UOB (U11) AI Stock Analysis

• Market Cap: $57.38B
• Dividend Yield: 6.54%
• Average Volume (3M): 3.33M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.11
• Revenue Growth: -0.76%
• EPS Growth: 4.96%
• Country: SG
• Employees: 32,071
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 1,667,413,200
• 10 Day Avg. Volume: 2,818,957
• 30 Day Avg. Volume: 3,331,667
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $33.74
• Price Target Upside: -2.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: S$37.00 ▲(6.63% Upside)

UOB's overall stock score is driven by strong financial performance, particularly in profitability and revenue growth. However, technical indicators suggest bearish momentum, which could pose short-term risks. The valuation is attractive with a low P/E ratio and high dividend yield, providing a potential opportunity for value investors.

Positive Factors

Operational Resilience

UOB's ability to maintain steady performance amid economic challenges highlights its robust operational strategies and resilience, which are crucial for long-term stability and competitiveness in the financial sector.

Profitability and Growth

The steady revenue growth and strong profit margins indicate UOB's effective business model and market position, supporting sustainable profitability and growth over the long term.

Return on Equity

A solid return on equity demonstrates UOB's effective management and ability to generate profits from shareholders' investments, enhancing its long-term financial health and attractiveness to investors.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow indicates potential liquidity issues, which could strain UOB's financial flexibility and ability to invest in growth opportunities, impacting long-term stability.

Moderate Leverage

Moderate leverage suggests potential financial risk, which could limit UOB's ability to respond to economic changes or invest in growth, affecting its long-term financial stability.

Equity Ratio Concerns

A low equity ratio may indicate higher reliance on debt, increasing financial risk and potentially impacting UOB's ability to sustain operations during economic downturns.

UOB Business Overview & Revenue Model

Company Description

United Overseas Bank Limited, together with its subsidiaries, provides banking products and services. It operates through three segments: Group Retail, Group Wholesale Banking, and Global Markets. The company offers loan products, including overdraft, cash credit, short term, and long-term loans. It also provides buyers credit, structured trade finance, SGD bonds, loan syndication, and M&A services. In addition, the company offers forex, documentary collection, credit, bank guarantee, export and import finance services. Further, the company provides inward and outward remittances, FX spot and forward, current account, and time deposit services. Additionally, the company offers letter of credit advising and negotiation/discounting services; and import and export services comprising of inward and outward bill collection services, and documents against acceptance and payment. Furthermore, the company provides private, commercial, corporate, and investment banking services. It also offers corporate finance, treasury, future broking, asset management, venture capital management, insurance, and stockbroking services; engages in capital market, credit card, and private residential home loan businesses; and loans to small and medium enterprises. The company operates approximately 500 branches and offices in Singapore, Malaysia, Indonesia, Thailand, China, and internationally. United Overseas Bank Limited was incorporated in 1935 and is headquartered in Singapore.

How the Company Makes Money

UOB generates revenue primarily through interest income from loans and investments, fees from various banking services, and commissions from financial products. Key revenue streams include the interest spread from personal and corporate loans, fees from credit and debit card transactions, and service charges for account maintenance and other banking services. Additionally, UOB earns income from wealth management services and investment banking activities. The bank also engages in strategic partnerships with fintech companies and other financial institutions to enhance its service offerings and expand its customer base, contributing to its overall earnings.

UOB Financial Statement Overview

Summary

UOB demonstrates strong profitability and revenue growth, with a solid return on equity. However, the balance sheet shows moderate leverage, and the cash flow statement highlights potential liquidity issues due to negative operating cash flow. While the company is profitable, it needs to address cash flow challenges to ensure long-term financial stability.

Income Statement

UOB's income statement shows a steady revenue growth rate of 1.45% in 2024, indicating a positive trajectory. The gross profit margin is robust at 47.93%, and the net profit margin is healthy at 21.69%. However, the EBIT margin of 74.41% seems unusually high, which might indicate a calculation anomaly. Overall, the income statement reflects strong profitability and growth, but the EBIT margin requires further investigation.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 1.29, suggesting a balanced leverage position. The return on equity is solid at 12.15%, reflecting efficient use of equity. However, the equity ratio is relatively low, which could imply higher financial risk. Overall, the balance sheet shows stability with some leverage concerns.

Cash Flow

UOB's cash flow statement reveals a significant decline in operating cash flow, resulting in a negative operating cash flow to net income ratio. Despite this, the free cash flow to net income ratio is positive at 1.06, indicating some level of cash generation. The free cash flow growth rate is notably high at 372.95%, but this is from a negative base, which could be misleading. Overall, the cash flow position is concerning due to negative operating cash flow.

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	3.89B
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: Positive
• Last Price: 34.70
• 50DMA: Positive
• 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 Positive. The current price of 34.7 is above the 20-day moving average (MA) of 34.35, above the 50-day MA of 34.41, and above the 200-day MA of 34.55, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 68.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	S$155.60B	13.82	17.10%	5.19%	2.67%	6.32%
S41	72 Outperform	S$1.16B	13.88	4.02%	4.92%	-10.51%	-15.79%
O39	71 Outperform	S$87.86B	11.95	12.87%	4.80%	0.69%	-0.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
U10	66 Neutral	S$2.50B	11.34	10.50%	4.69%	7.87%	-4.03%
U11	65 Neutral	$57.38B	9.71	12.80%	6.54%	-0.76%	4.96%
YF8	64 Neutral	S$1.46B	4.39	8.61%	3.71%	-9.47%	131.72%

UOB Corporate Events

UOB Prices GBP750 Million Covered Bonds to Bolster Financial Strategy

United Overseas Bank Limited has announced the pricing of GBP750,000,000 in Floating Rate Covered Bonds due in June 2029 under its US$15 billion Global Covered Bond Programme. This issuance, managed by UOB alongside Bank of Montreal and RBC Europe Limited, reflects the bank’s strategy to strengthen its funding base and enhance its financial offerings, potentially impacting its market position and stakeholder interests positively.

UOB Prices EUR850 Million Covered Bonds Under Global Programme

United Overseas Bank Limited has announced the pricing of its EUR850,000,000 2.718% Covered Bonds due in 2030, as part of its US$15 billion Global Covered Bond Programme. This issuance, managed by UOB along with BNP Paribas and other financial institutions, reflects the bank’s strategic efforts to strengthen its financial position and expand its funding sources, potentially enhancing its competitive stance in the global banking sector.

UOB Group Reports Resilient Third Quarter 2025 Results

UOB Group reported a resilient performance in the third quarter of 2025, with an operating profit of S$1.9 billion, driven by growth in loans, deposits, and wealth management. The company proactively set aside general allowances to enhance provision coverage, ensuring resilience against macroeconomic uncertainties. Despite a slight decrease in net interest income, fee income saw significant growth, contributing to the overall positive results. UOB remains committed to its strategic priorities, focusing on the ASEAN region as a key growth engine, and maintaining its dividend commitments.