KB FINANCIAL GROUP INC-ADR (KB) Stock Fundamental Analysis
NYSE:KB - New York Stock Exchange, Inc. - US48241A1051 - ADR - Currency: USD
We assign a fundamental rating of 3 out of 10 to KB. KB was compared to 405 industry peers in the Banks industry. KB has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on KB. Finally KB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KB had positive earnings in the past year.
KB had a positive operating cash flow in the past year.
Each year in the past 5 years KB has been profitable.
The reported operating cash flow has been mixed in the past 5 years: KB reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 0.60%, KB is not doing good in the industry: 65.41% of the companies in the same industry are doing better.
KB has a Return On Equity (7.69%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 7.69% | ||
| ROIC | N/A |
ROA(3y)0.63%
ROA(5y)0.62%
ROE(3y)8.07%
ROE(5y)8.29%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KB has a Profit Margin of 11.83%. This is amonst the worse of the industry: KB underperforms 80.70% of its industry peers.
In the last couple of years the Profit Margin of KB has grown nicely.
KB 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) | 11.83% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y14.02%
PM growth 5Y7.77%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
KB does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, KB has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of KB is 42.25, which is on the high side as it means it would take KB, 42.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KB (42.25) is worse than 80.70% of its industry peers.
A Debt/Equity ratio of 2.37 is on the high side and indicates that KB has dependencies on debt financing.
KB has a worse Debt to Equity ratio (2.37) than 93.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 42.25 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC2.66%
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 12.84% over the past year.
KB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.69% yearly.
Looking at the last year, KB shows a decrease in Revenue. The Revenue has decreased by -7.75% in the last year.
Measured over the past years, KB shows a small growth in Revenue. The Revenue has been growing by 1.11% on average per year.
EPS 1Y (TTM)12.84%
EPS 3Y5.39%
EPS 5Y8.69%
EPS Q2Q%211.3%
Revenue 1Y (TTM)-7.75%
Revenue growth 3Y-7.57%
Revenue growth 5Y1.11%
Sales Q2Q%51.84%
3.2 Future
The Earnings Per Share is expected to grow by 11.21% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y9.88%
EPS Next 2Y7.96%
EPS Next 3Y11.21%
EPS Next 5YN/A
Revenue Next Year-0.41%
Revenue Next 2Y0.96%
Revenue Next 3Y2.11%
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
Based on the Price/Earnings ratio of 5.99, the valuation of KB can be described as very cheap.
Based on the Price/Earnings ratio, KB is valued cheaply inside the industry as 95.49% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KB to the average of the S&P500 Index (29.62), we can say KB is valued rather cheaply.
The Price/Forward Earnings ratio is 5.13, which indicates a rather cheap valuation of KB.
KB's Price/Forward Earnings ratio is rather cheap when compared to the industry. KB is cheaper than 96.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KB to the average of the S&P500 Index (22.70), we can say KB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 5.13 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, KB is valued a bit cheaper than 73.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.44 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
KB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.61
PEG (5Y)0.69
EPS Next 2Y7.96%
EPS Next 3Y11.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.84%, KB has a reasonable but not impressive dividend return.
KB's Dividend Yield is a higher than the industry average which is at 3.19.
Compared to an average S&P500 Dividend Yield of 2.27, KB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
The dividend of KB is nicely growing with an annual growth rate of 9.23%!
KB has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
31.00% of the earnings are spent on dividend by KB. This is a low number and sustainable payout ratio.
KB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31%
EPS Next 2Y7.96%
EPS Next 3Y11.21%
57.25
-0.75 (-1.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners54.01%
Inst Owner Change-88.97%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap21.39B
Analysts86
Price Target79.12 (38.2%)
Short Float %0.11%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend2998.58
Dividend Growth(5Y)9.23%
DP31%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.03%
Min EPS beat(2)4.79%
Max EPS beat(2)11.26%
EPS beat(4)2
Avg EPS beat(4)-8.44%
Min EPS beat(4)-47.27%
Max EPS beat(4)11.26%
EPS beat(8)4
Avg EPS beat(8)-11.24%
EPS beat(12)5
Avg EPS beat(12)-8.43%
EPS beat(16)8
Avg EPS beat(16)-5.89%
Revenue beat(2)2
Avg Revenue beat(2)20.09%
Min Revenue beat(2)20.02%
Max Revenue beat(2)20.15%
Revenue beat(4)4
Avg Revenue beat(4)13.59%
Min Revenue beat(4)3.4%
Max Revenue beat(4)20.15%
Revenue beat(8)5
Avg Revenue beat(8)28.75%
Revenue beat(12)9
Avg Revenue beat(12)74.02%
Revenue beat(16)13
Avg Revenue beat(16)100.24%
PT rev (1m)0.78%
PT rev (3m)3.77%
EPS NQ rev (1m)2.9%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)5.77%
EPS NY rev (3m)7.12%
Revenue NQ rev (1m)-6.19%
Revenue NQ rev (3m)-6.19%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 5.13 | ||
| P/S | 0.81 | ||
| P/FCF | 9.44 | ||
| P/OCF | 8.05 | ||
| P/B | 0.53 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.55
EY16.68%
EPS(NY)11.15
Fwd EY19.48%
FCF(TTM)6.06
FCFY10.59%
OCF(TTM)7.11
OCFY12.42%
SpS70.38
BVpS108.2
TBVpS104.52
PEG (NY)0.61
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 7.69% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 11.83% | ||
| GM | N/A | ||
| FCFM | 8.61% |
ROA(3y)0.63%
ROA(5y)0.62%
ROE(3y)8.07%
ROE(5y)8.29%
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 3Y14.02%
PM growth 5Y7.77%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 42.25 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 61.91% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 72.82% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC2.66%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.84%
EPS 3Y5.39%
EPS 5Y8.69%
EPS Q2Q%211.3%
EPS Next Y9.88%
EPS Next 2Y7.96%
EPS Next 3Y11.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.75%
Revenue growth 3Y-7.57%
Revenue growth 5Y1.11%
Sales Q2Q%51.84%
Revenue Next Year-0.41%
Revenue Next 2Y0.96%
Revenue Next 3Y2.11%
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-80.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-78.53%
OCF growth 3YN/A
OCF growth 5YN/A