Fact based stock research
State Bank of India (NSEI:SBIN)
INE062A01020
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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.
State Bank of India stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 21 (worse than 79% compared with investment alternatives), State Bank of India (Diversified Banks, India) shares have lower financial characteristics compared with similar stocks. Shares of State Bank of India are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives), and are riskily financed (Safety Rank of 15, which means above-average debt burdens) but show above-average growth (Growth Rank of 71). ...read more
RECOMMENDATION: A Combined Rank of 21, is a sell recommendation based on State Bank of India's financial characteristics. As the company State Bank of India shows low value with an Obermatt Value Rank of 35 (65% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 71% of comparable companies (Obermatt Growth Rank is 71). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 15 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for State Bank of India, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | India |
| Industry | Diversified Banks |
| Index | BSE Sensex, CNX Nifty 50 |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: State Bank of India
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 21 |
|
37 |
|
55 |
|
35 |
|
| GROWTH | ||||||||
| GROWTH | 81 |
|
73 |
|
65 |
|
71 |
|
| SAFETY | ||||||||
| SAFETY | 13 |
|
5 |
|
11 |
|
15 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
87 |
|
79 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
51 |
|
59 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 21 (worse than 79% compared with investment alternatives), State Bank of India (Diversified Banks, India) shares have lower financial characteristics compared with similar stocks. Shares of State Bank of India are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives), and are riskily financed (Safety Rank of 15, which means above-average debt burdens) but show above-average growth (Growth Rank of 71). ...read more
RECOMMENDATION: A Combined Rank of 21, is a sell recommendation based on State Bank of India's financial characteristics. As the company State Bank of India shows low value with an Obermatt Value Rank of 35 (65% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 71% of comparable companies (Obermatt Growth Rank is 71). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 15 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for State Bank of India, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 21 |
|
37 |
|
55 |
|
35 |
|
| GROWTH | ||||||||
| GROWTH | 81 |
|
73 |
|
65 |
|
71 |
|
| SAFETY | ||||||||
| SAFETY | 13 |
|
5 |
|
11 |
|
15 |
|
| COMBINED | ||||||||
| COMBINED | 19 |
|
17 |
|
29 |
|
21 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), State Bank of India shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for State Bank of India. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than 50% of comparable companies, indicating a good value concerning to State Bank of India's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 30, meaning that dividends are expected to be lower than for 70% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 68% of alternatives (only 32% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 56% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on State Bank of India's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in State Bank of India could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, State Bank of India looks like an expensive investment today. 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 | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 60 |
|
55 |
|
67 |
|
50 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 6 |
|
46 |
|
57 |
|
44 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 30 |
|
38 |
|
41 |
|
32 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 14 |
|
30 |
|
34 |
|
30 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 21 |
|
37 |
|
55 |
|
35 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), State Bank of India shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for State Bank of India. Sales Growth has a rank of 55 which means that currently, professionals expect the company to grow more than 55% of its competitors. Capital Growth is also above 21% of competitors with a rank of 83, and Stock Returns with the rank of 81 is also an outperformance. Only Profit Growth is low with a rank of 21 which means that currently, professionals expect the company to grow its profits less than 79% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, State Bank of India is a good growth stock. 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. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 72 |
|
64 |
|
54 |
|
55 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 1 |
|
79 |
|
48 |
|
21 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
1 |
|
81 |
|
83 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 100 |
|
99 |
|
47 |
|
81 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 81 |
|
73 |
|
65 |
|
71 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 15 (better than 15% compared with alternatives), the company State Bank of India has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of State Bank of India 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 State Bank of India and the other two below average. Refinancing is at 57, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 57% of its competitors. But Leverage is high with a rank of 38, meaning the company has an above-average debt-to-equity ratio. It has more debt than 62% of its competitors. Liquidity is also on the riskier side with a rank of 7, meaning the company generates less profit to service its debt than 93% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 15 (worse than 85% compared with alternatives), State Bank of India has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for State Bank of India are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with State Bank of India 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 | 48 |
|
40 |
|
38 |
|
38 |
|
| REFINANCING | ||||||||
| REFINANCING | 1 |
|
44 |
|
58 |
|
57 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 47 |
|
4 |
|
10 |
|
7 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 13 |
|
5 |
|
11 |
|
15 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
100 |
|
93 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
67 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
83 |
|
92 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
14 |
|
20 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
87 |
|
79 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for State Bank of India from December 19, 2024.
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