Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Denmark, Finland, Norway, and the Netherlands.
The last earnings update was 8 days ago.
Discounted Cash Flow Calculation for LSE:0R7R using Excess Returns Model Model
The calculations below outline how an intrinsic value for Svenska Handelsbanken is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Svenska Handelsbanken's earnings available for a low price, and how does
this compare to other companies in the same industry?
Svenska Handelsbanken's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Svenska Handelsbanken's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Svenska Handelsbanken's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
Svenska Handelsbanken's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Ms. Carina Åkerström has been President, Group Chief Executive and Executive Director of Svenska Handelsbanken AB (publ) since March 27, 2019. Ms. Åkerström served as Deputy Group Chief Executive at Svenska Handelsbanken AB since October, 2016. Ms. Åkerström serves as Member of senior management team of regional bank in Eastern Sweden. She served as Head of Regional Bank - Stockholm and Deputy Group Chief Executive at Svenska Handelsbanken AB since September 1, 2010 and October, 2016. Ms. Åkerström served as an Executive Vice President of Swedish Regional Bank at Svenska Handelsbanken AB since August 2008. Ms. Åkerström served as Head of Regional Bank Stockholm and an Executive Vice President of StadsHypotek AB. She served as Head of Regional Bank - Eastern Sweden at Svenska Handelsbanken AB from August 2008 to September 1, 2010.
Carina's compensation has been consistent with company performance over the past year.
Carina's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Svenska Handelsbanken management team is about average.
CFO of Group Finance & Executive Director
Acting Chief Information Officer of IT & Infrastructure
Head of Investor Relations
Chief Legal Officer of Group Legal
Chief Compliance Officer of Group Compliance & Executive Director
Acting Chief Communications Officer & Head of Sustainability
Acting Chief Human Resources of Group HR
Head of Retail and E-Services
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Svenska Handelsbanken board of directors is about average.
Board of Directors
Chairman of the Board
Vice Chairman of the Board
CEO of Handelsbanken Norway
Chairman of Handel Och Industri
Chairman of Subsidiary
Chairman of Central Sweden Regional Bank
Chairman of Eastern Sweden Regional Bank
Chairman of Western Sweden Regional Bank
Who owns this company?
Recent Insider Trading
No 3 month insider trading information.
Recent Insider Transactions
Max Price (SEK)
26. Nov 18
L E Lundbergföretagen AB (publ)
22. Nov 18
23. Nov 18
02. Nov 18
29. Oct 18
29. Oct 18
07. May 18
The T. Browaldh Foundation
02. May 18
02. May 18
07. May 18
Jan Wallanders och Tom Hedelius stiftelse,Endowment Arm
Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Denmark, Finland, Norway, and the Netherlands. It offers transactional and savings accounts, business, currency, and corporate accounts; mortgage and private loans; mutual funds; and pension products. The company also provides business cards; financing for investments, such as equipment, cars, computers, and other inventories; green loans and bonds; investment services; medical care, and group and health insurance; and online and mobile banking services, as well as forestry and farming services. The company operates approximately 400 branches in Sweden; and 56 branches in Denmark, 36 in Finland, 208 in Great Britain, 29 in the Netherlands, and 49 in Norway, as well as branches in 16 countries. Svenska Handelsbanken AB (publ) was founded in 1871 and is based in Stockholm, Sweden.
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