SHINHAN FINANCIAL GROUP-ADR (SHG) Stock Fundamental Analysis
USA - NYSE:SHG - US8245961003 - ADR
49.33 USD
-1.99 (-3.88%)
49.33 USD
0 (0%)
Overall SHG gets a fundamental rating of 4 out of 10. We evaluated SHG against 392 industry peers in the Banks industry. SHG may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SHG.
1. Profitability
1.1 Basic Checks
SHG had positive earnings in the past year.
SHG had a positive operating cash flow in the past year.
Each year in the past 5 years SHG has been profitable.
SHG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHG has a worse Return On Assets (0.60%) than 69.64% of its industry peers.
SHG's Return On Equity of 7.96% is in line compared to the rest of the industry. SHG outperforms 46.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 7.96% | ||
| 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
Looking at the Profit Margin, with a value of 20.26%, SHG is doing worse than 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of SHG has grown nicely.
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) | 20.26% | ||
| 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.
Compared to 1 year ago, SHG has less shares outstanding
The number of shares outstanding for SHG has been increased compared to 5 years ago.
SHG has a better debt/assets ratio than last year.
2.2 Solvency
SHG has a debt to FCF ratio of 17.20. This is a negative value and a sign of low solvency as SHG would need 17.20 years to pay back of all of its debts.
SHG has a Debt to FCF ratio of 17.20. This is amonst the worse of the industry: SHG underperforms 82.40% of its industry peers.
A Debt/Equity ratio of 2.66 is on the high side and indicates that SHG has dependencies on debt financing.
The Debt to Equity ratio of SHG (2.66) is worse than 91.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 17.2 | ||
| 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
The Earnings Per Share has grown by an nice 9.26% over the past year.
The Earnings Per Share has been growing slightly by 3.81% on average over the past years.
Looking at the last year, SHG shows a small growth in Revenue. The Revenue has grown by 3.73% in the last year.
SHG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.73% yearly.
EPS 1Y (TTM)9.26%
EPS 3Y2.1%
EPS 5Y3.81%
EPS Q2Q%13.16%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y-1.74%
Revenue growth 5Y-0.73%
Sales Q2Q%6.78%
3.2 Future
SHG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.13% yearly.
SHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.45% yearly.
EPS Next Y22.15%
EPS Next 2Y14.07%
EPS Next 3Y12.13%
EPS Next 5YN/A
Revenue Next Year3.81%
Revenue Next 2Y3.64%
Revenue Next 3Y3.45%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.58, which indicates a rather cheap valuation of SHG.
Based on the Price/Earnings ratio, SHG is valued cheaply inside the industry as 93.11% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.02, SHG is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.35, the valuation of SHG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHG indicates a rather cheap valuation: SHG is cheaper than 92.09% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SHG to the average of the S&P500 Index (22.57), we can say SHG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 6.35 |
4.2 Price Multiples
93.88% of the companies in the same industry are more expensive than SHG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.85 | ||
| 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.
SHG's earnings are expected to grow with 12.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)1.99
EPS Next 2Y14.07%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
SHG has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.59, SHG has a dividend in line with its industry peers.
SHG's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
The dividend of SHG is nicely growing with an annual growth rate of 7.02%!
SHG has been paying a dividend for at least 10 years, so it has a reliable track record.
SHG has decreased its dividend recently.
Dividend Growth(5Y)7.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SHG pays out 28.19% of its income as dividend. This is a sustainable payout ratio.
SHG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.19%
EPS Next 2Y14.07%
EPS Next 3Y12.13%
49.33
-1.99 (-3.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners41.79%
Inst Owner Change-0.01%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap23.95B
Analysts83.57
Price Target62.85 (27.41%)
Short Float %0.01%
Short Ratio0.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend1.77
Dividend Growth(5Y)7.02%
DP28.19%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.7%
Min EPS beat(2)1.64%
Max EPS beat(2)3.76%
EPS beat(4)2
Avg EPS beat(4)-17.81%
Min EPS beat(4)-44.89%
Max EPS beat(4)3.76%
EPS beat(8)3
Avg EPS beat(8)-15.72%
EPS beat(12)3
Avg EPS beat(12)-16.1%
EPS beat(16)5
Avg EPS beat(16)-12.47%
Revenue beat(2)2
Avg Revenue beat(2)21.7%
Min Revenue beat(2)6.31%
Max Revenue beat(2)37.09%
Revenue beat(4)4
Avg Revenue beat(4)13.28%
Min Revenue beat(4)2.83%
Max Revenue beat(4)37.09%
Revenue beat(8)7
Avg Revenue beat(8)8.54%
Revenue beat(12)9
Avg Revenue beat(12)17.08%
Revenue beat(16)13
Avg Revenue beat(16)31.26%
PT rev (1m)-0.09%
PT rev (3m)19.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.07%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.87%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 6.35 | ||
| P/S | 1.51 | ||
| P/FCF | 3.85 | ||
| P/OCF | 3.56 | ||
| P/B | 0.59 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.51
EY13.2%
EPS(NY)7.77
Fwd EY15.75%
FCF(TTM)12.82
FCFY25.99%
OCF(TTM)13.86
OCFY28.09%
SpS32.59
BVpS83
TBVpS74.35
PEG (NY)0.34
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 7.96% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 20.26% | ||
| GM | N/A | ||
| FCFM | 39.34% |
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-Score9
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 17.2 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 53.77% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 194.16% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
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)9.26%
EPS 3Y2.1%
EPS 5Y3.81%
EPS Q2Q%13.16%
EPS Next Y22.15%
EPS Next 2Y14.07%
EPS Next 3Y12.13%
EPS Next 5YN/A
Revenue 1Y (TTM)3.73%
Revenue growth 3Y-1.74%
Revenue growth 5Y-0.73%
Sales Q2Q%6.78%
Revenue Next Year3.81%
Revenue Next 2Y3.64%
Revenue Next 3Y3.45%
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 1Y-48.88%
FCF growth 3Y-27.72%
FCF growth 5Y-10.2%
OCF growth 1Y-47.17%
OCF growth 3Y-25.26%
OCF growth 5Y-8.41%