Kb Financial Group (KB) AI Stock Analysis

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Kb Financial Group

(NYSE:KB)

69Neutral

KB Financial Group's stock score is driven by strong financial performance, particularly in revenue growth and shareholder returns. However, technical indicators suggest bearish trends, and challenges such as declining net interest margins and economic volatility present risks. The undervaluation and attractive dividend yield are positive aspects, contributing to a moderately positive overall outlook.

Kb Financial Group (KB) vs. S&P 500 (SPY)

Market Cap

$19.55B

Dividend Yield3.55%

Average Volume (3M)197.67K

Price to Earnings (P/E)5.7

Beta (1Y)0.88

Revenue Growth-1.25%

EPS Growth6.28%

CountryUS

Employees141

SectorFinancial

Sector Strength86

IndustryBanks - Regional

Share Statistics

EPS (TTM)9.43

Shares Outstanding393,528,400

10 Day Avg. Volume221,093

30 Day Avg. Volume197,667

Financial Highlights & Ratios

PEG Ratio0.90

Price to Book (P/B)N/A

Price to Sales (P/S)1.95

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusModerate Buy

Number of Analyst Covering0

Kb Financial Group Business Overview & Revenue Model

Company DescriptionKB Financial Group Inc. is a leading financial services provider in South Korea, offering a comprehensive range of products and services across diverse sectors including banking, investment, and insurance. As a prominent player in the financial industry, the company operates through its subsidiaries, which include KB Kookmin Bank, KB Securities, KB Insurance, and KB Card, among others. The group is committed to delivering innovative financial solutions to individual and corporate clients, leveraging its extensive network and expertise.

How the Company Makes MoneyKB Financial Group generates revenue primarily through its banking operations, which include interest income from loans and deposits, as well as fees from various banking services. Another significant revenue stream comes from its insurance business, which involves the collection of premiums from policyholders and investment income from their reserves. The group's investment and securities division also contributes to its earnings through brokerage fees, asset management services, and proprietary trading. KB Financial Group benefits from strategic partnerships and a strong domestic market presence, which enhance its ability to attract and retain customers across its different financial segments.

Kb Financial Group Financial Statement Overview

Summary

KB Financial Group displays a stable financial position typical of the banking industry, with strong profitability margins and a robust equity base. While revenue and free cash flow growth show inconsistencies, the company maintains solid net income and efficient use of equity relative to its assets. The financial health is commendable, though attention to revenue growth and cash flow stability would enhance overall performance.

Income Statement

Positive

The company's revenue has shown some fluctuations over the years, with a decrease from 2021 to 2022 and 2022 to 2023. In 2023, the gross profit margin is significantly higher due to high gross profit relative to revenue, which may require further validation. The net profit margin is strong at 35.41% in 2023, indicating profitability. However, there is inconsistency in revenue growth, and EBIT margins have been volatile, with a significant negative EBIT in 2022.

Balance Sheet

Positive

Kb Financial Group has maintained a solid equity position with the equity ratio at 7.95% in 2023, which is low but typical for banks due to their leveraged nature. The debt-to-equity ratio has improved from 2022 to 2023, reducing financial risk, while ROE is strong at 8.13% in 2023, demonstrating efficient use of equity to generate profits.

Cash Flow

Positive

The free cash flow has decreased from 2022 to 2023, indicating a potential short-term liquidity concern. The operating cash flow to net income ratio is slightly lower in 2023 compared to 2022, reflecting a reduction in cash flow efficiency. However, the company has managed positive free cash flow, which supports ongoing operations without external financing.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
33.66T	13.08T	16.68T	17.04T	15.05T	12.50T
	Gross Profit
66.86T	77.79T	16.68T	17.04T	15.05T	12.50T
	EBIT
5.06T	6.74T	-1.01T	6.11T	4.71T	4.53T
	EBITDA
49.75B	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
4.66T	4.63T	4.15T	4.41T	3.47T	3.31T
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.40T	10.00T>	90.36T	92.43T	88.54T	20.84T
	Total Assets
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
	Total Debt
42.87T	10.00T>	10.00T>	10.00T>	90.35T	88.75T
	Net Debt
36.47T	90.60T	10.00T>	71.42T	63.64T	67.92T
	Total Liabilities
10.00T>	10.00T>	10.00T>	10.00T>	92.39T	10.00T>
	Stockholders Equity
19.82T	56.93T	48.36T	47.46T	42.50T	38.53T
Cash Flow		Free Cash Flow
-8.90T	3.43T	5.15T	-7.18T	-12.15T	8.46T
	Operating Cash Flow
-8.44T	4.11T	5.69T	-6.70T	-11.54T	9.40T
	Investing Cash Flow
-16.42T	-3.52T	-20.29T	-3.86T	-10.99T	-12.33T
	Financing Cash Flow
18.97T	-1.24T	31.75T	43.32T	25.26T	30.76T

Kb Financial Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price53.38

Price Trends

50DMA

55.57

Negative

100DMA

58.78

Negative

200DMA

61.06

Negative

Market Momentum

MACD

-0.54

Negative

RSI

40.77

Neutral

STOCH

21.95

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KB, the sentiment is Negative. The current price of 53.38 is below the 20-day moving average (MA) of 53.84, below the 50-day MA of 55.57, and below the 200-day MA of 61.06, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 21.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KB.

Kb Financial Group Risk Analysis

Kb Financial Group disclosed 44 risk factors in its most recent earnings report. Kb Financial Group reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Kb Financial Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WF	72 Outperform	$8.30B	3.88	10.17%	6.21%	3.16%	16.37%
BBD	70 Outperform	$21.54B	7.26	10.44%	1.36%	-8.55%	13.58%
BSBR	70 Neutral	$17.02B	13.75	11.61%	4.79%	-3.94%	31.52%
KB	69 Neutral	$19.55B	5.65	9.39%	3.55%	-1.25%	6.28%
FITB	67 Neutral	$22.61B	10.79	11.92%	4.31%	11.21%	-2.26%
Sector *	64 Neutral	$13.37B	9.30	9.39%	4.85%	16.11%	-8.85%
SHG	62 Neutral	$16.91B	5.24	8.57%	4.15%	-0.66%	0.74%

* Financial Sector Average

Performance Comparison

Kb Financial Group

53.38

6.25

13.26%

BBD

Banco Bradesco SA

2.19

-0.31

-12.40%

BSBR

Banco Santander Brasil

4.57

-0.45

-8.96%

FITB

Fifth Third Bancorp

33.84

0.47

1.41%

SHG

Shinhan Financial Group Co

32.46

2.48

8.27%

Woori Finance Holdings Co

33.68

4.48

15.34%

Kb Financial Group Earnings Call Summary

Earnings Call Date: Feb 5, 2025 | % Change Since: -14.80% | Next Earnings Date: Apr 24, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a balanced sentiment with strong net profit growth and shareholder return initiatives, but offset by challenges from economic volatility, declining net interest margins, and conservative provisioning. The overall financial health is upheld by strategic diversification and cost efficiency improvements.

Highlights

Solid Net Profit Growth

KBFG's FY '24 net profit was KRW 5,078.2 billion, driven by balanced top line expansion, reporting a 10.5% year-over-year increase.

Improved Return on Equity (ROE)

ROE for 2024 recorded 9.72%, improving 0.59 percentage points year-over-year.

Shareholder Return Initiatives

The Board of Directors decided on a total of KRW 300 billion cash payout with DPS of KRW 804, and an additional KRW 520 billion of share buyback and cancellation.

Increase in Credit Card Fee Income

Credit card fee income posted a KRW 99.7 billion increase year-on-year.

Cost Efficiency Improvement

2024 Group CIR posted 40.7%, declining 0.4 percentage points year-over-year, showing an improvement in cost efficiency.

Lowlights

Challenges from Economic Volatility

Concerns over household debt, real estate market, and financial market volatilities due to major countries' monetary policy and FX rate surge.

Net Interest Margin Decline

Group and Bank's 2024 yearly NIM posted 2.03% and 1.78%, respectively, and went down slightly year-over-year.

Conservative Provisioning Stance

Q4 provisioning for credit losses posted KRW 565.1 billion, increasing 13.5% Q-o-Q, reflecting a conservative provisioning stance.

CET1 Ratio Impacted by FX Rates

CET1 ratio declined 33 bps Q-o-Q due to factors including FX rate surge, limiting its contribution to CET1 ratio to a 20 bp level.

Insurance Segment Pressure

Insurance subsidiaries faced a decrease in income due to significant decrease in performance related to securities derivative products and other seasonal factors.

Company Guidance

During the 2024 full-year earnings call for KB Financial Group, the CFO, Na Sang-Rok, provided detailed guidance on several key financial metrics. The group's net profit amounted to KRW 5,078.2 billion, marking a 10.5% year-over-year increase, while pre-provisioning operating profit rose by 5.9% to KRW 10,089.6 billion. The return on equity (ROE) improved to 9.72%, up 0.59 percentage points from the previous year, and earnings per share (EPS) increased by 12.2% to KRW 12,881. The company also focused on shareholder returns, announcing a total cash payout of KRW 300 billion with a dividend per share (DPS) of KRW 804, contributing to a total shareholder return (TSR) of 39.8% for the fiscal year. In terms of capital adequacy, the group's CET1 ratio stood at 13.51%, and they emphasized maintaining this through prudent asset management. Additionally, KBFG reported a group net interest margin (NIM) of 2.03%, with a slight year-over-year decrease, and a credit cost of 43 basis points, reflecting a conservative provisioning stance amidst economic uncertainties. The call also highlighted the group's strategic emphasis on asset quality, profitability, and sustainable growth as core components of their Value-Up Plan.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.