GuruFocus Manual of Stocks™ | Nov 08, 2019

State Bank of India (NSE:SBIN) www.gurufocus.com/stock/NSE:SBIN

State Bank of India (NSE:SBIN) Ratios Valuation Analysis Dividend & Ownership
Industry Historical % of Price Dividend Yield(ttm) % N/A
Current
[1] 316.00 Median Median NCAV -3852.42 -1219 Dividend Yield(forward) % N/A
Banks - P/E (ttm) 23.1 11.89 13.37 Tangible Book 269.53 85 Payout N/A
Market Cap: 2,839,365 Mil Forward P/E 17.12 11.06 N/A Graham Number 288.98 91 Dividend Growth(5y) % N/A
State Bank of India provides banking and financial services to corporate, P/B 1.17 1.04 1.11 Price 316.00 Yield on Cost(5y) % N/A
commercial, institutional and individual customers in India. It also provides
P/S 1.5 2.90 1.54 Median P/S 324.29 103 Continuous Div. since 2019
online and international banking services.
P/FCF N/A 10.11 3.95 Insider Ownership % N/A
Shiller P/E 20.09 15.87 16.6 Institution Ownership % 18.46
PEG N/A 0.48 1.68
As of 11-08-2019 * All financial numbers are in millions except for per share data, ratios and percentage change.
Financial Strength
Industry Historical 372.4
Score: 3 /10 Current
Median Median
Cash-to-Debt 0.79 1.17 0.70 Gain(%) SP500(%)
141.44
Equity-to-Asset 0.06 0.11 0.06 1W 0.78 0.9
Interest Coverage 0.00 No Debt 0.00 1M 26.86 4.3
F-Score N/A 4 0
89.53 3M 7.36 7.4
Profitability 6M 5.95 10.3
Industry Historical YTD 6.79 25.3
Score: 4 /10 Current 42M
Median Median
1Y 10.28 12.3
Operating Margin (%) 0.00 16.07 0.00
Net Margin (%) 6.55 25.76 13.52 3Y 8.04
ROE (%) 5.23 9.47 11.62 20.8M 5Y 3.43
ROA (%) 0.32 0.97 0.66
ROC (Joel Greenblatt)
0.00 23.01 0.00
(%) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Current Performance
Growth (per share) 247.09 349 293.38 245.25 253.91 321.4 334.6 281.3 337.5 329.9 372.4 Annual Price High
10 Yr 5 Yr 1 Yr 89.53 189.5 157.85 162.77 147.57 147.36 221.1 151.8 242.75 233.2 249.1 Annual Price Low
Revenue Growth (%) 8.1 5.1 4.6 1319k 1756k 1407k 1391k 1432k 1994k 1508k 2339k 2157k 2863k 2839k Market Cap
EBITDA Growth (%) N/A N/A N/A Sh. Outstanding-
6349 6350 6352 6715 6948 7466 7666 7804 8533 8925 8925
EBIT Growth (%) N/A N/A N/A diluted(Mil)
EPS without NRI Growth 14.7 24 8.7 7.8 9.4 11.7 12.1 946.5 -- 123.8 23.1 Year End P/E
N/A N/A N/A 1.6 2.1 1.3 1.1 1 1.2 0.8 1.1 0.9 1.2 1.2 P/B
(%)
Free Cash Flow Growth 2.6 2.8 1.5 1.5 1.3 1.6 1.2 1.5 1.4 1.6 1.5 P/S
N/A N/A N/A 9.5 4.4 1.1 9.5 14.1 14.3 15.9 -3066 -- -- -- EV/EBITDA
(%)
Book Value Growth (%) 9.6 6.6 -1.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 TTM Per Share Data
Quarterly 105.9 125.3 136 140.6 150.1 166.4 168.2 187.3 186.1 194.7 210.6 Revenue Per Share
Sep18 Dec18 Mar19 Jun19 Sep19 18.5 16.8 24.2 26.7 20.4 22.8 16 0.3 -5.3 2.6 13.8 EPS
Revenue 410334.8 444609.7 505305.77 433467 492428.1 -0.8 66.2 -51.1 30.9 22.7 30.6 14 93.5 -114 29.8 -- Free Cashflow Per Share
Net Income 5764.6 47091.5 12444.69 29505 33754 3.9 2 3 3.5 5.7 1.5 3.5 2.6 2.6 -- -- Dividends Per Share
EPS 0.65 5.28 1.4 3.31 3.78 130.9 131.5 157.2 185.2 196.1 214.9 231.4 271.2 266.8 262.8 269.5 Tang. Book Per Share
Revenue 125.2 152.1 209.6 216.5 230.7 256.2 258.9 297.2 286.1 300.8 324.3 Median P/S Value
6.66 17.63 2.6 14.91 20.01 233.4 223.1 292.3 333.5 300 331.7 288.2 43.5 -- 123.5 289 Graham Number
(YoY) %
Net Income 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 TTM Income Statement
-68.68 -349.61 -116.5 -169.74 485.54
(YoY) %
672143 795601 864078 944135 1043k 1242k 1290k 1462k 1588k 1737k 1876k Revenue
EPS (YoY)
-69.19 -341.1 -115.82 -169.83 481.54 -- -- -- -- -- -- -- -- -- -- -- Gross Margin %
%
-- -- -- -- -- -- -- -- -- -- -- Operating Income
Free Cash
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Operating Margin %
Flow
117338 106849 153431 179162 141738 239279 122246 2412.4 -45563 22996 122795 Net Income
Cash 1755k 1854k 3638k 2091k 2281k
17.5 13.4 17.8 19 13.6 19.3 9.5 0.2 -2.9 1.3 6.6 Net Margin %
Current
1755k 1854k 4743k 2091k 2281k 15.1 12.8 16.2 15.5 10.4 15.5 7.2 0.1 -2 1 5.2 ROE %
Assets
0.9 0.7 0.9 0.9 0.6 0.9 0.4 0 -0.1 0.1 0.3 ROA %
Short-Term
-- -- -- -- -- Sep19
Debt 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Balance Sheet
Current 1218k 1553k 1276k 1452k 1672k 2308k 2646k 3409k 2909k 3638k 2281k Cash & Equivalents
-- -- 142330 -- --
Liabilities 14501k 16479k 18300k 21331k 23965k 27001k 30735k 34451k 36164k 38885k 39088k Total Assets
Total 1221k -- 1816k 2117k 2300k 2638k 2782k 3624k 3004k 3416k 2905k Long-term Debt
34353k 35090k 36479k 35567k 36612k
Liabilities 13644k 15614k 17200k 20038k 22442k 25332k 28866k 32214k 33815k 36479k 36612k Total Liabilities
Total 831356 834713 1062k 1250k 1474k 1614k 1806k 2172k 2303k 2345k 2407k Total Stockholders Equity
Stockholders 2296k 2324k 2345k 2367k 2407k
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 TTM Cashflow Statement
Equity
16227 439001 -301141 243318 191417 262974 144767 774060 -965079 295560 -- Cashflow from Operations
-13446 -16460 -23193 -36532 -35365 -34304 -36686 -28321 110658 -8567.7 -- Cashflow from Investing
-- -- -- -- -- -- -- -- -- -- -- Repurchase of Stock
Warning Signs 31485 -- 11752 329.4 22910 11422 61384 -22900 -121185 33776 -- Net Issuance of Debt
SEVERE Financial Strength: Poor -32726 12516 22088 -44235 35831 -15533 43485 -41965 55472 4476.4 -- Cashflow from Financing
SEVERE Asset Growth: faster than revenue growth -29945 435057 -302245 162550 191882 213137 151566 703774 -792132 291469 -- Net Change in Cash
-4991.8 420259 -324539 207604 157434 228451 107011 729823 -972986 265505 -- Free Cash Flow

Competitor
Financial Operating
Ticker Company
Strength
Profitability Market Cap($M) P/E P/S
Margin(%)
ROA(%) ROE(%)

SAU:1120 Al Rajhi Bank 7 4 40,668 14.25 8.14 0.00 3.10 22.49

SHSE:601998 China Citic Bank Corp Ltd 3 4 40,122 7.03 1.84 0.00 0.78 10.81
NSE:SBIN State Bank of India 3 4 40,012 23.10 1.50 0.00 0.32 5.23
TSE:8411 Mizuho Financial Group Inc 3 4 39,788 50.59 2.37 0.00 0.04 0.96
HKSE:02388 BOC Hong Kong Holdings Ltd 5 4 38,310 9.44 4.38 0.00 1.13 11.80

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State Bank of India (NSE:SBIN) www.gurufocus.com/stock/NSE:SBIN

Financial Strength[2] (Quarterly data, as of Sep. 2019) : Poor (3/10) 0 1 2 3 4 5 6 7 8 9

Cash to Debt : 0.79 Piotroski F-Score : 9999

Cash to Debt Ratio measures the financial strength of a company. It is The Piotroski score is used to determine the strength of a firm's financial
calculated as a company's cash, cash equivalents, and marketable position, with 9 being the best and 0 being the worst.
securities divide by its debt. A high ratio indicates that a company is better
able to pay back its debt, and is thus able to take on more debt if necessary.

WACC : 6.06% vs ROIC : 0.00%

Equity to Asset : 0.06 The weighted average cost of capital (WACC) is the rate that a company is
expected to pay on average to all its security holders to finance its assets.
Equity to Asset ratio is calculated as shareholder's tangible equity divided by Return on invested capital (ROIC) measures how well a company generates
its total asset. Equity to Asset ratio can vary greatly across different cash flow relative to the capital it has invested in its business.
industries, as they have different capital structure. A company with smaller
Equity to Asset ratio (more leveraged) may have higher ROE % because of
the leverage.

Dividend Yield : 0.00%

Dividend yield is a way to measure how much cash flow you are getting for
Debt to Equity : 1.21 each dollar invested in an equity position.

Debt to Equity measures the financial leverage a company has. A high debt
to equity ratio generally means that a company has been aggressive in
financing its growth with debt. This can result in volatile earnings as a result
of the additional interest expense.

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State Bank of India (NSE:SBIN) www.gurufocus.com/stock/NSE:SBIN

Profitability[3] (Annual data, as of Mar. 2019) : Fair (4/10) 0 1 2 3 4 5 6 7 8 9

Revenue : 492,428 Mil vs Net Income : 33,754 Mil EPS without NRI : 3.78

Revenue is the amount of money that a company actually receives during a
specific period, including discounts and deductions for returned
merchandise. Net Income is a company's total profit. Net income is
calculated by taking revenues and adjusting for the cost of doing business,
depreciation, interest, taxes and other expenses.
Earnings Per Share without Non-Recurring Items is the amount of earnings
without non-recurring items per outstanding share of the company's stock. In
calculating earnings per share without non-recurring items, the dividends of
preferred stocks and Non Operating Income need to subtracted from the total
net income first.

Cash & Equivalents : 2,280,790 Mil vs Long-Term Debt : 2,904,605 Mil Dividend per Share : 0.00

Cash equivalents are investments securities that are for short-term investing, Dividend per Share is the amount of dividends that the shareholders of a
and they have high credit quality and are highly liquid. Long-term debt company receive on a per-share basis. It is calculated using the total
consists of loans and financial obligations lasting over one year. dividends paid out to shareholders over one fiscal year and the number of
shares outstanding.

Operating Margin : 0.00%

Free Cash Flow Per Share : 0.00
Operating margin measures how much profit a company makes on a dollar
of sales. Operating Margin % is calculated as Operating Income divided by Free Cashflow per Share is the amount of Free Cashflow per outstanding
its Revenue. share of the company's stock.

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State Bank of India (NSE:SBIN) www.gurufocus.com/stock/NSE:SBIN

Valuation (Quarterly data, as of Sep. 2019)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing
over time.

Valuation Chart (Current stock price : 316.00) PS Ratio : 1.29

The price-to-sales ratio is a valuation ratio that compares a company’s stock

price to its revenues. The price-to-sales ratio is an indicator of the value
placed on each dollar of a company’s sales or revenues.

PE Ratio without NRI : 19.67

The price-to-earnings ratio can be affected by Non Operating Income such

as the sale of part of businesses. This may increase for the current year or
quarter dramatically. But it cannot be repeated over and over. Therefore P/E
(NRI) is a more accurate indication of valuation than Non Operating Income
PE Ratio.
Price-to-Free-Cash-Flow : 0.00
Price to free cash flow is very similar to the valuation metric of price to cash
flow but is considered a more exact measure, owing to the fact that it uses
free cash flow, which subtracts capital expenditures from a company's total
operating cash flow, thereby reflecting the actual cash flow available to fund
non-asset-related growth.

PB Ratio : 1.00

The Price-to-Book Ratio measures the valuation of the stock relative to the
underlying asset of the company. EV-to-EBIT : 0.00

Enterprise value of a company divided by its Earnings Before Interest Taxes

(TTM).

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Valuation Bands
In these charts the 15-year valuation bands of the price/earnings ratio (PE), price/book ratio (PB), price/sales ratio (PS) and price/operating-cash-flow ratio
(POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were
always traded at the maximum PE ratio of the past 15 years. The lower line of the PE band is where the stock price would have been if it were always traded
at the lowest PE ratio of the past 15 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.

Historical Price and PE Band Historical Price and PB Band

Historical Price and PS Band Historical Price and Price-to-Operating-Cash-Flow Band

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Warning Signs
GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each
company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These
warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.

Severe Warning Signs

Financial Strength : Poor

State Bank of India displays poor financial
strength. Usually this is caused by too
much debt for the company.

Asset Growth : faster than revenue

growth
If a company builds asset at 9.8% a year,
faster than its revenue growth rate of 5.1%
over the past 5 years, it means that the
company may be getting less efficent.

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Competitive Comparison

5 Year Price Change Comparison

Financial Strength
Financial Equity-to- Interest Piotroski F- Beneish M-
Company Cash-to-Debt Debt-to-Equity Altman Z-Score WACC% ROIC%
Strength Asset Coverage Score Score

TSE:7182 Japan Post Bank Co Ltd 6/10 1519.27 0.05 0.00 0.00 9999 0.00 0.00 10.23 0.00
TSE:6178 Japan Post Holdings Co Ltd 5/10 427.21 0.05 0.01 N/A 9999 0.00 -2.55 2.85 0.00
HKSE:02388 BOC Hong Kong Holdings Ltd 5/10 24.22 0.10 0.06 0.00 9999 0.00 -2.77 13.01 0.00
ISX:BBRI Bank Rakyat Indonesia (Persero) Tbk 4/10 2.20 0.15 0.36 0.00 9999 0.00 -2.37 14.40 0.00
SAU:1180 The National Commercial Bank 4/10 31.56 0.13 0.03 N/A 9999 0.00 -2.21 0.00 0.00
SHSE:601998 China Citic Bank Corp Ltd 3/10 0.48 0.07 1.20 0.00 9999 0.00 0.00 16.54 0.00
SHSE:600016 China Minsheng Banking Corp Ltd 3/10 0.37 0.08 1.56 0.00 9999 0.00 0.00 17.76 0.00
TSE:8411 Mizuho Financial Group Inc 3/10 3.55 0.04 1.31 0.00 9999 0.00 0.00 6.87 0.00
SGX:O39 Oversea-Chinese Banking Corp Ltd 3/10 2.29 0.10 0.49 0.00 9999 0.00 0.00 10.91 0.00
NSE:SBIN State Bank of India 3/10 0.79 0.06 1.21 0.00 9999 0.00 0.00 6.06 0.00

Profitability
3-Year EPS
Operating Price-to-Free- ROC% (Joel 3-Year Revenue 3-Year EBITDA
Company Profitability Net Margin ROE% ROA% without NRI
Margin Cash-Flow Greenblatt) Growth% Growth%
Growth%
ISX:BBRI Bank Rakyat Indonesia (Persero) Tbk 5/10 0.00 32.79 18.64 2.71 22.35 0.00 13.20 0.00 8.70
HKSE:02388 BOC Hong Kong Holdings Ltd 4/10 0.00 43.95 11.80 1.13 1.12 0.00 8.50 0.00 10.40
SHSE:601998 China Citic Bank Corp Ltd 4/10 0.00 26.12 10.81 0.78 0.00 0.00 1.70 0.00 0.00
SHSE:600016 China Minsheng Banking Corp Ltd 4/10 0.00 30.52 11.88 0.86 0.00 0.00 0.10 0.00 2.50
TSE:8411 Mizuho Financial Group Inc 4/10 0.00 4.64 0.96 0.04 0.00 0.00 -11.00 0.00 -53.70
SGX:O39 Oversea-Chinese Banking Corp Ltd 4/10 0.00 44.45 10.44 0.96 4.29 0.00 2.30 0.00 3.60
NSE:SBIN State Bank of India 4/10 0.00 6.55 5.23 0.32 0.00 0.00 5.00 0.00 -45.50
SAU:1180 The National Commercial Bank 3/10 0.00 60.99 18.48 2.59 7.78 0.00 2.70 0.00 4.10
TSE:6178 Japan Post Holdings Co Ltd 1/10 0.00 3.90 3.76 0.17 0.00 0.00 -1.00 0.00 6.80
TSE:7182 Japan Post Bank Co Ltd 1/10 0.00 18.18 2.36 0.13 0.00 0.00 -1.80 0.00 -6.40

Valuation
Price-to-
Price-to- Price-to- Price-to-Peter- Price-to- Forward Rate of
Price-to- Intrinsic-Value- Earnings Yield
Company PE Ratio PB Ratio Intrinsic-Value- Median-PS- Lynch-Fair- Graham- Return
Tangible-Book DCF (Earnings (Greenblatt) %
Projected-FCF Value Value Number (Yacktman) %
Based)
SHSE:600016 China Minsheng Banking Corp Ltd 5.18 0.57 0.57 0.20 0.00 0.72 0.00 0.36 0.00 0.00
SHSE:601998 China Citic Bank Corp Ltd 7.03 0.91 0.92 0.42 0.00 0.85 0.00 0.53 0.00 0.00
TSE:6178 Japan Post Holdings Co Ltd 8.35 0.30 0.32 0.00 0.00 0.77 0.00 0.34 0.00 0.00
HKSE:02388 BOC Hong Kong Holdings Ltd 9.44 1.02 1.03 0.30 0.00 0.75 0.00 0.66 0.00 0.00
SGX:O39 Oversea-Chinese Banking Corp Ltd 10.60 1.08 1.21 0.91 0.00 0.95 0.00 0.76 0.00 0.00
SAU:1180 The National Commercial Bank 11.43 2.10 2.09 0.00 0.00 1.07 0.00 1.03 0.00 0.00
ISX:BBRI Bank Rakyat Indonesia (Persero) Tbk 14.55 2.60 2.59 0.83 0.00 1.06 0.00 1.30 0.00 0.00
TSE:7182 Japan Post Bank Co Ltd 15.25 0.35 0.35 0.00 0.00 0.87 0.00 0.49 0.00 0.00
NSE:SBIN State Bank of India 23.10 1.17 1.18 1.43 0.00 0.98 0.00 1.10 0.00 0.00
TSE:8411 Mizuho Financial Group Inc 50.59 0.49 0.53 0.62 0.00 1.15 0.00 1.10 0.00 0.00

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Peter Lynch Chart[4]

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Explanation
1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of
their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found
that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability
also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 7 or above indicates good financial strength; between 4-6 indicates fair financial strength; 3 or below means poor financial
strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these
factors:

1. Operating Margin percentage

2. Piotroski F-Score.
3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
4. Consistency of the profitability.
5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 7 or above indicates good financial strength; between 4-6 indicates fair financial strength; 3 or below means poor financial strength.

4. Peter Lynch Chart

In his excellent book, "One Up on Wall Street," Peter Lynch used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced
is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price
fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the
stock price and earnings line coincide, the price/earnings ratio is always 15 times. Instead of using the fixed P/E ratio 15, our approach is using 15-year
historical median P/E ratio for each stock.

The peter Lynch Chart with earnings line at median P/E ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as
coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or
service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and
so forth.

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