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Woori Finance (WF)
:WF
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Woori Finance Holdings Co
(NYSE:WF)
Rating:73Outperform
Price Target:
$55.00
â–²(10.84%Upside)
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. SPDR S&P 500 ETF (SPY)
Market Cap
$12.24B
Dividend Yield2.74%
Average Volume (3M)56.20K
Price to Earnings (P/E)6.2
Beta (1Y)0.82
Revenue Growth-0.86%
EPS Growth13.17%
CountryUS
Employees77
SectorFinancial
Sector Strength79
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.76
Shares Outstanding247,530,500
10 Day Avg. Volume74,769
30 Day Avg. Volume56,199
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.88
Price to Sales (P/S)0.00
P/FCF Ratio1.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$52.55Price Target Upside5.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Woori Finance Holdings Co Business Overview & Revenue Model
Company DescriptionWoori Financial Group Inc., together with its subsidiaries, operates as a commercial bank that provides a range of financial services to individual, business, and institutional customers in Korea. It operates through Banking, Credit Card, Capital, Investment Banking, and Others segments. The company offers savings, demand, and installment deposits; time deposits and certificates of deposit; and working capital, facilities, general purpose household, mortgage, and home equity loans. It also offers debit and credit cards, cash services, card loans, and related services; lease financing; and securities operation, sale of financial instruments, project financing, and other related activities. In addition, the company provides credit purchase, cash advance, credit card loans, foreign exchange services and dealing, import and export-related services, offshore lending, syndicated loans and foreign currency securities investment, investment trust products, bancassurance, and private equity funds. Further, it is involved in the real estate, system software development and maintenance, financing, credit information, securities investment and trading, derivatives trading, asset securitization, investment and international banking, money transfer, and other service. The company also offers automated telephone, Internet, and mobile banking services. In addition, it offers trust management, trustee and custodian service, and repurchase instrument. As of December 31, 2021, it served customers through a network of 768 branches and 4,296 ATMs. The company was founded in 1899 and is headquartered in Seoul, South Korea.
How the Company Makes MoneyWoori Finance Holdings Co generates revenue through a diversified financial services model. The company earns interest income from loans and advances provided to individuals and businesses. It also accrues non-interest income through fees and commissions from services like wealth management, foreign exchange transactions, and credit card services. Additionally, Woori Finance Holdings benefits from investment activities, including securities trading and asset management services. Strategic partnerships with other financial institutions and technology providers enhance its service offerings and market reach, further contributing to its revenue streams. The company's earnings are influenced by factors such as interest rate fluctuations, economic conditions, and regulatory changes in the financial sector.
Woori Finance Holdings Co Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q1-2025)
| % Change Since: 35.54%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Woori Financial Group's stable revenue growth and improved capital ratios, alongside successful business diversification. However, challenges such as increased credit costs, net income below expectations, and higher SG&A expenses indicate a mixed performance. The company is focusing on asset rebalancing and risk management to navigate economic uncertainties.Q1-2025 Updates
Positive Updates
Stable Net Operating Revenue Growth
Woori Financial Group's net operating revenue increased by 2.4% year-over-year and 6.6% quarter-over-quarter to KRW 2,609.5 billion.
Improved Capital Ratios
The group's preliminary CET1 ratio improved to 12.42%, a 30 basis point increase from the end of last year, indicating strong capital management.
Increased Quarterly Dividends
The Board decided on a Q1 dividend of KRW 200 per share, representing an 11% increase year-over-year.
Successful Business Diversification
Woori Investment Securities obtained its official brokerage license and launched its MTS platform, indicating progress in business diversification.
Net Interest Income Growth
Net interest income increased by 2% year-over-year to KRW 357.5 billion, with core fee income surpassing KRW 500 billion.
Negative Updates
Higher Credit Costs
Credit cost rose to KRW 435.5 billion, a year-over-year increase of 18.8%, due to challenging economic conditions and higher delinquency and NPL ratios.
Net Income Below Expectations
Despite solid revenue-generating capabilities, net income of KRW 615.6 billion fell below market expectations due to conservative provisioning and non-regular costs.
Significant SG&A Increase
SG&A expenses increased by 26.6% year-over-year, driven by one-off factors such as early retirement program costs and investments in digital and IT.
Retail Loan Portfolio Pressure
Retail loans showed no growth, totaling KRW 144 trillion, largely due to the government's household debt management policy.
Company Guidance
In the first quarter of 2025, Woori Financial Group reported a net income of KRW 615.6 billion, which fell below market expectations due to conservative provisioning and costs related to early retirement programs and future growth investments. The group achieved a 9.5% return on equity (ROE) and saw net operating revenue increase by 2.4% year-over-year and 6.6% quarter-over-quarter to KRW 2,609.5 billion. Credit costs rose by 18.8% year-over-year to KRW 435.5 billion, driven by economic uncertainties, but the credit cost ratio, excluding one-off provisions, was managed at 0.39%. The group's preliminary Common Equity Tier 1 (CET1) ratio improved by 30 basis points from the previous year to 12.42%, with a focus on reaching 12.5% within 2025. A quarterly dividend of KRW 200 per share was declared, reflecting an 11% year-on-year increase. The group also highlighted efforts to diversify revenue sources, strengthen digital and non-interest business segments, and improve asset quality and risk management amid challenging economic conditions.Woori Finance Holdings Co Financial Statement Overview
Summary
Woori Finance Holdings Co demonstrates strong 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. Overall, the company remains strong but should address liquidity and leverage concerns.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.71T | 11.47T | 9.50T | 11.43T | 9.60T | 7.73T |
| Gross Profit | 18.96T | 10.91T | 9.06T | 11.43T | 9.60T | 7.73T |
| EBITDA | 3.60T | 5.39T | 4.40T | 0.00 | 4.54T | 2.54T |
| Net Income | 2.88T | 3.09T | 2.51T | 3.19T | 2.54T | 1.31T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 84.38T | 81.63T | 16.18T | 67.30T | 46.69T | 40.02T |
| Total Debt | 81.97T | 83.82T | 75.08T | 67.59T | 68.97T | 58.28T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 33.73T | 34.10T | 31.67T | 28.76T | 25.84T | 23.05T |
Cash Flow | ||||||
| Free Cash Flow | 14.04T | -9.76T | 1.23T | 18.28T | -2.06T | 3.34T |
| Operating Cash Flow | 14.41T | -9.54T | 1.62T | 18.62T | -1.80T | 3.61T |
| Investing Cash Flow | -2.12T | -34.30B | -2.25T | -6.97T | -10.67T | -1.46T |
| Financing Cash Flow | -19.95T | 4.66T | -2.86T | 1.92T | 9.08T | 2.37T |
Woori Finance Holdings Co Technical Analysis
Positive
49.62
Price Trends
41.41
Positive
37.65
Positive
35.89
Positive
Market Momentum
2.42
Negative
79.13
Negative
91.81
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 49.62 is above the 20-day moving average (MA) of 46.10, above the 50-day MA of 41.41, and above the 200-day MA of 35.89, indicating a bullish trend. The MACD of 2.42 indicates Negative momentum. The RSI at 79.13 is Negative, neither overbought nor oversold. The STOCH value of 91.81 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 3 New Risks
1.
The dividends that we receive from our subsidiaries may be affected by potential restrictions on their ability to pay such dividends, as well as their financial conditions and operating results. Q4, 2023
2.
We may suffer customer attrition or our net interest margin may decrease as a result of government regulations or our competition strategy. Q4, 2023
3.
We may not be able to successfully execute our overseas expansion strategy. Q4, 2023
Woori Finance Holdings Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $9.23B | 14.35 | 7.18% | 2.35% | 9.38% | 3.47% | |
79 Outperform | $9.56B | 12.79 | 8.59% | 2.93% | 2.69% | -9.07% | |
76 Outperform | $10.90B | 14.99 | 9.09% | 2.83% | -0.50% | -1.31% | |
74 Outperform | $8.50B | 15.81 | 16.82% | 1.77% | -4.27% | 17.70% | |
73 Outperform | $12.24B | 6.24 | 9.43% | 2.74% | -0.86% | 13.17% | |
71 Outperform | $8.14B | 5.38 | 28.17% | 2.14% | -35.65% | 70.23% | |
67 Neutral | $16.85B | 11.65 | 9.71% | 3.90% | 11.61% | -9.60% |
* Financial Sector Average
Performance Comparison
WF
Woori Finance Holdings Co
49.62
17.16
52.87%
CBSH
Commerce Bancshares
63.70
11.75
22.62%
FHN
First Horizon
21.49
6.47
43.08%
GGAL
Grupo Financiero Galicia SA
49.99
22.85
84.19%
WBS
Webster Financial
56.82
14.68
34.84%
SSB
SouthState Corporation
95.26
20.91
28.12%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.