SHINHAN FINANCIAL GROUP-ADR (SHG) Stock Fundamental Analysis
NYSE:SHG - New York Stock Exchange, Inc. - US8245961003 - ADR - Currency: USD
Taking everything into account, SHG scores 4 out of 10 in our fundamental rating. SHG was compared to 395 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. Finally 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.
In the past 5 years SHG has always been profitable.
SHG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.59%, SHG is not doing good in the industry: 68.86% 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 45.57% 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
With a Profit Margin value of 20.23%, SHG is not doing good in the industry: 62.53% of the companies in the same industry are doing better.
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) | 20.23% | ||
| 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.
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
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 81.01% 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.
With a Debt to Equity ratio value of 2.62, SHG is not doing good in the industry: 92.66% of the companies in the same industry are doing better.
| 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.
SHG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.81% yearly.
SHG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.97%.
SHG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.73% yearly.
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.
SHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.75% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 6.59, which indicates a rather cheap valuation of SHG.
Based on the Price/Earnings ratio, SHG is valued cheaper than 95.19% of the companies in the same industry.
SHG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
Based on the Price/Forward Earnings ratio of 5.37, 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 94.68% 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 (22.19), we can say SHG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 5.37 |
4.2 Price Multiples
SHG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHG is cheaper than 97.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.48 | ||
| 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)0.34
PEG (5Y)1.73
EPS Next 2Y13.35%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
SHG has a Yearly Dividend Yield of 3.64%.
SHG's Dividend Yield is a higher than the industry average which is at 3.56.
SHG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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
28.74% of the earnings are spent on dividend by SHG. This is a low number and sustainable payout ratio.
SHG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.74%
EPS Next 2Y13.35%
EPS Next 3Y12.05%
43.21
+0.16 (+0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners38.11%
Inst Owner Change17.67%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap21.11B
Analysts82.96
Price Target52.39 (21.25%)
Short Float %0.03%
Short Ratio0.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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)3.34%
PT rev (3m)6.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)0%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 5.37 | ||
| P/S | 1.32 | ||
| P/FCF | 2.48 | ||
| P/OCF | 2.33 | ||
| P/B | 0.51 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.56
EY15.18%
EPS(NY)8.05
Fwd EY18.63%
FCF(TTM)17.39
FCFY40.25%
OCF(TTM)18.52
OCFY42.87%
SpS32.83
BVpS85.09
TBVpS76.02
PEG (NY)0.34
PEG (5Y)1.73
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%