NYSE:SHG

Stock Analysis Report

Shinhan Financial Group

Executive Summary

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally.

Snowflake

Fundamentals

Flawless balance sheet 6 star dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

SHG

1.4%

US Banks

1.0%

US Market


1 Year Return

-8.0%

SHG

0.2%

US Banks

6.7%

US Market

Return vs Industry: SHG underperformed the US Banks industry which returned 0.2% over the past year.

Return vs Market: SHG underperformed the US Market which returned 6.7% over the past year.


Share holder returns

SHGIndustryMarket
7 Day3.2%1.4%1.0%
30 Day-1.6%-2.6%-1.8%
90 Day-6.1%0.8%-1.8%
1 Year-5.3%-8.0%3.1%0.2%9.1%6.7%
3 Year0.9%-4.2%52.0%41.5%46.1%36.6%
5 Year-12.2%-19.8%69.7%51.2%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shinhan Financial Group undervalued based on future cash flows and its price relative to the stock market?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: SHG ($35.58) is trading below our estimate of fair value ($59.85)

Significantly Undervalued: SHG is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: SHG is good value based on its PE Ratio (6.1x) compared to the Banks industry average (12.5x).

PE vs Market: SHG is good value based on its PE Ratio (6.1x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: SHG is poor value based on its PEG Ratio (2.1x)


Price Based on Value of Assets

PB vs Industry: SHG is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Shinhan Financial Group expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SHG's forecast earnings growth (2.9% per year) is above the savings rate (2.7%).

Earnings vs Market: SHG's earnings (2.9% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: SHG's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SHG's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: SHG's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

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

10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SHG's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: SHG's earnings growth over the past year (14.3%) exceeds its 5-year average (10.2% per year).

Earnings vs Industry: SHG earnings growth over the past year (14.3%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: SHG's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: SHG's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SHG's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Shinhan 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

Inventory Level: SHG has a low level of unsold assets or inventory.

Debt Coverage by Assets: SHG's debt is covered by short term assets (assets are 1.234300x debt).


Financial Institutions Analysis

Asset Level: SHG's level of assets compared to its equity is moderate.

Allowance for Bad Loans: SHG has a sufficient allowance for bad loans.

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

Loan Level: SHG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SHG's loans are broadly funded by customer deposits.

Level of Bad Loans: SHG has an appropriate level of bad loans (0.48%)


Next Steps

Dividend

What is Shinhan Financial Group's current dividend yield, its reliability and sustainability?

4.51%

Expected Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years4.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SHG's dividend (3.87%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SHG's dividend (3.87%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: SHG's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), SHG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHG's dividends in 3 years are forecast to be well covered by earnings (25.8% payout ratio).


Next Steps

Management

What is the CEO of Shinhan Financial Group's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Yong-byoung Cho (62yo)

2.6yrs

Tenure

₩1,149,000,000

Compensation

Mr. Yong-byoung Cho has been Chief Executive Officer and President of Shinhan Financial Group Co., Ltd. since March 23, 2017. Mr. Cho serves as the Chief Executive Officer of Shinhan BNP Paribas Asset Mana ...


CEO Compensation Analysis

Compensation vs. Market: Yong-byoung's total compensation ($USD975.37K) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Insufficient data to compare Yong-byoung's compensation with company performance.


Management Age and Tenure

0.8yrs

Average Tenure

56yo

Average Age

Experienced Management: SHG's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SHG's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Chil Sun Hong (73yo)

    Senior Executive VP of Subsidiary Mgmt Team II

    • Tenure: 0yrs
  • Bhang Gil Choi (67yo)

    Senior Executive Vice President of Integration Coordination Team I and II

    • Tenure: 0yrs
  • Yoo Yeop Shim

    Executive Deputy Chief Executive Officer of Shinhan Card

    • Tenure: 0yrs
  • Hee Geon Kim (61yo)

    Executive Deputy Chief Executive Officer of Shinhan Card

    • Tenure: 0yrs
  • Yong-byoung Cho (62yo)

    Chairman

    • Tenure: 2.6yrs
    • Compensation: ₩1.15b
  • Sunghun Yu (54yo)

    Deputy President & CFO

    • Tenure: 0yrs
  • Woon-jin Jeong (55yo)

    Deputy President & Head of Global Investment Banking Business

    • Tenure: 0.8yrs
  • Byeong-Cheol Lee (56yo)

    Deputy President & Chief Public Relations Officer

    • Tenure: 0.8yrs
  • Ho-Min Wang (55yo)

    Executive Director & Chief Compliance Officer

    • Tenure: 0yrs
  • Een-kyoon Lee (52yo)

    Executive Director & COO

    • Tenure: 0yrs

Board Members

  • Manwoo Lee (65yo)

    Independent Director

    • Tenure: 5.6yrs
  • Philippe Avril (59yo)

    Independent Director

    • Tenure: 4.6yrs
  • Yong-byoung Cho (62yo)

    Chairman

    • Tenure: 2.6yrs
    • Compensation: ₩1.15b
  • Cheul Park (73yo)

    Outside Director

    • Tenure: 3.6yrs
  • Yuki Hirakawa (59yo)

    Independent Director

    • Tenure: 4.6yrs
  • Ok-Dong Jin (58yo)

    Non-Executive Director

    • Tenure: 0.6yrs
  • Ansoon Park (74yo)

    Independent Director

    • Tenure: 2.6yrs
  • Hwa-Nam Kim (74yo)

    Independent Director

    • Tenure: 1.6yrs
  • Yong-Hak Huh (61yo)

    Independent Director

    • Tenure: 0.6yrs
  • Yang-Ho Byeon (65yo)

    Independent Director

    • Tenure: 0.6yrs

Company Information

Shinhan Financial Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shinhan Financial Group Co., Ltd.
  • Ticker: SHG
  • Exchange: NYSE
  • Founded: 1982
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₩19.084t
  • Listing Market Cap: ₩16.200b
  • Shares outstanding: 461.52m
  • Website: https://www.shinhangroup.com

Number of Employees


Location

  • Shinhan Financial Group Co., Ltd.
  • 20, Sejong-daero 9-gil
  • Jung-gu
  • Seoul
  • 4513
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A055550KOSE (Korea Stock Exchange)YesCommon StockKRKRWSep 2001
SHGNYSE (New York Stock Exchange)SPONS ADR EACH REP 1 ORD KRW5000USUSDSep 2003
KSF1DB (Deutsche Boerse AG)SPONS ADR EACH REP 1 ORD KRW5000DEEURSep 2003
SHG NBMV (Bolsa Mexicana de Valores)SPONS ADR EACH REP 1 ORD KRW5000MXMXNSep 2003

Biography

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through five segments: Commercial Banking Services, Credit Card Services, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:52
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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