Here's Why United Overseas Bank (SGX:U11) Has Caught The Eye Of Investors
Here's Why United Overseas Bank (SGX:U11) Has Caught The Eye Of Investors
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like United Overseas Bank (SGX:U11). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide United Overseas Bank with the means to add long-term value to shareholders.
Check out our latest analysis for United Overseas Bank
How Fast Is United Overseas Bank Growing Its Earnings Per Share?
Even when EPS earnings per share (EPS) growth is unexceptional, company value can be created if this rate is sustained each year. So it's easy to see why many investors focus in on EPS growth. United Overseas Bank's EPS has risen over the last 12 months, growing from S$2.17 to S$2.61. That's a 20% gain; respectable growth in the broader scheme of things.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Not all of United Overseas Bank's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. United Overseas Bank maintained stable EBIT margins over the last year, all while growing revenue 17% to S$10b. That's encouraging news for the company!
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
SGX:U11 Earnings and Revenue History December 13th 2022You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for United Overseas Bank's future profits.
Are United Overseas Bank Insiders Aligned With All Shareholders?
It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
The real kicker here is that United Overseas Bank insiders spent a staggering S$3.3m on acquiring shares in just one year, without single share being sold in the meantime. The shareholders within the general public should find themselves expectant and certainly hopeful, that this large outlay signals prescient optimism for the business. Zooming in, we can see that the biggest insider purchase was by Deputy Chairman & CEO Ee Cheong Wee for S$1.3m worth of shares, at about S$26.95 per share.
The good news, alongside the insider buying, for United Overseas Bank bulls is that insiders (collectively) have a meaningful investment in the stock. We note that their impressive stake in the company is worth S$8.2b. Coming in at 16% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver.
Should You Add United Overseas Bank To Your Watchlist?
One positive for United Overseas Bank is that it is growing EPS. That's nice to see. Better yet, insiders are significant shareholders, and have been buying more shares. That makes the company a prime candidate for your watchlist - and arguably a research priority. What about risks? Every company has them, and we've spotted 1 warning sign for United Overseas Bank you should know about.
The good news is that United Overseas Bank is not the only growth stock with insider buying. Here's a list of them... with insider buying in the last three months!
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
投資者往往以發現“下一個大事件”為指導,即使這意味着在沒有任何收入、更不用説利潤的情況下買入“故事股”。有時,這些故事可能會矇蔽投資者的頭腦,導致他們以自己的情緒投資,而不是投資於良好的公司基本面。一家虧損的公司還沒有用盈利來證明自己,最終外部資本的流入可能會枯竭。
儘管處於科技股藍天投資的時代,許多投資者仍採取更傳統的策略;購買盈利的公司的股票,如大華銀行(新加坡證券交易所:U11)。即使大華銀行得到市場的公平估值,投資者也會同意,產生穩定的利潤將繼續為大華銀行提供為股東增加長期價值的手段。
查看我們對大華銀行的最新分析
大華銀行每股收益增長速度有多快?
即使在每股收益(EPS)增長正常的情況下,如果每年保持這一速度,也可以創造公司價值。因此,很容易理解為什麼許多投資者關注每股收益的增長。大華銀行的每股收益在過去12個月裏有所上升,從2.17新元增至2.61新元。這是20%的增長;從更廣泛的角度來看,這是一個可觀的增長。
仔細考慮收入增長和息税前利潤(EBIT)利潤率有助於瞭解最近利潤增長的可持續性。大華銀行今年的營收並非全部是營收從運營部因此,請記住,本文中使用的收入和利潤率數字可能不是基礎業務的最佳代表。大華銀行去年保持了穩定的息税前利潤,同時收入增長了17%,達到100億新元。這對公司來説是個鼓舞人心的消息!
下面的圖表顯示了該公司的利潤和收入是如何隨着時間的推移而變化的。點擊圖表查看確切的數字。
新交所:U11收益和收入歷史2022年12月13日你開車的時候眼睛不會盯着後視鏡,所以你可能會對這個更感興趣免費顯示分析師對大華銀行預測的報告未來利潤。
大華銀行內部人士是否與所有股東一致?
有人説,無風不起浪。對於投資者來説,內幕購買往往是表明哪些股票可能點燃市場的煙霧。因為通常情況下,購買股票是買家認為其價值被低估的跡象。然而,內部人士有時是錯的,我們不知道他們收購背後的確切想法。
真正的問題是,大華銀行內部人士在短短一年內斥資330萬新元購入股份,而在此期間卻沒有出售任何股份。普通公眾中的股東應該發現自己期待着,當然也充滿希望,因為這筆鉅額支出標誌着對企業的先見之明的樂觀。放大後,我們可以看到,最大的內部收購是副董事長兼首席執行官EE Cheong Wee以每股26.95新元的價格收購了價值130萬新元的股票。
對於看漲大華銀行的人來説,除了內部人士購買外,好消息是內部人士(集體)對大華銀行股票進行了有意義的投資。我們注意到,他們在該公司令人印象深刻的股份價值82億新元。持股比例為16%,這給內部人士帶來了很大的影響力,也有足夠的理由為股東創造價值。因此,這裏有機會投資於一家管理層具有切實激勵措施的公司。
您是否應該將大華銀行列入您的觀察名單?
大華銀行的一個利好消息是,它的每股收益正在增長。很高興見到你。更好的是,內部人士是大股東,他們一直在買入更多股票。這使該公司成為你觀察名單的首選--也可以説是研究重點。那麼風險呢?每家公司都有它們,我們已經發現大華銀行的1個警告標誌你應該知道。
好消息是,大華銀行並不是唯一一隻有內幕買入的成長股。這是他們的名單。在過去的三個月裏有內幕交易!
請注意,本文中討論的內幕交易指的是相關司法管轄區內的應報告交易。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
譯文內容由第三人軟體翻譯。
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