(SHG) Shinhan Financial - Ratings and Ratios

Exchange: NYSE • Country: South Korea • Currency: USD • Type: Common Stock • ISIN: US8245961003

Banking, Credit Cards, Securities, Insurance, Lending

Dividends

Dividend Yield 2.26%
Yield on Cost 5y 5.15%
Yield CAGR 5y 10.13%
Payout Consistency 84.0%
Payout Ratio 16.4%
Risk via 10d forecast
Volatility 30.6%
Value at Risk 5%th 45.4%
Relative Tail Risk -9.65%
Reward TTM
Sharpe Ratio 1.49
Alpha 44.84
CAGR/Max DD 0.86
Character TTM
Hurst Exponent 0.404
Beta 0.697
Beta Downside 0.563
Drawdowns 3y
Max DD 35.19%
Mean DD 14.12%
Median DD 13.13%

Description: SHG Shinhan Financial October 14, 2025

Shinhan Financial Group Co., Ltd. (NYSE: SHG) is a South Korean diversified banking holding company that delivers a full suite of financial products and services domestically and abroad, operating across six primary segments: Commercial Banking, Credit Card, Securities, Insurance, Credit, and “Other” businesses.

The Commercial Banking arm provides retail deposits (demand, savings, and time deposits), mortgage and home-equity loans, and a broad digital banking platform (ATM, online banking, bill-pay, payroll, and foreign-exchange services). Its corporate franchise covers investment banking, real-estate and infrastructure financing, venture-capital equity investments, M&A advisory, securitization, derivatives, and working-capital facilities.

Beyond core banking, Shinhan’s “Other” segment encompasses treasury and international capital-market activities (FX and foreign-currency securities trading, trade finance, factoring, and foreign-bank operations), as well as asset-management, life and non-life insurance, securities brokerage, real-estate trusts, and venture-business investments.

Key recent metrics (2023 FY): net profit of KRW 3.1 trillion, return on equity (ROE) of 9.8 %, net interest margin (NIM) of 1.7 %, and loan-book growth of 4.2 % YoY, driven largely by a rebound in corporate lending and a modest rise in mortgage originations. The bank’s efficiency ratio improved to 62 % as digital channels captured ~30 % of retail transactions.

Sector-level drivers that will shape Shinhan’s outlook include the Bank of Korea’s policy-rate trajectory (currently near 4 % after a series of hikes to curb inflation), South Korea’s modest GDP growth forecast of 2.1 % for 2025, and the ongoing consolidation of fintech platforms that pressures traditional fee income. A rise in non-performing loan (NPL) ratios above the industry average of 1.1 % would be a red flag for credit quality.

For a deeper quantitative dive into Shinhan’s valuation dynamics, you may find it useful to explore the analytics available on ValueRay.

Piotroski VR‑10 (Strict, 0-10) 3.0

Net Income (4867.04b TTM) > 0 and > 6% of Revenue (6% = 1465.62b TTM)
FCFTA -0.01 (>2.0%) and ΔFCFTA -0.92pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)
NWC/Revenue -1273 % (prev -841.1%; Δ -432.3pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)
CFO/TA -0.01 (>3.0%) and CFO -6154.13b <= Net Income 4867.04b (YES >=105%, WARN >=100%)
Net Debt (86607.92b) to EBITDA (4736.34b) ratio: 18.29 <= 3.0 (WARN <= 3.5)
Current Ratio 0.33 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)
Outstanding Shares last Quarter (484.2m) change vs 12m ago -3.93% (target <= -2.0% for YES)
Gross Margin 61.66% (prev 88.28%; Δ -26.61pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)
Asset Turnover 3.20% (prev 4.82%; Δ -1.62pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)
Interest Coverage Ratio 0.32 (EBITDA TTM 4736.34b / Interest Expense TTM 12777.91b) >= 6 (WARN >= 3)

Altman Z'' -2.33

(A) -0.40 = (Total Current Assets 153819.85b - Total Current Liabilities 464882.72b) / Total Assets 782940.31b
(B) 0.05 = Retained Earnings (Balance) 41615.68b / Total Assets 782940.31b
(C) 0.01 = EBIT TTM 4077.68b / Avg Total Assets 764168.41b
(D) 0.06 = Book Value of Equity 45768.51b / Total Liabilities 722362.70b
Total Rating: -2.33 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 35.43

1. Piotroski 3.0pt
2. FCF Yield -5.27%
3. FCF Margin -27.22%
4. Debt/Equity 2.24
5. Debt/Ebitda 18.29
6. ROIC - WACC (= -2.20)%
7. RoE 8.54%
8. Rev. Trend 4.08%
9. EPS Trend 28.00%

What is the price of SHG shares?

As of December 14, 2025, the stock is trading at USD 53.08 with a total of 177,062 shares traded.
Over the past week, the price has changed by -2.16%, over one month by -3.19%, over three months by +8.10% and over the past year by +55.54%.

Is SHG a buy, sell or hold?

Shinhan Financial has received a consensus analysts rating of 5.00. Therefore, it is recommended to buy SHG.
  • Strong Buy: 1
  • Buy: 0
  • Hold: 0
  • Sell: 0
  • Strong Sell: 0

What are the forecasts/targets for the SHG price?

Issuer Target Up/Down from current
Wallstreet Target Price 66.4 25.2%
Analysts Target Price 66.4 25.2%
ValueRay Target Price 68.5 29%

SHG Fundamental Data Overview December 03, 2025

Market Cap KRW = 39483.90b (26.77b USD * 1474.78 USD.KRW)
P/E Trailing = 8.3191
P/E Forward = 4.0833
P/S = 0.0018
P/B = 0.6698
P/EG = 5.1048
Beta = 0.605
Revenue TTM = 24426.97b KRW
EBIT TTM = 4077.68b KRW
EBITDA TTM = 4736.34b KRW
Long Term Debt = 137795.87b KRW (from longTermDebt, last fiscal year)
Short Term Debt = 11573.79b KRW (from shortTermDebt, last fiscal year)
Debt = 129788.11b KRW (from shortLongTermDebtTotal, last quarter)
Net Debt = 86607.92b KRW (from netDebt column, last quarter)
Enterprise Value = 126091.82b KRW (39483.90b + Debt 129788.11b - CCE 43180.19b)
Interest Coverage Ratio = 0.32 (Ebit TTM 4077.68b / Interest Expense TTM 12777.91b)
FCF Yield = -5.27% (FCF TTM -6647.87b / Enterprise Value 126091.82b)
FCF Margin = -27.22% (FCF TTM -6647.87b / Revenue TTM 24426.97b)
Net Margin = 19.92% (Net Income TTM 4867.04b / Revenue TTM 24426.97b)
Gross Margin = 61.66% ((Revenue TTM 24426.97b - Cost of Revenue TTM 9364.09b) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 46.39%)
Tobins Q-Ratio = 0.16 (Enterprise Value 126091.82b / Total Assets 782940.31b)
Interest Expense / Debt = 3.16% (Interest Expense 4103.23b / Debt 129788.11b)
Taxrate = 25.55% (498.43b / 1950.62b)
NOPAT = 3035.73b (EBIT 4077.68b * (1 - 25.55%))
Current Ratio = 0.33 (Total Current Assets 153819.85b / Total Current Liabilities 464882.72b)
Debt / Equity = 2.24 (Debt 129788.11b / totalStockholderEquity, last quarter 57870.56b)
Debt / EBITDA = 18.29 (Net Debt 86607.92b / EBITDA 4736.34b)
Debt / FCF = -13.03 (negative FCF - burning cash) (Net Debt 86607.92b / FCF TTM -6647.87b)
Total Stockholder Equity = 56983.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.62% (Net Income 4867.04b / Total Assets 782940.31b)
RoE = 8.54% (Net Income TTM 4867.04b / Total Stockholder Equity 56983.02b)
RoCE = 2.09% (EBIT 4077.68b / Capital Employed (Equity 56983.02b + L.T.Debt 137795.87b))
RoIC = 1.61% (NOPAT 3035.73b / Invested Capital 189094.29b)
WACC = 3.81% (E(39483.90b)/V(169272.01b) * Re(8.58%) + D(129788.11b)/V(169272.01b) * Rd(3.16%) * (1-Tc(0.26)))
Discount Rate = 8.58% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.72%
Fair Price DCF = unknown (Cash Flow -6647.87b)
EPS Correlation: 28.00 | EPS CAGR: 31.16% | SUE: 0.02 | # QB: 0
Revenue Correlation: 4.08 | Revenue CAGR: -9.61% | SUE: 0.01 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.13 | Chg30d=-0.041 | Revisions Net=-1 | Analysts=1
EPS next Year (2026-12-31): EPS=7.77 | Chg30d=-0.236 | Revisions Net=-1 | Growth EPS=+4.7% | Growth Revenue=+2.9%

Additional Sources for SHG Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle