DBS Group Holdings (D05) AI Stock Analysis

• Market Cap: $151.72B
• Dividend Yield: 4.75%
• Average Volume (3M): 4.21M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.41
• Revenue Growth: 2.67%
• EPS Growth: 6.32%
• Country: SG
• Employees: 41,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 4.12
• Shares Outstanding: 2,838,021,500
• 10 Day Avg. Volume: 4,562,425
• 30 Day Avg. Volume: 4,209,830
• PEG Ratio: 0.92
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 5.73
• P/FCF Ratio: 8.62
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 7.38
• Enterprise Value/Gross Profit: 7.38
• Enterprise Value/Ebitda: 21.31
• 1Y Price Target: $54.33
• Price Target Upside: -1.18% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: S$62.00 ▲(12.77% Upside)

DBS Group Holdings' strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's robust profitability, strategic growth initiatives, and effective management of interest rate impacts contribute significantly. Technical indicators and valuation also support the stock's favorable outlook, though there is room for improvement in cash flow management.

Positive Factors

Revenue Growth

Consistent revenue growth, driven by wealth management and treasury sales, indicates strong market demand and effective business strategies.

Digital Initiatives

Focus on digital and tokenization efforts positions DBS as a leader in fintech innovation, enhancing future competitiveness and service offerings.

Asset Quality

Stable asset quality with low non-performing loans ensures financial stability and reduces risk, supporting long-term profitability.

Negative Factors

Net Profit Decline

Tax increases have impacted net profit, potentially affecting future earnings and cash flow available for reinvestment or dividends.

Interest Rate Pressure

Declining net interest margins can pressure profitability, especially if interest rates remain low, affecting interest income sustainability.

Cash Flow Management

Low operating cash flow coverage suggests potential difficulties in covering net income, which could impact liquidity and financial flexibility.

DBS Group Holdings Business Overview & Revenue Model

Company Description

DBS Group Holdings Ltd provides financial products and services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. It operates through Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others segments. The Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. The Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. The Others segment offers Islamic banking services. The company was founded in 1968 and is headquartered in Singapore.

How the Company Makes Money

DBS Group generates revenue primarily through interest income from loans and advances, fees from banking services, and investment income. The bank's core revenue streams include interest earned from consumer and corporate lending, which constitutes a significant portion of its earnings. Additionally, DBS earns fees from various banking services, including transaction fees, management fees from wealth management services, and commissions from investment banking activities. The bank has also established strategic partnerships with fintech companies and other financial institutions, enhancing its service offerings and expanding its customer base. Moreover, DBS's focus on digital banking initiatives has streamlined operations, reduced costs, and attracted a younger demographic, further contributing to its revenue growth.

DBS Group Holdings Financial Statement Overview

Summary

DBS Group Holdings exhibits strong financial health with consistent revenue growth and robust profitability metrics. The balance sheet is stable, with moderate leverage and effective equity utilization. While cash flow management is generally strong, there is potential for improvement in operating cash flow coverage.

Income Statement

DBS Group Holdings has demonstrated consistent revenue growth over the years, with a notable increase of 2.20% in the latest year. The company maintains strong profitability metrics, with a net profit margin of 52.08% and an EBIT margin of 59.44%. These figures indicate robust operational efficiency and profitability, contributing to a high income statement score.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.94, indicating moderate leverage. The return on equity stands at 16.41%, showcasing effective utilization of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis shows a slight decline in free cash flow growth, but the company maintains a strong free cash flow to net income ratio of 94.03%. Operating cash flow coverage is low, indicating potential challenges in covering net income with operating cash flow. Overall, cash flow management is solid but could benefit from enhanced operational cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.65B	21.68B	19.55B	16.27B	15.92B	11.53B
Gross Profit	29.65B	22.22B	20.18B	16.27B	14.17B	11.53B
EBITDA	10.28B	13.71B	12.23B	9.88B	8.45B	6.02B
Net Income	11.25B	11.29B	10.06B	8.19B	6.80B	4.72B
Balance Sheet
Total Assets	841.90B	827.33B	739.30B	743.37B	686.07B	649.94B
Cash, Cash Equivalents and Short-Term Investments	141.23B	140.17B	118.88B	114.30B	107.75B	101.48B
Total Debt	76.30B	64.90B	44.83B	47.08B	53.86B	80.57B
Total Liabilities	773.29B	760.89B	677.05B	686.30B	628.36B	595.29B
Stockholders Equity	68.56B	68.79B	62.06B	56.89B	57.53B	54.63B
Cash Flow
Free Cash Flow	0.00	14.43B	4.69B	2.10B	7.16B	24.33B
Operating Cash Flow	0.00	15.34B	5.41B	2.77B	7.73B	24.88B
Investing Cash Flow	0.00	-1.24B	727.00M	-694.00M	-1.60B	-415.00M
Financing Cash Flow	0.00	-6.60B	-9.43B	-3.89B	-2.58B	-2.37B

DBS Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:D05, the sentiment is Positive. The current price of 54.98 is above the 20-day moving average (MA) of 53.46, above the 50-day MA of 52.28, and above the 200-day MA of 46.19, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 64.78 is Neutral, neither overbought nor oversold. The STOCH value of 71.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:D05.

DBS Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S68	80 Outperform	$18.34B	28.29	30.82%	2.33%	11.28%	8.34%
HBND	79 Outperform	S$304.30B	5.40	―	―	―	―
D05	78 Outperform	$151.72B	13.47	17.10%	4.75%	2.67%	6.32%
O39	73 Outperform	$76.53B	10.41	12.87%	5.27%	0.69%	-0.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
U11	65 Neutral	$57.77B	9.76	12.80%	6.70%	-0.76%	4.96%

DBS Group Holdings Corporate Events

DBS Group Reports Record Profit Amid Strong Growth

DBS Group Holdings Ltd, a leading financial services group in Asia, operates in the banking and financial services sector, known for its strong presence in wealth management and institutional banking.

DBS Group Holdings Reports Stable Profits Amid Economic Challenges

DBS Group Holdings Ltd, a leading financial services group in Asia, is headquartered in Singapore and operates across 18 markets, offering a comprehensive range of banking services including consumer banking, wealth management, and institutional banking. The company is recognized for its digital transformation efforts and strong regional presence.