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SHINHAN FINANCIAL GROUP-ADR (SHG) Stock Fundamental Analysis

NYSE:SHG - New York Stock Exchange, Inc. - US8245961003 - ADR - Currency: USD

36.02  -0.31 (-0.85%)

After market: 36.02 0 (0%)

Fundamental Rating

4

Overall SHG gets a fundamental rating of 4 out of 10. We evaluated SHG against 397 industry peers in the Banks industry. Both the profitability and financial health of SHG have multiple concerns. SHG is valued quite cheap, while showing a decent growth score. This is a good combination! Finally SHG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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3

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.
Each year in the past 5 years SHG has been profitable.
Of the past 5 years SHG 4 years had a positive operating cash flow.
SHG Yearly Net Income VS EBIT VS OCF VS FCFSHG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5T -5T 10T

1.2 Ratios

SHG has a worse Return On Assets (0.58%) than 68.77% of its industry peers.
SHG has a Return On Equity (7.62%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA 0.58%
ROE 7.62%
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
SHG Yearly ROA, ROE, ROICSHG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

Looking at the Profit Margin, with a value of 19.80%, SHG is doing worse than 62.97% of the companies in the same industry.
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 RankSector Rank
OM N/A
PM (TTM) 19.8%
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
SHG Yearly Profit, Operating, Gross MarginsSHG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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1

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.
The number of shares outstanding for SHG has been increased compared to 5 years ago.
The debt/assets ratio for SHG has been reduced compared to a year ago.
SHG Yearly Shares OutstandingSHG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
SHG Yearly Total Debt VS Total AssetsSHG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200T 400T 600T

2.2 Solvency

The Debt to FCF ratio of SHG is 39.56, which is on the high side as it means it would take SHG, 39.56 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 39.56, SHG is doing worse than 85.14% of the companies in the same industry.
A Debt/Equity ratio of 2.72 is on the high side and indicates that SHG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.72, SHG is doing worse than 93.70% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.72
Debt/FCF 39.56
Altman-Z N/A
ROIC/WACCN/A
WACC8.62%
SHG Yearly LT Debt VS Equity VS FCFSHG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20T 40T 60T 80T 100T

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
SHG Yearly Current Assets VS Current LiabilitesSHG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20T 40T 60T

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4

3. Growth

3.1 Past

SHG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.87%.
SHG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.81% yearly.
The Revenue has been growing slightly by 0.42% 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)4.87%
EPS 3Y2.1%
EPS 5Y3.81%
EPS Q2Q%-26.94%
Revenue 1Y (TTM)0.42%
Revenue growth 3Y-1.74%
Revenue growth 5Y-0.73%
Sales Q2Q%7.04%

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 12.05% yearly.
SHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.59% yearly.
EPS Next Y19.47%
EPS Next 2Y13.35%
EPS Next 3Y12.05%
EPS Next 5YN/A
Revenue Next Year1.94%
Revenue Next 2Y2.36%
Revenue Next 3Y2.59%
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.
SHG Yearly Revenue VS EstimatesSHG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5T 10T 15T 20T
SHG Yearly EPS VS EstimatesSHG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2K 4K 6K 8K 10K

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8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 5.79 indicates a rather cheap valuation of SHG.
Based on the Price/Earnings ratio, SHG is valued cheaply inside the industry as 95.47% of the companies are valued more expensively.
SHG is valuated cheaply when we compare the Price/Earnings ratio to 24.12, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.85, 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 95.97% of the companies listed in the same industry.
SHG is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.79
Fwd PE 4.85
SHG Price Earnings VS Forward Price EarningsSHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, SHG is valued cheaply inside the industry as 88.16% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.36
EV/EBITDA N/A
SHG Per share dataSHG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The 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 12.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)1.52
EPS Next 2Y13.35%
EPS Next 3Y12.05%

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.20%, SHG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.49, SHG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, SHG pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.2%

5.2 History

On average, the dividend of SHG grows each year by 7.02%, which is quite nice.
SHG has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SHG decreased recently.
Dividend Growth(5Y)7.02%
Div Incr Years1
Div Non Decr Years1
SHG Yearly Dividends per shareSHG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100 200 300 400 500

5.3 Sustainability

SHG pays out 29.65% 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.
DP29.65%
EPS Next 2Y13.35%
EPS Next 3Y12.05%
SHG Yearly Income VS Free CF VS DividendSHG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5T -5T 10T
SHG Dividend Payout.SHG Dividend Payout, showing the Payout Ratio.SHG Dividend Payout.PayoutRetained Earnings

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SHINHAN FINANCIAL GROUP-ADR

NYSE:SHG (5/8/2025, 8:22:48 PM)

After market: 36.02 0 (0%)

36.02

-0.31 (-0.85%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-25 2025-04-25/bmo
Earnings (Next)07-24 2025-07-24/bmo
Inst Owners40.41%
Inst Owner Change-0.3%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap17.60B
Analysts83.45
Price Target49.67 (37.9%)
Short Float %0.1%
Short Ratio1.52
Dividend
Industry RankSector Rank
Dividend Yield 4.2%
Yearly Dividend1.84
Dividend Growth(5Y)7.02%
DP29.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-21 2025-02-21 (0.374674)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38.32%
Min EPS beat(2)-44.89%
Max EPS beat(2)-31.74%
EPS beat(4)1
Avg EPS beat(4)-25.3%
Min EPS beat(4)-44.89%
Max EPS beat(4)3.35%
EPS beat(8)1
Avg EPS beat(8)-17.14%
EPS beat(12)2
Avg EPS beat(12)-16.43%
EPS beat(16)5
Avg EPS beat(16)-11.83%
Revenue beat(2)2
Avg Revenue beat(2)4.85%
Min Revenue beat(2)2.83%
Max Revenue beat(2)6.87%
Revenue beat(4)4
Avg Revenue beat(4)6.87%
Min Revenue beat(4)1.88%
Max Revenue beat(4)15.91%
Revenue beat(8)5
Avg Revenue beat(8)0.66%
Revenue beat(12)9
Avg Revenue beat(12)25.41%
Revenue beat(16)13
Avg Revenue beat(16)40.18%
PT rev (1m)-0.07%
PT rev (3m)0.38%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)3.49%
EPS NY rev (1m)1.55%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)2.86%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-0.37%
Valuation
Industry RankSector Rank
PE 5.79
Fwd PE 4.85
P/S 1.13
P/FCF 6.36
P/OCF 5.29
P/B 0.44
P/tB 0.49
EV/EBITDA N/A
EPS(TTM)6.22
EY17.27%
EPS(NY)7.43
Fwd EY20.64%
FCF(TTM)5.66
FCFY15.72%
OCF(TTM)6.81
OCFY18.9%
SpS31.76
BVpS82.48
TBVpS73.47
PEG (NY)0.3
PEG (5Y)1.52
Profitability
Industry RankSector Rank
ROA 0.58%
ROE 7.62%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 19.8%
GM N/A
FCFM 17.82%
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-Score5
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 2.72
Debt/FCF 39.56
Debt/EBITDA N/A
Cap/Depr 60.82%
Cap/Sales 3.61%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 90.04%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC8.62%
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)4.87%
EPS 3Y2.1%
EPS 5Y3.81%
EPS Q2Q%-26.94%
EPS Next Y19.47%
EPS Next 2Y13.35%
EPS Next 3Y12.05%
EPS Next 5YN/A
Revenue 1Y (TTM)0.42%
Revenue growth 3Y-1.74%
Revenue growth 5Y-0.73%
Sales Q2Q%7.04%
Revenue Next Year1.94%
Revenue Next 2Y2.36%
Revenue Next 3Y2.59%
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 1Y2164.21%
FCF growth 3Y-27.72%
FCF growth 5Y-10.2%
OCF growth 1Y773.14%
OCF growth 3Y-25.26%
OCF growth 5Y-8.41%