LSE:0IVM

Stock Analysis Report

Executive Summary

SpareBank 1 SMN, together with its subsidiaries, provides various financial and banking products and services.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has SpareBank 1 SMN's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0IVM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.9%

0IVM

-14.7%

GB Banks

-2.2%

GB Market


1 Year Return

-23.7%

0IVM

-45.3%

GB Banks

-25.9%

GB Market

Return vs Industry: 0IVM exceeded the UK Banks industry which returned -45.4% over the past year.

Return vs Market: 0IVM exceeded the UK Market which returned -25.9% over the past year.


Shareholder returns

0IVMIndustryMarket
7 Day5.9%-14.7%-2.2%
30 Day-26.7%-29.8%-20.3%
90 Day-33.6%-44.1%-29.5%
1 Year-17.7%-23.7%-43.4%-45.3%-22.2%-25.9%
3 Year16.5%-3.1%-42.9%-49.1%-16.1%-26.6%
5 Year44.2%9.8%-43.0%-53.2%-4.6%-26.1%

Price Volatility Vs. Market

How volatile is SpareBank 1 SMN's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SpareBank 1 SMN 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: 0IVM (NOK68.1) is trading below our estimate of fair value (NOK146.16)

Significantly Below Fair Value: 0IVM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0IVM is poor value based on its PE Ratio (5.6x) compared to the Banks industry average (4.9x).

PE vs Market: 0IVM is good value based on its PE Ratio (5.6x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: 0IVM is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 0IVM is good value based on its PB Ratio (0.4x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is SpareBank 1 SMN forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0IVM's forecast earnings growth (11.9% per year) is above the savings rate (0.5%).

Earnings vs Market: 0IVM's earnings (11.9% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: 0IVM's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0IVM's revenue (2.1% per year) is forecast to grow slower than the UK market (2.6% per year).

High Growth Revenue: 0IVM's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0IVM's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has SpareBank 1 SMN performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0IVM has high quality earnings.

Growing Profit Margin: 0IVM's current net profit margins (26.7%) are higher than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: 0IVM's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: 0IVM's earnings growth over the past year (21.7%) exceeds its 5-year average (1.5% per year).

Earnings vs Industry: 0IVM earnings growth over the past year (21.7%) underperformed the Banks industry 26.6%.


Return on Equity

High ROE: 0IVM's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is SpareBank 1 SMN'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: 0IVM has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0IVM's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: 0IVM's level of assets compared to its equity is low.

Allowance for Bad Loans: 0IVM has a sufficient allowance for bad loans.

Low Risk Liabilities: 0IVM's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0IVM has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0IVM has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: 0IVM has an appropriate level of bad loans (0.33%)


Next Steps

Dividend

What is SpareBank 1 SMN's current dividend yield, its reliability and sustainability?

7.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0IVM's dividend (7.41%) is higher than the bottom 25% of dividend payers in the UK market (2.66%).

High Dividend: 0IVM's dividend (7.41%) is low compared to the top 25% of dividend payers in the UK market (7.42%).


Stability and Growth of Payments

Stable Dividend: 0IVM's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0IVM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.2%), 0IVM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0IVM's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Jan-Frode Janson (50yo)

0.92

Tenure

kr3,930

Compensation

Mr. Jan-Frode Janson is a Director of SpareBank 1 Gruppen AS. He served as President at SpareBank 1 Nord-Norge until March 15, 2019. He was the Chief Executive Officer of SpareBank 1 Nord-Norge from Januar ...


CEO Compensation Analysis

Compensation vs Market: Jan-Frode's total compensation ($USD373.07) is below average for companies of similar size in the UK market ($USD1.28M).

Compensation vs Earnings: Insufficient data to compare Jan-Frode's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jan-Frode Janson
Group Chief Executive Officer0.92yrkr3.93k0.023% NOK2.0m
Kjell Fordal
Executive VP of Corporate Finance & Deputy CEO29.25yrskr4.35k0.19% NOK16.6m
Kjersti Honstad
Executive Director of Legal Affairs1.25yrskr2.04k0.0036% NOK312.5k
Rolf Brøske
Executive Director of Communications & Society3.5yrskr2.37k0.0056% NOK491.4k
Vegard Helland
Executive Vice President of Businessno datakr3.11k0.027% NOK2.4m
Astrid Undheim
Executive VP/Executive Director of Technology & Development0.083yrno datano data
Petter de Lange
Chief Economistno datano datano data
Jon Havdal
Managing Director of Regnskapshuset SMNno datano datano data
Tom Jensen
Chief Executive Officer of Sparebank 1 Bilplanno datano datano data
Arne Nypan
Chief Executive Officer of Sparebank 1 Finans Midt-Norgeno datano datano data

1.3yrs

Average Tenure

47yo

Average Age

Experienced Management: 0IVM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Morten Loktu
Director7.25yrskr260.000.0039% NOK337.8k
Bard Benum
Deputy Board Chair7.08yrskr358.00no data
Knut Solberg
Chair of the Supervisory Board2.08yrsno data0.0021% NOK186.8k
Kjell Bjordal
Chairman7.25yrskr546.000.10% NOK8.8m
Inge Lindseth
Director1.25yrskr1.05k0.0067% NOK582.2k
Janne Thomsen
Director6yrskr333.000.0023% NOK202.5k
Christian Stav
Director1.25yrskr252.000.012% NOK1.0m
Per Tyldum
Supervisory Board Vice Chairmanno datano datano data
Mette Kamsvag
Director2.08yrskr321.000.0043% NOK377.9k
Tonje Foss
Director2.25yrskr255.000.0039% NOK337.8k

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: 0IVM's board of directors are not considered experienced ( 2.3 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: 0IVM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

SpareBank 1 SMN's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SpareBank 1 SMN
  • Ticker: 0IVM
  • Exchange: LSE
  • Founded: 1823
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: kr8.728b
  • Shares outstanding: 129.30m
  • Website: https://www.sparebank1.no/nb/smn

Number of Employees


Location

  • SpareBank 1 SMN
  • no. 4 Søndre gate
  • Trondheim
  • Sør-Trøndelag
  • 7011
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRMG.FOTCPK (Pink Sheets LLC)YesPrimary Capital CertificatesUSUSDMay 1994
MINGOB (Oslo Bors)YesPrimary Capital CertificatesNONOKMay 1994
0IVMLSE (London Stock Exchange)YesPrimary Capital CertificatesGBNOKMay 1994
MINGOBATS-CHIXE (BATS 'Chi-X Europe')YesPrimary Capital CertificatesGBNOKMay 1994
MING51OB (Oslo Bors)8.25%-FRN PERP NOK500000NONOKMay 2012
MING52OB (Oslo Bors)FRN PERP NOK500000NONOKNov 2012

Biography

SpareBank 1 SMN, together with its subsidiaries, provides various financial and banking products and services. The company provides advisory services to personal and agricultural customers, clubs, associations, and one-person businesses; and a range of products in the fields of financing, savings and investment, insurance, and payment services. It also provides advisory services in investment and operations financing, domestic and foreign money transfers, fixed income and currency hedging, investment of surplus liquidity, and insurance of individuals and buildings/operating equipment; factoring and accountancy services; and mobile and Internet banking services. In addition, the company offers leasing services; and car, consumer, and home loans to retail borrowers and corporates. Further, it provides real estate and asset management services; and trades in fixed income and forex area, bonds, and equities. Additionally, the company offers stock trading; and debit and credit cards services. It operates 48 locations that serves retail and corporate customers. SpareBank 1 SMN was founded in 1823 and is headquartered in Trondheim, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 23:29
End of Day Share Price2020/04/03 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.