UOB (U11) AI Stock Analysis

• Market Cap: $58.56B
• Dividend Yield: 5.78%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.12
• Revenue Growth: -0.76%
• EPS Growth: 4.96%
• Country: SG
• Employees: 32,071
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.78
• Shares Outstanding: 1,671,422,000
• 10 Day Avg. Volume: 2,408,775
• 30 Day Avg. Volume: 2,773,987
• PEG Ratio: 1.55
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 2.21
• P/FCF Ratio: -3.93
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 4.21
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: 6.12
• 1Y Price Target: $34.42
• Price Target Upside: -1.45% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: S$39.00 ▲(11.65% Upside)

UOB's overall stock score is driven by strong financial performance and attractive valuation. The company's profitability and growth are commendable, but liquidity concerns due to negative cash flow need attention. Technical analysis presents a neutral outlook, with no strong momentum signals.

Positive Factors

Negative Factors

UOB Business Overview & Revenue Model

Company Description

United Overseas Bank (UOB) is a leading bank headquartered in Singapore, providing a comprehensive range of financial services including personal banking, corporate banking, investment banking, and wealth management. Established in 1935, UOB operates across Southeast Asia with a presence in countries such as Malaysia, Thailand, Indonesia, and China. The bank's core products and services include savings and deposit accounts, loans, credit cards, trade financing, treasury services, and investment solutions.

How the Company Makes Money

UOB generates revenue primarily through interest income from loans and advances to customers, which constitutes a significant portion of its earnings. Additionally, the bank earns fee-based income through services such as wealth management, investment banking, and transaction banking. UOB also benefits from foreign exchange and trading activities, as well as commissions from the sale of insurance and other financial products. Strategic partnerships with other financial institutions and fintech companies enhance its service offerings and customer reach, contributing to its overall profitability. Furthermore, UOB's focus on digital banking and innovation has allowed it to tap into new revenue streams in the evolving financial landscape.

UOB Financial Statement Overview

Summary

UOB exhibits strong profitability and growth, with a notable revenue increase and solid net profit margin. The balance sheet is stable with low leverage. However, cash flow challenges are concerning, especially the significant decline in free cash flow, raising liquidity management issues.

Income Statement

UOB has demonstrated a strong revenue growth trend with a 9.77% increase from 2023 to 2024. Net profit margin is solid at 42.33% for 2024, and there is a consistent net income growth. However, EBIT and EBITDA margins are not available for 2024, which limits the assessment of operational efficiency. Overall, the income statement reflects robust profitability and growth.

Balance Sheet

The balance sheet shows a strong equity position with a stockholders' equity ratio of 9.25% in 2024, indicating a stable financial foundation. The debt-to-equity ratio is effectively zero due to the absence of total debt in 2024, minimizing financial risk. However, a decline in cash and short-term investments suggests a potential liquidity concern. Overall, the balance sheet is strong with low leverage but potential liquidity risks.

Cash Flow

UOB experienced a significant decrease in free cash flow from positive in 2023 to a negative free cash flow of -15.72 billion in 2024. The operating cash flow to net income ratio is negative, indicating issues with cash generation relative to net income. The decline in free cash flow is concerning, reflecting potential challenges in cash management and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.62B	27.87B	26.50B	16.10B	9.13B	13.07B
Gross Profit	13.31B	13.36B	13.01B	10.97B	9.13B	13.07B
EBITDA	14.17B	21.38B	20.02B	10.84B	7.22B	3.43B
Net Income	5.96B	6.04B	5.71B	4.57B	4.08B	2.92B
Balance Sheet
Total Assets	537.84B	537.66B	523.52B	504.26B	459.32B	431.81B
Cash, Cash Equivalents and Short-Term Investments	63.05B	76.01B	87.44B	78.67B	69.88B	0.00
Total Debt	35.35B	64.13B	71.66B	68.16B	52.17B	48.15B
Total Liabilities	487.26B	487.71B	477.05B	463.43B	418.84B	393.06B
Stockholders Equity	50.35B	49.73B	46.23B	43.37B	42.63B	40.90B
Cash Flow
Free Cash Flow	-8.70B	-15.72B	5.60B	5.36B	4.11B	5.44B
Operating Cash Flow	-7.50B	-14.85B	6.47B	6.06B	4.66B	6.00B
Investing Cash Flow	-1.11B	-771.00M	-645.00M	-3.71B	-440.00M	-511.00M
Financing Cash Flow	8.25B	1.13B	19.27B	34.30B	32.63B	16.51B

UOB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.93
• 50DMA: Negative
• 100DMA: Negative
• 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:U11, the sentiment is Negative. The current price of 34.93 is above the 20-day moving average (MA) of 34.89, below the 50-day MA of 35.10, and above the 200-day MA of 34.74, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 57.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:U11.

UOB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
D05	78 Outperform	$152.71B	13.56	17.10%	4.94%	2.67%	6.32%
U11	73 Outperform	$58.56B	9.88	12.80%	5.78%	-0.76%	4.96%
S41	72 Outperform	S$1.17B	13.99	4.02%	4.89%	-10.51%	-15.79%
O39	71 Outperform	$75.86B	10.32	12.87%	5.59%	0.69%	-0.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
U10	67 Neutral	€2.44B	11.07	10.50%	4.92%	7.87%	-4.03%
YF8	63 Neutral	S$4.04B	12.12	8.61%	2.97%	-9.47%	131.72%

UOB Corporate Events

UOB Announces New Audit Committee Chairman

United Overseas Bank Limited (UOB) announced a change in the leadership of its Audit Committee, effective 1 July 2025. Mr. Steven Phan Swee Kim will step down as Chairman but remain a member, while Mr. Ong Chong Tee, a member since September 2024, will assume the role of Chairman. This change is part of UOB’s ongoing efforts to strengthen its governance and oversight functions, potentially impacting its operational efficiency and stakeholder confidence.

UOB Achieves Record Earnings with Strong ASEAN Growth

United Overseas Bank Limited (UOB) has reported record earnings, highlighting significant franchise growth across the ASEAN region. This development underscores UOB’s robust market positioning and potential for continued expansion, which could have positive implications for stakeholders and strengthen its competitive edge in the financial industry.

UOB Prices New Senior Notes to Bolster Financial Flexibility

United Overseas Bank Limited has announced the pricing of its new issuance of senior notes under its US$30 billion Global Medium Term Note Programme. The issuance includes US$800 million 4.401% Senior Notes due 2028, US$900 million Senior Floating Rate Notes due 2028, and US$300 million Senior Floating Rate Notes due 2030. The notes are managed by a consortium of banks, including UOB itself, and are intended to strengthen the company’s financial position and support its strategic initiatives. This move is expected to enhance UOB’s liquidity and provide more flexibility in its financial operations, potentially impacting its competitive stance in the financial industry.

UOB Announces Grant of 2.47 Million Restricted Shares

UOB has announced the grant of 2,470,100 Restricted Shares under its Share Plan as of March 15, 2025. These shares, which are restricted by time until they vest, are part of UOB’s strategy to incentivize and retain key personnel, potentially impacting the company’s operational dynamics and stakeholder interests.

UOB’s Sydney Branch to Issue A$2 Billion in Senior Unsecured Notes

United Overseas Bank Limited’s Sydney Branch is set to issue A$2 billion in Floating Rate Senior Unsecured Notes due 2028 under its US$30 billion Global Medium Term Note Programme. This strategic move, managed by a consortium of leading banks, aims to enhance UOB’s market presence and financial flexibility, attracting investors with the notes’ strong credit ratings of Aa1 by Moody’s, and AA- by both Standard & Poor’s and Fitch Ratings.