Industrial & Commercial Bank of China Ltd. (601398.SS) stock analysis

In our weekly check, Industrial & Commercial Bank of China Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 2, red flags: 6.

About Industrial & Commercial Bank of China Ltd.

Industrial & Commercial Bank of China Ltd. is a Financial Services company (Banks - Diversified) based in China, listed on SHH as 601398.SS.

What our checks show for 601398.SS

Red flags

• The net margin fell by 24.2 points over 5 years, to 28.7%: the company keeps less of each sale as profit.
• The gross margin fell by 20.5 points, to 79.5%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 10.4% a year.
• The stock has fallen as much as 63% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.5%.

Warning signs

• Operating cash flow is only 0.76x net profit: part of the reported profit does not arrive as cash.
• The stock is still below its previous peak.

Strengths

• Analysts expect the net margin to improve by 12.5 points from today's 28.7%.
• Revenue grew 25.3% a year over the last 3 years.
• The company keeps 28.7% of its revenue as net profit.
• Free cash flow is 17.8% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $445 billion.
• The price moves calmly: 19.3% annual volatility.

Next earnings report: 2026-10-30

Similar companies

1398.HK · 3988.HK · 601288.SS · 0939.HK · JPM · 3328.HK

Questions

What grade does Industrial & Commercial Bank of China Ltd. (601398.SS) have?

In our weekly check, Industrial & Commercial Bank of China Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 2, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 601398.SS stock?

This week's biggest flags for Industrial & Commercial Bank of China Ltd.: Margins falling, Gross margin falling, Weak revenue forecast. In total 8 of 25 checks show a warning or a red flag.

What does Industrial & Commercial Bank of China Ltd. do?

Industrial & Commercial Bank of China Ltd. is a Financial Services company (Banks - Diversified) based in China, listed on SHH as 601398.SS.

When does Industrial & Commercial Bank of China Ltd. report earnings next?

The next earnings report is expected on 2026-10-30. We re-run the checks every week, so the grade can change after it.

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 2026-10-24

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