Woori Financial Operating Margin vs. Return On Asset

WF Stock  USD 31.04  0.40  1.27%   
Taking into consideration Woori Financial's profitability measurements, Woori Financial's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Woori Financial's ability to earn profits and add value for shareholders.

Woori Financial Operating Profit Margin

0.14

At this time, Woori Financial's EV To Sales is most likely to increase in the upcoming years. The Woori Financial's current Operating Cash Flow Sales Ratio is estimated to increase to 0.28, while Sales General And Administrative To Revenue is projected to decrease to 0.15. At this time, Woori Financial's Total Other Income Expense Net is most likely to increase significantly in the upcoming years. The Woori Financial's current Net Income Applicable To Common Shares is estimated to increase to about 3.7 T, while Net Income is projected to decrease to roughly 1.7 T.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.780.88
Fairly Down
Slightly volatile
Net Profit Margin0.150.1021
Way Up
Very volatile
Operating Profit Margin0.140.144
Fairly Down
Very volatile
Pretax Profit Margin0.220.1388
Way Up
Very volatile
Return On Assets0.00480.005
Notably Down
Slightly volatile
Return On Equity0.08490.0893
Notably Down
Slightly volatile
For Woori Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Woori Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Woori Financial Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Woori Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Woori Financial Group over time as well as its relative position and ranking within its peers.
  
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Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Woori Financial. If investors know Woori will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Woori Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.13)
Dividend Share
1.2 K
Earnings Share
6.69
Revenue Per Share
39.5 K
Quarterly Revenue Growth
0.094
The market value of Woori Financial Group is measured differently than its book value, which is the value of Woori that is recorded on the company's balance sheet. Investors also form their own opinion of Woori Financial's value that differs from its market value or its book value, called intrinsic value, which is Woori Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Woori Financial's market value can be influenced by many factors that don't directly affect Woori Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Woori Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Woori Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Woori Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Woori Financial Group Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Woori Financial's current stock value. Our valuation model uses many indicators to compare Woori Financial value to that of its competitors to determine the firm's financial worth.
Woori Financial Group is rated fifth in operating margin category among its peers. It is rated below average in return on asset category among its peers reporting about  0.01  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Woori Financial Group is roughly  75.61 . At this time, Woori Financial's Operating Profit Margin is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Woori Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Woori Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Woori Financial

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.39 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Woori Financial

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0051
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Woori Return On Asset Comparison

Woori Financial is currently under evaluation in return on asset category among its peers.

Woori Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Woori Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Woori Financial will eventually generate negative long term returns. The profitability progress is the general direction of Woori Financial's change in net profit over the period of time. It can combine multiple indicators of Woori Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.5 T1.6 T
Operating Income3.5 TT
Income Before Tax3.4 T2.5 T
Total Other Income Expense Net3.4 T3.6 T
Net Income2.4 T1.7 T
Income Tax Expense890.6 B611.5 B
Net Income From Continuing Ops3.1 T1.9 T
Net Income Applicable To Common Shares3.5 T3.7 T
Net Interest Income8.9 TT
Interest Income19.8 T12.2 T
Change To Netincome2.9 T3.1 T
Net Income Per Share3.4 K2.7 K
Income Quality 2.75  2.55 
Net Income Per E B T 0.74  0.54 

Woori Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Woori Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Woori Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Woori Financial's important profitability drivers and their relationship over time.

Use Woori Financial in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Woori Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Woori Financial will appreciate offsetting losses from the drop in the long position's value.

Woori Financial Pair Trading

Woori Financial Group Pair Trading Analysis

The ability to find closely correlated positions to Woori Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Woori Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Woori Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Woori Financial Group to buy it.
The correlation of Woori Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Woori Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Woori Financial Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Woori Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Woori Financial position

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Additional Information and Resources on Investing in Woori Stock

When determining whether Woori Financial Group is a strong investment it is important to analyze Woori Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Woori Financial's future performance. For an informed investment choice regarding Woori Stock, refer to the following important reports:
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You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
To fully project Woori Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Woori Financial Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Woori Financial's income statement, its balance sheet, and the statement of cash flows.
Potential Woori Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Woori Financial investors may work on each financial statement separately, they are all related. The changes in Woori Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Woori Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.