LSE:0RD6

Stock Analysis Report

Executive Summary

Sbanken ASA, a digital bank that provides various banking products to retail customers through its banking platform in Norway.


Snowflake Analysis

Good value with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0RD6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.8%

0RD6

-1.4%

GB Banks

6.2%

GB Market


1 Year Return

-41.6%

0RD6

-33.5%

GB Banks

-22.7%

GB Market

Return vs Industry: 0RD6 underperformed the UK Banks industry which returned -33.5% over the past year.

Return vs Market: 0RD6 underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

0RD6IndustryMarket
7 Day13.8%-1.4%6.2%
30 Day-28.9%-22.0%-17.8%
90 Day-38.3%-34.6%-27.7%
1 Year-40.4%-41.6%-28.8%-33.5%-18.6%-22.7%
3 Year-31.3%-34.7%-32.0%-41.3%-13.4%-24.6%
5 Yearn/a-29.7%-43.8%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0RD6 (NOK45.58) is trading below our estimate of fair value (NOK68.86)

Significantly Below Fair Value: 0RD6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0RD6 is poor value based on its PE Ratio (7.2x) compared to the Banks industry average (4.6x).

PE vs Market: 0RD6 is good value based on its PE Ratio (7.2x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0RD6 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 0RD6 is overvalued based on its PB Ratio (0.7x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0RD6's forecast earnings growth (9.2% per year) is above the savings rate (0.5%).

Earnings vs Market: 0RD6's earnings (9.2% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: 0RD6's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0RD6's revenue (7.8% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: 0RD6's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0RD6's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

How has Sbanken performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0RD6 has high quality earnings.

Growing Profit Margin: 0RD6's current net profit margins (40.8%) are lower than last year (44.1%).


Past Earnings Growth Analysis

Earnings Trend: 0RD6's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: 0RD6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0RD6 had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: 0RD6's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is Sbanken'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: 0RD6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0RD6's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: 0RD6's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0RD6 has a low allowance for bad loans.

Low Risk Liabilities: 0RD6's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0RD6 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0RD6 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: 0RD6 has an appropriate level of bad loans (0.69%)


Next Steps

Dividend

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

4.15%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 0RD6's dividend (4.15%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: 0RD6's dividend (4.15%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

Stable Dividend: 0RD6 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 0RD6's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.9%), 0RD6's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0RD6's dividends in 3 years are forecast to be well covered by earnings (39.1% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Øyvind Thomassen (57yo)

1.17s

Tenure

kr878,000

Compensation

Mr. Øyvind Thomassen, M.Sc. Econ. serves as Chief Executive Officer of Sbanken ASA since 2019. He served as Chief Executive Officer of Skandiabanken AB (publ) from 2010 to April 26, 2016 and served as its  ...


Leadership Team

NamePositionTenureCompensationOwnership
Henning Nordgulen
CFO & Deputy CEO4.58yrskr2.71m0.066% NOK3.2m
Eirik Christensen
Chief Operating Officer of Banking0.17yrkr1.85m0.014% NOK686.8k
Geir Hansen
Head of Strategy10.17yrskr2.28m0.045% NOK2.2m
Christoffer Hernæs
Chief Digital Officer3.17yrskr2.18m0.013% NOK622.7k
Svein Frøystad
Head of IT Governance & Employee Representative Director2.17yrsno data0.0016% NOK77.2k
Øyvind Thomassen
Chief Executive Officer1.17yrskr878.00k0.095% NOK4.6m
Jesper Hatletveit
Head of Investor Relations1.17yrsno data0.0019% NOK91.9k
Arlin Mæland
Chief Compliance Officer no datano data0.0026% NOK126.6k
Ann Lerstad
Head of Legalno datano datano data
Ole Larsen
Chief Communication Officerno datano datano data

2.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 0RD6's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Svein Frøystad
Head of IT Governance & Employee Representative Director2.17yrsno data0.0016% NOK77.2k
Hugo Maurstad
Independent Director3.75yrskr332.00kno data
Ragnhild Wiborg
Independent Director4.5yrskr591.00k0.017% NOK811.9k
August Johan Baumann
Independent Director4.58yrskr557.00k0.027% NOK1.3m
Mai-Lill Ibsen
Independent Director4.58yrskr672.00kno data
Cathrine Klouman
Director2.17yrskr233.00kno data
Karianne Mjøs-Haugland
Employee Representative Director2.17yrsno data0.00026% NOK12.7k
Lars Midby
Chairman of the Board5.17yrskr731.00k0.045% NOK2.2m

4.1yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 0RD6's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 0RD6 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

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


Key Information

  • Name: Sbanken ASA
  • Ticker: 0RD6
  • Exchange: LSE
  • Founded: 2000
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr4.888b
  • Shares outstanding: 106.73m
  • Website: https://sbanken.no

Number of Employees


Location

  • Sbanken ASA
  • Folke Bernadottesvei 38
  • Bergen
  • Hordaland
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBANKOB (Oslo Bors)YesRegistered SharesNONOKNov 2015
7SBDB (Deutsche Boerse AG)YesRegistered SharesDEEURNov 2015
MDRD.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDNov 2015
0RD6LSE (London Stock Exchange)YesRegistered SharesGBNOKNov 2015
SBANKOBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBNOKNov 2015

Biography

Sbanken ASA, a digital bank that provides various banking products to retail customers through its banking platform in Norway. It offers deposit products, such as security deposit accounts and home savings account; and home loans, car loans, credit cards, overdraft facilities, personal loans, consumer loans, and custody account loans, as well as short-term loans. The company also provides payment services, including payment of bills, international payments, card transactions, etc.; log-in, security solutions, etc.; and investment products, as well as online banking services. The company was formerly known as Skandiabanken ASA and changed its name to Skandiabanken ASA in November 2017. Sbanken ASA was founded in 2000 and is headquartered in Bergen, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:55
End of Day Share Price2020/03/27 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.