CPSE:DANSKE

Stock Analysis Report

Executive Summary

Danske Bank A/S provides various banking products and services to small and medium-sized businesses; and corporate, institutional, and personal customers.


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DANSKE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

DANSKE

-0.6%

DK Banks

1.9%

DK Market


1 Year Return

-37.8%

DANSKE

-17.2%

DK Banks

6.0%

DK Market

Return vs Industry: DANSKE underperformed the Danish Banks industry which returned -19% over the past year.

Return vs Market: DANSKE underperformed the Danish Market which returned 4.1% over the past year.


Shareholder returns

DANSKEIndustryMarket
7 Day-1.3%-0.6%1.9%
30 Day-25.5%-15.1%-4.3%
90 Day-29.9%-23.5%-4.4%
1 Year-37.8%-37.8%-15.3%-17.2%8.2%6.0%
3 Year-63.8%-67.5%-19.9%-38.9%36.1%24.7%
5 Year-51.9%-60.1%-7.0%-34.1%30.3%13.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DANSKE (DKK72.26) is trading below our estimate of fair value (DKK106.78)

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


Price To Earnings Ratio

PE vs Industry: DANSKE is good value based on its PE Ratio (4.3x) compared to the Banks industry average (5.5x).

PE vs Market: DANSKE is good value based on its PE Ratio (4.3x) compared to the Danish market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: DANSKE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DANSKE is good value based on its PB Ratio (0.4x) compared to the DK Banks industry average (0.5x).


Next Steps

Future Growth

How is Danske Bank forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DANSKE's earnings are forecast to decline over the next 3 years (-4.1% per year).

Earnings vs Market: DANSKE's earnings are forecast to decline over the next 3 years (-4.1% per year).

High Growth Earnings: DANSKE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DANSKE's revenue is expected to decline over the next 3 years (-2.2% per year).

High Growth Revenue: DANSKE's revenue is forecast to decline over the next 3 years (-2.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DANSKE's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has Danske Bank performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DANSKE has a high level of non-cash earnings.

Growing Profit Margin: DANSKE's current net profit margins (30.8%) are higher than last year (29.7%).


Past Earnings Growth Analysis

Earnings Trend: DANSKE's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: DANSKE's earnings growth over the past year (1.5%) is below its 5-year average (12.3% per year).

Earnings vs Industry: DANSKE earnings growth over the past year (1.5%) underperformed the Banks industry 20.8%.


Return on Equity

High ROE: DANSKE's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Danske Bank's financial position?


Financial Position Analysis

Short Term Liabilities: DANSKE's short term assets (DKK1,045.4B) do not cover its short term liabilities (DKK2,089.7B).

Long Term Liabilities: DANSKE's short term assets (DKK1,045.4B) do not cover its long term liabilities (DKK1,500.9B).


Debt to Equity History and Analysis

Debt Level: DANSKE's debt to equity ratio (1060.8%) is considered high.

Reducing Debt: DANSKE's debt to equity ratio has reduced from 1146.5% to 1060.8% over the past 5 years.

Debt Coverage: DANSKE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if DANSKE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

11.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DANSKE's dividend (11.76%) is higher than the bottom 25% of dividend payers in the Danish market (1.63%).

High Dividend: DANSKE's dividend (11.76%) is in the top 25% of dividend payers in the Danish market (4.41%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DANSKE has been paying a dividend for less than 10 years.

Growing Dividend: DANSKE's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.8%), DANSKE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DANSKE's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Chris F. H. Vogelzang (57yo)

0.83

Tenure

ø21,800,000

Compensation

Mr. Chris F. H. H. Vogelzang has been Chief Executive Officer of Danske Bank since September 5, 2019 and has been the Member of the Executive Leadership team at Danske Bank A/S since June 01, 2019. He serv ...


CEO Compensation Analysis

Compensation vs Market: Chris F. H.'s total compensation ($USD3.15M) is above average for companies of similar size in the Danish market ($USD2.31M).

Compensation vs Earnings: Insufficient data to compare Chris F. H.'s compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Chris F. H. Vogelzang
CEO & Member of the Executive Leadership team0.83yrø21.80m0.0052% DKK3.4m
Glenn Söderholm
Head of Banking Nordic & Member of the Executive Leadership Team6.42yrsø10.80m0.0041% DKK2.6m
Jakob Groot
Head of Corporates & Institutions and Member of Executive Leadership Team1.92yrsø8.80m0.0039% DKK2.5m
Jacob Aarup-Andersen
Former Head of Banking DK4yrsø11.20m0.0025% DKK1.6m
Berit Behing
Head of Wealth Management & Member of Executive Leadership Team0.58yrø2.90m0.00090% DKK583.3k
Carsten Egeriis
Chief Risk Officer & Member of Executive Leadership Team2.67yrsø9.80m0.00016% DKK103.7k
Philippe Vollot
Member of Executive Leadership Team & Chief Compliance Officer1.42yrsø11.80mno data
Stephan Engels
CFO & Member of Executive Leadership Teamno datano datano data
Frans Woelders
Group COO & Member of the Executive Leadership Team0.083yrno datano data
Mikael Deigaard
Global Chief Investment Officer0.17yrno datano data

1.4yrs

Average Tenure

52.5yo

Average Age

Experienced Management: DANSKE's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mads Jacobsen
Senior EVP & Chairman of Board of Directors of Baltic Unitsno datano datano data
Sten Scheibye
Member of Advisory Boardno datano datano data
Birgit Aagaard-Svendsen
Member of Advisory Boardno datano datano data
Trond Westlie
Member of Advisory Boardno datano datano data
Carol Sergeant
Independent Vice Chairman of the Board2.08yrsno data0.00082% DKK531.5k
Lars-Erik Brenøe
Non-Independent Director4.08yrsno data0.0027% DKK1.8m
Jan Nielsen
Vice Chairman of the Board1.33yrsno data0.0012% DKK803.7k
Charlotte Hoffmann
Employee Director14.08yrsno data0.00038% DKK246.3k
Gert Kjeldsen
Member of Advisory Boardno datano datano data
Karsten Dybvad
Independent Chairman of the Board1.33yrsno data0.0013% DKK855.5k

2.1yrs

Average Tenure

63yo

Average Age

Experienced Board: DANSKE's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Danske Bank A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Danske Bank A/S
  • Ticker: DANSKE
  • Exchange: CPSE
  • Founded: 1871
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ø64.813b
  • Shares outstanding: 853.70m
  • Website: https://www.danskebank.com

Number of Employees


Location

  • Danske Bank A/S
  • Holmens Kanal 2-12
  • Copenhagen
  • Capital Region of Denmark
  • 1092
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNSK.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDJan 1992
DANSKECPSE (OMX Nordic Exchange Copenhagen)YesShare CapitalDKDKKJan 1992
DSNDB (Deutsche Boerse AG)YesShare CapitalDEEURJan 1992
0NVCLSE (London Stock Exchange)YesShare CapitalGBDKKJan 1992
DANSKCBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBDKKJan 1992
DANSWBAG (Wiener Boerse AG)YesShare CapitalATEURJan 1992
DANSKE NBMV (Bolsa Mexicana de Valores)YesShare CapitalMXMXNJan 1992
DNKE.YOTCPK (Pink Sheets LLC)ADRUSUSDFeb 2016

Biography

Danske Bank A/S provides various banking products and services to small and medium-sized businesses; and corporate, institutional, and personal customers. It operates through Banking DK, Banking Nordic, Corporates and Institutions, Wealth Management, and Northern Ireland segments. The company offers daily banking, home financing, investment, and retirement planning solutions; strategic advisory services; leasing solutions; and financing, financial market, general banking, and corporate finance advisory services, as well as financial solutions and products in the areas of capital markets, fixed income and currencies, and transaction banking and investor services. It also provides wealth and asset management, pension savings, and insurance solutions covering life, health, and accident; and mobile banking services. In addition, the company provides mortgage finance and real-estate brokerage, as well as trades in fixed income products, foreign exchange, and equities. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, Ireland, Estonia, Latvia, Lithuania, Luxembourg, Russia, Germany, Poland, the United States, India, and China. Danske Bank A/S was founded in 1871 and is headquartered in Copenhagen, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 20:46
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.