United Overseas Bank (UOVEY) AI Stock Analysis

• Market Cap: $45.55B
• Dividend Yield: 3.98%
• Average Volume (3M): 36.82K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.40
• Revenue Growth: 1.01%
• EPS Growth: 6.82%
• Country: US
• Employees: 32,071
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 1.20
• Shares Outstanding: 837,711,000
• 10 Day Avg. Volume: 15,653
• 30 Day Avg. Volume: 36,824
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 4.77
• Enterprise Value/Gross Profit: 4.77
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.29
• Price Target Upside: -44.79% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

United Overseas Bank's strong financial performance, particularly in revenue growth and profitability, supports a solid overall score. The robust balance sheet with zero debt adds to financial stability. However, cash flow issues need attention to maintain liquidity. Technical analysis presents mixed signals, with some bearish momentum indicators. The stock's valuation is appealing, with a low P/E ratio and high dividend yield, making it attractive for long-term investors.

United Overseas Bank 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

United Overseas Bank (UOVEY) generates revenue through several key streams. The primary source of income is interest income from loans and advances, which includes personal loans, mortgages, and corporate loans. Non-interest income is another significant revenue stream, derived from service fees, transaction charges, and investment banking services. In addition, UOVEY earns revenue from trading and investment activities within its global markets division. The bank also benefits from strategic partnerships and collaborations that enhance its service offerings and customer reach. Overall, UOVEY's earnings are bolstered by its diversified financial services, strong regional presence, and focus on innovation and customer-centric banking solutions.

United Overseas Bank Financial Statement Overview

Summary

United Overseas Bank shows strong revenue growth and improved profitability, with a substantial net profit margin increase. The balance sheet is robust, with zero debt in 2024, enhancing financial stability. However, cash flow volatility, particularly negative operating and free cash flows in 2024, could pose liquidity risks and requires careful management.

Income Statement

United Overseas Bank has shown strong revenue growth, increasing from $13.07 billion in 2020 to $14.28 billion in 2024. Net profit margins have also improved, rising from 22.29% in 2020 to 42.34% in 2024, indicating enhanced profitability. The revenue growth rate from 2023 to 2024 was a substantial 9.76%, showcasing robust business expansion. However, EBIT margins were not calculable for 2024, as EBIT was reported as zero, which could indicate changes in operational cost structure or reporting practices.

Balance Sheet

The balance sheet reflects a solid equity base with stockholders' equity increasing from $38.53 billion in 2020 to $49.73 billion in 2024. The equity ratio has improved slightly, indicating greater financial stability. The debt-to-equity ratio dropped to zero in 2024 due to zero total debt, reflecting a strong deleveraging position, which minimizes financial risks. Return on equity improved to 12.15% in 2024, showing efficient use of equity capital. However, the significant rise in liabilities must be managed carefully.

Cash Flow

The cash flow statement shows volatility, particularly in operating cash flow, which turned negative in 2024, potentially impacting liquidity. Free cash flow also turned negative, a worrying sign, as it reflects a dip from the positive free cash flow seen in previous years. The operating cash flow to net income ratio is negative, indicating potential cash generation issues from operations. A careful review of cash flow management practices is advisable to ensure long-term financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.28B	13.01B	10.97B	9.13B	7.62B
Gross Profit	14.28B	13.01B	11.58B	9.13B	7.62B
EBITDA	0.00	0.00	6.32B	5.43B	0.00
Net Income	6.04B	5.71B	4.57B	4.08B	2.92B
Balance Sheet
Total Assets	537.66B	523.52B	504.26B	459.32B	431.81B
Cash, Cash Equivalents and Short-Term Investments	76.01B	87.44B	78.67B	69.88B	31.36B
Total Debt	24.97B	23.49B	41.63B	35.21B	48.15B
Total Liabilities	487.71B	477.05B	460.65B	416.46B	393.06B
Stockholders Equity	49.73B	46.23B	43.37B	42.63B	40.90B
Cash Flow
Free Cash Flow	-15.72B	9.89B	9.40B	-3.36B	5.44B
Operating Cash Flow	-14.85B	-16.19B	10.10B	-2.81B	6.00B
Investing Cash Flow	-771.00M	-645.00M	-3.71B	-440.00M	-511.00M
Financing Cash Flow	1.13B	19.27B	5.74B	3.02B	16.51B

United Overseas Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.86
• 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 UOVEY, the sentiment is Positive. The current price of 54.86 is above the 20-day moving average (MA) of 54.51, above the 50-day MA of 54.82, and above the 200-day MA of 52.37, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 52.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UOVEY.

United Overseas Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	79 Outperform	$81.69B	14.17	11.19%	3.13%	3.60%	22.68%
USB	76 Outperform	$75.99B	11.69	11.64%	4.10%	1.10%	32.55%
UOVEY	73 Outperform	$45.55B	10.17	12.80%	3.98%	1.01%	6.82%
ITUB	73 Outperform	$72.12B	10.12	20.49%	6.79%	5.44%	2.81%
LYG	71 Outperform	$63.86B	12.46	10.06%	3.91%	0.76%	-5.74%
Sector *	68 Neutral	$17.90B	11.86	10.29%	3.72%	9.74%	1.66%
MFG	65 Neutral	$83.41B	13.97	8.69%	2.38%	-2.22%	24.37%