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Woori Finance Holdings Co (WF)
NYSE:WF
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Woori Finance Holdings Co
(NYSE:WF)
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Rating:66Neutral
Price Target:
$57.00
â–¼(-0.44% Downside)
Woori Finance Holdings Co's overall score reflects strong technical indicators and attractive valuation, offset by financial performance challenges and mixed earnings call results. The company's strategic initiatives and capital improvements provide a positive outlook, but profitability and cash flow concerns remain significant risks.
Positive Factors
Capital Ratio Improvement
The improvement in the CET1 ratio enhances financial stability and resilience, providing a buffer against economic downturns and supporting future growth initiatives.
Acquisition of Insurance Subsidiaries
The acquisition of insurance subsidiaries diversifies revenue streams and strengthens Woori's position as a comprehensive financial services provider, potentially increasing cross-selling opportunities.
Launch of MTS Platform
The new MTS platform enhances digital capabilities, improving customer engagement and potentially increasing market share in the competitive securities sector.
Negative Factors
High Leverage
High leverage can increase financial risk, particularly in a rising interest rate environment, potentially impacting the company's ability to invest in growth opportunities.
Negative Free Cash Flow Growth
Declining cash flow may limit operational flexibility and necessitate external financing, which could affect long-term financial health and strategic initiatives.
Decreased Profitability
Decreased profitability indicates pressure on margins, which could affect the company's ability to reinvest in business operations and maintain competitive positioning.
Woori Finance Holdings Co (WF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.94B
Dividend Yield3.19%
Average Volume (3M)43.94K
Price to Earnings (P/E)7.3
Beta (1Y)0.86
Revenue Growth-3.55%
EPS Growth1.59%
CountryUS
Employees77
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.73
Shares Outstanding247,530,500
10 Day Avg. Volume45,877
30 Day Avg. Volume43,936
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap4.43
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.01
Forecast
1Y Price Target
$72.26Price Target Upside26.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 23, 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
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.65
Positive
Balance Sheet
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.60
Neutral
Cash Flow
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.39T | 25.75T | 9.50T | 10.02T | 8.81T | 6.87T |
| Gross Profit | 10.96T | 10.91T | 9.50T | 10.55T | 9.07T | 6.87T |
| EBITDA | 5.10T | 5.39T | 4.40T | 5.48T | 4.48T | 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 | 69.50T | 71.08T | 68.45T | 67.30T | 46.69T | 40.02T |
| Total Debt | 85.51T | 83.82T | 76.36T | 73.39T | 69.96T | 58.28T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 34.18T | 34.10T | 31.67T | 28.76T | 25.84T | 23.05T |
Cash Flow | ||||||
| Free Cash Flow | -8.57T | -6.54T | -13.72T | 18.28T | -2.06T | 3.34T |
| Operating Cash Flow | -8.25T | -6.13T | 1.62T | 18.62T | -1.80T | 3.61T |
| Investing Cash Flow | 2.91T | -34.30B | -2.25T | -6.97T | -10.67T | -1.46T |
| Financing Cash Flow | 9.84T | 1.25T | -2.86T | 1.92T | 9.08T | 2.37T |
Woori Finance Holdings Co Technical Analysis
Positive
57.25
Price Trends
54.56
Positive
49.15
Positive
41.28
Positive
Market Momentum
1.01
Negative
61.02
Neutral
85.89
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 57.25 is above the 20-day moving average (MA) of 55.06, above the 50-day MA of 54.56, and above the 200-day MA of 41.28, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 61.02 is Neutral, neither overbought nor oversold. The STOCH value of 85.89 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 10.09B | 12.50 | 9.17% | 2.64% | 4.73% | 7.12% | |
77 Outperform | 10.12B | 15.08 | 6.72% | 2.22% | 21.10% | 7.74% | |
71 Outperform | 5.25B | 3.73 | 0.00% | 1.78% | -42.92% | -21.46% | |
69 Neutral | 11.52B | 14.90 | 9.40% | 2.64% | -2.90% | 28.87% | |
69 Neutral | 7.85B | 14.29 | 15.37% | 1.84% | 13.77% | 17.71% | |
66 Neutral | $13.94B | 7.26 | 8.90% | 3.19% | -3.55% | 1.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
WF
Woori Finance Holdings Co
57.25
21.02
58.02%
BCH
Banco De Chile
29.73
5.99
25.23%
BSBR
Banco Santander Brasil
5.44
0.36
7.09%
BSAC
Banco Santander Chile
26.36
6.33
31.60%
CIB
Bancolombia
52.51
24.23
85.68%
SHG
Shinhan Financial Group Co
49.91
7.18
16.80%
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.