Fact based stock research
The Shanghai Commercial & Savings Bank (TSEC:5876)

TW0005876007

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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).

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The Shanghai Commercial & Savings Bank stock research in summary

scsb.com.tw

ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), The Shanghai Commercial & Savings Bank (Diversified Banks, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of The Shanghai Commercial & Savings Bank are low in value (priced high) with a consolidated Value Rank of 27 (worse than 73% of alternatives) and show below-average growth (Growth Rank of 1) but are safely financed (Safety Rank of 68), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 14, is a sell recommendation based on The Shanghai Commercial & Savings Bank's financial characteristics. As the company The Shanghai Commercial & Savings Bank's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 27) and low growth (Obermatt Growth Rank of 1), 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 68) 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	27
Growth Rank	1
Safety Rank	68
Combined Rank	14

Country	Taiwan
Industry	Diversified Banks
Index	FTSE Taiwan
Size class	Large

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

Further information

Multiple opinions. One number.

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

Research History: The Shanghai Commercial & Savings Bank

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	9	18	27
GROWTH
GROWTH	9	18	33	1
SAFETY
SAFETY	70	32	76	68
SENTIMENT
SENTIMENT	n/a	96	66	^new
360° VIEW
360° VIEW	n/a	17	43	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better The Shanghai Commercial & Savings Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	9	18	27
GROWTH
GROWTH	9	18	33	1
SAFETY
SAFETY	70	32	76	68
COMBINED
COMBINED	21	4	34	14

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of The Shanghai Commercial & Savings Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 27 (worse than 73% compared with alternatives), The Shanghai Commercial & Savings Bank shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for The Shanghai Commercial & Savings Bank. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 70% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 38 which means that the stock price compared with what market professionals expect for future profits is higher than 62% of comparable companies, indicating a low value concerning The Shanghai Commercial & Savings Bank's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 23 which means that the stock price compared with what market professionals expect for future profit levels is higher than 77% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 35 is also low. Compared with invested capital, the stock price is higher than for 65% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 27, is a hold recommendation based on The Shanghai Commercial & Savings Bank's stock price compared with the company's operational size and dividend yields. Should dividend investors pick The Shanghai Commercial & Savings Bank? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose The Shanghai Commercial & Savings Bank only if they reasonably expect the low current profit levels to be transitory. 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 essential 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)	6	16	20	38
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	6	16	24	23
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	32	19	23	35
DIVIDEND YIELD
DIVIDEND YIELD	48	52	65	70
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	19	9	18	27

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of The Shanghai Commercial & Savings 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 1 (better than 1% compared with alternatives), The Shanghai Commercial & Savings 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 indicators below average for The Shanghai Commercial & Savings Bank. Only Capital Growth has a good rank of 53, which means that currently professionals expect the company to grow its invested capital more than 4% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 4 which means that currently professionals expect the company to grow less than 96% of its competitors. Profit Growth with a rank of 4 and Stock Returns with a rank of 9 are also low (below 91% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 1, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for The Shanghai Commercial & Savings Bank is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the 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, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	6	73	15	4
PROFIT GROWTH
PROFIT GROWTH	n/a	19	63	4
CAPITAL GROWTH
CAPITAL GROWTH	n/a	11	83	53
STOCK RETURNS
STOCK RETURNS	30	41	29	9
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	9	18	33	1

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of The Shanghai Commercial & Savings Bank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 68 (better than 68% compared with alternatives), the company The Shanghai Commercial & Savings 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 The Shanghai Commercial & Savings 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 The Shanghai Commercial & Savings Bank.Leverage is at 58, meaning the company has a below-average debt-to-equity ratio. It has less debt than 58% of its competitors.Refinancing is at a rank of 89, 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 89% of its competitors. Liquidity is at 35, meaning that the company generates less profit to service its debt than 65% 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 68 (better than 68% compared with alternatives), The Shanghai Commercial & Savings 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 The Shanghai Commercial & Savings Bank more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	90	27	44	58
REFINANCING
REFINANCING	16	92	92	89
LIQUIDITY
LIQUIDITY	47	27	51	35
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	70	32	76	68

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of The Shanghai Commercial & Savings Bank 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	100	31	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	96	100	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	1	90	^new
MARKET PULSE
MARKET PULSE	n/a	78	1	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	96	66	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for The Shanghai Commercial & Savings Bank.
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