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Woori Finance Holdings Co (WF)
NYSE:WF
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Woori Finance Holdings Co
(NYSE:WF)
80Outperform
Positive Factors
Acquisitions
WFG disclosed that its Board has approved the acquisitions of 75% stake in Tongyang Life and 100% stake in ABL Life.
Earnings
Earnings boosted by solid non-interest income, driven by securities trading and valuation gains.
Negative Factors
Margins
NIM contracted 7bp as the loan book grew, causing pressure on margins.
Woori Finance Holdings Co (WF) vs. S&P 500 (SPY)
Market Cap
$8.86B
Dividend Yield5.4%
Average Volume (3M)67.58K
Price to Earnings (P/E)4.2
Beta (1Y)0.84
Revenue Growth3.16%
EPS Growth16.37%
CountryUS
Employees77
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)8.72
Shares Outstanding247,530,500
10 Day Avg. Volume93,733
30 Day Avg. Volume67,577
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)N/A
Price to Sales (P/S)4.07
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
Woori Finance Holdings Co Business Overview & Revenue Model
Company DescriptionWoori Finance Holdings Co (WF) is a prominent South Korean financial services company operating primarily in the banking and financial sectors. The company provides a wide range of financial products and services, including corporate and retail banking, investment banking, asset management, and insurance services. Woori Finance Holdings Co is known for its comprehensive financial solutions, catering to both individual and institutional clients, with a significant presence in South Korea and expanding operations in international markets.
How the Company Makes MoneyWoori Finance Holdings Co generates revenue primarily through its diverse banking and financial services offerings. Key revenue streams include interest income from loans and advances provided to retail and corporate clients, fees and commissions from various banking services, and income from investment management services. The company also earns money through its insurance products, which provide coverage and risk management solutions. Additionally, Woori Finance Holdings Co benefits from strategic partnerships and collaborations with other financial institutions, enhancing its product offerings and expanding its market reach. Its earnings are also influenced by economic factors such as interest rate fluctuations, regulatory changes, and the overall financial market environment.
Woori Finance Holdings Co Financial Statement Overview
Summary
Woori Finance Holdings Co demonstrates robust revenue growth and profitability, essential strengths in the banking sector. The balance sheet indicates stability but with increased leverage, which should be monitored. Cash flow challenges highlight potential liquidity risks, requiring strategic management. Overall, the company remains strong but should address liquidity and leverage concerns to maintain financial health.Income Statement
Woori Finance Holdings Co shows strong growth in revenue with a significant increase in Total Revenue from 2023 to 2024. The Gross Profit Margin is healthy at 100%, indicating that the company efficiently manages its core operations. The Net Profit Margin has improved over the years, reflecting enhanced profitability. However, the lack of EBITDA data for some years could indicate less transparency in financial efficiency metrics.80
Positive
Balance Sheet
The company maintains a stable Debt-to-Equity Ratio, which is crucial in the banking industry. However, the Equity Ratio shows a slight decrease, suggesting increased leverage. The Return on Equity is strong, indicating good profitability relative to equity. Overall, the balance sheet reflects stability but with a trend towards higher leverage.75
Positive
Cash Flow
Cash flow analysis reveals variability, with operating cash flow turning negative in recent years. Free cash flow has decreased significantly from 2023 to 2024, indicating challenges in cash generation. The Operating Cash Flow to Net Income Ratio suggests inconsistency in converting income to cash. These factors suggest potential concerns in liquidity management.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.47T | 9.50T | 11.43T | 9.60T | 7.73T | Gross Profit |
| 11.47T | 9.06T | 11.43T | 9.60T | 7.73T | EBIT |
| 7.24T | 5.29T | 10.26T | 3.53T | 1.79T | EBITDA |
| 0.00 | 4.40T | 0.00 | 4.54T | 2.54T | Net Income Common Stockholders |
| 3.09T | 2.51T | 3.19T | 2.54T | 1.31T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 14.61T | 16.18T | 67.30T | 46.69T | 40.02T | Total Assets |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Total Debt |
| 76.92T | 75.08T | 67.59T | 68.97T | 58.28T | Net Debt |
| 62.30T | 44.53T | 33.37T | 61.40T | 48.29T | Total Liabilities |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Stockholders Equity |
| 34.10T | 31.67T | 28.76T | 25.84T | 23.05T |
| Cash Flow | Free Cash Flow | |||
| -9.76T | 1.23T | 18.28T | -2.06T | 3.34T | Operating Cash Flow |
| -9.54T | 1.62T | 18.62T | -1.80T | 3.61T | Investing Cash Flow |
| -34.30B | -2.25T | -6.97T | -10.67T | -1.46T | Financing Cash Flow |
| 4.66T | -2.86T | 1.92T | 9.08T | 2.37T |
Woori Finance Holdings Co Technical Analysis
Positive
36.44
Price Trends
34.03
Positive
33.40
Positive
34.12
Positive
Market Momentum
0.44
Negative
67.04
Neutral
95.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WF, the sentiment is Positive. The current price of 36.44 is above the 20-day moving average (MA) of 33.63, above the 50-day MA of 34.03, and above the 200-day MA of 34.12, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 95.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WF.
Woori Finance Holdings Co Risk Analysis
Woori Finance Holdings Co disclosed 46 risk factors in its most recent earnings report. Woori Finance Holdings Co 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
Woori Finance Holdings Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.86B | 4.22 | 10.17% | 5.40% | 3.16% | 16.37% | |
78 Outperform | $8.82B | 12.49 | 9.36% | 2.46% | 9.22% | 7.82% | |
76 Outperform | $7.91B | 10.56 | 8.54% | 3.47% | 5.86% | -10.72% | |
72 Outperform | $8.06B | 14.91 | 16.86% | 1.74% | -4.70% | 17.68% | |
71 Outperform | $10.63B | 5.67 | 38.13% | 3.99% | -35.65% | 70.23% | |
63 Neutral | $12.06B | 9.31 | 8.10% | 79.51% | 12.80% | -4.67% | |
58 Neutral | $8.66B | 11.89 | 9.09% | 3.51% | -0.38% | -1.30% |
* Financial Sector Average
Performance Comparison
WF
Woori Finance Holdings Co
36.44
5.88
19.24%
CBSH
Commerce Bancshares
60.38
8.49
16.36%
FHN
First Horizon
17.39
3.11
21.78%
GGAL
Grupo Financiero Galicia SA
64.39
37.02
135.26%
WBS
Webster Financial
47.16
3.09
7.01%
SSB
SouthState Corporation
88.66
11.46
14.84%
Woori Finance Holdings Co Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: 12.23% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. Positive highlights included significant net income growth, strong asset and noninterest income growth, and a stable cost management strategy. However, challenges such as a decline in net interest margin, increased credit costs, and slow growth in core deposits were noted. Despite these challenges, the company showed resilience in maintaining profitability and shareholder returns.Highlights
Significant Net Income Growth
Financial cumulative net income increased by 9.1% year-on-year, reaching KRW 2659.1 billion, surpassing last year's total annual performance by approximately KRW 150 billion in just 3 quarters.
Stable Cost Management
The group's cost-to-income ratio remained below 40% for the second consecutive quarter, demonstrating strong cost control.
Robust Asset Growth
Total loans increased by 5% from end of June, with corporate loans up 4.3% and household loans up 6.2% for Q3, driven by strong demand for mortgages.
Noninterest Income Surge
Noninterest income up to Q3 was KRW 1378.1 billion, a 53.2% year-on-year increase, driven by favorable market conditions and significant profit growth from marketable securities.
Dividend Declaration
The Board approved a cash dividend of KRW 181 per share, aligning with market expectations.
Lowlights
Net Interest Margin Decline
The group's NIM for Q3 was 1.67%, declining by 7 basis points from the previous quarter, due to margin compression from increased funding costs.
Credit Cost Increase
Credit cost in Q3 was KRW 479.1 billion, a 17.1% quarter-on-quarter increase, driven by the slowdown of the real economy and restructuring of the real estate PF market.
Challenges in Core Deposits Growth
Despite efforts, core deposits growth was weak given high demand for time deposits, though improvements are expected with upcoming rate cuts.
Company Guidance
During the Woori Financial Group Q3 2024 earnings call, the company provided detailed guidance on various financial metrics. The group's cumulative net income increased by 9.1% year-on-year, reaching KRW 2,659.1 billion, while the Q3 net income was KRW 903.6 billion. The group maintained a return on equity (ROE) of 10.82% and a cost-to-income ratio below 40% for the second consecutive quarter. The net operating revenue grew by 6.6% year-on-year to KRW 7,992.7 billion. Credit costs totaled KRW 1,254.6 billion, with a credit cost ratio of 0.44%, and the non-performing loan (NPL) ratio stood at 0.55% for the group. The CET1 ratio was projected to remain around 12%, with plans to increase it to 12.5% by early 2025. The group also declared a cash dividend of KRW 181 per share, emphasizing its commitment to shareholder returns and capital management.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.