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 398 industry peers in the Banks industry. Both the profitability and financial health of SHG have multiple concerns. A decent growth rate in combination with a cheap valuation! Better keep an eye on SHG. SHG also has an excellent dividend rating.
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.
Of the past 5 years SHG 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.58%, SHG is not doing good in the industry: 68.59% of the companies in the same industry are doing better.
SHG has a Return On Equity (7.62%) which is in line with its industry peers.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 19.80%, SHG is doing worse than 62.81% of the companies in the same industry.
SHG's Profit Margin has improved in the last couple of years.
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) | 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
2. Health
2.1 Basic Checks
SHG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SHG has been reduced compared to 1 year ago.
The number of shares outstanding for SHG has been increased compared to 5 years ago.
Compared to 1 year ago, SHG has an improved debt to assets ratio.
2.2 Solvency
SHG has a debt to FCF ratio of 39.56. This is a negative value and a sign of low solvency as SHG would need 39.56 years to pay back of all of its debts.
The Debt to FCF ratio of SHG (39.56) is worse than 85.43% of its industry peers.
A Debt/Equity ratio of 2.72 is on the high side and indicates that SHG has dependencies on debt financing.
SHG has a worse Debt to Equity ratio (2.72) than 93.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 39.56 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.62%
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 been growing slightly by 4.87% over the past year.
SHG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.81% yearly.
Looking at the last year, SHG shows a small growth in Revenue. The Revenue has grown by 0.42% in the last year.
The Revenue has been decreasing by -0.73% on average over the past years.
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
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 2.59% on average per year.
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.
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
A Price/Earnings ratio of 5.84 indicates a rather cheap valuation of SHG.
SHG's Price/Earnings ratio is rather cheap when compared to the industry. SHG is cheaper than 96.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.78, SHG is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.89, 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 95.98% of the companies listed in the same industry.
SHG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 4.89 |
4.2 Price Multiples
SHG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHG is cheaper than 87.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.43 | ||
| 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.
A more expensive valuation may be justified as SHG's earnings are expected to grow with 12.05% in the coming years.
PEG (NY)0.3
PEG (5Y)1.53
EPS Next 2Y13.35%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
SHG has a Yearly Dividend Yield of 4.43%, which is a nice return.
Compared to an average industry Dividend Yield of 3.52, SHG pays a bit more dividend than its industry peers.
SHG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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 29.65% 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.
DP29.65%
EPS Next 2Y13.35%
EPS Next 3Y12.05%
34.64
+0.05 (+0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners40.41%
Inst Owner Change-46.49%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap17.18B
Analysts83.45
Price Target49.67 (43.39%)
Short Float %0.1%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend1.76
Dividend Growth(5Y)7.02%
DP29.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)1.43%
PT rev (3m)0.52%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-0.2%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 4.89 | ||
| P/S | 1.15 | ||
| P/FCF | 6.43 | ||
| P/OCF | 5.34 | ||
| P/B | 0.44 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.93
EY17.12%
EPS(NY)7.08
Fwd EY20.44%
FCF(TTM)5.39
FCFY15.56%
OCF(TTM)6.48
OCFY18.71%
SpS30.24
BVpS78.53
TBVpS69.96
PEG (NY)0.3
PEG (5Y)1.53
Profitability
| Industry Rank | Sector 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 Rank | Sector 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%