Industrial Bank (601166.SS)
Financials · Shanghai · China
Fundamentals
Valuation and ratings
Industrial Bank trades at CN¥17.70, which is 115% below the CN¥38.13 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 46 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 5.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Industrial Bank
Industrial Bank Co., Ltd. provides banking products and services in the People's Republic of China. The company's banking services include accepting deposits from the public; granting short-term, medium-term, and long-term loans; domestic and overseas settlement services; issuance of discount and acceptance bills and notes, as well as financial bonds; agency issuance and encashment, and underwriting of government bonds and debentures; trading of government and financial bonds and debentures; agency trading and trading of marketable securities except stock; asset custody business; settlement and sale of foreign exchanges; and inter-bank lending and borrowings. It also provides bank cards; letters of credit and guarantees; remittance and insurance agent services; safety deposit box and financial advisory services; and credit investigation, advisory, and attestation services. In addition, the company is involved in finance leasing, trust, fund raising and marketing, asset management, consumer finance, equity investment, industrial investment, and investment management and consulting; financial, business, and enterprise management consulting; financial data processing, commodity and financial futures brokerage, futures investment consulting, and economic information consulting; import and export of gold and its products; sale of public offering of fund; custody of securities investment funds; wealth management consulting and advisory services; and application software development and operational, and system integration services. Further, it engages in the acquisition, transfer, and disposal of bad debts in batches of financial and non-financial institutions; issuance of wealth management products and debt-to-equity swaps services; and other banking activities. Additionally, the company offers debit and credit card, and internet and mobile banking services. Industrial Bank Co., Ltd. was founded in 1988 and is headquartered in Fuzhou, the People's Republic of China.
601166.SS passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Industrial Bank (601166.SS) undervalued?
Against our discounted cash flow estimate of CN¥38.13, 601166.SS at CN¥17.70 is 115% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 601166.SS's P/E ratio?
601166.SS trades at 5.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.