LSE:0O84

Stock Analysis Report

Executive Summary

DNB ASA provides various banking products and services for retail and corporate customers in Norway and internationally.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0O84 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

0O84

-3.6%

GB Banks

0.05%

GB Market


1 Year Return

12.3%

0O84

-6.0%

GB Banks

7.1%

GB Market

Return vs Industry: 0O84 exceeded the UK Banks industry which returned -8.4% over the past year.

Return vs Market: 0O84 exceeded the UK Market which returned 6.6% over the past year.


Shareholder returns

0O84IndustryMarket
7 Day1.6%-3.6%0.05%
30 Day9.2%-3.6%-1.7%
90 Day5.6%-2.3%4.1%
1 Year18.2%12.3%-1.2%-6.0%12.6%7.1%
3 Year46.4%27.1%-6.7%-17.4%18.4%3.6%
5 Year73.0%39.8%-2.6%-21.1%35.2%4.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

26.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0O84 (NOK177.3) is trading below our estimate of fair value (NOK242.63)

Significantly Below Fair Value: 0O84 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0O84 is poor value based on its PE Ratio (11.4x) compared to the Banks industry average (9.1x).

PE vs Market: 0O84 is good value based on its PE Ratio (11.4x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: 0O84 is poor value based on its PEG Ratio (11x)


Price to Book Ratio

PB vs Industry: 0O84 is overvalued based on its PB Ratio (1.1x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is DNB forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0O84's forecast earnings growth (1% per year) is above the savings rate (0.5%).

Earnings vs Market: 0O84's earnings (1% per year) are forecast to grow slower than the UK market (13.1% per year).

High Growth Earnings: 0O84's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0O84's revenue (3.4% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: 0O84's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0O84's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has DNB performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0O84 has high quality earnings.

Growing Profit Margin: 0O84's current net profit margins (45.3%) are lower than last year (46.1%).


Past Earnings Growth Analysis

Earnings Trend: 0O84's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: 0O84's earnings growth over the past year (4.8%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: 0O84 earnings growth over the past year (4.8%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: 0O84's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DNB'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: 0O84 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0O84's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: 0O84's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0O84 has a low allowance for bad loans.

Low Risk Liabilities: 0O84's liabilities are made up of primarily higher risk sources of funding.

Loan Level: 0O84 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0O84 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: 0O84 has an appropriate level of bad loans (1.41%)


Next Steps

Dividend

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

5.08%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 21 2020Ex Dividend DateApr 29 2020Dividend Pay DateMay 08 20209 days from Ex DividendBuy in the next 67 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: 0O84's dividend (5.08%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: 0O84's dividend (5.08%) is low compared to the top 25% of dividend payers in the UK market (5.12%).


Stability and Growth of Payments

Stable Dividend: 0O84's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0O84's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.8%), 0O84's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0O84's dividends in 3 years are forecast to be covered by earnings (60.1% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Kjerstin Braathen (49yo)

0.4yrs

Tenure

kr6,401,000

Compensation

Ms. Kjerstin R. Braathen has been Group Chief Executive at DNB Livsforsikring AS since 2019 and served as its Chairwoman of the Board. She has been Chief Executive Officer at DNB ASA since September 1, 201 ...


CEO Compensation Analysis

Compensation vs Market: Kjerstin's total compensation ($USD690.26K) is below average for companies of similar size in the UK market ($USD4.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kjerstin Braathen
Group Chief Executive0.4yrskr6.40m0.0019% NOK5.1m
Ottar Ertzeid
CFO & Group Executive VP of Finance0.4yrskr13.73m0.015% NOK41.5m
Solveig Hellebust
Group Executive Vice President of People & Operations3.1yrskr4.91m0.0014% NOK4.0m
Mirella Wassiluk
Group Executive Vice President of Compliance1.8yrskr7.22m0.000050% NOK138.7k
Thomas Midteide
Group Executive Vice President of Media & Marketing7.1yrskr4.57m0.00082% NOK2.3m
Harald Serck-Hanssen
Group Executive Vice President of Large Corporates & International7.1yrskr6.48m0.0024% NOK6.8m
Ingjerd Cecilie Hafsteen Spiten
Group Executive Vice President of Personal Banking2.1yrskr4.90m0.00014% NOK388.4k
Ida Lerner
Group Executive Vice President of Risk Management2.2yrskr6.40m0.00027% NOK749.0k
Rasmus Aage Figenschou
Group Executive Vice President of New Business2.2yrskr4.74m0.00053% NOK1.5m
Alf Otterstad
Group Executive Vice President of Information Technology2.2yrskr4.65m0.000050% NOK138.7k

2.2yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 0O84's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Karl-Christian Agerup
Independent Director2.8yrskr364.00k0.00041% NOK1.1m
Gunnar Reitan
Director of Vital Forsikring0yrsno datano data
Tore Rimmereid
Vice Chairman of the Board8.1yrskr536.00k0.00068% NOK1.9m
Jorunn Løvås
Employee-elected Board Member0.3yrsno datano data
Carl Løvvik
Employee Representative Director8.7yrskr1.13m0.00010% NOK277.4k
Olaug Svarva
Chairman of the Board1.8yrskr718.00k0.00045% NOK1.2m
Gro Bakstad
Director0.8yrsno datano data
Karl Moursund
Director of DNB NOR Savings Bank Foundation0yrsno data0.000070% NOK194.2k
Stian Samuelsen
Deputy Director4.1yrsno data0.000040% NOK111.0k
Jaan Gjærum Semlitsch
Independent Director5.7yrskr524.00k0.0014% NOK3.8m

3.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 0O84's board of directors are considered experienced (3.5 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: DNB ASA
  • Ticker: 0O84
  • Exchange: LSE
  • Founded: 1822
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr277.398b
  • Shares outstanding: 1.57b
  • Website: https://www.dnb.no

Number of Employees


Location

  • DNB ASA
  • Dronning Eufemias gate 30
  • Bjørvika
  • Oslo
  • Oslo
  • 191
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNBH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
NBADB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
DNBOB (Oslo Bors)YesCommon SharesNONOKJan 1992
0O84LSE (London Stock Exchange)YesCommon SharesGBNOKJan 1992
DNBOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKJan 1992
DNHB.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDAug 2010

Biography

DNB ASA provides various banking products and services for retail and corporate customers in Norway and internationally. The company offers savings and investment products, including saving accounts, home savings products, equities, retirement savings, fixed rate deposits, exchange traded products, bonds and commercial papers, and asset management services; and loans, such as home mortgages, car and consumer loans, trade finance, and export financing, as well as overdraft facilities, bank guarantees, and leasing and factoring services. It also provides various cards; a range of insurance products comprising car, boat, motor vehicle, household contents, home, holiday home, travel, and life insurance products, as well as pet insurance for cats and dogs; and pension plans. In addition, the company offers investment banking advisory and financing services, such as mergers and acquisitions, and equity and debt capital markets for corporations and private equity firms; and foreign exchange and treasury, cash management, research, commodities, equities, corporate finance, interest rates, securities, real estate broking, and Internet and mobile banking services. It offers its products and services to various sectors, including energy; financial institutions; healthcare; manufacturing; packaging and forest products; seafood; shipping, offshore, and logistics; and telecom, media, and technology. The company distributes its products and services through its branches, in-store postal and banking outlets, and post office counters. DNB ASA was founded in 1822 and is headquartered in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:35
End of Day Share Price2020/02/20 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.