB	76 Outperform	$4.98B	10.92	7.40%	3.47%	10.18%	2.27%
BBAR	74 Outperform	$4.49B	0.06	15.46%	7.42%	-40.21%	-16.07%
ABCB	70 Neutral	$4.22B	11.36	10.19%	1.14%	9.14%	31.69%
Sector *	64 Neutral	$12.67B	9.74	7.58%	17015.08%	12.21%	-6.96%
BKEAY	63 Neutral	$3.79B	7.39	4.04%	5.15%	2.10%	15.73%