LSE:0R7R

Stock Analysis Report

Svenska Handelsbanken

Executive Summary

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, Denmark, Finland, and the Netherlands.

Rewards

PE ratio (12.7x) is below the UK market (18.5x)

Earnings are forecast to grow 3.34% per year

Pays a high and reliable dividend of 5.02%

Risk Analysis

No risks detected for 0R7R from our risk checks.


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0R7R has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

0R7R

-0.3%

GB Banks

-0.2%

GB Market


1 Year Return

7.3%

0R7R

-6.5%

GB Banks

6.1%

GB Market

Return vs Industry: 0R7R exceeded the UK Banks industry which returned -6.5% over the past year.

Return vs Market: 0R7R exceeded the UK Market which returned 6.1% over the past year.


Shareholder returns

0R7RIndustryMarket
7 Day0.6%-0.3%-0.2%
30 Day14.7%-2.4%-2.7%
90 Day15.6%-0.1%3.9%
1 Year13.2%7.3%-0.6%-6.5%11.8%6.1%
3 Year-1.3%-16.2%-6.9%-18.5%17.5%2.6%
5 Year7.2%-17.4%-2.0%-20.7%34.8%3.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

12.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0R7R (SEK110.13) is trading above our estimate of fair value (SEK81.18)

Significantly Below Fair Value: 0R7R is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0R7R is poor value based on its PE Ratio (12.7x) compared to the Banks industry average (10.5x).

PE vs Market: 0R7R is good value based on its PE Ratio (12.7x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0R7R is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: 0R7R is overvalued based on its PB Ratio (1.4x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Svenska Handelsbanken forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0R7R's forecast earnings growth (3.3% per year) is above the savings rate (0.5%).

Earnings vs Market: 0R7R's earnings (3.3% per year) are forecast to grow slower than the UK market (12.2% per year).

High Growth Earnings: 0R7R's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0R7R's revenue (3.6% per year) is forecast to grow faster than the UK market (3.4% per year).

High Growth Revenue: 0R7R's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0R7R's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Svenska Handelsbanken performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0R7R has high quality earnings.

Growing Profit Margin: 0R7R's current net profit margins (38.9%) are lower than last year (40.4%).


Past Earnings Growth Analysis

Earnings Trend: 0R7R's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: 0R7R's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0R7R had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Banks industry average (28.3%).


Return on Equity

High ROE: 0R7R's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Svenska Handelsbanken'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: 0R7R has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0R7R's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: 0R7R's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0R7R has a low allowance for bad loans.

Low Risk Liabilities: 0R7R's liabilities are made up of primarily higher risk sources of funding.

Loan Level: 0R7R has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0R7R has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: 0R7R has an appropriate level of bad loans (0.36%)


Next Steps

Dividend

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

5.02%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Svenska Handelsbanken before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.0%marketbottom25%1.8%markettop25%5.1%industryaverage6.2%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: 0R7R's dividend (5.02%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: 0R7R's dividend (5.02%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


Stability and Growth of Payments

Stable Dividend: 0R7R's dividends per share have been stable in the past 10 years.

Growing Dividend: 0R7R's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.6%), 0R7R's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0R7R's dividends in 3 years are forecast to be covered by earnings (67.7% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Carina Åkerström (57yo)

0.9yrs

Tenure

kr8,600,000

Compensation

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 Svensk ...


CEO Compensation Analysis

Compensation vs Market: Carina's total compensation ($USD885.32K) is below average for companies of similar size in the UK market ($USD4.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Carina Åkerström
President0.9yrskr8.60mno data
Charlotte Skog
Executive Director7.9yrsno data0.0014% SEK3.1m
Rolf Marquardt
CFO of Group Finance & Executive Director3.4yrsno data0.00011% SEK238.7k
Juha Rantamaa
Acting Chief Information Officer of IT & Infrastructure0.8yrsno datano data
Lars Höglund
Head of Investor Relations2.4yrsno datano data
Martin Wasteson
Chief Legal Officer of Group Legal & Executive Director4.9yrsno data0.00012% SEK260.4k
Maria Tornell
Acting Chief Compliance Officer of Group Compliance0.8yrsno datano data
Jan Larsson
Chief Communications Officer of Group Communications & Sustainability and Executive Director0yrsno datano data
Magnus Ericson
Group Chief Human Resources & Executive Director0.8yrsno data0.00062% SEK1.3m
Yonnie Bergqvist
Head of Retail and E-Services9yrsno datano data

1.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 0R7R's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Carina Åkerström
President0.9yrskr8.60mno data
Charlotte Skog
Executive Director7.9yrsno data0.0014% SEK3.1m
Dag Tjernsmo
CEO of Handelsbanken Norway0yrsno datano data
Fredrik Lundberg
Vice Chairman of the Board11.8yrsno data0.75% SEK1.6b
Pär Boman
Chairman of the Board4.9yrsno data0.0063% SEK13.7m
M. Widerberg
Chairman of Handel Och Industri11.1yrsno datano data
Ulf Bergqvist
Chairman of Central Sweden Regional Bank0yrsno datano data
Jan Cedwall
Chairman of Eastern Sweden Regional Bank0yrsno datano data
Göran Stille
Chairman of Subsidiary0yrsno datano data
Lennart Mankert
Chairman of Western Sweden Regional Bank0yrsno datano data

7.9yrs

Average Tenure

57yo

Average Age

Experienced Board: 0R7R's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 0R7R insiders have only sold shares 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

Svenska Handelsbanken AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Svenska Handelsbanken AB (publ)
  • Ticker: 0R7R
  • Exchange: LSE
  • Founded: 1871
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr217.034b
  • Shares outstanding: 1.98b
  • Website: https://www.handelsbanken.se

Number of Employees


Location

  • Svenska Handelsbanken AB (publ)
  • Kungsträdgårdsgatan 2
  • Stockholm
  • Stockholm County
  • 106 70
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVNL.FOTCPK (Pink Sheets LLC)YesClass A Ordinary SharesUSUSDJan 1981
SHB AOM (OMX Nordic Exchange Stockholm)YesClass A Ordinary SharesSESEKJan 1981
SVHHDB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURJan 1981
0R7RLSE (London Stock Exchange)YesClass A Ordinary SharesGBSEKJan 1981
0R7RLSE (London Stock Exchange)YesClass A Ordinary SharesGBSEKJan 1981
SHB BOM (OMX Nordic Exchange Stockholm)Class B Ordinary SharesSESEKJan 1992
0R7SLSE (London Stock Exchange)Class B Ordinary SharesGBSEKJan 1992
SVHGDB (Deutsche Boerse AG)Class B Ordinary SharesDEEURJan 1992
SVNL.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, Denmark, Finland, and the Netherlands. The company offers savings, business, currency, and investment accounts and deposits, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans, as well as business debt services; mutual funds; pension products; and accounts, business card, and payment and reconciliation services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as real estate financing services; green loans and advisor services; investment and other financing services; medical care and group and health insurance products; and online and mobile banking services. In addition, the company offers trade finance, cash management, risk management, and foreign exchange services, as well as various banking services for children and young people. It operates approximately 383 branches in Sweden; and 56 branches in Denmark, 36 in Finland, 207 in the United Kingdom, 29 in the Netherlands, and 47 in Norway, as well as branches in 11 countries. Svenska Handelsbanken AB (publ) was founded in 1871 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:04
End of Day Share Price2020/02/14 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.