LSE:0RIU

Stock Analysis Report

Norwegian Finans Holding

Executive Summary

Norwegian Finans Holding ASA, through its subsidiary, Bank Norwegian AS, provides various banking products and services to retail customers in Norway, Finland, Sweden, and Denmark.


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

How has Norwegian Finans Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

15.3%

0RIU

-1.4%

GB Banks

6.0%

GB Market


1 Year Return

-40.8%

0RIU

-33.5%

GB Banks

-22.7%

GB Market

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

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


Shareholder returns

0RIUIndustryMarket
7 Day15.3%-1.4%6.0%
30 Day-54.0%-23.4%-20.3%
90 Day-57.6%-34.8%-28.1%
1 Year-40.8%-40.8%-28.8%-33.5%-18.6%-22.7%
3 Year-39.7%-39.7%-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 Norwegian Finans Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Norwegian Finans Holding 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: 0RIU (NOK40.57) is trading below our estimate of fair value (NOK179.36)

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


Price To Earnings Ratio

PE vs Industry: 0RIU is good value based on its PE Ratio (3.9x) compared to the Banks industry average (4.6x).

PE vs Market: 0RIU is good value based on its PE Ratio (3.9x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0RIU is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 0RIU is overvalued based on its PB Ratio (0.8x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

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

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0RIU's forecast earnings growth (5.5% per year) is above the savings rate (0.5%).

Earnings vs Market: 0RIU's earnings (5.5% per year) are forecast to grow slower than the UK market (15.4% per year).

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

Revenue vs Market: 0RIU's revenue (14.8% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: 0RIU's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0RIU's Return on Equity is forecast to be high in 3 years time (21.3%)


Next Steps

Past Performance

How has Norwegian Finans Holding performed over the past 5 years?

31.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0RIU has a high level of non-cash earnings.

Growing Profit Margin: 0RIU's current net profit margins (50.1%) are higher than last year (49.9%).


Past Earnings Growth Analysis

Earnings Trend: 0RIU's earnings have grown significantly by 31.4% per year over the past 5 years.

Accelerating Growth: 0RIU's earnings growth over the past year (9.6%) is below its 5-year average (31.4% per year).

Earnings vs Industry: 0RIU earnings growth over the past year (9.6%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: 0RIU's Return on Equity (20.9%) is considered high.


Next Steps

Financial Health

How is Norwegian Finans Holding'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: 0RIU has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

Low Risk Deposits: 0RIU's loans are broadly funded by customer deposits.

Level of Bad Loans: 0RIU has a high level of bad loans (17.29%)


Next Steps

Dividend

What is Norwegian Finans Holding's current dividend yield, its reliability and sustainability?

15.58%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 0RIU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 0RIU's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 0RIU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 0RIU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 0RIU's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.9yrs

Average board tenure


CEO

Tine Gottlob Wollebekk (57yo)

2.75s

Tenure

kr4,862,000

Compensation

Ms. Tine Gottlob Kirstan Wollebekk serves as Director of Ekornes ASA since 2017. Ms. Wollebekk serves as an Advisor of FSN Capital Partners AS. Ms. Wollebekk serves as the Managing Director of the card com ...


CEO Compensation Analysis

Compensation vs Market: Tine Gottlob's total compensation ($USD466.18K) is below average for companies of similar size in the UK market ($USD1.28M).

Compensation vs Earnings: Tine Gottlob's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Christine Rødsæther
Independent Director3.17yrskr175.00k0.041% NOK3.1m
Kjetil Garstad
Director0.83yrno datano data
Knut Alsaker
Director1.17yrsno datano data
Anita Marie Aarnæs
Independent Director13.17yrskr250.00kno data
Bjørn Østbø
Chairman of the Board2yrsno datano data
Gunn Ingemundsen
Independent Director1.83yrsno datano data

1.9yrs

Average Tenure

53yo

Average Age

Experienced Board: 0RIU's board of directors are not considered experienced ( 2 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: 0RIU insiders have sold more shares than they have bought 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

Norwegian Finans Holding ASA's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Norwegian Finans Holding ASA
  • Snarøyveien 36
  • Fornebu
  • Akershus
  • 1364
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOFIOB (Oslo Bors)YesShare CapitalNONOKJun 2014
0RIULSE (London Stock Exchange)YesShare CapitalGBNOKJun 2014
NOFIOBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBNOKJun 2014
NWEG.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDJun 2014
4NFDB (Deutsche Boerse AG)YesShare CapitalDEEURJun 2014

Biography

Norwegian Finans Holding ASA, through its subsidiary, Bank Norwegian AS, provides various banking products and services to retail customers in Norway, Finland, Sweden, and Denmark. It offers deposit accounts, consumer loans, and credit cards through Internet. The company also provides a combined credit card and reward card in cooperation with the airline Norwegian. Norwegian Finans Holding ASA was founded in 2007 and is based in Fornebu, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:18
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.