Shinhan Financial EBITDA vs. Operating Margin

SHG Stock  USD 36.16  0.52  1.46%   
Taking into consideration Shinhan Financial's profitability measurements, Shinhan Financial's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Shinhan Financial's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
T
Current Value
959.9 B
Quarterly Volatility
3.1 T
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Shinhan Financial's Price Sales Ratio is most likely to slightly decrease in the upcoming years. At this time, Shinhan Financial's Net Income Per Share is most likely to increase significantly in the upcoming years. The Shinhan Financial's current Income Quality is estimated to increase to 0.89, while Income Before Tax is projected to decrease to roughly 3.5 T.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin3.463.89
Fairly Down
Slightly volatile
Net Profit Margin0.240.308
Significantly Down
Slightly volatile
Pretax Profit Margin0.310.4206
Way Down
Pretty Stable
Return On Assets0.0080.0063
Significantly Up
Slightly volatile
Return On Equity0.120.0879
Significantly Up
Pretty Stable
For Shinhan Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shinhan Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shinhan Financial Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shinhan Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shinhan Financial Group over time as well as its relative position and ranking within its peers.
  
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Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Shinhan Financial. If investors know Shinhan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Shinhan Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.108
Dividend Share
3.2 K
Earnings Share
6.08
Revenue Per Share
29 K
Quarterly Revenue Growth
2.224
The market value of Shinhan Financial is measured differently than its book value, which is the value of Shinhan that is recorded on the company's balance sheet. Investors also form their own opinion of Shinhan Financial's value that differs from its market value or its book value, called intrinsic value, which is Shinhan Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Shinhan Financial's market value can be influenced by many factors that don't directly affect Shinhan Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Shinhan Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shinhan Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shinhan Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Shinhan Financial Operating Margin vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Shinhan Financial's current stock value. Our valuation model uses many indicators to compare Shinhan Financial value to that of its competitors to determine the firm's financial worth.
Shinhan Financial Group is currently regarded as top stock in ebitda category among its peers. It is rated below average in operating margin category among its peers . The ratio of EBITDA to Operating Margin for Shinhan Financial Group is about  6,557,151,200,519 . At this time, Shinhan Financial's EBITDA is most likely to decrease significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Shinhan Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Shinhan Operating Margin vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Shinhan Financial

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.01 T
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Shinhan Financial

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.15 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Shinhan Operating Margin Comparison

Shinhan Financial is currently under evaluation in operating margin category among its peers.

Shinhan Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Shinhan Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shinhan Financial will eventually generate negative long term returns. The profitability progress is the general direction of Shinhan Financial's change in net profit over the period of time. It can combine multiple indicators of Shinhan Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income2.3 T2.4 T
Operating Income8.5 T8.3 T
Income Before TaxT3.5 T
Net Income Applicable To Common Shares5.2 T5.4 T
Net Income4.4 T3.1 T
Income Tax Expense1.5 T756.1 B
Total Other Income Expense Net-2.5 T-2.6 T
Net Income From Continuing Ops4.3 T3.4 T
Net Interest Income12.7 T10.5 T
Interest Income26.5 T17.1 T
Change To Netincome2.5 T2.4 T
Net Income Per Share8.4 K8.8 K
Income Quality 0.46  0.89 
Net Income Per E B T 0.73  0.57 

Shinhan Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Shinhan Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Shinhan Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Shinhan Financial's important profitability drivers and their relationship over time.

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When determining whether Shinhan Financial is a strong investment it is important to analyze Shinhan Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Shinhan Financial's future performance. For an informed investment choice regarding Shinhan Stock, refer to the following important reports:
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You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Shinhan Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Shinhan Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Shinhan Financial's income statement, its balance sheet, and the statement of cash flows.
Potential Shinhan Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Shinhan Financial investors may work on each financial statement separately, they are all related. The changes in Shinhan Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Shinhan Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.