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Shinhan Financial Group Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Shinhan Financial Group Co Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Shinhan Financial Group Co's interest coverage with the available data.
Shinhan Financial Group Co's debt to revenue ratio for the quarter that ended in Jun. 2026 was 6.73.
Altman Z-Score does not apply to banks and insurance companies.
Shinhan Financial Group Co (NYSE:SHG) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Shinhan Financial Group Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Shinhan Financial Group Co Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Shinhan Financial Group Co (SHG) has a Financial Strength of 2 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Shinhan Financial Group Co and its competitors. This is 33% below median its historical median of 3.00. Over the past decade, Shinhan Financial Group Co's Financial Strength has ranged from 2.00 to 6.00.
Is Shinhan Financial Group Co's Financial Strength too high?
Shinhan Financial Group Co's current Financial Strength of 2 is 33% below median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 6.00. Overall, Shinhan Financial Group Co has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shinhan Financial Group Co's Financial Strength compare to competitors?
Shinhan Financial Group Co's Financial Strength of 2 can be compared against companies in the Banks industry. Historically, Shinhan Financial Group Co's own Financial Strength has ranged from 2.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Banks company?
A good Financial Strength depends on the Banks industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Shinhan Financial Group Co and its competitors. Shinhan Financial Group Co's current Financial Strength is 2, which is 33% below median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinhan Financial Group Co stock overvalued right now?
Based on GuruFocus' analysis, Shinhan Financial Group Co (SHG) is currently considered Significantly Overvalued. The stock's GF Value™ is $44.78, compared to a current price of $79.15 — trading 76.8% above its estimated fair value. The current Financial Strength is 2, which is 33% below median its 10-year median of 3.00. Shinhan Financial Group Co's overall GF Score™ is 49/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Shinhan Financial Group Co (SHG), the current Financial Strength is 2 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Shinhan Financial Group Co (SHG) Overvalued in 2026?
Based on GuruFocus' analysis, Shinhan Financial Group Co stock appears to be overvalued.
The current stock price of $79.15 is trading 76.8% above its estimated GF Value™ of $44.78.
GuruFocus considers Shinhan Financial Group Co to be Significantly Overvalued.
Key valuation signals for SHG:
Financial Strength: 2 (33% below median its 10-year median of 3.00)
GF Value™: $44.78 vs. price of $79.15 (76.8% above fair value)
No single metric tells the full story. See the SHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shinhan Financial Group Co Ltd is a Korean banking group. Along with its subsidiaries the company provides, comprehensive financial services which consist of commercial banking services, credit card services, securities services, insurance, credit services, and asset management services, including securities investment trust management, investment advisory, call transaction, domestic and foreign private equity fund business, and other services. The majority of the revenue is generated from its Banking business which includes retail, corporate, international, and other banking services the company offers.
49GF Score
Get the complete analysis for SHG
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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