DBS Group (DBSDY) AI Stock Analysis

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DBS Group

(OTC:DBSDY)

77Outperform

DBS Group's overall score is bolstered by its strong financial performance, characterized by revenue and net income growth, excellent leverage management, and robust cash flow. The earnings call provides a balanced but optimistic outlook with strong investment metrics. Despite short-term technical weaknesses, the valuation remains attractive with a reasonable P/E ratio and high dividend yield.

DBS Group (DBSDY) vs. S&P 500 (SPY)

Market Cap

$94.42B

Dividend Yield4.79%

Average Volume (3M)2.92K

Price to Earnings (P/E)11.3

Beta (1Y)0.42

Revenue Growth13.61%

EPS Growth12.53%

CountryUS

Employees41,000

SectorFinancial

Sector Strength88

IndustryBanks - Regional

Share Statistics

EPS (TTM)3.14

Shares Outstanding710,042,850

10 Day Avg. Volume0

30 Day Avg. Volume2,925

Financial Highlights & Ratios

PEG Ratio-2.27

Price to Book (P/B)1.81

Price to Sales (P/S)0.00

P/FCF Ratio8.49

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

DBS Group Business Overview & Revenue Model

Company DescriptionDBS Group Holdings Ltd is a leading financial services group headquartered in Singapore, with a significant presence in Asia. As one of the largest banks in Southeast Asia, DBS Group operates in the banking and financial services sector, offering a comprehensive range of products and services. These include consumer banking, wealth management, institutional banking, and treasury services, catering to individuals, small and medium-sized enterprises, and corporations.

How the Company Makes MoneyDBS Group makes money primarily through its diverse banking operations. The company's key revenue streams include interest income from loans and advances to customers, fees and commissions from wealth management and investment services, and trading income from treasury and market activities. DBS also generates revenue through its extensive network of branches and digital platforms, which facilitate transactions and offer financial products. Significant contributions to its earnings come from its operations in Singapore, Hong Kong, and other key Asian markets. Additionally, strategic partnerships and investments in technology enhance its service offerings and operational efficiency, further bolstering its revenue generation capabilities.

DBS Group Financial Statement Overview

Summary

DBS Group exhibits a strong financial position with impressive revenue and net income growth, excellent leverage management, and robust cash flow generation. The company's financial health appears solid with consistent improvements in profitability and equity returns. Minor areas of concern include limited data on EBIT/EBITDA margins and variability in cash flow growth, though these are outweighed by overall strong performance.

Income Statement

Very Positive

DBS Group shows strong performance with a noticeable revenue growth rate from 2023 to 2024. The gross profit margin is high as total revenue equals gross profit, indicating no cost of goods sold, typical for banking. Net profit margin has also improved, reflecting efficient cost management. However, the absence of EBIT and EBITDA figures in recent periods limits a comprehensive profitability assessment.

Balance Sheet

Very Positive

The balance sheet is robust with zero reported debt in 2024, indicating excellent leverage management. The equity ratio is solid due to a significant stockholder equity base, suggesting financial stability. Return on equity has improved over time, demonstrating effective utilization of equity capital.

Cash Flow

Positive

Operating cash flow has significantly increased, reflecting strong cash generation capability. The free cash flow to net income ratio is positive and increasing, indicating strong cash conversion. However, fluctuations in free cash flow growth rates suggest some variability in capital expenditures or operational efficiency.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
21.09B	22.30B	19.55B	16.49B	14.17B	14.58B
	Gross Profit
35.61B	22.30B	20.18B	16.49B	14.17B	14.58B
	EBIT
12.13B	13.26B	14.29B	14.37B	7.78B	5.33B
	EBITDA
0.00	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
10.54B	11.29B	10.06B	8.19B	6.80B	4.72B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	139.06B	117.67B	114.30B	107.75B	101.48B
	Total Assets
783.02B	827.22B	739.30B	743.37B	686.07B	649.94B
	Total Debt
0.00	0.00	49.40B	47.08B	53.86B	45.21B
	Net Debt
0.00	-139.06B	-118.88B	-67.22B	-53.89B	-56.27B
	Total Liabilities
0.00	758.39B	677.05B	686.30B	628.36B	595.29B
	Stockholders Equity
63.68B	68.79B	62.06B	56.89B	57.53B	54.63B
Cash Flow		Free Cash Flow
14.68B	14.43B	4.45B	2.10B	7.16B	24.33B
	Operating Cash Flow
15.39B	15.34B	5.17B	2.77B	7.73B	24.88B
	Investing Cash Flow
-32.54B	-1.24B	727.00M	-694.00M	-1.60B	-415.00M
	Financing Cash Flow
35.89B	-6.60B	-9.19B	-3.89B	-2.58B	-2.37B

DBS Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price134.79

Price Trends

50DMA

131.08

Positive

100DMA

131.10

Positive

200DMA

123.43

Positive

Market Momentum

MACD

1.28

Negative

RSI

61.48

Neutral

STOCH

89.86

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBSDY, the sentiment is Positive. The current price of 134.79 is above the 20-day moving average (MA) of 128.05, above the 50-day MA of 131.08, and above the 200-day MA of 123.43, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 61.48 is Neutral, neither overbought nor oversold. The STOCH value of 89.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DBSDY.

DBS Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBSDY	77 Outperform	$94.42B	11.28	17.99%	4.79%	13.61%	12.53%
PNC	77 Outperform	$65.51B	11.69	11.15%	3.85%	3.07%	19.01%
IBN	77 Outperform	$120.56B	19.93	17.89%	0.62%	22.15%	12.13%
ITUB	76 Outperform	$61.53B	8.69	20.65%	5.25%	-7.01%	15.18%
HDB	73 Outperform	$174.50B	22.35	14.51%	0.84%	13.13%	0.54%
MFG	65 Neutral	$60.29B	10.60	8.56%	2.27%	13.63%	27.77%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%

* Financial Sector Average

Performance Comparison

DBSDY

DBS Group

134.79

33.03

32.46%

HDB

Hdfc Bank

70.48

15.13

27.34%

IBN

Icici Bank

32.31

5.61

21.01%

ITUB

Itau Unibanco

6.61

1.19

21.96%

MFG

Mizuho Financial

5.10

1.15

29.11%

PNC

PNC Financial

166.44

14.05

9.22%

DBS Group Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q4-2024)

% Change Since: 1.71%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a balanced outlook with strong investment returns and effective risk management, but also highlights challenges in Hong Kong and seasonal declines in wealth management.

Q4-2024 Updates

Positive Updates

Strong Dividend Yield and TSR Growth

DBS continues to offer a 6-7% dividend yield with a track record of 14% TSR growth over 15 years, highlighting its strong investment appeal.

Fixed Rate Book Expansion

DBS increased its fixed rate book to $200 billion, exceeding the planned $190 billion, indicating strong asset management in response to market conditions.

Resilient Wealth Management Growth

Net new money in Wealth Management reached $21 billion for the year, with a $6 billion contribution in Q3, reflecting strong client acquisition and retention.

Effective Risk Management

DBS has retained a $2.4 billion GP overlay through COVID, showcasing prudent risk management in preparation for potential economic stress.

Mid-Teens Growth Forecast in Wealth Management

DBS has budgeted for mid-teens growth in its wealth management business, driven by disciplined client engagement and strategic initiatives.

Negative Updates

Hong Kong Asset Quality Concerns

The Hong Kong NPL book increased due to exchange rate impacts and credit concerns in the real estate sector, despite some successful loan recoveries.

SME Stress in Hong Kong

High interest rates have put stress on Hong Kong's SME sector, prompting DBS to reduce asset exposure in this segment.

Seasonal Decline in Wealth Management

Wealth Management saw a 15% drop in Q4 due to seasonal factors, despite a strong year overall.

Company Guidance

In the DBS Fourth Quarter Analyst Briefing for fiscal year 2024, the company provided comprehensive guidance on several key metrics. Piyush Gupta highlighted the bank's strong performance, noting a 6-7% dividend yield and a TSR growth of 14% over 15 years. The bank expanded its fixed rate book to $200 billion, with $50-55 billion expected to roll off this year, affecting net interest income (NII) slightly upward from stable in the previous quarter. Sensitivity to interest rate changes was discussed, with a potential $6-7 million impact by year-end. The bank's net profit before tax (PBT) guidance remains stable, with a forecasted $50-100 million upside. Non-performing loans (NPLs) showed an increase, notably in Hong Kong due to exchange rate and idiosyncratic issues, but the bank remains optimistic about recovery. Wealth management saw a 40% year-on-year increase, with $21 billion net new money for the year. The bank aims for mid-teens growth in the wealth business despite market volatility. Additionally, the potential impact of transformative technologies like GenAI on cost optimization and client engagement was noted. Overall, DBS demonstrated a resilient financial outlook while navigating interest rate sensitivities and regional market challenges.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.