LSE:0RI3

Stock Analysis Report

Executive Summary

Pareto Bank ASA provides various banking products and services in Norway.


Snowflake Analysis

Undervalued with proven track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0RI3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-15.7%

0RI3

-8.5%

GB Banks

-8.6%

GB Market


1 Year Return

n/a

0RI3

-14.3%

GB Banks

-1.3%

GB Market

Return vs Industry: Insufficient data to determine how 0RI3 performed against the UK Banks industry.

Return vs Market: Insufficient data to determine how 0RI3 performed against the UK Market.


Shareholder returns

0RI3IndustryMarket
7 Day-15.7%-8.5%-8.6%
30 Day-18.1%-9.4%-8.4%
90 Dayn/a-11.1%-5.3%
1 Yearn/a-8.5%-14.3%4.0%-1.3%
3 Yearn/a-13.2%-24.5%7.6%-6.1%
5 Yearn/a-10.1%-27.8%23.4%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Pareto Bank 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: 0RI3 (NOK45.65) is trading below our estimate of fair value (NOK110.43)

Significantly Below Fair Value: 0RI3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0RI3 is good value based on its PE Ratio (7.2x) compared to the Banks industry average (8.6x).

PE vs Market: 0RI3 is good value based on its PE Ratio (7.2x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: 0RI3 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 0RI3 is overvalued based on its PB Ratio (0.9x) compared to the GB Banks industry average (0.7x).


Next Steps

Future Growth

How is Pareto Bank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0RI3's forecast earnings growth (7.3% per year) is above the savings rate (0.5%).

Earnings vs Market: 0RI3's earnings (7.3% per year) are forecast to grow slower than the UK market (13.2% per year).

High Growth Earnings: 0RI3's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0RI3's revenue (9.4% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: 0RI3's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0RI3's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Pareto Bank performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0RI3 has high quality earnings.

Growing Profit Margin: 0RI3's current net profit margins (60%) are higher than last year (59.2%).


Past Earnings Growth Analysis

Earnings Trend: 0RI3's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: 0RI3's earnings growth over the past year (20.2%) exceeds its 5-year average (18.9% per year).

Earnings vs Industry: 0RI3 earnings growth over the past year (20.2%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: 0RI3's Return on Equity (12.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pareto Bank'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: 0RI3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0RI3's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: 0RI3's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0RI3 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0RI3's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0RI3 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0RI3 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0RI3 has an appropriate level of bad loans.


Next Steps

Dividend

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

6.83%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Pareto Bank before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.8%marketbottom25%1.9%markettop25%5.4%industryaverage7.1%forecastin3Years7.5%

Current dividend yield vs market & industry

Notable Dividend: 0RI3's dividend (6.95%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: 0RI3's dividend (6.95%) is in the top 25% of dividend payers in the UK market (5.4%)


Stability and Growth of Payments

Stable Dividend: 0RI3 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 0RI3's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.3%), 0RI3's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0RI3's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Tiril Villum 0

9.1yrs

Tenure

kr4,025,000

Compensation

Ms. Tiril Haug Villum has been the Chief Executive Officer at Pareto Bank ASA at Pareto AS since 2011. Ms. Villum served as Chief Financial Officer at Pareto Bank ASA. She served as Chief Financial Officer ...


CEO Compensation Analysis

Compensation vs Market: Tiril's total compensation ($USD428.47K) is below average for companies of similar size in the UK market ($USD663.19K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tiril Villum
Chief Executive Officer9.1yrskr4.03m0.43% NOK12.4m
Erling Mork
CFO and Head of finance & accounting0yrskr2.79m0.084% NOK2.4m
Per Schiong
Executive Director of Credit0yrskr2.77m0.093% NOK2.7m
Erik Skarbøvik
Executive Director of Securities0yrskr3.59m0.081% NOK2.3m
Sven Klepp
Director of Real Estate0yrskr3.24m0.28% NOK7.9m
Erik Skarbøvig
Head of Corporate Finance0yrsno datano data
Caroline Sem
Marketing Manager0yrsno datano data
Anders Jørgensen
1.2yrsno datano data
Mats Gehrken
Heads of Operational Financing1.1yrsno datano data
Monica Mælen
Treasury0.9yrsno datano data

1.1yrs

Average Tenure

Experienced Management: 0RI3's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Åsmund Skår
Chairman of the Board0yrskr380.00k0.024% NOK677.6k
Brita Eilertsen
Deputy Chairman0yrskr300.00kno data
Peter Knudsen
Director0.9yrskr90.00k0.0014% NOK41.0k
Hilde Vatne
Director0.9yrsno datano data
Mariann Heggelien
Deputy Director0yrskr1.52m0.061% NOK1.8m
Trine Høgås-Ellingsen
Deputy Director0yrskr50.00kno data
Trine Ludvigsen
Deputy Employee Director0yrskr1.10m0.016% NOK458.5k
Eyvind Width
Director0.9yrsno datano data
Per Nicolaisen
Deputy Director0.9yrsno datano data
Lars Erik Næss
Director0.9yrsno datano data

0.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 0RI3's board of directors are not considered experienced ( 0.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Pareto Bank ASA
  • Ticker: 0RI3
  • Exchange: LSE
  • Founded: 2007
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr2.864b
  • Shares outstanding: 69.85m
  • Website: https://www.paretobank.no

Number of Employees


Location

  • Pareto Bank ASA
  • Dronning Mauds gate 3
  • Oslo
  • Oslo
  • 250
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PARBOB (Oslo Bors)YesShare CapitalNONOKMar 2014
0RI3LSE (London Stock Exchange)YesShare CapitalGBNOKMar 2014
8PBDB (Deutsche Boerse AG)YesShare CapitalDEEURMar 2014
PARBOBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBNOKMar 2014

Biography

Pareto Bank ASA provides various banking products and services in Norway. The company offers financing for housing and business projects; companies with a specific need for capital; conventional and industrial shipping; and the lending of financial instruments to private customers and companies. It also accepts deposits. The company was founded in 2007 and is based in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 22:15
End of Day Share Price2020/02/28 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.