DB:8PB

Stock Analysis Report

Executive Summary

Pareto Bank ASA provides various banking products and services in Norway.

Rewards

Trading at 58.6% below its fair value

Earnings are forecast to grow 11.58% per year

Earnings grew by 13% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with proven track record.

Share Price & News

How has Pareto Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8PB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

8PB

0.4%

DE Banks

1.0%

DE Market


1 Year Return

n/a

8PB

-15.4%

DE Banks

16.4%

DE Market

Return vs Industry: Insufficient data to determine how 8PB performed against the German Banks industry.

Return vs Market: Insufficient data to determine how 8PB performed against the German Market.


Shareholder returns

8PBIndustryMarket
7 Day1.1%0.4%1.0%
30 Day-1.4%-6.5%-0.4%
90 Day3.7%-3.3%6.5%
1 Yearn/a-12.7%-15.4%20.0%16.4%
3 Yearn/a-22.0%-25.6%19.9%9.3%
5 Yearn/a-2.4%-26.1%40.8%21.7%

Price Volatility Vs. Market

How volatile is Pareto Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Pareto Bank undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8PB (€3.65) is trading below our estimate of fair value (€8.82)

Significantly Below Fair Value: 8PB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8PB is good value based on its PE Ratio (7.1x) compared to the Banks industry average (16.2x).

PE vs Market: 8PB is good value based on its PE Ratio (7.1x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: 8PB is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 8PB is overvalued based on its PB Ratio (0.8x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Pareto Bank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8PB's forecast earnings growth (11.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: 8PB's earnings (11.6% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 8PB's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8PB's revenue (12.9% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 8PB's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8PB's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Pareto Bank performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8PB has high quality earnings.

Growing Profit Margin: 8PB's current net profit margins (59.4%) are higher than last year (58.3%).


Past Earnings Growth Analysis

Earnings Trend: 8PB's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: 8PB's earnings growth over the past year (13%) is below its 5-year average (18.9% per year).

Earnings vs Industry: 8PB earnings growth over the past year (13%) exceeded the Banks industry 3.9%.


Return on Equity

High ROE: 8PB's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pareto Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 8PB has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8PB's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: 8PB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 8PB has a sufficient allowance for bad loans.

Low Risk Liabilities: 8PB's liabilities are made up of primarily low risk sources of funding.

Loan Level: 8PB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 8PB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 8PB has an appropriate level of bad loans.


Next Steps

Dividend

What is Pareto Bank's current dividend yield, its reliability and sustainability?

1.87%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.6%industryaverage3.8%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: 8PB's dividend (1.87%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: 8PB's dividend (1.87%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: 8PB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 8PB's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.2%), 8PB's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 8PB's dividends in 3 years are forecast to be well covered by earnings (35.8% payout ratio).


Next Steps

Management

What is the CEO of Pareto Bank's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Tiril Villum 0

8.9yrs

Tenure

kr4,025,000

Compensation

Ms. Tiril Haug Villum has been the Chief Executive Officer at Pareto Bank ASA at Pareto AS since 2011. Ms. Villum served as Chief Financial Officer at Pareto Bank ASA. She served as Chief Financial Officer ...


CEO Compensation Analysis

Compensation vs Market: Tiril's total compensation ($USD439.02K) is about average for companies of similar size in the German market ($USD541.19K).

Compensation vs Earnings: Tiril's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: 8PB's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 8PB's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 8PB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sellkr18,29604 Nov 19
Even Wahl
EntityIndividual
Shares4,900
Max Pricekr3.73
Buykr2,254,45819 Sep 19
Pareto Forvaltning AS
EntityCompany
Shares604,485
Max Pricekr3.73
Buykr3,68012 Aug 19
Vilja AS
EntityCompany
Shares1,000
Max Pricekr3.68
Buykr857,20628 Jun 19
Pareto Forvaltning AS
EntityCompany
Shares224,800
Max Pricekr3.81
Buykr5,23313 Mar 19
Erik Skarbøvik
EntityIndividual
Role
Other Key Executive
Executive Director of Securities
Shares1,378
Max Pricekr3.80
Buykr1,53813 Mar 19
Per Schiong
EntityIndividual
Role
Senior Key Executive
Executive Director of Credit
Shares405
Max Pricekr3.80
Buykr1,53813 Mar 19
Trine Ludvigsen
EntityIndividual
Role
Alternate Director
Deputy Employee Director
Shares405
Max Pricekr3.80
Buykr1,53813 Mar 19
Mariann Heggelien
EntityIndividual
Role
Alternate Director
Deputy Director
Shares405
Max Pricekr3.80
Buykr6,27413 Mar 19
Tiril Villum
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares1,652
Max Pricekr3.80
Buykr1,53813 Mar 19
Erling Mork
EntityIndividual
Role
Chief Financial Officer
CFO and Head of finance & accounting
Shares405
Max Pricekr3.80
Buykr6,27413 Mar 19
Petter Tinholt
EntityIndividual
Shares1,652
Max Pricekr3.80
Buykr1,53813 Mar 19
Sven Klepp
EntityIndividual
Role
Other Key Executive
Director of Real Estate
Shares405
Max Pricekr3.80

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.7%.


Management Team

  • Tiril Villum

    Chief Executive Officer

    • Tenure: 8.9yrs
    • Compensation: kr4.03m
  • Erling Mork

    CFO and Head of finance & accounting

    • Tenure: 0yrs
    • Compensation: kr2.79m
  • Erik Skarbøvik

    Executive Director of Securities

    • Tenure: 0yrs
    • Compensation: kr3.59m
  • Per Schiong

    Executive Director of Credit

    • Tenure: 0yrs
    • Compensation: kr2.77m
  • Sven Klepp

    Director of Real Estate

    • Tenure: 0yrs
    • Compensation: kr3.24m
  • Anders Jørgensen

    • Tenure: 1yrs
  • Mats Gehrken

    Heads of Operational Financing

    • Tenure: 0.9yrs
  • Monica Mælen

    Treasury

    • Tenure: 0.8yrs
  • Espen Bekvik

    Controller

    • Tenure: 0.7yrs

Board Members

  • Åsmund Skår (60yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: kr380.00k
  • Brita Eilertsen (57yo)

    Deputy Chairman

    • Tenure: 0yrs
    • Compensation: kr300.00k
  • Peter Knudsen (62yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: kr90.00k
  • Hilde Vatne (54yo)

    Director

    • Tenure: 0.8yrs
  • Mariann Heggelien

    Deputy Director

    • Tenure: 0yrs
    • Compensation: kr1.52m
  • Trine Høgås-Ellingsen

    Deputy Director

    • Tenure: 0yrs
    • Compensation: kr50.00k
  • Trine Ludvigsen

    Deputy Employee Director

    • Tenure: 0yrs
    • Compensation: kr1.10m
  • Eyvind Width

    Director

    • Tenure: 0.8yrs
  • Per Nicolaisen

    Deputy Director

    • Tenure: 0.8yrs
  • Lars Erik Næss

    Director

    • Tenure: 0.8yrs

Company Information

Pareto Bank ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pareto Bank ASA
  • Ticker: 8PB
  • Exchange: DB
  • Founded: 2007
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr2.619b
  • Listing Market Cap: kr257.512m
  • Shares outstanding: 69.85m
  • Website: https://www.paretobank.no

Number of Employees


Location

  • Pareto Bank ASA
  • Dronning Mauds gate 3
  • Oslo
  • Oslo
  • 250
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PARBOB (Oslo Bors)YesShare CapitalNONOKMar 2014
0RI3LSE (London Stock Exchange)YesShare CapitalGBNOKMar 2014
8PBDB (Deutsche Boerse AG)YesShare CapitalDEEURMar 2014
PARBOBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBNOKMar 2014

Biography

Pareto Bank ASA provides various banking products and services in Norway. The company offers financing for housing and business projects; companies with a specific need for capital; conventional and indust ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:25
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.