Bank of China Limited (China) Buy Hold or Sell Recommendation
| 601988 Stock | 5.37 0.01 0.19% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Bank of China is 'Strong Hold'. Macroaxis provides Bank of China Limited buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 601988 positions.
Check out Bank of China Limited Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Bank and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Bank of China. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Bank |
Execute Bank of China Limited Buy or Sell Advice
The Bank recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Bank of China. Macroaxis does not own or have any residual interests in Bank of China or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Bank of China Limited's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Bank of China Limited Trading Alerts and Improvement Suggestions
| About 90.0% of the company shares are owned by insiders or employees | |
| Latest headline from news.google.com: China bonds biggest bull run in a decade stumbles as stocks take over - Post Magazine |
Bank of China Limited Returns Distribution Density
The distribution of Bank of China Limited's historical returns is an attempt to chart the uncertainty of Bank of China Limited's future price movements. The chart of the probability distribution of Bank of China Limited daily returns describes the distribution of returns around its average expected value. We use Bank of China price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Bank of China Limited returns is essential to provide solid investment advice for Bank of China Limited.
| Mean Return | 0.08 | Value At Risk | -1.89 | Potential Upside | 2.09 | Standard Deviation | 1.19 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Bank of China Limited historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Bank of China Limited Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Investments | (123.0B) | (525.0B) | (173.9B) | (539.4B) | (620.3B) | (651.4B) | |
| Change In Cash | 149.0B | 480.8B | 115.8B | 425.3B | 489.0B | 513.5B | |
| Net Borrowings | 301.4B | 151.0B | 136.2B | 116.0B | 133.4B | 167.0B | |
| Depreciation | 27.5B | 28.8B | 29.2B | 30.4B | 35.0B | 25.2B | |
| Dividends Paid | 65.9B | 70.2B | 78.5B | 112.9B | 129.8B | 77.5B | |
| Capital Expenditures | 39.6B | 30.2B | 27.7B | 29.1B | 26.2B | 28.9B | |
| Net Income | 192.9B | 216.6B | 227.4B | 231.9B | 266.7B | 213.2B | |
| Change To Netincome | 8.6B | (12.0B) | (9.6B) | (9.9B) | (11.4B) | (11.9B) | |
| End Period Cash Flow | 1.5T | 2.0T | 2.1T | 2.5T | 2.9T | 1.8T | |
| Free Cash Flow | 33.4B | 813.1B | (39.1B) | 787.3B | 905.4B | 950.7B | |
| Other Non Cash Items | (82.5B) | 42.6B | (121.9B) | (146.8B) | (132.1B) | (125.5B) |
Bank of China Limited Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Bank of China Limited or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Bank of China Limited's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Bank stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.08 | |
β | Beta against Dow Jones | 0.13 | |
σ | Overall volatility | 1.21 | |
Ir | Information ratio | 0.15 |
Bank of China Limited Volatility Alert
Bank of China has relatively low volatility with skewness of -0.03 and kurtosis of 0.1. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bank of China Limited's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bank of China Limited's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Bank of China Limited Fundamentals Vs Peers
Comparing Bank of China Limited's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Bank of China Limited's direct or indirect competition across all of the common fundamentals between Bank of China Limited and the related equities. This way, we can detect undervalued stocks with similar characteristics as Bank of China Limited or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Bank of China Limited's fundamental indicators could also be used in its relative valuation, which is a method of valuing Bank of China Limited by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Bank of China Limited to competition |
| Fundamentals | Bank of China Limited | Peer Average |
| Return On Equity | 0.0889 | -0.31 |
| Return On Asset | 0.0075 | -0.14 |
| Profit Margin | 0.44 % | (1.27) % |
| Operating Margin | 0.53 % | (5.51) % |
| Current Valuation | 5.91 T | 16.62 B |
| Shares Outstanding | 210.77 B | 571.82 M |
| Shares Owned By Insiders | 90.43 % | 10.09 % |
| Shares Owned By Institutions | 1.46 % | 39.21 % |
| Price To Book | 0.60 X | 9.51 X |
| Price To Sales | 2.80 X | 11.42 X |
| Revenue | 621.92 B | 9.43 B |
| Gross Profit | 531.78 B | 27.38 B |
| Net Income | 231.9 B | 570.98 M |
| Total Debt | 29.68 T | 5.32 B |
| Book Value Per Share | 7.99 X | 1.93 K |
| Cash Flow From Operations | 816.45 B | 971.22 M |
| Earnings Per Share | 0.74 X | 3.12 X |
| Price To Earnings To Growth | 5.50 X | 4.89 X |
| Target Price | 5.04 | |
| Number Of Employees | 306.93 K | 18.84 K |
| Beta | 0.28 | -0.15 |
| Market Capitalization | 1.49 T | 19.03 B |
| Total Asset | 32.43 T | 29.47 B |
| Retained Earnings | 1.13 T | 9.33 B |
| Net Asset | 32.43 T | |
| Last Dividend Paid | 0.24 |
Bank of China Limited Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Bank . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Bank of China Limited Buy or Sell Advice
When is the right time to buy or sell Bank of China? Buying financial instruments such as Bank Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
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Other Information on Investing in Bank Stock
Bank of China Limited financial ratios help investors to determine whether Bank Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Bank with respect to the benefits of owning Bank of China Limited security.