NYSE:KB

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KB Financial Group

Executive Summary

KB Financial Group Inc. provides a range of banking and related financial services to consumers and corporations in South Korea and internationally.


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has KB Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

KB

-2.4%

US Banks

2.2%

US Market


1 Year Return

-9.9%

KB

-22.7%

US Banks

16.2%

US Market

Return vs Industry: KB exceeded the US Banks industry which returned -23.5% over the past year.

Return vs Market: KB underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

KBIndustryMarket
7 Day1.2%-2.4%2.2%
30 Day3.7%0.8%4.9%
90 Day13.5%6.1%17.8%
1 Year-6.6%-9.9%-19.9%-22.7%18.7%16.2%
3 Year-37.1%-42.7%-15.5%-22.2%41.1%32.0%
5 Year5.5%-6.1%10.1%-3.3%74.5%55.7%

Price Volatility Vs. Market

How volatile is KB Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

45.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KB ($29.6) is trading below our estimate of fair value ($55.07)

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


Price To Earnings Ratio

PE vs Industry: KB is good value based on its PE Ratio (4.3x) compared to the US Banks industry average (9.6x).

PE vs Market: KB is good value based on its PE Ratio (4.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: KB is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: KB is good value based on its PB Ratio (0.4x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is KB Financial Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KB's forecast earnings growth (6.1% per year) is above the savings rate (2.2%).

Earnings vs Market: KB's earnings (6.1% per year) are forecast to grow slower than the US market (22.3% per year).

High Growth Earnings: KB's earnings are forecast to grow, but not significantly.

Revenue vs Market: KB's revenue (4.2% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: KB's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KB's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

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

15.2%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: KB's current net profit margins (30%) are higher than last year (28.6%).


Past Earnings Growth Analysis

Earnings Trend: KB's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: KB's earnings growth over the past year (8.4%) is below its 5-year average (15.2% per year).

Earnings vs Industry: KB earnings growth over the past year (8.4%) exceeded the Banks industry -2.8%.


Return on Equity

High ROE: KB's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: KB's Assets to Equity ratio (14x) is moderate.

Allowance for Bad Loans: KB has a sufficient allowance for bad loans (123%).

Low Risk Liabilities: 63% of KB's liabilities are made up of primarily low risk sources of funding.

Loan Level: KB has an appropriate level of Loans to Assets ratio (64%).

Low Risk Deposits: KB's Loans to Deposits ratio (110%) is appropriate.

Level of Bad Loans: KB has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

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

6.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KB's dividend (6.28%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: KB's dividend (6.28%) is in the top 25% of dividend payers in the US market (4.51%)


Stability and Growth of Payments

Stable Dividend: KB's dividend payments have been volatile in the past 10 years.

Growing Dividend: KB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.1%), KB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KB's dividends in 3 years are forecast to be well covered by earnings (27.7% payout ratio).


Next Steps

Management

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

2.4yrs

Average board tenure


CEO

Jong-Kyoo Yoon (65 yo)

5.75yrs

Tenure

₩2,057,000,000

Compensation

Dr. Jong-Kyoo Yoon has been CEO of KB Financial Group Inc. since November 21, 2014 and also has been its Co-Chairman since June 7, 2017. Dr. Yoon served as Chairman of KB Financial Group Inc. since Novembe ...


CEO Compensation Analysis

Compensation vs Market: Jong-Kyoo's total compensation ($USD1.72M) is below average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Jong-Kyoo's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Jong-Kyoo Yoon
Chairman & CEO5.75yrs₩2.06b0.0054%
₩ 625.0k
Yin Hur
Head of Digital Transformation Business Unit & Non-Standing Director2.75yrs₩1.07b0.0035%
₩ 401.2k
Stuart Solomon
Non-Executive Independent Director3.42yrsno datano data
Myung Hee Choi
Non-Executive Independent Director2.42yrsno datano data
Suk Ho Sonu
Independent Chairman of the Board0.42yrno data0.00033%
₩ 38.3k
Kouwhan Jeong
Non-Executive Independent Director2.42yrsno datano data
Kyung Kim
Independent Director1.42yrsno datano data
Seon Joo Kwon
Independent Director0.42yrno datano data
Gyu taeg Oh
Independent Director0.42yrno datano data

2.4yrs

Average Tenure

66yo

Average Age

Experienced Board: KB's board of directors are not considered experienced ( 2.4 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.


Top Shareholders

Company Information

KB Financial Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KB Financial Group Inc.
  • Ticker: KB
  • Exchange: NYSE
  • Founded: 2008
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₩13.832t
  • Listing Market Cap: ₩11.595b
  • Shares outstanding: 389.63m
  • Website: https://www.kbfg.com

Number of Employees


Location

  • KB Financial Group Inc.
  • 26, Gukjegeumyung-ro 8-gil
  • Yeongdeungpo-gu
  • Seoul
  • 7331
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A105560KOSE (Korea Stock Exchange)YesCommon StockKRKRWNov 2001
KBNYSE (New York Stock Exchange)ADR EACH REPR 1 ORD SHSUSUSDSep 2008
KBIADB (Deutsche Boerse AG)ADR EACH REPR 1 ORD SHSDEEURSep 2008
KB NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 1 ORD SHSMXMXNSep 2008

Biography

KB Financial Group Inc. provides a range of banking and related financial services to consumers and corporations in South Korea and internationally. It operates through Corporate Banking, Retail Banking, O ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 23:39
End of Day Share Price2020/08/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.