Why Investors Shouldn't Be Surprised By NH Investment & Securities Co., Ltd.'s (KRX:005940) Low P/E
May 10
South Korean (KOSPI) Capital Markets Industry Analysis
UpdatedMay 18, 2024
DataAggregated Company Financials
Companies128
- 7D-0.7%
- 3M-2.0%
- 1Y16.8%
- YTD10.8%
The Capital Markets industry is up 2.8% in the last week, with NH Investment & Securities up 1.8%. This means that the industry has gained 19% over the past year. Earnings are forecast to grow by 15% annually.
Industry Valuation and Performance
Has the South Korean Capital Markets Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 18 May 2024 | ₩31.6t | ₩84.3t | ₩3.6t | 14.2x | 8.9x | 0.4x |
| Mon, 15 Apr 2024 | ₩29.5t | ₩101.7t | ₩3.7t | 13.4x | 7.9x | 0.3x |
| Wed, 13 Mar 2024 | ₩31.4t | ₩74.3t | ₩3.7t | 15.7x | 8.4x | 0.4x |
| Fri, 09 Feb 2024 | ₩30.5t | ₩88.7t | ₩3.8t | 16x | 8.1x | 0.3x |
| Sun, 07 Jan 2024 | ₩31.7t | ₩142.4t | ₩4.6t | 37.7x | 6.9x | 0.2x |
| Tue, 05 Dec 2023 | ₩31.7t | ₩142.4t | ₩4.9t | 48.1x | 6.4x | 0.2x |
| Thu, 02 Nov 2023 | ₩29.0t | ₩155.5t | ₩4.4t | 25.8x | 6.6x | 0.2x |
| Sat, 30 Sep 2023 | ₩30.1t | ₩155.5t | ₩4.4t | 29.2x | 6.8x | 0.2x |
| Mon, 28 Aug 2023 | ₩30.5t | ₩165.9t | ₩4.4t | 38x | 7x | 0.2x |
| Wed, 26 Jul 2023 | ₩29.8t | ₩166.6t | ₩4.3t | 36.7x | 7x | 0.2x |
| Fri, 23 Jun 2023 | ₩30.7t | ₩166.6t | ₩4.3t | 38.3x | 7.2x | 0.2x |
| Sun, 21 May 2023 | ₩30.6t | ₩142.8t | ₩4.0t | 37.3x | 7.7x | 0.2x |
| Tue, 18 Apr 2023 | ₩32.6t | ₩161.2t | ₩4.2t | 39.4x | 7.8x | 0.2x |
| Thu, 16 Mar 2023 | ₩31.0t | ₩145.5t | ₩4.4t | 26.3x | 7.1x | 0.2x |
| Sat, 11 Feb 2023 | ₩33.4t | ₩161.9t | ₩4.7t | 19.9x | 7.1x | 0.2x |
| Mon, 09 Jan 2023 | ₩30.4t | ₩161.9t | ₩4.7t | 17.6x | 6.5x | 0.2x |
| Wed, 07 Dec 2022 | ₩30.8t | ₩161.9t | ₩5.0t | 13.3x | 6.1x | 0.2x |
| Fri, 04 Nov 2022 | ₩27.0t | ₩135.9t | ₩6.6t | 9.6x | 4.1x | 0.2x |
| Sun, 02 Oct 2022 | ₩26.0t | ₩135.9t | ₩6.6t | 8.6x | 3.9x | 0.2x |
| Tue, 30 Aug 2022 | ₩29.5t | ₩119.0t | ₩7.3t | 11.6x | 4x | 0.2x |
| Thu, 28 Jul 2022 | ₩30.2t | ₩112.4t | ₩8.3t | 9.9x | 3.6x | 0.3x |
| Sat, 25 Jun 2022 | ₩30.0t | ₩112.4t | ₩8.3t | 10x | 3.6x | 0.3x |
| Mon, 23 May 2022 | ₩34.2t | ₩98.6t | ₩9.1t | 9.3x | 3.7x | 0.3x |
| Wed, 20 Apr 2022 | ₩37.5t | ₩102.2t | ₩9.8t | 9.7x | 3.8x | 0.4x |
| Fri, 18 Mar 2022 | ₩37.1t | ₩86.0t | ₩8.7t | 9.4x | 4.3x | 0.4x |
| Sun, 13 Feb 2022 | ₩37.5t | ₩98.3t | ₩8.7t | 7.9x | 4.3x | 0.4x |
| Tue, 11 Jan 2022 | ₩38.4t | ₩98.3t | ₩8.7t | 8.6x | 4.4x | 0.4x |
| Thu, 09 Dec 2021 | ₩39.5t | ₩98.3t | ₩9.0t | 8.9x | 4.4x | 0.4x |
| Sat, 06 Nov 2021 | ₩39.1t | ₩90.1t | ₩8.1t | 10.1x | 4.8x | 0.4x |
| Mon, 04 Oct 2021 | ₩37.7t | ₩90.1t | ₩8.1t | 10.1x | 4.7x | 0.4x |
| Wed, 01 Sep 2021 | ₩41.0t | ₩90.3t | ₩8.1t | 7x | 5x | 0.5x |
| Thu, 08 Jul 2021 | ₩41.4t | ₩90.5t | ₩8.1t | 6.8x | 5.1x | 0.5x |
Price to Earnings Ratio
5.4x
Current Industry PE
- Investors are optimistic on the South Korean Capital Markets industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 8.9x which is higher than its 3-year average PE of 5.8x.
- The industry is trading close to its 3-year average PS ratio of 0.30x.
Past Earnings Growth
- The earnings for companies in the Capital Markets industry have declined 23% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the South Korean Financials industry?
| KR Market | -0.34% | |
| Financials | 0.86% | |
| Capital Markets | -0.74% | |
| Financial Exchanges and Data | 1.30% | |
| Investment Banking and Brokerage | -0.31% | |
| Asset Management | -0.69% | |
| Diversified Capital Markets | -3.46% | |
Industry PE
- Investors are most optimistic about the Financial Exchanges and Data industry even though it's trading below its 3-year average PE ratio of 25.2x.
- Analysts are expecting annual earnings growth of 22.0%, which is higher than its past year's earnings decline of 0.2% per year.
- Investors are most pessimistic about the Investment Banking and Brokerage industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 4.9x.
Forecasted Growth
- Analysts are most optimistic on the Diversified Capital Markets industry, expecting annual earnings growth of 32% over the next 5 years.
- This is better than its past earnings decline of 64% per year.
- In contrast, the Investment Banking and Brokerage industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| A005940 NH Investment & Securities | ₩12.93k | 1.8% +₩79.5b | 37.0% | PE8x | |
| A026890 STIC Investments | ₩9.86k | 8.1% +₩27.1b | 70.3% | PE13.1x | |
| A003530 Hanwha Investment & Securities | ₩3.37k | 1.8% +₩13.1b | 22.8% | PE82.3x | |
| A001720 Shinyoung Securities | ₩68.80k | 1.0% +₩9.1b | 23.7% | PE7.1x | |
| A034950 Korea Ratings | ₩87.40k | 2.1% +₩8.0b | 19.9% | PE19.1x |