Meritz Financial Group (KOSE:A138040) - Share price, News & Analysis

A138040 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	2/6
Dividends	2/6

A138040 Stock Overview

Meritz Financial Group Inc., through its subsidiaries, provides various financial services in South Korea.

Rewards

Trading at 39% below our estimate of its fair value

Earnings grew by 60.6% over the past year

Risk Analysis

High level of non-cash earnings

Meritz Financial Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Meritz Financial Group
Historical stock prices
Current Share Price	₩30,700.00
52 Week High	₩55,900.00
52 Week Low	₩17,050.00
Beta	0.17
1 Month Change	-19.21%
3 Month Change	-19.53%
1 Year Change	73.45%
3 Year Change	118.51%
5 Year Change	108.84%
Change since IPO	455.15%

Shareholder Returns

	A138040	KR Diversified Financial	KR Market
7D	1.2%	0.6%	1.6%
1Y	73.4%	51.7%	-14.2%

Return vs Industry: A138040 exceeded the KR Diversified Financial industry which returned 51.7% over the past year.

Return vs Market: A138040 exceeded the KR Market which returned -14.2% over the past year.

Price Volatility

Is A138040's price volatile compared to industry and market?
A138040 volatility
A138040 Average Weekly Movement	7.0%
Diversified Financial Industry Average Movement	6.9%
Market Average Movement	5.6%
10% most volatile stocks in KR Market	10.4%
10% least volatile stocks in KR Market	3.2%

Stable Share Price: A138040 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: A138040's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	15	Yong Bum Kim	https://www.meritzgroup.com

Meritz Financial Group Inc., through its subsidiaries, provides various financial services in South Korea. The company offers fire, marine, long-term, automobile, and general insurance products, as well as credit financing, asset management, etc.; and securities and OTC derivatives investment/brokerage and trading, trust, and investment consulting and discretion services. It is also involved in the provision of car financing, personal loan, and corporate financing services; real estate investment trusts management services; and commissioned management of investment trusts.

Meritz Financial Group Fundamentals Summary

How do Meritz Financial Group's earnings and revenue compare to its market cap?
A138040 fundamental statistics
Market Cap	₩3.77t
Earnings (TTM)	₩762.65b
Revenue (TTM)	₩15.61t

4.9x

P/E Ratio

0.2x

P/S Ratio

Is A138040 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A138040 income statement (TTM)
Revenue	₩15.61t
Cost of Revenue	₩0
Gross Profit	₩15.61t
Other Expenses	₩14.84t
Earnings	₩762.65b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	6.21k
Gross Margin	100.00%
Net Profit Margin	4.89%
Debt/Equity Ratio	835.1%

How did A138040 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

4%

Payout Ratio

Valuation

Is Meritz Financial Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

39.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: A138040 (₩30700) is trading below our estimate of fair value (₩50350.15)

Significantly Below Fair Value: A138040 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: A138040 is good value based on its PE Ratio (4.9x) compared to the Asian Diversified Financial industry average (13.4x).

PE vs Market: A138040 is good value based on its PE Ratio (4.9x) compared to the KR market (14.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate A138040's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: A138040 is good value based on its PB Ratio (1x) compared to the KR Diversified Financial industry average (1.2x).

Future Growth

How is Meritz Financial Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-50.5%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if A138040's forecast earnings growth is above the savings rate (3.5%).

Earnings vs Market: Insufficient data to determine if A138040's earnings are forecast to grow faster than the KR market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: A138040's revenue is expected to decline over the next 3 years (-50.5% per year).

High Growth Revenue: A138040's revenue is forecast to decline over the next 3 years (-50.5% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: A138040's Return on Equity is forecast to be low in 3 years time (5.9%).

Past Performance

How has Meritz Financial Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

17.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A138040 has a high level of non-cash earnings.

Growing Profit Margin: A138040's current net profit margins (4.9%) are higher than last year (3.2%).

Past Earnings Growth Analysis

Earnings Trend: A138040's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: A138040's earnings growth over the past year (60.6%) exceeds its 5-year average (17.7% per year).

Earnings vs Industry: A138040 earnings growth over the past year (60.6%) exceeded the Diversified Financial industry 34.9%.

Return on Equity

High ROE: Whilst A138040's Return on Equity (20.1%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Meritz Financial Group's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

2/6

Financial Health Score 2/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: A138040's Assets to Equity ratio (11.9x) is moderate.

Allowance for Bad Loans: Insufficient data to determine if A138040 has a sufficient allowance for bad loans.

Low Risk Liabilities: 97% of A138040's liabilities are made up of primarily higher risk sources of funding.

Loan Level: A138040 has an appropriate level of Loans to Assets ratio (19%).

Low Risk Deposits: A138040's Loans to Deposits ratio (604%) is high.

Level of Bad Loans: Insufficient data to determine if A138040 has an appropriate level of bad loans.

Dividend

What is Meritz Financial Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A138040's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the KR market (0.85%).

High Dividend: A138040's dividend (0.68%) is low compared to the top 25% of dividend payers in the KR market (2.75%).

Stability and Growth of Payments

Stable Dividend: A138040 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: A138040 has only been paying a dividend for 2 years, and since then payments have fallen.

Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (3.5%), A138040's dividend payments are thoroughly covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: A138040's dividends in 3 years are forecast to be thoroughly covered by earnings (1.8% payout ratio).

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average board tenure

CEO

Yong Bum Kim (58 yo)

no data

Tenure

Mr. Yong Bum Kim serves as the Chief Executive Officer at Meritz Fire & Marine Insurance Co., Ltd. since March 20, 2015 and serves as its Vice Chairman. Mr. Kim serves as Chief Executive Officer and Presid...

Board Members

Experienced Board: A138040's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31