SHINHAN FINANCIAL GROUP-ADR (SHG) Stock Fundamental Analysis
NYSE:SHG - New York Stock Exchange, Inc. - US8245961003 - ADR - Currency: USD
Overall SHG gets a fundamental rating of 4 out of 10. We evaluated SHG against 392 industry peers in the Banks industry. SHG has a bad profitability rating. Also its financial health evaluation is rather negative. SHG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SHG had positive earnings in the past year.
In the past year SHG had a positive cash flow from operations.
SHG had positive earnings in each of the past 5 years.
SHG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHG's Return On Assets of 0.59% is on the low side compared to the rest of the industry. SHG is outperformed by 68.37% of its industry peers.
SHG has a Return On Equity (7.80%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 7.8% | ||
| ROIC | N/A |
ROA(3y)0.62%
ROA(5y)0.6%
ROE(3y)8.1%
ROE(5y)8.02%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SHG's Profit Margin of 20.23% is on the low side compared to the rest of the industry. SHG is outperformed by 61.22% of its industry peers.
SHG's Profit Margin has improved in the last couple of years.
SHG does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 20.23% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.9%
PM growth 5Y5.81%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
SHG does not have a ROIC to compare to the WACC, probably because it is not profitable.
SHG has less shares outstanding than it did 1 year ago.
SHG has more shares outstanding than it did 5 years ago.
SHG has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SHG is 12.81, which is on the high side as it means it would take SHG, 12.81 years of fcf income to pay off all of its debts.
SHG has a Debt to FCF ratio of 12.81. This is amonst the worse of the industry: SHG underperforms 80.10% of its industry peers.
A Debt/Equity ratio of 2.62 is on the high side and indicates that SHG has dependencies on debt financing.
SHG's Debt to Equity ratio of 2.62 is on the low side compared to the rest of the industry. SHG is outperformed by 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.62 | ||
| Debt/FCF | 12.81 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.67%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
SHG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.43%, which is quite good.
The Earnings Per Share has been growing slightly by 3.81% on average over the past years.
The Revenue has been growing slightly by 3.97% in the past year.
Measured over the past years, SHG shows a decrease in Revenue. The Revenue has been decreasing by -0.73% on average per year.
EPS 1Y (TTM)10.43%
EPS 3Y2.1%
EPS 5Y3.81%
EPS Q2Q%16.08%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y-1.74%
Revenue growth 5Y-0.73%
Sales Q2Q%36.59%
3.2 Future
The Earnings Per Share is expected to grow by 12.05% on average over the next years. This is quite good.
Based on estimates for the next years, SHG will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
EPS Next Y19.47%
EPS Next 2Y13.35%
EPS Next 3Y12.05%
EPS Next 5YN/A
Revenue Next Year3.24%
Revenue Next 2Y3.11%
Revenue Next 3Y3.15%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.68, which indicates a rather cheap valuation of SHG.
93.62% of the companies in the same industry are more expensive than SHG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.54. SHG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.26, the valuation of SHG can be described as very cheap.
93.62% of the companies in the same industry are more expensive than SHG, based on the Price/Forward Earnings ratio.
SHG is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 6.26 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SHG is valued cheaper than 97.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.9 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SHG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SHG's earnings are expected to grow with 12.05% in the coming years.
PEG (NY)0.39
PEG (5Y)2.01
EPS Next 2Y13.35%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
SHG has a Yearly Dividend Yield of 3.18%. Purely for dividend investing, there may be better candidates out there.
SHG's Dividend Yield is comparable with the industry average which is at 3.51.
SHG's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of SHG is nicely growing with an annual growth rate of 7.02%!
SHG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SHG decreased recently.
Dividend Growth(5Y)7.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
28.74% of the earnings are spent on dividend by SHG. This is a low number and sustainable payout ratio.
The dividend of SHG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.74%
EPS Next 2Y13.35%
EPS Next 3Y12.05%
49.9
+0.16 (+0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners38.11%
Inst Owner Change-0.07%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap24.23B
Analysts83.57
Price Target56.71 (13.65%)
Short Float %0.05%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend1.82
Dividend Growth(5Y)7.02%
DP28.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-21.63%
Min EPS beat(2)-44.89%
Max EPS beat(2)1.64%
EPS beat(4)1
Avg EPS beat(4)-25.72%
Min EPS beat(4)-44.89%
Max EPS beat(4)1.64%
EPS beat(8)2
Avg EPS beat(8)-16.77%
EPS beat(12)2
Avg EPS beat(12)-16.63%
EPS beat(16)5
Avg EPS beat(16)-12.05%
Revenue beat(2)2
Avg Revenue beat(2)21.98%
Min Revenue beat(2)6.87%
Max Revenue beat(2)37.09%
Revenue beat(4)4
Avg Revenue beat(4)15.68%
Min Revenue beat(4)2.83%
Max Revenue beat(4)37.09%
Revenue beat(8)6
Avg Revenue beat(8)6.91%
Revenue beat(12)9
Avg Revenue beat(12)22.64%
Revenue beat(16)13
Avg Revenue beat(16)36.58%
PT rev (1m)8.25%
PT rev (3m)14.18%
EPS NQ rev (1m)5.48%
EPS NQ rev (3m)5.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)-6.34%
Revenue NQ rev (3m)10.86%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 6.26 | ||
| P/S | 1.53 | ||
| P/FCF | 2.9 | ||
| P/OCF | 2.72 | ||
| P/B | 0.59 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.5
EY13.03%
EPS(NY)7.97
Fwd EY15.98%
FCF(TTM)17.23
FCFY34.53%
OCF(TTM)18.35
OCFY36.78%
SpS32.52
BVpS84.3
TBVpS75.3
PEG (NY)0.39
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 7.8% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 20.23% | ||
| GM | N/A | ||
| FCFM | 52.98% |
ROA(3y)0.62%
ROA(5y)0.6%
ROE(3y)8.1%
ROE(5y)8.02%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.9%
PM growth 5Y5.81%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.62 | ||
| Debt/FCF | 12.81 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 57.91% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 261.96% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.67%
ROIC/WACCN/A
Cap/Depr(3y)71.87%
Cap/Depr(5y)79.56%
Cap/Sales(3y)3.65%
Cap/Sales(5y)3.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.43%
EPS 3Y2.1%
EPS 5Y3.81%
EPS Q2Q%16.08%
EPS Next Y19.47%
EPS Next 2Y13.35%
EPS Next 3Y12.05%
EPS Next 5YN/A
Revenue 1Y (TTM)3.97%
Revenue growth 3Y-1.74%
Revenue growth 5Y-0.73%
Sales Q2Q%36.59%
Revenue Next Year3.24%
Revenue Next 2Y3.11%
Revenue Next 3Y3.15%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y18.11%
FCF growth 3Y-27.72%
FCF growth 5Y-10.2%
OCF growth 1Y15.59%
OCF growth 3Y-25.26%
OCF growth 5Y-8.41%