SHINHAN FINANCIAL GROUP-ADR (SHG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHG - US8245961003 - ADR
53.38 USD
-0.87 (-1.6%)
53.38 USD
0 (0%)
Taking everything into account, SHG scores 4 out of 10 in our fundamental rating. SHG was compared to 387 industry peers in the Banks industry. Both the profitability and financial health of SHG have multiple concerns. 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.
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 71.58% of its industry peers.
With a Return On Equity value of 7.96%, SHG perfoms like the industry average, outperforming 41.60% of the companies in the same industry.
| 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's Profit Margin of 20.26% is on the low side compared to the rest of the industry. SHG is outperformed by 65.63% of its industry peers.
SHG's Profit Margin has improved in the last couple of years.
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
Compared to 5 years ago, SHG has more shares outstanding
Compared to 1 year ago, SHG has an improved debt to assets ratio.
2.2 Solvency
SHG has a debt to FCF ratio of 17.20. This is a negative value and a sign of low solvency as SHG would need 17.20 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.20, SHG is not doing good in the industry: 82.17% 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.
With a Debt to Equity ratio value of 2.66, SHG is not doing good in the industry: 91.73% of the companies in the same industry are doing better.
| 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
SHG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.26%, which is quite good.
Measured over the past 5 years, SHG shows a small growth in Earnings Per Share. The EPS has been growing by 3.81% on average per year.
Looking at the last year, SHG shows a small growth in Revenue. The Revenue has grown by 3.73% in the last year.
SHG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.73% yearly.
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
The Earnings Per Share is expected to grow by 12.82% 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 3.98% on average per year.
EPS Next Y23.82%
EPS Next 2Y14.82%
EPS Next 3Y12.82%
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y4.32%
Revenue Next 3Y3.98%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.45, the valuation of SHG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SHG indicates a rather cheap valuation: SHG is cheaper than 92.25% of the companies listed in the same industry.
SHG is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.98, the valuation of SHG can be described as very cheap.
Based on the Price/Forward Earnings ratio, SHG is valued cheaper than 92.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SHG to the average of the S&P500 Index (23.56), we can say SHG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SHG is valued cheaper than 93.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.28 | ||
| 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 12.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)2.21
EPS Next 2Y14.82%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.86%, SHG has a reasonable but not impressive dividend return.
SHG's Dividend Yield is comparable with the industry average which is at 3.11.
Compared to an average S&P500 Dividend Yield of 2.31, SHG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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.
SHG has decreased its dividend 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 2Y14.82%
EPS Next 3Y12.82%
53.38
-0.87 (-1.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners41.79%
Inst Owner Change-1.63%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap25.71B
Revenue(TTM)22.46T
Net Income(TTM)4.55T
Analysts84.29
Price Target63.26 (18.51%)
Short Float %0.04%
Short Ratio0.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.72
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)-2.09%
PT rev (3m)0.56%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)1.6%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 6.98 | ||
| P/S | 1.69 | ||
| P/FCF | 4.28 | ||
| P/OCF | 3.97 | ||
| P/B | 0.66 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.32
EY11.84%
EPS(NY)7.65
Fwd EY14.33%
FCF(TTM)12.46
FCFY23.34%
OCF(TTM)13.46
OCFY25.22%
SpS31.66
BVpS80.64
TBVpS72.24
PEG (NY)0.35
PEG (5Y)2.21
Graham Number107.09
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
ROICexgc growth 3YN/A
ROICexgc 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 Y23.82%
EPS Next 2Y14.82%
EPS Next 3Y12.82%
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 Year4.67%
Revenue Next 2Y4.32%
Revenue Next 3Y3.98%
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%
SHINHAN FINANCIAL GROUP-ADR / SHG FAQ
What is the fundamental rating for SHG stock?
ChartMill assigns a fundamental rating of 4 / 10 to SHG.
Can you provide the valuation status for SHINHAN FINANCIAL GROUP-ADR?
ChartMill assigns a valuation rating of 8 / 10 to SHINHAN FINANCIAL GROUP-ADR (SHG). This can be considered as Undervalued.
Can you provide the profitability details for SHINHAN FINANCIAL GROUP-ADR?
SHINHAN FINANCIAL GROUP-ADR (SHG) has a profitability rating of 3 / 10.
What is the valuation of SHINHAN FINANCIAL GROUP-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SHINHAN FINANCIAL GROUP-ADR (SHG) is 8.45 and the Price/Book (PB) ratio is 0.66.
Can you provide the expected EPS growth for SHG stock?
The Earnings per Share (EPS) of SHINHAN FINANCIAL GROUP-ADR (SHG) is expected to grow by 23.82% in the next year.