Fact based stock research
Hong Leong Bank (KLSE:HLBANK)

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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.

Hong Leong Bank stock research in summary

hlb.com.my

ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), Hong Leong Bank (Diversified Banks, Malaysia) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Hong Leong Bank are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives) and show below-average growth (Growth Rank of 22) but are safely financed (Safety Rank of 73), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on Hong Leong Bank's financial characteristics. As the company Hong Leong Bank's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 37) and low growth (Obermatt Growth Rank of 22), 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. In this case, good financing practices (Obermatt Safety Rank of 73) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for 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	37
Growth Rank	22
Safety Rank	73
Combined Rank	42

Country	Malaysia
Industry	Diversified Banks
Index	Independent Boards Growth Markets
Size class	Small

31-Jul-2025. 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: Hong Leong Bank

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	29	23	31	37
GROWTH
GROWTH	37	11	43	22
SAFETY
SAFETY	43	23	38	73
SENTIMENT
SENTIMENT	45	61	95	^new
360° VIEW
360° VIEW	9	3	52	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Hong Leong Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	29	23	31	37
GROWTH
GROWTH	37	11	43	22
SAFETY
SAFETY	43	23	38	73
COMBINED
COMBINED	13	1	18	42

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Hong Leong Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 37 (worse than 63% compared with alternatives), Hong Leong Bank shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Hong Leong Bank. Price-to-Profit (also referred to as price-earnings, P/E) is 52 which means that the stock price compared with what market professionals expect for future profits is lower than for 52% of comparable companies, indicating a good value concerning Hong Leong Bank's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 52, which means that the stock price is lower as regards to invested capital than for 52% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 90% of alternatives (only 10% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 56% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 37, is a hold recommendation based on Hong Leong Bank's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	13	7	11	10
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	29	36	46	52
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	42	56	55	52
DIVIDEND YIELD
DIVIDEND YIELD	43	36	38	44
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	29	23	31	37

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Hong Leong Bank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 22 (better than 22% compared with alternatives), Hong Leong Bank shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Hong Leong Bank. While Profit Growth has a good rank of 55, as professionals currently expect the company to grow its profits more than 55% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 26, which means that currently professionals expect the company to grow less than 74% of its competitors, while Capital Growth has a rank of 27 and Stock Returns have been below market median, with a rank of 37 (63% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 22, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. 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 limited here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	20	41	42	26
PROFIT GROWTH
PROFIT GROWTH	20	32	45	55
CAPITAL GROWTH
CAPITAL GROWTH	73	25	51	27
STOCK RETURNS
STOCK RETURNS	53	25	47	37
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	37	11	43	22

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Hong Leong Bank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 73 (better than 73% compared with alternatives), the company Hong Leong Bank has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Hong Leong Bank is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Hong Leong Bank.Leverage is at 72, meaning the company has a below-average debt-to-equity ratio. It has less debt than 72% of its competitors.Refinancing is at a rank of 53, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 53% of its competitors. Liquidity is at 48, meaning that the company generates less profit to service its debt than 52% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 73 (better than 73% compared with alternatives), Hong Leong Bank has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Hong Leong Bank more challenging. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	40	46	52	72
REFINANCING
REFINANCING	88	43	52	53
LIQUIDITY
LIQUIDITY	18	31	41	48
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	43	23	38	73

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hong Leong Bank and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	44	95	^new
OPINIONS CHANGE
OPINIONS CHANGE	44	31	50	^new
PRO HOLDINGS
PRO HOLDINGS	15	73	63	^new
MARKET PULSE
MARKET PULSE	70	68	83	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	45	61	95	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Hong Leong Bank.
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