LSE:0RU6

Stock Analysis Report

SpareBank 1 Østlandet

Executive Summary

SpareBank 1 Østlandet provides various financial products and services to individuals, businesses, public sectors, clubs, and societies.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.

Share Price & News

How has SpareBank 1 Østlandet's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0RU6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

0RU6

-3.6%

GB Banks

0.05%

GB Market


1 Year Return

-0.4%

0RU6

-6.0%

GB Banks

7.1%

GB Market

Return vs Industry: 0RU6 exceeded the UK Banks industry which returned -6% over the past year.

Return vs Market: 0RU6 underperformed the UK Market which returned 7.1% over the past year.


Shareholder returns

0RU6IndustryMarket
7 Day0%-3.6%0.05%
30 Day-13.4%-3.6%-1.7%
90 Day-5.4%-2.3%4.1%
1 Year4.6%-0.4%-1.2%-6.0%12.6%7.1%
3 Yearn/a-6.7%-17.4%18.4%3.6%
5 Yearn/a-2.6%-21.1%35.2%4.2%

Price Volatility Vs. Market

How volatile is SpareBank 1 Østlandet's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SpareBank 1 Østlandet undervalued compared to its fair value and its price relative to the market?

35.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0RU6 (NOK85.4) is trading below our estimate of fair value (NOK132.37)

Significantly Below Fair Value: 0RU6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0RU6 is good value based on its PE Ratio (8.7x) compared to the Banks industry average (9.2x).

PE vs Market: 0RU6 is good value based on its PE Ratio (8.7x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0RU6 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 0RU6 is overvalued based on its PB Ratio (0.7x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is SpareBank 1 Østlandet forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0RU6's forecast earnings growth (11.7% per year) is above the savings rate (0.5%).

Earnings vs Market: 0RU6's earnings (11.7% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: 0RU6's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0RU6's revenue (3.4% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: 0RU6's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0RU6's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has SpareBank 1 Østlandet performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0RU6 has high quality earnings.

Growing Profit Margin: 0RU6's current net profit margins (31.7%) are higher than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: 0RU6's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: 0RU6's earnings growth over the past year (38.2%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: 0RU6 earnings growth over the past year (38.2%) exceeded the Banks industry 28.3%.


Return on Equity

High ROE: 0RU6's Return on Equity (12.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SpareBank 1 Østlandet'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: 0RU6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0RU6's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: 0RU6's level of assets compared to its equity is low.

Allowance for Bad Loans: 0RU6 has a low allowance for bad loans.

Low Risk Liabilities: 0RU6's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0RU6 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0RU6 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: 0RU6 has an appropriate level of bad loans (0.42%)


Next Steps

Dividend

What is SpareBank 1 Østlandet's current dividend yield, its reliability and sustainability?

5.66%

Current Dividend Yield


Upcoming Dividend Payment

Purchase SpareBank 1 Østlandet before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.7%marketbottom25%1.8%markettop25%5.1%industryaverage6.4%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: 0RU6's dividend (5.66%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: 0RU6's dividend (5.66%) is in the top 25% of dividend payers in the UK market (5.09%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0RU6 has been paying a dividend for less than 10 years.

Growing Dividend: 0RU6's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), 0RU6's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0RU6's dividends in 3 years are forecast to be well covered by earnings (47.7% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Richard Heiberg (63yo)

9.7yrs

Tenure

kr4,891,000

Compensation

Mr. Richard H. Heiberg has been Deputy Chairman of the Board at SpareBank 1 Gruppen AS since April 4, 2018 and serves as its Director. He has been the Chief Executive Officer of SpareBank 1 Østlandet (form ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD524.25K) is below average for companies of similar size in the UK market ($USD1.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Heiberg
Chief Executive Officer9.7yrskr4.89m0.080% NOK9.3m
Geir-Egil Bolstad
Executive Vice President & CFO3.2yrskr3.21m0.025% NOK2.9m
Eldar Kjendlie
Head of HR & Legal0yrskr2.24m0.0057% NOK656.8k
Siv Stenseth
Head of Communications0yrskr2.10m0.0026% NOK305.8k
Hans Wedvik
Head of Corporate Banking0yrskr2.47m0.0026% NOK305.8k
Dag-Arne Hoberg
Head of Innovation & Business Development0yrskr2.47m0.0051% NOK588.4k
Vidar Nordheim
Chief Risk Officer0yrskr2.20m0.0044% NOK506.2k
Kari Gisnås
Head of Personal Banking0yrskr2.80m0.0026% NOK305.8k
Espen Mejlænder-Larsen
Head of Organizations & Capital Markets0yrskr2.11m0.0043% NOK498.1k
Magnus Aasen
Managing Director of EiendomsMegler 1 Hedmark Eiendom AS7.3yrskr1.70m0.0014% NOK159.8k

7.3yrs

Average Tenure

62yo

Average Age

Experienced Management: 0RU6's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siri Strømmevold
Chair of the Board8.1yrskr321.00k0.0020% NOK228.2k
Nina Lier
Deputy Chairman of the Board4.1yrskr253.00k0.0011% NOK128.6k
Espen Larsen
Director12.1yrskr1.22mno data
Tore Dobloug
Director1.1yrskr2.12mno data
Pål-Jan Stokke
Chairman of the Supervisory Board0yrskr6.00kno data
Alexander Lund
Director1.1yrskr52.00k0.0037% NOK428.6k
Hans-Christian Gabrielsen
Director4.1yrskr154.00kno data
Vibeke Larsen
Director4.1yrskr722.00k0.0014% NOK159.8k
Guro Vestvik
Director4.1yrskr165.00k0.00030% NOK34.7k
Siri Enget
Deputy Chairman of supervisory board1.9yrsno datano data

4.1yrs

Average Tenure

51yo

Average Age

Experienced Board: 0RU6'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: 0RU6 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

SpareBank 1 Østlandet's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • SpareBank 1 Østlandet
  • Strandgata 15
  • Hamar
  • Hedmark
  • 2302
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPOLOB (Oslo Bors)YesEquity Capital InstrumentsNONOKJun 2017
2SFDB (Deutsche Boerse AG)YesEquity Capital InstrumentsDEEURJun 2017
0RU6LSE (London Stock Exchange)YesEquity Capital InstrumentsGBNOKJun 2017
SPOLOBATS-CHIXE (BATS 'Chi-X Europe')YesEquity Capital InstrumentsGBNOKJun 2017
SPRB.FOTCPK (Pink Sheets LLC)YesEquity Capital InstrumentsUSUSDJun 2017

Biography

SpareBank 1 Østlandet provides various financial products and services to individuals, businesses, public sectors, clubs, and societies. It offers loans, retail and corporate banking services, deposits, insurance products, and pensions. The company offers payment, real estate brokerage, accounting and payroll services, leasing, and financing, consulting, and online banking services. It has 37 branches, including 21 in Hedmark, 2 in Oppland, 5 in Oslo, and 9 in Akershus. SpareBank 1 Østlandet was founded in 1845 and is headquartered in Hamar, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:00
End of Day Share Price2020/02/20 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.