SHINHAN FINANCIAL GROUP-ADR (SHG) Stock Fundamental Analysis
USA - NYSE:SHG - US8245961003 - ADR
49.48 USD
+0.21 (+0.43%)
SHG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 392 industry peers in the Banks industry. Both the profitability and financial health of SHG have multiple concerns. SHG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year SHG was profitable.
In the past year SHG had a positive cash flow from operations.
In the past 5 years SHG has always been profitable.
Of the past 5 years SHG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SHG (0.60%) is worse than 69.39% of its industry peers.
SHG's Return On Equity of 7.96% is in line compared to the rest of the industry. SHG outperforms 46.43% 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
SHG has a worse Profit Margin (20.26%) than 62.24% of its industry peers.
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
SHG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SHG has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SHG is 17.20, which is on the high side as it means it would take SHG, 17.20 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 17.20, SHG is not doing good in the industry: 81.12% of the companies in the same industry are doing better.
SHG has a Debt/Equity ratio of 2.66. This is a high value indicating a heavy dependency on external financing.
SHG's Debt to Equity ratio of 2.66 is on the low side compared to the rest of the industry. SHG is outperformed by 91.07% 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.
The Revenue has been decreasing by -0.73% on average over the past years.
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
Based on estimates for the next years, SHG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.79% on average per year.
Based on estimates for the next years, SHG will show a small growth in Revenue. The Revenue will grow by 3.44% on average per year.
EPS Next Y21.76%
EPS Next 2Y13.77%
EPS Next 3Y11.79%
EPS Next 5YN/A
Revenue Next Year3.86%
Revenue Next 2Y3.63%
Revenue Next 3Y3.44%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.43, which indicates a rather cheap valuation of SHG.
Compared to the rest of the industry, the Price/Earnings ratio of SHG indicates a rather cheap valuation: SHG is cheaper than 95.15% of the companies listed in the same industry.
SHG is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.25, the valuation of SHG can be described as very cheap.
Based on the Price/Forward Earnings ratio, SHG is valued cheaper than 95.15% 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 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 6.25 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SHG is valued cheaply inside the industry as 94.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.77 | ||
| 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.
PEG (NY)0.34
PEG (5Y)1.95
EPS Next 2Y13.77%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, SHG has a reasonable but not impressive dividend return.
SHG's Dividend Yield is comparable with the industry average which is at 3.73.
Compared to an average S&P500 Dividend Yield of 2.38, SHG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
The dividend of SHG is nicely growing with an annual growth rate of 7.02%!
SHG has paid a dividend for at least 10 years, which is 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 28.19% 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.
DP28.19%
EPS Next 2Y13.77%
EPS Next 3Y11.79%
NYSE:SHG (9/19/2025, 12:15:35 PM)
49.48
+0.21 (+0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners38.11%
Inst Owner Change-3.26%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap24.02B
Analysts84.29
Price Target62.66 (26.64%)
Short Float %0.02%
Short Ratio0.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend1.81
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)-0.77%
PT rev (3m)24.81%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)2.94%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 6.25 | ||
| P/S | 1.48 | ||
| P/FCF | 3.77 | ||
| P/OCF | 3.49 | ||
| P/B | 0.58 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.66
EY13.46%
EPS(NY)7.91
Fwd EY15.99%
FCF(TTM)13.13
FCFY26.53%
OCF(TTM)14.18
OCFY28.66%
SpS33.36
BVpS84.96
TBVpS76.1
PEG (NY)0.34
PEG (5Y)1.95
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 Y21.76%
EPS Next 2Y13.77%
EPS Next 3Y11.79%
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 Year3.86%
Revenue Next 2Y3.63%
Revenue Next 3Y3.44%
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%