Agricultural Bank of China Limited provides corporate and retail banking products and services. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. It offers demand, personal call, foreign currency time, foreign currency call, time or demand optional, foreign exchange demand, foreign exchange call, foreign exchange time, certificates of deposit, savings, agreed-term, and negotiated deposits; and loans comprise housing, consumer, business, fixed asset, working capital, real estate, and entrusted syndicated loans, as well as trade finances, guarantees and commitments, and loans with custody of export rebates accounts.
Agricultural Bank of China Fundamentals Summary
How do Agricultural Bank of China's earnings and revenue compare to its market cap?
Is 1288 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
6/6
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 1288?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for 1288. This is calculated by dividing 1288's market cap by their current
preferred multiple.
What is 1288's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
CN¥1.04t
1288 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: 1288 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the Hong Kong Banks industry average (5.6x)
Price to Earnings Ratio vs Fair Ratio
What is 1288's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
1288 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
3.8x
Fair PE Ratio
5.9x
Price-To-Earnings vs Fair Ratio: 1288 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the estimated Fair Price-To-Earnings Ratio (5.9x).
Share Price vs Fair Value
What is the Fair Price of 1288 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 1288 (HK$2.96) is trading below our estimate of fair value (HK$14.23)
Significantly Below Fair Value: 1288 is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: 1288 is good value based on its PEG Ratio (0.5x)
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Future Growth
How is Agricultural Bank of China forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Future Growth Score
1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
7.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1288's forecast earnings growth (7.1% per year) is above the savings rate (1.5%).
Earnings vs Market: 1288's earnings (7.1% per year) are forecast to grow slower than the Hong Kong market (17.2% per year).
High Growth Earnings: 1288's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1288's revenue (8.9% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).
High Growth Revenue: 1288's revenue (8.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1288's Return on Equity is forecast to be low in 3 years time (11.3%).
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Past Performance
How has Agricultural Bank of China performed over the past 5 years?
Past Performance Score
3/6
Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
4.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1288 has a high level of non-cash earnings.
Growing Profit Margin: 1288's current net profit margins (41.1%) are lower than last year (41.9%).
Past Earnings Growth Analysis
Earnings Trend: 1288's earnings have grown by 4.1% per year over the past 5 years.
Accelerating Growth: 1288's earnings growth over the past year (11.6%) exceeds its 5-year average (4.1% per year).
Earnings vs Industry: 1288 earnings growth over the past year (11.6%) exceeded the Banks industry 11.4%.
Return on Equity
High ROE: 1288's Return on Equity (9.7%) is considered low.
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Financial Health
How is Agricultural Bank of China's financial position? (This company is analysed differently as a bank or financial institution)
Financial Health Score
6/6
Financial Health Score 6/6
Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: 1288's Assets to Equity ratio (12.2x) is moderate.
Allowance for Bad Loans: 1288 has a sufficientallowance for bad loans (301%).
Low Risk Liabilities: 89% of 1288's liabilities are made up of primarily low risk sources of funding.
Loan Level: 1288 has an appropriate level of Loans to Assets ratio (56%).
Low Risk Deposits: 1288's Loans to Deposits ratio (69%) is appropriate.
Level of Bad Loans: 1288 has an appropriate level of bad loans (1.4%).
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Dividend
What is Agricultural Bank of China current dividend yield, its reliability and sustainability?
Dividend Score
6/6
Dividend Score 6/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
8.17%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 1288's dividend (8.17%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.7%).
High Dividend: 1288's dividend (8.17%) is in the top 25% of dividend payers in the Hong Kong market (7.69%)
Stability and Growth of Payments
Stable Dividend: 1288's dividends per share have been stable in the past 10 years.
Growing Dividend: 1288's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (30.9%), 1288's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1288's dividends in 3 years are forecast to be well covered by earnings (34.6% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Qingsong Zhang (56 yo)
2.58yrs
Tenure
CN¥819,900
Compensation
Mr. Qingsong Zhang has been the President of Agricultural Bank of China Ltd since November 2019 and its Executive Vice Chairman of the Board since January 14, 2020. Mr. Zhang served as President of Export-...
CEO Compensation Analysis
Compensation vs Market: Qingsong's total compensation ($USD122.23K) is below average for companies of similar size in the Hong Kong market ($USD1.03M).
Compensation vs Earnings: Qingsong's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 1288's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: 1288's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Agricultural Bank of China Limited's employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/06/29 00:00
End of Day Share Price
2022/06/29 00:00
Earnings
2022/03/31
Annual Earnings
2021/12/31
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.