SHINHAN FINANCIAL GROUP-ADR (SHG) Stock Fundamental Analysis
NYSE:SHG - New York Stock Exchange, Inc. - US8245961003 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to SHG. SHG was compared to 394 industry peers in the Banks industry. SHG may be in some trouble as it scores bad on both profitability and health. SHG is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
1.2 Ratios
With a Return On Assets value of 0.59%, SHG is not doing good in the industry: 68.78% of the companies in the same industry are doing better.
SHG has a Return On Equity of 7.80%. This is comparable to the rest of the industry: SHG outperforms 45.69% of 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
The Profit Margin of SHG (20.23%) is worse than 62.44% of its industry peers.
In the last couple of years the Profit Margin of SHG has grown nicely.
The Operating Margin and Gross Margin are not available for SHG so they could not be analyzed.
| 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.
Compared to 1 year ago, SHG has less shares outstanding
Compared to 5 years ago, SHG has more shares outstanding
SHG has a better debt/assets ratio than last year.
2.2 Solvency
SHG has a debt to FCF ratio of 12.81. This is a negative value and a sign of low solvency as SHG would need 12.81 years to pay back of all of its debts.
SHG has a Debt to FCF ratio of 12.81. This is amonst the worse of the industry: SHG underperforms 80.96% 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.
The Debt to Equity ratio of SHG (2.62) is worse than 92.64% 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
The Earnings Per Share has grown by an nice 10.43% 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 3.97% in the last 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
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.
The Revenue is expected to grow by 2.75% on average over the next years.
EPS Next Y19.47%
EPS Next 2Y13.35%
EPS Next 3Y12.05%
EPS Next 5YN/A
Revenue Next Year2.19%
Revenue Next 2Y2.43%
Revenue Next 3Y2.75%
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
Based on the Price/Earnings ratio of 7.69, the valuation of SHG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SHG indicates a rather cheap valuation: SHG is cheaper than 93.65% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. SHG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.28, the valuation of SHG can be described as very cheap.
SHG's Price/Forward Earnings ratio is rather cheap when compared to the industry. SHG is cheaper than 92.89% of the companies in the same industry.
SHG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 6.28 |
4.2 Price Multiples
SHG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHG is cheaper than 96.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.9 | ||
| EV/EBITDA | N/A |
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)0.4
PEG (5Y)2.02
EPS Next 2Y13.35%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, SHG has a reasonable but not impressive dividend return.
SHG's Dividend Yield is comparable with the industry average which is at 3.31.
SHG's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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
5.3 Sustainability
SHG pays out 28.74% of its income as dividend. This is a 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%
50.32
-0.94 (-1.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners38.11%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap24.43B
Analysts83.57
Price Target52.39 (4.11%)
Short Float %0.01%
Short Ratio0.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend1.86
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)4.35%
PT rev (3m)8.22%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)0.63%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)18.36%
Revenue NQ rev (3m)19.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 6.28 | ||
| P/S | 1.54 | ||
| P/FCF | 2.9 | ||
| P/OCF | 2.73 | ||
| P/B | 0.59 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.54
EY13%
EPS(NY)8.02
Fwd EY15.93%
FCF(TTM)17.33
FCFY34.43%
OCF(TTM)18.45
OCFY36.67%
SpS32.7
BVpS84.77
TBVpS75.72
PEG (NY)0.4
PEG (5Y)2.02
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 Year2.19%
Revenue Next 2Y2.43%
Revenue Next 3Y2.75%
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%