SHINHAN FINANCIAL GROUP-ADR (SHG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHG - US8245961003 - ADR
53.08 USD
+0.02 (+0.04%)
53.08 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SHG. SHG was compared to 385 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.
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.
SHG had a positive operating cash flow in 4 of the past 5 years.
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 72.02% of its industry peers.
SHG has a Return On Equity (8.07%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 8.07% | ||
| 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 (20.29%) than 65.80% of its industry peers.
In the last couple of years the Profit Margin of SHG has grown nicely.
The Operating Margin and Gross Margin are not available for SHG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 20.29% | ||
| 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.
The debt/assets ratio for SHG has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of SHG is 10.50, which is on the high side as it means it would take SHG, 10.50 years of fcf income to pay off all of its debts.
SHG has a Debt to FCF ratio of 10.50. This is in the lower half of the industry: SHG underperforms 78.76% of its industry peers.
A Debt/Equity ratio of 2.63 is on the high side and indicates that SHG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.63, SHG is doing worse than 91.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 10.5 | ||
| 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 been growing slightly by 4.87% 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 4.43% 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)4.87%
EPS 3Y2.1%
EPS 5Y3.81%
EPS Q2Q%14.08%
Revenue 1Y (TTM)4.43%
Revenue growth 3Y-1.74%
Revenue growth 5Y-0.73%
Sales Q2Q%52.23%
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 12.82% on average per year.
SHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
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
SHG is valuated reasonably with a Price/Earnings ratio of 9.25.
Based on the Price/Earnings ratio, SHG is valued cheaper than 89.12% 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 26.56.
The Price/Forward Earnings ratio is 7.01, which indicates a rather cheap valuation of SHG.
93.26% of the companies in the same industry are more expensive than SHG, based on the Price/Forward Earnings ratio.
SHG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 7.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHG indicates a rather cheap valuation: SHG is cheaper than 96.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.6 | ||
| 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.
A more expensive valuation may be justified as SHG's earnings are expected to grow with 12.82% in the coming years.
PEG (NY)0.39
PEG (5Y)2.42
EPS Next 2Y14.82%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
SHG has a Yearly Dividend Yield of 2.92%.
SHG's Dividend Yield is comparable with the industry average which is at 2.70.
Compared to an average S&P500 Dividend Yield of 1.87, SHG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
5.2 History
On average, the dividend of SHG grows each year by 7.01%, which is quite nice.
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)7.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
27.66% 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.
DP27.66%
EPS Next 2Y14.82%
EPS Next 3Y12.82%
53.08
+0.02 (+0.04%)
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 Cap25.56B
Revenue(TTM)23.02T
Net Income(TTM)4.67T
Analysts84.29
Price Target63.26 (19.18%)
Short Float %0.04%
Short Ratio0.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
Yearly Dividend1.71
Dividend Growth(5Y)7.01%
DP27.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)28.54%
Min Revenue beat(2)6.31%
Max Revenue beat(2)50.76%
Revenue beat(4)4
Avg Revenue beat(4)25.26%
Min Revenue beat(4)6.31%
Max Revenue beat(4)50.76%
Revenue beat(8)8
Avg Revenue beat(8)15.4%
Revenue beat(12)9
Avg Revenue beat(12)10.5%
Revenue beat(16)13
Avg Revenue beat(16)20.69%
PT rev (1m)-2.09%
PT rev (3m)0.96%
EPS NQ rev (1m)-1.2%
EPS NQ rev (3m)3.92%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 7.01 | ||
| P/S | 1.64 | ||
| P/FCF | 2.6 | ||
| P/OCF | 2.49 | ||
| P/B | 0.65 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.74
EY10.81%
EPS(NY)7.57
Fwd EY14.27%
FCF(TTM)20.4
FCFY38.44%
OCF(TTM)21.33
OCFY40.18%
SpS32.36
BVpS81.35
TBVpS73.05
PEG (NY)0.39
PEG (5Y)2.42
Graham Number102.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 8.07% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 20.29% | ||
| GM | N/A | ||
| FCFM | 63.06% |
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-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 10.5 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 50.43% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 310.75% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
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)4.87%
EPS 3Y2.1%
EPS 5Y3.81%
EPS Q2Q%14.08%
EPS Next Y23.82%
EPS Next 2Y14.82%
EPS Next 3Y12.82%
EPS Next 5YN/A
Revenue 1Y (TTM)4.43%
Revenue growth 3Y-1.74%
Revenue growth 5Y-0.73%
Sales Q2Q%52.23%
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 1Y145.44%
FCF growth 3Y5.15%
FCF growth 5Y-10.2%
OCF growth 1Y125.27%
OCF growth 3Y3.28%
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 9.25 and the Price/Book (PB) ratio is 0.65.
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.