It hasn't been a great morning session for KB Financial investors, who have watched their shares sink by -9.0% to a price of $61.21. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
Potentially Undervalued but Has an Elevated P/B Ratio:
KB Financial Group Inc. provides a range of banking and related financial services to consumers and corporations in South Korea, the United States, New Zealand, China, Cambodia, the United Kingdom, Indonesia, and internationally. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 20.04 and an average price to book (P/B) ratio of 1.86. In contrast, KB Financial has a trailing 12 month P/E ratio of 7.5 and a P/B ratio of 0.0.
KB Financial has moved 72.4% over the last year compared to 32.7% for the S&P 500 — a difference of 39.6%. KB Financial has a 52 week high of $72.89 and a 52 week low of $36.57.
Growing Revenues and Negative Cash Flows:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $10,859,687 | $11,431,851 | $12,492,642 | $14,483,603 | $13,780,604 | $16,229,134 |
| Interest Income (M) | $9 | $23 | $134 | -$3,981 | -$7,676 | -$17,003 |
| Operating Margins | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Margins | 28% | 28% | 28% | 30% | 28% | 27% |
| Net Income (M) | $3,061,191 | $3,304,743 | $3,445,588 | $4,338,006 | $4,026,589 | $4,447,017 |
| Depreciation & Amort. (M) | $408,771 | $784,431 | $874,911 | $850,614 | $816,841 | $865,927 |
| Diluted Shares (M) | 396 | 390 | 390 | 390 | 390 | 379 |
| Earnings Per Share | $6.9 | $7.26 | $8.01 | $9.19 | $8.49 | $8.76 |
| Free Cash Flow (M) | -$8,188 | $8,103 | -$10,750 | -$5,650 | $4,260 | $3,314 |
| CAPEX (M) | $139 | $33 | $124 | $2 | $252 | $131 |
