SHINHAN FINL Return On Equity vs. Return On Asset

KSF1 Stock  EUR 32.20  1.00  3.21%   
Taking into consideration SHINHAN FINL's profitability measurements, SHINHAN FINL ADR1 may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess SHINHAN FINL's ability to earn profits and add value for shareholders.
For SHINHAN FINL profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SHINHAN FINL to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SHINHAN FINL ADR1 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SHINHAN FINL's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SHINHAN FINL ADR1 over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between SHINHAN FINL's value and its price as these two are different measures arrived at by different means. Investors typically determine if SHINHAN FINL is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SHINHAN FINL'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 FINL ADR1 Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining SHINHAN FINL's current stock value. Our valuation model uses many indicators to compare SHINHAN FINL value to that of its competitors to determine the firm's financial worth.
SHINHAN FINL ADR1 is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers reporting about  0.08  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for SHINHAN FINL ADR1 is roughly  13.26 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the SHINHAN FINL's earnings, one of the primary drivers of an investment's value.

SHINHAN Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

SHINHAN FINL

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0968
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

SHINHAN FINL

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0073
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

SHINHAN Return On Asset Comparison

SHINHAN FINL is currently under evaluation in return on asset category among its peers.

SHINHAN FINL Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in SHINHAN FINL, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SHINHAN FINL will eventually generate negative long term returns. The profitability progress is the general direction of SHINHAN FINL's change in net profit over the period of time. It can combine multiple indicators of SHINHAN FINL, 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.
Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea. SHINHAN FINL operates under Banks - Regional - Asia classification in Germany and is traded on Frankfurt Stock Exchange.

SHINHAN Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on SHINHAN FINL. 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 FINL 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 FINL's important profitability drivers and their relationship over time.

Use SHINHAN FINL in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if SHINHAN FINL position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SHINHAN FINL will appreciate offsetting losses from the drop in the long position's value.

SHINHAN FINL Pair Trading

SHINHAN FINL ADR1 Pair Trading Analysis

The ability to find closely correlated positions to SHINHAN FINL could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SHINHAN FINL when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back SHINHAN FINL - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SHINHAN FINL ADR1 to buy it.
The correlation of SHINHAN FINL is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as SHINHAN FINL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SHINHAN FINL ADR1 moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for SHINHAN FINL can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your SHINHAN FINL position

In addition to having SHINHAN FINL in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Corona Opportunity
Corona Opportunity Theme
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corona Opportunity Theme or any other thematic opportunities.
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Other Information on Investing in SHINHAN Stock

To fully project SHINHAN FINL's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SHINHAN FINL ADR1 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 FINL's income statement, its balance sheet, and the statement of cash flows.
Potential SHINHAN FINL investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although SHINHAN FINL investors may work on each financial statement separately, they are all related. The changes in SHINHAN FINL's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on SHINHAN FINL'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.