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Case Study on DBS (SGX: D05) - Using ShareInvestor

Posted on the 15 November 2018 by Sgyounginvestment

DBS recently reported a quarterly profit slightly below estimates on Monday (Nov 5), expressing worries due to trade war and property cooling measure that might lead to hold back on its loan book growth next year. With the intensifying tariff dispute between China and the United States impacting Singapore's export-reliant economy, and implementation of new measure, outlook for bank are clouded after reporting their profit last year.

DBS reported net profit came in at S$1.41 billion in the three months ended September as compared to S$822 million a year earlier.

DBS having 31 per cent share of the Singaporean housing loan market mention that the slowdown in new mortgages due to recent cooling measures is bigger than expected. Before the latest round of measures were introduced this year, DBS is expected to grow its mortgage book by around S$4 billion in 2018. However, the lender revised it to S$3.5 billion and now expects about S$2.5 billion after implementation of the cooling measures.

Let's look at how DBS is scoring based on ShareInvestor's grid:

Case Study on DBS (SGX: D05) - Using ShareInvestor

Case Study on DBS (SGX: D05) - Using ShareInvestor

In terms of price movement, although there is a huge decline in its year on year high but there is a strong support for its incremental year on year low.

Reviewing historical CAGR data, the company is also showing positive performances across the ups and downs of both business and market cycles.

Case Study on DBS (SGX: D05) - Using ShareInvestor

However, considering that CAGR does not reveal growth volatility, we can look at forward estimates to have a sensing of the pace of growth and momentum that can be carried into future years.

Case Study on DBS (SGX: D05) - Using ShareInvestor

With strong estimates put forth by the analysts based on growth forecast, four analysts from research houses maintain DBS as BUY and one as Hold in November 2018.

With its less than estimated profit for Q3, is it still a good stock to include in your portfolio? Leaving you with ShareInvestor's consensus estimates.

Case Study on DBS (SGX: D05) - Using ShareInvestor

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Disclaimer: This post is sponsored by ShareInvestor

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