LSE:0MGE

Stock Analysis Report

Executive Summary

Sydbank A/S, together with its subsidiaries, provides various banking products and services to corporate and retail customers in Denmark and internationally.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0MGE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.0%

0MGE

-3.6%

GB Banks

0.05%

GB Market


1 Year Return

7.8%

0MGE

-6.0%

GB Banks

7.1%

GB Market

Return vs Industry: 0MGE exceeded the UK Banks industry which returned -8.4% over the past year.

Return vs Market: 0MGE exceeded the UK Market which returned 6.6% over the past year.


Shareholder returns

0MGEIndustryMarket
7 Day3.0%-3.6%0.05%
30 Day9.7%-3.6%-1.7%
90 Day26.1%-2.3%4.1%
1 Year14.9%7.8%-1.2%-6.0%12.6%7.1%
3 Year-22.7%-33.8%-6.7%-17.4%18.4%3.6%
5 Year-2.5%-23.8%-2.6%-21.1%35.2%4.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sydbank 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: 0MGE (DKK161.8) is trading below our estimate of fair value (DKK333.5)

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


Price To Earnings Ratio

PE vs Industry: 0MGE is poor value based on its PE Ratio (11.9x) compared to the Banks industry average (9.1x).

PE vs Market: 0MGE is good value based on its PE Ratio (11.9x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: 0MGE is poor value based on its PEG Ratio (69.4x)


Price to Book Ratio

PB vs Industry: 0MGE is overvalued based on its PB Ratio (0.8x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

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

0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0MGE's forecast earnings growth (0.2% per year) is below the savings rate (0.5%).

Earnings vs Market: 0MGE's earnings (0.2% per year) are forecast to grow slower than the UK market (13.1% per year).

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

Revenue vs Market: 0MGE's revenue (1.9% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: 0MGE's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0MGE's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Sydbank performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0MGE has high quality earnings.

Growing Profit Margin: 0MGE's current net profit margins (21.3%) are lower than last year (29.5%).


Past Earnings Growth Analysis

Earnings Trend: 0MGE's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: 0MGE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0MGE had negative earnings growth (-35.2%) over the past year, making it difficult to compare to the Banks industry average (28.3%).


Return on Equity

High ROE: 0MGE's Return on Equity (7.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sydbank'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: 0MGE has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0MGE's debt is covered by short term assets (assets are 2x debt).


Financial Institutions Analysis

Asset Level: 0MGE's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0MGE has a low allowance for bad loans.

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

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

Low Risk Deposits: 0MGE's loans are broadly funded by customer deposits.

Level of Bad Loans: 0MGE has a high level of bad loans (4.5%)


Next Steps

Dividend

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

5.78%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%1.8%markettop25%5.1%industryaverage6.4%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: 0MGE's dividend (5.78%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: 0MGE's dividend (5.78%) is in the top 25% of dividend payers in the UK market (5.12%)


Stability and Growth of Payments

Stable Dividend: 0MGE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 0MGE's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.9%), 0MGE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0MGE's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

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

1.9yrs

Average board tenure


CEO

Karen Frøsig (61yo)

ø6,800,000

Compensation

Ms. Karen Frøsig serves as Chief Executive Officer at Sydbank A/S. She served as President of Sydbank A/S since June 1, 2010 until October 2019 and also served as Managing Director. She also served as the  ...


CEO Compensation Analysis

Compensation vs Market: Karen's total compensation ($USD982.33K) is below average for companies of similar size in the UK market ($USD1.82M).

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


Board Members

NamePositionTenureCompensationOwnership
Lars Mikkelgaard-Jensen
Chairman & MD0.4yrsø440.00k0.0034% DKK323.8k
Jacob Nielsen
Vice-Chairman of Board & MD0.4yrsø461.00k0.00013% DKK12.5k
Hanni Kasprzak
Member of Advisory Board0yrsno datano data
Jarl Oxlund
Director5.9yrsø407.00k0.0021% DKK197.0k
Janne Moltke-Leth
Independent Director3.9yrsø460.00k0.00016% DKK15.4k
Carsten Andersen
Director1.9yrsø256.00kno data
Jørn Sørensen
Director1.9yrsø256.00k0.0044% DKK427.5k
Susanne Schou
Independent Director1.9yrsø256.00k0.00071% DKK68.2k
Kim Holmer
Director1.9yrsø256.00k0.0028% DKK266.1k
Gitte Poulsen
Independent Director0.3yrsno datano data

1.9yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 0MGE's board of directors are not considered experienced ( 1.9 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

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


Key Information

  • Name: Sydbank A/S
  • Ticker: 0MGE
  • Exchange: LSE
  • Founded: 1970
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ø9.607b
  • Shares outstanding: 59.31m
  • Website: https://www.sydbank.com

Number of Employees


Location

  • Sydbank A/S
  • Peberlyk 4
  • PO Box 1038
  • Aabenraa
  • Region of Southern Denmark
  • 6200
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYDBCPSE (OMX Nordic Exchange Copenhagen)YesShare CapitalDKDKKJan 1992
TM2BST (Boerse-Stuttgart)YesShare CapitalDEEURJan 1992
TM2DB (Deutsche Boerse AG)YesShare CapitalDEEURJan 1992
0MGELSE (London Stock Exchange)YesShare CapitalGBDKKJan 1992
SYAN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Sydbank A/S, together with its subsidiaries, provides various banking products and services to corporate and retail customers in Denmark and internationally. The company operates in Banking, Asset Management, Sydbank Markets, Treasury, and Other segments. It offers various deposits, and loans and advances; and corporate banking services, including financing solutions and advisory services; and international commercial banking services, such as payment services and cash management solutions. The company also provides private banking products and services, such as advice related to pensions, investments, and various financial issues; personal and individual advisory services; and payment cards, and insurance and investment products, as well as related services. In addition, it offers advisory and asset management services for investment funds, pooled pension plans, foundations, and institutional and wealthy clients; and advice and quotes prices as regards bonds, shares, and foreign exchange, as well as undertakes market-making obligations for institutional clients, central banks, asset managers, foreign clients, and banks. Further, the company is involved in the macro, equity, and fixed income research activities. Additionally, it deals in government and mortgage bonds; and provides online and digital solutions. The company offers its services through 62 branches in Denmark and 3 branches in Germany. Sydbank A/S was founded in 1970 and is headquartered in Aabenraa, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:30
End of Day Share Price2020/02/20 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.