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U11

United Overseas BankSGX:U11 Stock Report

Last Price

S$29.73

Market Cap

S$50.2b

7D

-0.8%

1Y

27.4%

Updated

25 Jan, 2022

Data

Company Financials +
U11 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends4/6

U11 Stock Overview

United Overseas Bank Limited, together with its subsidiaries, provides banking products and services.

United Overseas Bank Competitors

DBS Group Holdings

SGX:D05

S$91.6b

Oversea-Chinese Banking

SGX:O39

S$55.2b

JPMorgan Chase

NYSE:JPM

US$426.7b

Bank of America

NYSE:BAC

US$359.9b

Price History & Performance

Summary of all time highs, changes and price drops for United Overseas Bank
Historical stock prices
Current Share PriceS$29.73
52 Week HighS$30.39
52 Week LowS$23.08
Beta1.03
1 Month Change10.56%
3 Month Change10.73%
1 Year Change27.43%
3 Year Change16.45%
5 Year Change42.11%
Change since IPO581.25%

Recent News & Updates

Shareholder Returns

U11SG BanksSG Market
7D-0.8%0.6%-0.3%
1Y27.4%12.5%4.1%

Return vs Industry: U11 exceeded the SG Banks industry which returned 12.5% over the past year.

Return vs Market: U11 exceeded the SG Market which returned 4.1% over the past year.

Price Volatility

Is U11's price volatile compared to industry and market?
U11 volatility
U11 Average Weekly Movement2.5%
Banks Industry Average Movement3.4%
Market Average Movement4.5%
10% most volatile stocks in SG Market11.8%
10% least volatile stocks in SG Market2.1%

Stable Share Price: U11 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: U11's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193524,571Ee Cheong Weehttps://www.uobgroup.com

United Overseas Bank Limited, together with its subsidiaries, provides banking products and services. The company’s Group Retail segment provides deposits, insurance, card, wealth management, investment, and loan and trade financing products for personal and small enterprise customers. Its Group Wholesale Banking segment offers financing, trade, cash management, and capital markets solutions, as well as advisory and treasury products for medium and large enterprises, local corporations, multi-national corporations, financial institutions, government-linked entities, financial sponsors, and property funds.

United Overseas Bank Fundamentals Summary

How do United Overseas Bank's earnings and revenue compare to its market cap?
U11 fundamental statistics
Market CapS$50.18b
Earnings (TTM)S$3.66b
Revenue (TTM)S$8.66b

13.6x

P/E Ratio

1.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
U11 income statement (TTM)
RevenueS$8.66b
Cost of RevenueS$0
Gross ProfitS$8.66b
ExpensesS$5.01b
EarningsS$3.66b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 16, 2022

Earnings per share (EPS)2.19
Gross Margin100.00%
Net Profit Margin42.20%
Debt/Equity Ratio88.3%

How did U11 perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is United Overseas Bank undervalued compared to its fair value and its price relative to the market?

36.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: U11 (SGD29.73) is trading below our estimate of fair value (SGD46.74)

Significantly Below Fair Value: U11 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: U11 is poor value based on its PE Ratio (13.6x) compared to the Asian Banks industry average (9.9x).

PE vs Market: U11 is poor value based on its PE Ratio (13.6x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: U11 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: U11 is overvalued based on its PB Ratio (1.3x) compared to the XA Banks industry average (0.7x).


Future Growth

How is United Overseas Bank forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: U11's forecast earnings growth (11.4% per year) is above the savings rate (1.8%).

Earnings vs Market: U11's earnings (11.4% per year) are forecast to grow slower than the SG market (14.5% per year).

High Growth Earnings: U11's earnings are forecast to grow, but not significantly.

Revenue vs Market: U11's revenue (9.7% per year) is forecast to grow faster than the SG market (7.5% per year).

High Growth Revenue: U11's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: U11's Return on Equity is forecast to be low in 3 years time (12.6%).


Past Performance

How has United Overseas Bank performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: U11 has high quality earnings.

Growing Profit Margin: U11's current net profit margins (42.2%) are higher than last year (38.9%).


Past Earnings Growth Analysis

Earnings Trend: U11's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: U11's earnings growth over the past year (16.6%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: U11 earnings growth over the past year (16.6%) underperformed the Banks industry 18.5%.


Return on Equity

High ROE: U11's Return on Equity (8.9%) is considered low.


Financial Health

How is United Overseas Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: U11's Assets to Equity ratio (10.6x) is moderate.

Allowance for Bad Loans: U11 has a low allowance for bad loans (93%).

Low Risk Liabilities: 89% of U11's liabilities are made up of primarily low risk sources of funding.

Loan Level: U11 has an appropriate level of Loans to Assets ratio (66%).

Low Risk Deposits: U11's Loans to Deposits ratio (82%) is appropriate.

Level of Bad Loans: U11 has an appropriate level of bad loans (1.5%).


Dividend

What is United Overseas Bank current dividend yield, its reliability and sustainability?

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: U11's dividend (3.33%) is higher than the bottom 25% of dividend payers in the SG market (2.03%).

High Dividend: U11's dividend (3.33%) is low compared to the top 25% of dividend payers in the SG market (5.56%).


Stability and Growth of Payments

Stable Dividend: U11's dividend payments have been volatile in the past 10 years.

Growing Dividend: U11's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.9%), U11's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: U11's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure


CEO

Ee Cheong Wee (68 yo)

14.75yrs

Tenure

S$9,805,000

Compensation

Mr. Ee Cheong Wee, B.Sc. (Bus Admin), M.A. (Applied Econs), has been the Chief Executive Officer of United Overseas Bank Limited since April 27, 2007. Mr. Wee has been the Chief Executive Officer of Far Ea...


CEO Compensation Analysis

Compensation vs Market: Ee Cheong's total compensation ($USD7.28M) is above average for companies of similar size in the SG market ($USD4.81M).

Compensation vs Earnings: Ee Cheong's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: U11's management team is seasoned and experienced (7.9 years average tenure).


Board Members

Experienced Board: U11's board of directors are considered experienced (4 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

United Overseas Bank Limited's employee growth, exchange listings and data sources


Key Information

  • Name: United Overseas Bank Limited
  • Ticker: U11
  • Exchange: SGX
  • Founded: 1935
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: S$50.179b
  • Shares outstanding: 1.67b
  • Website: https://www.uobgroup.com

Number of Employees


Location

  • United Overseas Bank Limited
  • UOB Plaza
  • 80 Raffles Place
  • Singapore
  • 48624
  • Singapore

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/25 11:03
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.