Fact based stock research
BDO Unibank (PSE:BDO)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

BDO Unibank stock research in summary

bdo.com.ph

ANALYSIS: With an Obermatt Combined Rank of 17 (worse than 83% compared with investment alternatives), BDO Unibank (Diversified Banks, Philippines) shares have lower financial characteristics compared with similar stocks. Shares of BDO Unibank are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives), show below-average growth (Growth Rank of 43), and are riskily financed (Safety Rank of 27), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 17, is a sell recommendation based on BDO Unibank's financial characteristics. As the company BDO Unibank's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 45), low growth (Obermatt Growth Rank of 43), and risky financing practices (Obermatt Safety Rank of 27), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	45
Growth Rank	43
Safety Rank	27
Combined Rank	17

Country	Philippines
Industry	Diversified Banks
Index	Good Governace Growth Markets, Independent Boards Growth Markets
Size class	XX-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: BDO Unibank

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	37	41	45
GROWTH
GROWTH	19	69	81	43
SAFETY
SAFETY	55	15	33	27
SENTIMENT
SENTIMENT	n/a	100	81	^new
360° VIEW
360° VIEW	n/a	73	81	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better BDO Unibank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	37	41	45
GROWTH
GROWTH	19	69	81	43
SAFETY
SAFETY	55	15	33	27
COMBINED
COMBINED	21	23	57	17

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of BDO Unibank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), BDO Unibank shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for BDO Unibank. Price-to-Sales (P/S) is 61, which means that the stock price compared with what market professionals expect for future sales is lower than for 61% of comparable companies, indicating a good value concerning BDO Unibank's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 57% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 28 (dividends are expected to be higher than for 28% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 57% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for BDO Unibank to 43. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on BDO Unibank's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	35	52	57	61
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	17	39	58	57
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	36	48	46	43
DIVIDEND YIELD
DIVIDEND YIELD	18	17	26	28
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	19	37	41	45

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of BDO Unibank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), BDO Unibank shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for BDO Unibank. Sales Growth has a rank of 54 which means that currently, professionals expect the company to grow more than 54% of its competitors. Capital Growth is also above 45% of competitors with a rank of 59. But Profit Growth only has a rank of 45, which means that currently professionals expect the company to grow its profits less than 55% of its competitors. And Stock Returns have also been below average with a rank of only 31. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	26	53	59	54
PROFIT GROWTH
PROFIT GROWTH	n/a	58	75	45
CAPITAL GROWTH
CAPITAL GROWTH	n/a	67	47	59
STOCK RETURNS
STOCK RETURNS	42	57	75	31
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19	69	81	43

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of BDO Unibank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 27 (better than 27% compared with alternatives), the company BDO Unibank has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of BDO Unibank is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for BDO Unibank and the other two below average. Leverage is at a rank of 86 meaning the company has a below-average debt-to-equity ratio. It has less debt than 86% of its competitors.Refinancing is at a rank of 10, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 90% of its competitors. Liquidity is at a rank of 31, meaning that the company generates less profit to service its debt than 69% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 27 (worse than 73% compared with alternatives), BDO Unibank has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of BDO Unibank are on the safer side. Investors may have a short-term debt challenge and liquidity issues with BDO Unibank and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	56	68	90	86
REFINANCING
REFINANCING	1	22	9	10
LIQUIDITY
LIQUIDITY	94	21	36	31
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	55	15	33	27

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of BDO Unibank and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	78	67	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	72	59	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	85	31	^new
MARKET PULSE
MARKET PULSE	n/a	72	94	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	100	81	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for BDO Unibank.
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