OB:BRA-ME

Stock Analysis Report

Executive Summary

BRAbank ASA operates as an entrepreneur bank to individuals in Norway.

Rewards

Earnings are forecast to grow 87.16% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

Does not have a meaningful market cap (NOK342M)



Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BRA-ME's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.7%

BRA-ME

-0.2%

NO Banks

0.6%

NO Market


1 Year Return

-66.7%

BRA-ME

8.0%

NO Banks

3.4%

NO Market

Return vs Industry: BRA-ME underperformed the Norwegian Banks industry which returned 10.1% over the past year.

Return vs Market: BRA-ME underperformed the Norwegian Market which returned 4.5% over the past year.


Shareholder returns

BRA-MEIndustryMarket
7 Day-7.7%-0.2%0.6%
30 Day9.1%1.7%2.7%
90 Day-46.4%3.4%5.9%
1 Year-66.7%-66.7%13.3%8.0%9.1%3.4%
3 Year-85.1%-85.1%40.7%23.4%34.3%17.7%
5 Yearn/a97.7%56.5%66.1%27.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

43.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRA-ME (NOK0.69) is trading above our estimate of fair value (NOK0.28)

Significantly Below Fair Value: BRA-ME is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRA-ME is poor value based on its PE Ratio (49.5x) compared to the Banks industry average (8.7x).

PE vs Market: BRA-ME is poor value based on its PE Ratio (49.5x) compared to the Norwegian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: BRA-ME is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: BRA-ME is good value based on its PB Ratio (0.4x) compared to the NO Banks industry average (0.5x).


Next Steps

Future Growth

How is BRAbank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

87.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRA-ME's forecast earnings growth (87.2% per year) is above the savings rate (0.7%).

Earnings vs Market: BRA-ME's earnings (87.2% per year) are forecast to grow faster than the Norwegian market (20.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BRA-ME's revenue (20.4% per year) is forecast to grow faster than the Norwegian market (3.2% per year).

High Growth Revenue: BRA-ME's revenue (20.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRA-ME's Return on Equity is forecast to be low in 3 years time (4.1%).


Next Steps

Past Performance

How has BRAbank performed over the past 5 years?

84.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRA-ME has a high level of non-cash earnings.

Growing Profit Margin: BRA-ME became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BRA-ME has become profitable over the past 5 years, growing earnings by 84.7% per year.

Accelerating Growth: BRA-ME has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BRA-ME has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (13%).


Return on Equity

High ROE: BRA-ME's Return on Equity (0.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BRAbank'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: BRA-ME has a low level of unsold assets or inventory.

Debt Coverage by Assets: BRA-ME's debt is covered by short term assets (assets are 3.8x debt).


Financial Institutions Analysis

Asset Level: BRA-ME's level of assets compared to its equity is low.

Allowance for Bad Loans: BRA-ME has a low allowance for bad loans.

Low Risk Liabilities: BRA-ME's liabilities are made up of primarily low risk sources of funding.

Loan Level: BRA-ME has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BRA-ME's loans are broadly funded by customer deposits.

Level of Bad Loans: BRA-ME has a high level of bad loans (12.34%)


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.6%industryaverage4.9%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate BRA-ME'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 BRA-ME's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BRA-ME'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 BRA-ME's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

What is the CEO of BRAbank's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Hans Ljøen 0

0.08yrs

Tenure

0

Mr. Hans Ljøen has been Chief Executive Officer of BRAbank ASA since December 1, 2019 and served as its Chief Financial Officer since 2019 until December 1, 2019. Mr. Ljøen served as Chief Risk Officer of  ...


Management Age and Tenure

0.6yrs

Average Tenure

Experienced Management: BRA-ME's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

0.08yrs

Average Tenure

57yo

Average Age

Experienced Board: BRA-ME's board of directors are not considered experienced ( 0.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 98.9%.


Management Team

  • Bent Gjendem

    Strategic Adviser

    • Tenure: 0.08yrs
  • Torbjørn Botnevik

    Chief Financial Officer

    • Tenure: 0.08yrs
  • Tom Rimestad

    Chief Operating Officer

    • Tenure: 4.3yrs
  • Martin Valland

    Chief Technology Officer

    • Tenure: 5.2yrs
  • Hans Ljøen

    Chief Executive Officer

    • Tenure: 0.08yrs
  • Henriette Vartdal

    Chief Product Officer

    • Tenure: 1.6yrs
  • Bård Fladvad

    Interim CRO

    • Tenure: 0.6yrs

Board Members

  • Kristin Devold (58yo)

    Director

    • Tenure: 1yrs
  • Viggo Leisner (53yo)

    Chairman

    • Tenure: 0.08yrs
  • Mette Henriksen (57yo)

    Director

    • Compensation: kr75.00k
  • Tore Hopen

    Director

    • Compensation: kr70.00k
  • Jan Greve-Isdahl

    Deputy Board Member

    • Tenure: 0.08yrs
    • Compensation: kr901.00k
  • Tore Amundsen

    Employee Representative Director

    • Compensation: kr70.00k
  • Sigve Heldal

    Deputy Member of Board of Directors

    • Per Braathen

      Director

      • Tenure: 0.08yrs

    Company Information

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


    Key Information

    • Name: BRAbank ASA
    • Ticker: BRA-ME
    • Exchange: OB
    • Founded: 2015
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: kr297.551m
    • Shares outstanding: 495.92m
    • Website: https://www.brabank.no

    Location

    • BRAbank ASA
    • Starvhusgaten 4
    • Bergen
    • Hordaland
    • 5014
    • Norway

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BRA-MEOB (Oslo Bors)YesShare CapitalNONOKFeb 2016

    Biography

    BRAbank ASA operates as an entrepreneur bank to individuals in Norway. It offers personal loans, refinancing of debt and credit cards, financing, consumer loans, and payment insurance products, as well as savings accounts. The company was formerly known as Monobank ASA and changed its name to BRAbank ASA in June 2019. BRAbank ASA was founded in 2015 and is based in Bergen, Norway. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 22:33
    End of Day Share Price2020/01/20 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.