NYSE:WF

Stock Analysis Report

Woori Financial Group

Executive Summary

Woori Financial Group Inc., a financial holding company, engages in the corporate banking, consumer banking, credit card operations, investment banking, capital markets activities, and other businesses.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

WF

1.4%

US Banks

1.0%

US Market


1 Year Return

-30.9%

WF

0.2%

US Banks

6.7%

US Market

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

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


Share holder returns

WFIndustryMarket
7 Day0.8%1.4%1.0%
30 Day-5.9%-2.6%-1.8%
90 Day-16.1%0.8%-1.8%
1 Year-30.9%-30.9%3.1%0.2%9.1%6.7%
3 Year1.7%-3.7%52.0%41.5%46.1%36.6%
5 Yearn/a69.7%51.2%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: WF ($29.73) is trading below our estimate of fair value ($68.74)

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


Price Based on Earnings

PE vs Industry: WF is good value based on its PE Ratio (4.2x) compared to the Banks industry average (12.5x).

PE vs Market: WF is good value based on its PE Ratio (4.2x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: WF is poor value based on its PEG Ratio (1.1x)


Price Based on Value of Assets

PB vs Industry: WF is good value based on its PB Ratio (0.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Woori Financial Group expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: WF's forecast earnings growth (3.8% per year) is above the savings rate (2.7%).

Earnings vs Market: WF's earnings (3.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: WF's revenue (3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WF's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

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

30.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WF's earnings have grown significantly by 30.8% per year over the past 5 years.

Accelerating Growth: WF's earnings growth over the past year (16.8%) is below its 5-year average (30.8% per year).

Earnings vs Industry: WF earnings growth over the past year (16.8%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: WF's Return on Equity (8.8%) is considered low.


Return on Assets

ROA vs Industry: WF'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 WF's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Woori 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: WF has a low level of unsold assets or inventory.

Debt Coverage by Assets: WF's debt is covered by short term assets (assets are 1.427240x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: WF has an appropriate level of bad loans (0.44%)


Next Steps

Dividend

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

6.12%

Expected Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years6.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: WF's dividend (5.65%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WF's dividend (5.65%) is in the top 25% of dividend payers in the US market (3.77%)

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

Growing Dividend: WF's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.9%), WF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WF's dividends in 3 years are forecast to be well covered by earnings (24.6% payout ratio).


Next Steps

Management

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

0.8yrs

Average board tenure


CEO

Taeseung Sohn (60yo)

0.8yrs

Tenure

₩844,000,000

Compensation

Mr. Son Tae-Seung has been Executive Director, President & Chief Executive Officer of Woori Financial Group Inc since January 11, 2019 and is its Chairman. Mr. Son was Chairman of the Board at AO Woori Ban ...


CEO Compensation Analysis

Compensation vs. Market: Taeseung has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Taeseung's compensation with company performance.


Board Age and Tenure

0.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: WF's board of directors are not considered experienced ( 0.8 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

  • Taeseung Sohn (60yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: ₩844.00m
  • Dongyeon Lee (58yo)

    Executive Vice President of IT Group

    • Tenure: 0yrs
  • Jeong-Ki Kim (58yo)

    Executive Vice President of Business Support Unit/Human Resources Group

    • Tenure: 0yrs
  • Jong-In Lee (60yo)

    Executive Vice President of Risk Management Group

    • Tenure: 0yrs
  • Kyong-Hoon Park (57yo)

    Dep President

    • Tenure: 0.8yrs
  • Cheol-soo Kim

    Chief of Department

    • Tenure: 0yrs
    • Compensation: ₩718.00m
  • Mi-Young Shin

    Head of Assistant

    • Tenure: 0yrs
    • Compensation: ₩701.00m
  • Chang-min Lee

    Chief of Department

    • Tenure: 0yrs
    • Compensation: ₩686.00m
  • Deok Cho Jae

    Vice General Manager

    • Tenure: 0yrs
    • Compensation: ₩682.00m
  • Byung Kyu Cho

    Compliance Officer & MD

    • Tenure: 0yrs

Board Members

  • Sung-Tae Ro (73yo)

    Outside Director

    • Tenure: 0.8yrs
  • Zhiping Tian (53yo)

    Outside Director

    • Tenure: 0.8yrs
  • Taeseung Sohn (60yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: ₩844.00m
  • Dong-Woo Chang (52yo)

    Outside Director

    • Tenure: 0.8yrs
  • Sang-Yong Park (68yo)

    Outside Director

    • Tenure: 0.8yrs
  • Jung Sik Oh (63yo)

    Internal Director

    • Tenure: 0.6yrs
  • Chang-Sik Bae (56yo)

    Non-Standing Director

    • Tenure: 0.8yrs
  • Chan-Hyoung Chung (63yo)

    Outside Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Woori Financial Group Inc.
  • Ticker: WF
  • Exchange: NYSE
  • Founded: 1899
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₩8.306t
  • Listing Market Cap: ₩7.051b
  • Shares outstanding: 722.27m
  • Website: https://www.woorifg.com

Number of Employees


Location

  • Woori Financial Group Inc.
  • Woori Bank Main Office
  • 20 and 21st Floor
  • Seoul
  • 4632
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A316140KOSE (Korea Stock Exchange)YesNew Common StockKRKRWNov 2014
2WGADB (Deutsche Boerse AG)SPON ADS EACH REP 3 ORD SHS WIDEEURNov 2014
WFNYSE (New York Stock Exchange)SPON ADS EACH REP 3 ORD SHS WIUSUSDNov 2014

Biography

Woori Financial Group Inc., a financial holding company, engages in the corporate banking, consumer banking, credit card operations, investment banking, capital markets activities, and other businesses. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:29
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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