Postal Savings Bank of China Co., Ltd. (601658.SS) stock analysis

In our weekly check, Postal Savings Bank of China Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7.

About Postal Savings Bank of China Co., Ltd.

Postal Savings Bank of China Co., Ltd. is a Financial Services company (Banks - Regional) based in China, listed on SHH as 601658.SS.

What our checks show for 601658.SS

Red flags

• The gross margin fell by 16.2 points, to 83.8%: costs are rising faster than prices.
• Operating cash flow is only 0.1x net profit: part of the reported profit does not arrive as cash.
• Free cash flow is negative (-1.1% of revenue): the business spends more cash than it brings in.
• The share count grew by 22.8% in 2 years: each shareholder owns a smaller slice.
• Return on capital (ROCE) is only 0.1%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 4.9 points over 5 years, to 23.1%: the company keeps less of each sale as profit.
• Analysts expect only about 4.1% a year of growth in revenue.
• Analysts expect the net margin to shrink by 1.1 points from today's 23.1%.
• Earnings per share fell 5.7% a year over the last 3 years.
• Recovering from its deepest fall took about 2.7 years.

Strengths

• The company keeps 23.1% of its revenue as net profit.
• The dividend takes 47% of profit: there is a cushion.
• The price is 8 times earnings (P/E), reasonable for its growth.
• A large company: market value $86.44 billion.
• The price moves calmly: 18.8% annual volatility.
• Beta 0.41: the stock usually moves less than the market.

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Questions

What grade does Postal Savings Bank of China Co., Ltd. (601658.SS) have?

In our weekly check, Postal Savings Bank of China Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 601658.SS stock?

This week's biggest flags for Postal Savings Bank of China Co., Ltd.: Gross margin falling, Profits not backed by cash, Weak free cash flow. In total 12 of 25 checks show a warning or a red flag.

What does Postal Savings Bank of China Co., Ltd. do?

Postal Savings Bank of China Co., Ltd. is a Financial Services company (Banks - Regional) based in China, listed on SHH as 601658.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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