OTCPK:UOVE.Y

Stock Analysis Report

Executive Summary

United Overseas Bank Limited provides financial products and services.

Rewards

Trading at 23% below its fair value

Earnings are forecast to grow 2.63% per year

Earnings have grown 6.2% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: UOVE.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

UOVE.Y

1.1%

US Banks

0.7%

US Market


1 Year Return

4.3%

UOVE.Y

21.0%

US Banks

18.2%

US Market

Return vs Industry: UOVE.Y underperformed the US Banks industry which returned 21% over the past year.

Return vs Market: UOVE.Y underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

UOVE.YIndustryMarket
7 Day-0.4%1.1%0.7%
30 Day-5.5%0.8%1.5%
90 Day-0.8%10.5%5.0%
1 Year9.2%4.3%24.6%21.0%20.8%18.2%
3 Year42.1%26.4%31.6%22.4%45.2%35.8%
5 Year25.9%2.6%79.1%59.2%71.6%52.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UOVE.Y ($37.31) is trading below our estimate of fair value ($48.43)

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


Price To Earnings Ratio

PE vs Industry: UOVE.Y is good value based on its PE Ratio (10.3x) compared to the Banks industry average (12.7x).

PE vs Market: UOVE.Y is good value based on its PE Ratio (10.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: UOVE.Y is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: UOVE.Y is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is United Overseas Bank forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UOVE.Y's forecast earnings growth (2.6% per year) is above the savings rate (1.7%).

Earnings vs Market: UOVE.Y's earnings (2.6% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: UOVE.Y's revenue (4.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: UOVE.Y's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UOVE.Y's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

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

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UOVE.Y has high quality earnings.

Growing Profit Margin: UOVE.Y's current net profit margins (44.1%) are higher than last year (44.1%).


Past Earnings Growth Analysis

Earnings Trend: UOVE.Y's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: UOVE.Y's earnings growth over the past year (7.8%) exceeds its 5-year average (6.2% per year).

Earnings vs Industry: UOVE.Y earnings growth over the past year (7.8%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: UOVE.Y's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

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

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

Debt Coverage by Assets: UOVE.Y's debt is covered by short term assets (assets are 2.4x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: UOVE.Y has a low allowance for bad loans.

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

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

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

Level of Bad Loans: UOVE.Y has an appropriate level of bad loans (1.52%)


Next Steps

Dividend

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

5.11%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: UOVE.Y's dividend (5.11%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: UOVE.Y's dividend (5.11%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.3%), UOVE.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UOVE.Y's dividends in 3 years are forecast to be covered by earnings (56.8% payout ratio).


Next Steps

Management

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

10.0yrs

Average management tenure


CEO

Ee Cheong Wee (66yo)

12.7yrs

Tenure

S$10,563,000

Compensation

Mr. Wee Ee Cheong, 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 East ...


CEO Compensation Analysis

Compensation vs Market: Ee Cheong's total compensation ($USD7.77M) is about average for companies of similar size in the US market ($USD10.90M).

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


Management Age and Tenure

10.0yrs

Average Tenure

58yo

Average Age

Experienced Management: UOVE.Y's management team is seasoned and experienced (10 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: UOVE.Y's board of directors are considered experienced (4.7 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

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


Management Team

  • Ee Cheong Wee (66yo)

    Deputy Chairman & CEO

    • Tenure: 12.7yrs
    • Compensation: S$10.56m
  • Susan Hwee

    Head of Group Technology & Operations

    • Tenure: 0yrs
  • Wai Lee (58yo)

    MD & Group CFO

    • Tenure: 14.5yrs
  • Victor Ngo

    Head of Group Compliance

    • Tenure: 2.7yrs
  • Eddie Khoo

    Head of Group Retail

    • Tenure: 0yrs
  • Kok Chan (57yo)

    MD & Group Chief Risk Officer

    • Tenure: 7.3yrs
  • Ian Wong

    Head of Group Strategy & International Management

    • Tenure: 0yrs
  • Joyce Sia

    Head of Group Legal & Company Secretary

    • Tenure: 0yrs
  • Stephen Lin Shih Tung

    Head of Investor Relations

    • Tenure: 0yrs
  • Dean Tong

    Head of Group Human Resources

    • Tenure: 0yrs

Board Members

  • Ee Cheong Wee (66yo)

    Deputy Chairman & CEO

    • Tenure: 12.7yrs
    • Compensation: S$10.56m
  • Cho-Yaw Wee (90yo)

    Chairman Emeritus & Honorary Adviser

    • Tenure: 6.7yrs
    • Compensation: S$617.00k
  • Alex Hungate (52yo)

    Non-Executive & Independent Director

    • Tenure: 2.4yrs
    • Compensation: S$175.00k
  • Michael Lien (55yo)

    Non-Executive & Non-Independent Director

    • Tenure: 2.4yrs
    • Compensation: S$175.00k
  • James Koh (73yo)

    Non-Executive Independent Director

    • Tenure: 7.3yrs
    • Compensation: S$220.00k
  • Alvin Yeo (56yo)

    Non-Executive & Independent Director

    • Tenure: 2.4yrs
    • Compensation: S$200.00k
  • Yew Huat Ong (63yo)

    Non-Executive & Independent Director

    • Tenure: 6.9yrs
    • Compensation: S$402.00k
  • Kevin Lam Lam (50yo)

    President Director of PT Bank UOB Indonesia

    • Tenure: 3.9yrs
  • Hwee Hua Lim (60yo)

    Non-Executive & Independent Director

    • Tenure: 5.4yrs
    • Compensation: S$220.00k
  • Kan Seng Wong (72yo)

    Independent Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: S$960.00k

Company Information

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


Key Information

  • Name: United Overseas Bank Limited
  • Ticker: UOVE.Y
  • Exchange: OTCPK
  • Founded: 1935
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: S$42.475b
  • Listing Market Cap: S$31.238b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UOVE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 1991
UOVE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
U11SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
UOBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

United Overseas Bank Limited provides financial products and services. The company’s Group Retail segment provides deposits, insurance, card, wealth management, investment, and loan and trade financing pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:57
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
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.