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Woori Finance Holdings Co (WF)
NYSE:WF
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Woori Finance Holdings Co (WF) AI Stock Analysis

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WF

Woori Finance Holdings Co

(NYSE:WF)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
$57.00
â–²(5.50% Upside)
Woori Finance Holdings Co's overall stock score is driven by strong revenue growth and strategic acquisitions, which are offset by challenges in profitability, cash flow management, and short-term bearish technical indicators. The low P/E ratio and attractive dividend yield provide some valuation support.
Positive Factors
Capital Ratio Improvement
An improved CET1 ratio enhances financial stability and regulatory compliance, supporting long-term growth and resilience against economic fluctuations.
Strategic Acquisitions
Acquisitions of insurance subsidiaries expand Woori's service portfolio, increasing market reach and potential revenue streams, strengthening its competitive position.
Noninterest Income Growth
Growth in noninterest income diversifies revenue sources, reducing reliance on interest income and enhancing financial stability and profitability.
Negative Factors
High Leverage
High leverage can increase financial risk, particularly in rising interest rate environments, potentially impacting long-term financial health and flexibility.
Negative Free Cash Flow
Negative free cash flow indicates potential liquidity issues, which may constrain the company's ability to invest in growth opportunities or manage debt.
Decreased Net Income
A decline in net income, even if temporary, can signal operational challenges and affect investor confidence, impacting long-term profitability.

Woori Finance Holdings Co (WF) vs. SPDR S&P 500 ETF (SPY)

Woori Finance Holdings Co Business Overview & Revenue Model

Company DescriptionWoori Finance Holdings Co., Ltd. is a leading South Korean financial services holding company that operates through various subsidiaries in the banking, asset management, and financial investment sectors. It offers a wide range of products and services including retail and corporate banking, investment banking, wealth management, and insurance. Woori Finance aims to enhance customer value through innovative financial solutions and a strong digital presence, catering to both individual and institutional clients.
How the Company Makes MoneyWoori Finance Holdings generates revenue primarily through its banking operations, which include interest income from loans and other financial products offered to customers. The company earns significant revenue from net interest margins, which is the difference between interest earned on loans and interest paid on deposits. Additionally, Woori Finance generates income from fees and commissions related to investment banking activities, asset management services, and wealth management. The company also benefits from partnerships with various financial institutions and enterprises, enhancing its service offerings and expanding its market reach. These revenue streams, combined with its focus on digital transformation and customer-centric strategies, contribute to the overall profitability of Woori Finance Holdings.

Woori Finance Holdings Co Earnings Call Summary

Earnings Call Date:Jul 25, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in capital ratios and strategic acquisitions, indicating a positive outlook for Woori Financial Group. However, challenges remain with decreased net income and increased expenses, leading to balanced highlights and lowlights.
Q2-2025 Updates
Positive Updates
Capital Ratio Improvement
Woori Financial Group's CET1 ratio reached 12.76% as of June 2025, an increase of about 60 basis points from the previous year-end, exceeding the target of 12.5% for the first time in the group's history.
Acquisition of Insurance Subsidiaries
Woori Financial Group completed the acquisition of Tongyang Life and ABL Life, strengthening its portfolio as a comprehensive financial services group.
Noninterest Income Growth
Noninterest income for the first half of 2025 rose sharply by approximately 47% from the previous quarter, driven by core fee income growth in the Wealth Management segment.
Launch of MTS Platform
The MTS platform was launched, enhancing the competitiveness of the securities arm with features like AI-based investment insights and user-based interfaces.
Negative Updates
Decrease in Net Income
Net income for the first half of 2025 was KRW 1,551.3 billion, representing a year-on-year decrease of 11.6%.
Increased SG&A Expenses
SG&A expenses increased by 18% year-on-year due to one-off factors like early retirement costs, investments in the securities business, and expanded digital and IT investments.
Credit Costs and Asset Quality Concerns
Credit costs for the first half of 2025 stood at KRW 944.5 billion, with a 16.9% increase in the second quarter, reflecting preemptive provisions for completion guarantee projects.
Company Guidance
During the Woori Financial Group's earnings call for the first half of 2025, several key financial metrics and strategic initiatives were discussed. The group reported a net income of KRW 1,551.3 billion, representing an 11.6% year-over-year decrease, primarily due to one-off expenses. However, excluding these, net income remained stable compared to the previous year. The group's net operating revenue increased by 2.3% year-over-year to KRW 5,400.1 billion, and its net interest margin (NIM) for the second quarter was 1.45%, with the group's overall NIM, including the credit card business, at 1.71%. The common equity Tier 1 (CET1) ratio improved to 12.76%, exceeding the 12.5% target for the first time in the group's history. The group also completed the acquisition of two insurance companies, Tongyang Life and ABL Life, and is in the process of evaluating the financial impact. Additionally, the group aims to enhance its financial services portfolio with the launch of a new Mobile Trading System (MTS) and plans to maximize synergies across its affiliates. Despite credit costs rising to KRW 944.5 billion, the group maintained a stable credit cost ratio of around 0.42%. Woori Financial Group has set a target CET1 ratio of 13% by 2027 and is focusing on capital adequacy and shareholder returns, including a quarterly dividend of KRW 200 per share.

Woori Finance Holdings Co Financial Statement Overview

Summary
Woori Finance Holdings Co shows strong revenue growth but faces challenges in profitability and cash flow management. The high leverage and declining cash flow metrics suggest potential financial risks, although the company maintains a stable return on equity.
Income Statement
65
Positive
Woori Finance Holdings Co shows a strong revenue growth rate of 14.92% in the TTM, indicating robust top-line expansion. However, the net profit margin has decreased to 9.51% from 11.98% in the previous year, suggesting some pressure on profitability. The gross profit margin remains healthy at 60.59%, but the EBIT and EBITDA margins have declined significantly, indicating increased operational costs or inefficiencies.
Balance Sheet
60
Neutral
The company maintains a high debt-to-equity ratio of 2.43, reflecting significant leverage, which could pose risks in a rising interest rate environment. Return on equity is stable at 9.19%, showing consistent profitability relative to shareholder investments. The equity ratio is relatively low, indicating a higher reliance on debt financing.
Cash Flow
50
Neutral
Woori Finance Holdings Co has experienced a negative free cash flow growth rate of -39.98% in the TTM, highlighting potential liquidity challenges. The operating cash flow to net income ratio is zero, indicating that operating cash flows are not covering net income, which could be a concern for sustaining operations without external financing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.39T25.75T9.50T10.02T8.81T6.87T
Gross Profit10.96T10.91T9.50T10.55T9.07T6.87T
EBITDA5.10T5.39T4.40T5.48T4.48T2.54T
Net Income2.88T3.09T2.51T3.19T2.54T1.31T
Balance Sheet
Total Assets10.00T>10.00T>10.00T>10.00T>10.00T>10.00T>
Cash, Cash Equivalents and Short-Term Investments69.50T71.08T68.45T67.30T46.69T40.02T
Total Debt85.51T83.82T76.36T73.39T69.96T58.28T
Total Liabilities10.00T>10.00T>10.00T>10.00T>10.00T>10.00T>
Stockholders Equity34.18T34.10T31.67T28.76T25.84T23.05T
Cash Flow
Free Cash Flow-8.57T-6.54T-13.72T18.28T-2.06T3.34T
Operating Cash Flow-8.25T-6.13T1.62T18.62T-1.80T3.61T
Investing Cash Flow2.91T-34.30B-2.25T-6.97T-10.67T-1.46T
Financing Cash Flow9.84T1.25T-2.86T1.92T9.08T2.37T

Woori Finance Holdings Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price54.03
Price Trends
50DMA
55.06
Negative
100DMA
53.08
Positive
200DMA
44.03
Positive
Market Momentum
MACD
-0.38
Positive
RSI
44.15
Neutral
STOCH
66.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WF, the sentiment is Negative. The current price of 54.03 is below the 20-day moving average (MA) of 55.10, below the 50-day MA of 55.06, and above the 200-day MA of 44.03, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 66.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$14.37B15.8616.25%11.68%-8.82%4.87%
76
Outperform
$17.10B13.2522.07%6.25%-13.16%-8.10%
70
Outperform
$20.25B19.799.43%6.19%-3.77%-10.59%
68
Neutral
$13.42B11.9124.13%4.70%12.43%56.30%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
$24.18B7.888.58%2.27%-3.83%4.06%
61
Neutral
$12.98B6.818.90%3.38%-3.55%1.59%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WF
Woori Finance Holdings Co
54.03
19.49
56.43%
BCH
Banco De Chile
33.65
10.59
45.92%
BSBR
Banco Santander Brasil
5.43
0.61
12.66%
BSAC
Banco Santander Chile
28.30
8.54
43.22%
CIB
Grupo Cibest
56.07
28.25
101.55%
SHG
Shinhan Financial Group Co
51.59
11.12
27.48%

Woori Finance Holdings Co Corporate Events

Woori Financial Group Schedules Q3 2025 Earnings Conference
Oct 21, 2025

Woori Financial Group Inc. announced that it will hold its 2025 Third Quarter Earnings Release Conference on October 29, 2025. The event will be accessible via a live audio webcast and conference call, providing an opportunity for stakeholders to engage with the company’s financial performance and strategic direction. This announcement underscores Woori Financial Group’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.

Woori Financial Group Ends Treasury Shares Acquisition Agreement
Sep 11, 2025

Woori Financial Group Inc., a prominent player in the financial services industry, announced the termination of a trust agreement initially established on February 11, 2025, to acquire treasury shares. This agreement, which expired on September 11, 2025, involved a total contract amount of KRW 150 billion and was conducted with KIWOOM Securities Co., Ltd. The termination results in the return of cash and treasury shares to Woori Financial Group, with the shares expected to be cancelled shortly thereafter, potentially impacting the company’s financial structure and shareholder value.

Woori Financial Group to Cancel Treasury Shares on September 19, 2025
Sep 11, 2025

On September 11, 2025, Woori Financial Group Inc. announced an update regarding its board of directors’ resolution to cancel certain treasury shares. The company plans to retire 8,515,181 common stock shares, with an estimated cancellation value of KRW 149,999,949,975. The scheduled date for this cancellation is September 19, 2025, although it may change following discussions with related agencies. This move is part of Woori Financial Group’s strategy to manage its capital structure, which could impact its market positioning and shareholder value.

Woori Financial Group Reports Stable Financial Performance for 1H 2025
Aug 14, 2025

Woori Financial Group Inc. released its condensed consolidated interim financial statements for the first half of 2025, showing a stable financial position with total assets amounting to KRW 534,112,776 million as of June 30, 2025. The financial statements, prepared in accordance with Korean IFRS, indicate a slight increase in assets compared to December 31, 2024. The review by KPMG Samjong Accounting Corp. did not reveal any material misstatements, suggesting a sound financial health for the company, which could positively impact its stakeholders and market position.

Woori Financial Group Releases 2024 Sustainability Report
Jul 31, 2025

On July 31, 2025, Woori Financial Group Inc. released the English version of its 2024 Sustainability Report on its website. This report highlights the company’s ongoing commitment to sustainable practices and provides insights into its efforts to enhance environmental, social, and governance (ESG) initiatives. The release of this report underscores Woori Financial Group’s dedication to transparency and accountability, potentially strengthening its position in the financial industry and positively impacting stakeholders by aligning with global sustainability standards.

Woori Financial Group Reports Strong Q2 2025 Financial Results
Jul 25, 2025

Woori Financial Group reported its preliminary financial results for the second quarter of 2025, showing a significant increase in revenue and net income compared to the previous quarter and the same period last year. The group’s revenue for the specified quarter rose by 40.50% from the first quarter of 2025 and 24.65% from the second quarter of 2024, reaching 13,570,261 million KRW. Net income also saw a substantial increase of 43.45% from the previous quarter, totaling 938,987 million KRW. These results indicate a strong financial performance and improved profitability for the group, potentially enhancing its market position and stakeholder confidence.

Woori Financial Group Announces Cash Dividend for Q3 2025
Jul 25, 2025

On July 25, 2025, Woori Financial Group’s board of directors approved a resolution for a cash dividend of KRW 200 per common share, with a record date set for August 10, 2025. This decision reflects the company’s commitment to providing predictable returns to investors, with a total dividend amounting to KRW 146.8 billion. The payout, scheduled for August 29, 2025, underscores Woori’s strategic focus on maintaining shareholder value and market stability.

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.Date of analysis: Oct 24, 2025