SHINHAN FINANCIAL GROUP-ADR (SHG)

US8245961003 - ADR

34.64  +0.71 (+2.09%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SHG. SHG was compared to 412 industry peers in the Banks industry. SHG may be in some trouble as it scores bad on both profitability and health. SHG is valued correctly, but it does not seem to be growing. SHG also has an excellent dividend rating.



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2

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.
Of the past 5 years SHG 4 years had a positive operating cash flow.

1.2 Ratios

SHG's Return On Assets of 0.60% is on the low side compared to the rest of the industry. SHG is outperformed by 72.57% of its industry peers.
SHG has a Return On Equity of 7.78%. This is in the lower half of the industry: SHG underperforms 62.14% of its industry peers.
Industry RankSector Rank
ROA 0.6%
ROE 7.78%
ROIC N/A
ROA(3y)0.63%
ROA(5y)0.61%
ROE(3y)8.31%
ROE(5y)8.2%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 19.44%, SHG is doing worse than 68.45% of the companies in the same industry.
SHG's Profit Margin has been stable in the last couple of years.
The Operating Margin and Gross Margin are not available for SHG so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 19.44%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y9.34%
PM growth 5Y1.23%
GM growth 3YN/A
GM growth 5YN/A

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0

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 more shares outstanding
SHG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SHG is higher compared to a year ago.

2.2 Solvency

SHG has a Debt/Equity ratio of 2.73. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.73, SHG is not doing good in the industry: 94.66% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.73
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC8.14%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

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3

3. Growth

3.1 Past

SHG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.66%.
The Earnings Per Share has been growing slightly by 4.11% on average over the past years.
Looking at the last year, SHG shows a very negative growth in Revenue. The Revenue has decreased by -17.00% in the last year.
The Revenue has been growing slightly by 4.76% on average over the past years.
EPS 1Y (TTM)-4.66%
EPS 3Y6.18%
EPS 5Y4.11%
EPS growth Q2Q81.69%
Revenue 1Y (TTM)-17%
Revenue growth 3Y-1.35%
Revenue growth 5Y4.76%
Revenue growth Q2Q-18.76%

3.2 Future

The Earnings Per Share is expected to grow by 8.78% 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 2.62% on average per year.
EPS Next Y14.99%
EPS Next 2Y10.94%
EPS Next 3Y8.78%
EPS Next 5YN/A
Revenue Next Year3.17%
Revenue Next 2Y3.05%
Revenue Next 3Y2.62%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 5.79, which indicates a rather cheap valuation of SHG.
Based on the Price/Earnings ratio, SHG is valued cheaper than 94.17% of the companies in the same industry.
When comparing the Price/Earnings ratio of SHG to the average of the S&P500 Index (28.11), we can say SHG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.04, 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 97.09% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.39. SHG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 5.79
Fwd PE 5.04

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
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)0.39
PEG (5Y)1.41
EPS Next 2Y10.94%
EPS Next 3Y8.78%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.62%, SHG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.76, 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 2.40.
Industry RankSector Rank
Dividend Yield 4.62%

5.2 History

The dividend of SHG is nicely growing with an annual growth rate of 13.60%!
SHG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)13.6%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

SHG pays out 34.97% of its income as dividend. This is a sustainable payout ratio.
SHG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.97%
EPS Next 2Y10.94%
EPS Next 3Y8.78%

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SHINHAN FINANCIAL GROUP-ADR

NYSE:SHG (5/8/2024, 10:39:29 AM)

34.64

+0.71 (+2.09%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.65B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.62%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 5.79
Fwd PE 5.04
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.39
PEG (5Y)1.41
Profitability
Industry RankSector Rank
ROA 0.6%
ROE 7.78%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) 19.44%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 2.73
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-4.66%
EPS 3Y6.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17%
Revenue growth 3Y-1.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y