OTCPK:BCMX.Y

Stock Analysis Report

Bank of Communications

Executive Summary

Bank of Communications Co., Ltd. provides commercial banking products and services primarily in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Bank of Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

BCMX.Y

2.7%

US Banks

0.4%

US Market


1 Year Return

n/a

BCMX.Y

2.7%

US Banks

6.9%

US Market

Return vs Industry: Insufficient data to determine how BCMX.Y performed against the US Banks industry.

Return vs Market: Insufficient data to determine how BCMX.Y performed against the US Market.


Shareholder returns

BCMX.YIndustryMarket
7 Day0%2.7%0.4%
30 Day-0.2%0.2%-1.2%
90 Dayn/a2.9%-0.4%
1 Yearn/a5.7%2.7%9.3%6.9%
3 Year1.1%-12.4%52.1%41.6%45.8%36.4%
5 Year15.6%-9.1%69.2%50.7%62.9%45.1%

Price Volatility Vs. Market

How volatile is Bank of Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bank of Communications undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BCMX.Y ($16.6) is trading below our estimate of fair value ($38.37)

Significantly Undervalued: BCMX.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BCMX.Y is good value based on its PE Ratio (4.9x) compared to the Banks industry average (12.6x).

PE vs Market: BCMX.Y is good value based on its PE Ratio (4.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: BCMX.Y is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: BCMX.Y is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Bank of Communications forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCMX.Y's forecast earnings growth (5.4% per year) is above the savings rate (2.7%).

Earnings vs Market: BCMX.Y's earnings (5.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: BCMX.Y's revenue (7.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: BCMX.Y's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BCMX.Y's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Bank of Communications performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BCMX.Y's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: BCMX.Y's earnings growth over the past year (9.3%) exceeds its 5-year average (1.7% per year).

Earnings vs Industry: BCMX.Y earnings growth over the past year (9.3%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: BCMX.Y's Return on Equity (10.5%) is considered low.


Return on Assets

ROA vs Industry: BCMX.Y's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BCMX.Y's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Bank of Communications'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

Inventory Level: BCMX.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: BCMX.Y's debt is covered by short term assets (assets are 1.758150x debt).


Financial Institutions Analysis

Asset Level: BCMX.Y's level of assets compared to its equity is moderate.

Allowance for Bad Loans: BCMX.Y has a sufficient allowance for bad loans.

Low Risk Liabilities: BCMX.Y's liabilities are made up of primarily low risk sources of funding.

Loan Level: BCMX.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BCMX.Y's loans are broadly funded by customer deposits.

Level of Bad Loans: BCMX.Y has an appropriate level of bad loans (1.38%)


Next Steps

Dividend

What is Bank of Communications's current dividend yield, its reliability and sustainability?

6.29%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years7.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BCMX.Y's dividend (6.29%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BCMX.Y's dividend (6.29%) is in the top 25% of dividend payers in the US market (3.73%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), BCMX.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BCMX.Y's dividends in 3 years are forecast to be well covered by earnings (31.7% payout ratio).


Next Steps

Management

What is the CEO of Bank of Communications's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Deqi Ren (56yo)

1.3yrs

Tenure

CN¥375,600

Compensation

Mr. Deqi Ren serves as Vice Chairman of the Board at Bank of Communications Co., Ltd. since June 21, 2019. He served as Chairman of the Board at Bank of Communications Co., Ltd. from April 2019 until June  ...


CEO Compensation Analysis

Compensation vs. Market: Deqi has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Deqi's compensation with company performance.


Management Age and Tenure

1.3yrs

Average Tenure

57yo

Average Age

Experienced Management: BCMX.Y's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BCMX.Y's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Weidong Hou (59yo)

    Executive VP & Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥665.40k
  • Junkang Xu (72yo)

    General Manager

    • Tenure: 0yrs
  • Jiajin Lyu (51yo)

    Executive Vice President

    • Tenure: 0.8yrs
  • Siu Ng (66yo)

    HSBC-BoCom Strategic Cooperation Consultant & Senior Management Member

    • Tenure: 6.6yrs
  • Deqi Ren (56yo)

    President & Vice Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: CN¥375.60k
  • Zhao Wu (65yo)

    Strategic Cooperation Consultant

    • Tenure: 6.6yrs
  • Mang Guo (57yo)

    Executive Vice President

    • Tenure: 1.3yrs
    • Compensation: CN¥1.12m
  • Eric Pan

    Senior Manager

    • Tenure: 0yrs
  • Han Xu (53yo)

    Chief Business Officer of Retail & Private Business

    • Tenure: 1.1yrs
    • Compensation: CN¥293.60k
  • Hong Tu (53yo)

    Chief Business Officer of Interbank & Market Business

    • Tenure: 1.1yrs
    • Compensation: CN¥293.60k

Board Members

  • Jason Yeung (64yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥250.00k
  • Weidong Hou (59yo)

    Executive VP & Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥665.40k
  • Haoyi Cai (65yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
  • Jian Li (66yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥250.00k
  • Li Liu (64yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: CN¥250.00k
  • Taiyin Wang (55yo)

    Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: CN¥841.50k
  • Deqi Ren (56yo)

    President & Vice Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: CN¥375.60k
  • Haoyang Liu (46yo)

    Non-Executive Director

    • Tenure: 3.2yrs
  • Zhaobin He (50yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥882.10k
  • Guobin Song (54yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥882.10k

Company Information

Bank of Communications Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank of Communications Co., Ltd.
  • Ticker: BCMX.Y
  • Exchange: OTCPK
  • Founded: 1908
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$428.709b
  • Listing Market Cap: HK$54.667b
  • Shares outstanding: 74.26b
  • Website: https://www.bankcomm.com

Number of Employees


Location

  • Bank of Communications Co., Ltd.
  • 188 Yin Cheng Zhong Lu
  • Pilot Free Trade Zone
  • Shanghai
  • 200120
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3328SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2005
C4CDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 2005
BKFC.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJun 2005
3328SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2005
3328SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2005
601328SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYMay 2007
601328XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYMay 2007
BCMX.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Bank of Communications Co., Ltd. provides commercial banking products and services primarily in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company offers personal ba ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:06
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.