Industrial Bank Co., Ltd. (601166.SS) stock analysis

In our weekly check, Industrial Bank Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 10.

About Industrial Bank Co., Ltd.

Industrial Bank Co., Ltd. is a Financial Services company (Banks - Regional) based in China, listed on SHH as 601166.SS.

What our checks show for 601166.SS

Red flags

• The gross margin fell by 19.7 points, to 36.9%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 12.7% a year.
• Revenue fell 8.7% a year over the last 3 years.
• Free cash flow is negative (-57.7% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 83% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 11.6 years.
• Return on capital (ROCE) is only 3.2%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 14.4% a year over the last 3 years.
• Net profit fell 6.3% a year over the last 3 years.

Strengths

• The net margin rose by 3.2 points over 5 years, to 24.3%.
• Analysts expect earnings per share to grow about 16% a year over the next years.
• Analysts expect the net margin to improve by 8.7 points from today's 24.3%.
• The company keeps 24.3% of its revenue as net profit.
• The dividend takes 27% of profit: there is a cushion.
• The price is 7.5 times earnings (P/E), reasonable for its growth.

Similar companies

SEB-A.ST · SWED-A.ST · DNB.OL · 2801.TW · YESBANK.NS

Questions

What grade does Industrial Bank Co., Ltd. (601166.SS) have?

In our weekly check, Industrial Bank Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 10. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 601166.SS stock?

This week's biggest flags for Industrial Bank Co., Ltd.: Gross margin falling, Profits not backed by cash, Weak revenue forecast. In total 13 of 25 checks show a warning or a red flag.

What does Industrial Bank Co., Ltd. do?

Industrial Bank Co., Ltd. is a Financial Services company (Banks - Regional) based in China, listed on SHH as 601166.SS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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