CPSE:RILBA

Stock Analysis Report

Ringkjøbing Landbobank

Executive Summary

Ringkjøbing Landbobank A/S provides various banking products and services in Denmark.

Rewards

Earnings are forecast to grow 5.48% per year

Earnings grew by 43.6% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Ringkjøbing Landbobank's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

RILBA

1.6%

DK Banks

1.8%

DK Market


1 Year Return

42.5%

RILBA

16.3%

DK Banks

26.7%

DK Market

Return vs Industry: RILBA exceeded the Danish Banks industry which returned 17% over the past year.

Return vs Market: RILBA exceeded the Danish Market which returned 24.5% over the past year.


Shareholder returns

RILBAIndustryMarket
7 Day0.2%1.6%1.8%
30 Day-1.4%2.5%3.2%
90 Day9.7%5.0%12.7%
1 Year46.0%42.5%20.9%16.3%30.5%26.7%
3 Year77.4%64.5%7.9%-22.2%57.1%43.5%
5 Year127.2%102.0%51.7%6.1%75.0%50.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ringkjøbing Landbobank undervalued compared to its fair value and its price relative to the market?

18.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RILBA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RILBA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RILBA is poor value based on its PE Ratio (18.5x) compared to the Banks industry average (7.1x).

PE vs Market: RILBA is poor value based on its PE Ratio (18.5x) compared to the Danish market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: RILBA is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: RILBA is overvalued based on its PB Ratio (2x) compared to the DK Banks industry average (0.6x).


Next Steps

Future Growth

How is Ringkjøbing Landbobank forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RILBA's forecast earnings growth (5.5% per year) is above the savings rate (-0.3%).

Earnings vs Market: RILBA's earnings (5.5% per year) are forecast to grow slower than the Danish market (11.8% per year).

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

Revenue vs Market: RILBA's revenue (3.5% per year) is forecast to grow slower than the Danish market (6.4% per year).

High Growth Revenue: RILBA's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RILBA's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Ringkjøbing Landbobank performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RILBA has high quality earnings.

Growing Profit Margin: RILBA's current net profit margins (45.1%) are lower than last year (47.2%).


Past Earnings Growth Analysis

Earnings Trend: RILBA's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: RILBA's earnings growth over the past year (43.6%) exceeds its 5-year average (13.3% per year).

Earnings vs Industry: RILBA earnings growth over the past year (43.6%) exceeded the Banks industry 5.8%.


Return on Equity

High ROE: RILBA's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ringkjøbing Landbobank'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: RILBA has a low level of unsold assets or inventory.

Debt Coverage by Assets: RILBA's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: RILBA has a sufficient allowance for bad loans.

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

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

Low Risk Deposits: RILBA's loans are broadly funded by customer deposits.

Level of Bad Loans: RILBA has an appropriate level of bad loans (0.63%)


Next Steps

Dividend

What is Ringkjøbing Landbobank's current dividend yield, its reliability and sustainability?

1.99%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%4.5%industryaverage3.8%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: RILBA's dividend (1.98%) is higher than the bottom 25% of dividend payers in the Danish market (1.53%).

High Dividend: RILBA's dividend (1.98%) is low compared to the top 25% of dividend payers in the Danish market (4.62%).


Stability and Growth of Payments

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

Growing Dividend: RILBA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.8%), RILBA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RILBA's dividends in 3 years are forecast to be well covered by earnings (36% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

John Fisker (55yo)

7.7yrs

Tenure

ø5,576,000

Compensation

Mr. John Bull Fisker serves as the Chief Executive Officer of Ringkjøbing Landbobank A/S since May 1, 2012. Mr. Fisker is a Member of the general management since May 1, 1999. Mr. Fisker was employed by th ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD830.03K) is about average for companies of similar size in the Danish market ($USD1.10M).

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


Management Age and Tenure

3.0yrs

Average Tenure

53yo

Average Age

Experienced Management: RILBA's management team is considered experienced (3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

51.5yo

Average Age

Experienced Board: RILBA's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 42.8%.


Management Team

  • John Fisker (55yo)

    CEO & Member of the General Management

    • Tenure: 7.7yrs
    • Compensation: ø5.58m
  • Sten Erlandsen

    Head of Treasury

    • Lars Hindø (53yo)

      Executive assistant & Head of Investor Relations

      • Henrik Haugaard

        Chief Internal Auditor

        • Jørn Nielsen (47yo)

          GM & Member of the Management Board

          • Tenure: 4.3yrs
          • Compensation: ø2.81m
        • Claus Andersen (53yo)

          General Manager & Member of the General Management

          • Tenure: 1.6yrs
          • Compensation: ø3.48m
        • Ole Pedersen

          Financial Manager

          • Carl Pedersen (57yo)

            GM & Member of the Management Board

            • Tenure: 1.6yrs
            • Compensation: ø2.58m

          Board Members

          • Sten Uggerhøj (60yo)

            Independent Director

            • Tenure: 1.6yrs
          • Mads Hvolby (63yo)

            Deputy Chairman

            • Tenure: 1.6yrs
          • Gitte Sigersmunda Høgholm Vigsø (43yo)

            Employee Elected Director

            • Tenure: 8.8yrs
          • Martin Pedersen (52yo)

            Independent Chairman

            • Tenure: 1.9yrs
          • Jens Nielsen (63yo)

            Deputy Chairman

            • Tenure: 1.9yrs
          • Dan Junker Sørensen (30yo)

            Employee Elected Director

            • Tenure: 4.8yrs
          • Jacob Møller (50yo)

            Independent Director

            • Tenure: 2.8yrs
          • Lone Søllmann (51yo)

            Independent Director

            • Tenure: 2.8yrs
          • Jon Johnsen (51yo)

            Independent Director

            • Tenure: 2.9yrs
          • Morten Jensen (58yo)

            Independent Director

            • Tenure: 1.6yrs

          Company Information

          Ringkjøbing Landbobank A/S's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Ringkjøbing Landbobank A/S
          • Ticker: RILBA
          • Exchange: CPSE
          • Founded: 1886
          • Industry: Regional Banks
          • Sector: Banks
          • Market Cap: ø14.716b
          • Shares outstanding: 29.20m
          • Website: https://www.landbobanken.dk

          Number of Employees


          Location

          • Ringkjøbing Landbobank A/S
          • Torvet 1
          • Ringkøbing
          • Central Denmark Region
          • 6950
          • Denmark

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          RILBACPSE (OMX Nordic Exchange Copenhagen)YesShare CapitalDKDKKJan 1992
          0RPRLSE (London Stock Exchange)YesShare CapitalGBDKKJan 1992

          Biography

          Ringkjøbing Landbobank A/S provides various banking products and services in Denmark. It offers various deposits, and loans and guarantees, as well as securities trading and custody, asset management, foreign exchange, and payment handling services. The company was founded in 1886 and is headquartered in Ringkøbing, Denmark. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/23 21:09
          End of Day Share Price2020/01/23 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.