Financial Analysis of BDO Unibank
The country’s largest lender Banco de Oro Unibank (BDO) is in line to meet its P20.4- billion net profit guidance for this year according to an article written by Dumlao (2013). This section analyses the financial performance of Banco de Oro to determine how efficient the bank utilizes its assets and how the bank has performed over the last five years.
The researchers have employed ratio analysis method and have used data from year 2008 to 2012, all based on fiscal year end to make the analysis more accurate.
Valuation Measures
Market capitalization of BDO has increased fivefold in 2012 amounting to P260.867 billion from P55.248 billion five years ago. Net sales is likewise positive for five consecutive years, from P56 billion to P78 billion. BDO has aggressively expanded operations in almost all provinces in the country, this has been made possible by follow on offering and expanding leverage in their portfolio. The total debt has now reached to P100.359 billion from P79.056 billion in 2008.
Net Assets of P1,239.293 billion has increased 35% or P443.040 billion, making BDO one of the largest commercial bank in the country. EBITDA has posted twofold increase from P10.01 billion to P22.714, this shows the company’s sound financial performance and strong profitability over the last five years. Capital Expenditures on the other hand has been reduced from P5.078 billion to P2.975 billion last year.
Historical P/E ratio of BDO from 26.4 to 16.3 suggests that investors do not expect higher earnings growth in the future for the company. The trend has changed after the financial crisis took place in 2008, shareholders are now only willing to pay P16.3 for every single peso earned by the company. In terms of Price-to-Cash flow, the market’s expectations of BDO’s future financial health has become conservative from as high as 12.7 in 2008 down to 10.6 last year. Price to Book value has increased from 1.0 to 1.7 which indicates that the company has earned a good
The researchers have employed ratio analysis method and have used data from year 2008 to 2012, all based on fiscal year end to make the analysis more accurate.
Valuation Measures
Market capitalization of BDO has increased fivefold in 2012 amounting to P260.867 billion from P55.248 billion five years ago. Net sales is likewise positive for five consecutive years, from P56 billion to P78 billion. BDO has aggressively expanded operations in almost all provinces in the country, this has been made possible by follow on offering and expanding leverage in their portfolio. The total debt has now reached to P100.359 billion from P79.056 billion in 2008.
Net Assets of P1,239.293 billion has increased 35% or P443.040 billion, making BDO one of the largest commercial bank in the country. EBITDA has posted twofold increase from P10.01 billion to P22.714, this shows the company’s sound financial performance and strong profitability over the last five years. Capital Expenditures on the other hand has been reduced from P5.078 billion to P2.975 billion last year.
Historical P/E ratio of BDO from 26.4 to 16.3 suggests that investors do not expect higher earnings growth in the future for the company. The trend has changed after the financial crisis took place in 2008, shareholders are now only willing to pay P16.3 for every single peso earned by the company. In terms of Price-to-Cash flow, the market’s expectations of BDO’s future financial health has become conservative from as high as 12.7 in 2008 down to 10.6 last year. Price to Book value has increased from 1.0 to 1.7 which indicates that the company has earned a good