Bank of Communications Co., Ltd. (601328.SS) stock analysis

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

About Bank of Communications Co., Ltd.

Bank of Communications Co., Ltd. is a Financial Services company (Banks - Diversified) based in China, listed on SHH as 601328.SS.

What our checks show for 601328.SS

Red flags

• The gross margin fell by 9.7 points, to 45.8%: 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 17.7% a year.
• Free cash flow is negative (-144% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 75% from a peak. Would you have held through that?
• The share count grew by 20.3% in 2 years: each shareholder owns a smaller slice.
• Return on capital (ROCE) is only 0.9%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Revenue grew only 0.2% a year over the last 3 years.
• Earnings per share fell 1.8% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 1.1 points over 5 years, to 19.2%.
• Analysts expect the net margin to improve by 14.2 points from today's 19.2%.
• The dividend takes 25% of profit: there is a cushion.
• The price is 8 times earnings (P/E), reasonable for its growth.
• A large company: market value $115 billion.
• The price moves calmly: 18.6% annual volatility.

Similar companies

JPM · BAC · SHB-A.ST · HSBC · RY · CBA.AX

Questions

What grade does Bank of Communications Co., Ltd. (601328.SS) have?

In our weekly check, Bank of Communications Co., Ltd. is graded D (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 601328.SS stock?

This week's biggest flags for Bank of Communications 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 Bank of Communications Co., Ltd. do?

Bank of Communications Co., Ltd. is a Financial Services company (Banks - Diversified) based in China, listed on SHH as 601328.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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