OB:DNB

Stock Analysis Report

Executive Summary

DNB ASA provides various banking products and services for retail and corporate customers in Norway and internationally.

Snowflake

Fundamentals

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

DNB

1.1%

NO Banks

-1.0%

NO Market


1 Year Return

-2.3%

DNB

-2.9%

NO Banks

-9.4%

NO Market

Return vs Industry: DNB matched the Norwegian Banks industry which returned -2.9% over the past year.

Return vs Market: DNB exceeded the Norwegian Market which returned -9.4% over the past year.


Shareholder returns

DNBIndustryMarket
7 Day1.4%1.1%-1.0%
30 Day-1.4%-1.4%-1.9%
90 Day-1.6%-1.4%-0.9%
1 Year2.8%-2.3%1.8%-2.9%-4.5%-9.4%
3 Year61.8%40.5%56.6%37.7%40.1%21.9%
5 Year77.5%43.6%88.2%49.0%63.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: DNB (NOK157.35) is trading below our estimate of fair value (NOK183.41)

Significantly Undervalued: DNB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DNB is poor value based on its PE Ratio (9.8x) compared to the Banks industry average (7.9x).

PE vs Market: DNB is good value based on its PE Ratio (9.8x) compared to the Norwegian market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: DNB is poor value based on its PEG Ratio (17.4x)


Price to Book Ratio

PB vs Industry: DNB is overvalued based on its PB Ratio (1.1x) compared to the NO Banks industry average (0.5x).


Next Steps

Future Growth

How is DNB forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNB's forecast earnings growth (0.6% per year) is below the savings rate (1.8%).

Earnings vs Market: DNB's earnings (0.6% per year) are forecast to grow slower than the Norwegian market (15% per year).

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

Revenue vs Market: DNB's revenue (2.9% per year) is forecast to grow slower than the Norwegian market (4.9% per year).

High Growth Revenue: DNB's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DNB's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has DNB performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DNB's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: DNB's earnings growth over the past year (11.8%) exceeds its 5-year average (2% per year).

Earnings vs Industry: DNB earnings growth over the past year (11.8%) underperformed the Banks industry 13.3%.


Return on Equity

High ROE: DNB's Return on Equity (11.9%) is considered low.


Return on Assets

ROA vs Industry: DNB has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate DNB's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is DNB'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: DNB has a low level of unsold assets or inventory.

Debt Coverage by Assets: DNB's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

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

Low Risk Liabilities: DNB's liabilities are made up of primarily higher risk sources of funding.

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

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

Level of Bad Loans: DNB has an appropriate level of bad loans (1.45%)


Next Steps

Dividend

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

5.24%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%2.6%markettop25%6.3%industryaverage5.2%forecastin3Years6.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DNB's dividend (5.24%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.63%).

High Dividend: DNB's dividend (5.24%) is low compared to the top 25% of dividend payers in the Norwegian market (6.3%).

Stable Dividend: DNB's dividend payments have been volatile in the past 10 years.

Growing Dividend: DNB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.4%), DNB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DNB's dividends in 3 years are forecast to be covered by earnings (61.6% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Kjerstin Braathen (49yo)

0.08yrs

Tenure

kr6,401,000

Compensation

Ms. Kjerstin R. Braathen has been Group Chief Executive at DNB Livsforsikring AS since 2019 and served as its Chairwoman of the Board. She has been Chief Executive Officer at DNB ASA since September 1, 201 ...


CEO Compensation Analysis

Compensation vs. Market: Kjerstin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Norwegian market.

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


Management Age and Tenure

1.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: DNB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

59yo

Average Age

Experienced Board: DNB's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buykr7,50928 May 19
Tore Andresen
EntityIndividual
Shares49
Max Pricekr153.25
Buykr72,63928 May 19
Rune Bjerke
EntityIndividual
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Rasmus Aage Figenschou
EntityIndividual
Role
Senior Key Executive
Group Executive Vice President of New Business
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Rune Helland
EntityIndividual
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Benedicte Fasmer
EntityIndividual
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Fredrik Berger
EntityIndividual
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Håkon Hansen
EntityIndividual
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Kjerstin Braathen
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Even Westerveld
EntityIndividual
Shares474
Max Pricekr153.25
Buykr25,13328 May 19
Eli Solhaug
EntityIndividual
Shares164
Max Pricekr153.25
Buykr25,13328 May 19
Lillian Hattrem
EntityIndividual
Shares164
Max Pricekr153.25
Buykr72,63928 May 19
Solveig Hellebust
EntityIndividual
Role
Chief Operating Officer
Group Executive Vice President of People & Operations
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Harald Serck-Hanssen
EntityIndividual
Role
Senior Key Executive
Group Executive Vice President of Large Corporates & International
Shares474
Max Pricekr153.25
Buykr25,13328 May 19
Carl Løvvik
EntityIndividual
Role
Member of the Board of Directors
Employee Representative Director
Shares164
Max Pricekr153.25
Buykr72,63928 May 19
Ingjerd Cecilie Hafsteen Spiten
EntityIndividual
Role
Senior Key Executive
Group Executive Vice President of Personal Banking
Shares474
Max Pricekr153.25
Buykr50,11228 May 19
Bolme Reidar
EntityIndividual
Shares327
Max Pricekr153.25
Buykr72,63928 May 19
Mirella Wassiluk
EntityIndividual
Role
Chief Compliance Officer
Group Executive Vice President of Compliance
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Ida Lerner
EntityIndividual
Role
Senior Key Executive
Group Executive Vice President of Risk Management
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Alf Otterstad
EntityIndividual
Role
Senior Key Executive
Group Executive Vice President of Information Technology
Shares474
Max Pricekr153.25
Buykr15,01828 May 19
Klara Aasen
EntityIndividual
Shares98
Max Pricekr153.25
Buykr50,11228 May 19
Mathias Bruvik
EntityIndividual
Shares327
Max Pricekr153.25
Buykr72,63928 May 19
Audun Moen
EntityIndividual
Shares474
Max Pricekr153.25
Buykr72,63928 May 19
Thomas Midteide
EntityIndividual
Role
Head of Marketing
Group Executive Vice President of Media & Marketing
Shares474
Max Pricekr153.25
Buykr25,13328 May 19
Vigdis Mathisen
EntityIndividual
Role
Member of the Board of Directors
Employee Representative Director
Shares164
Max Pricekr153.25
Buykr72,63928 May 19
Ottar Ertzeid
EntityIndividual
Role
Chief Financial Officer
CFO & Group Executive VP of Finance
Shares474
Max Pricekr153.25
Buykr1,406,70007 Feb 19
Jaan Gjærum Semlitsch
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,000
Max Pricekr156.30

Ownership Breakdown


Management Team

  • Ottar Ertzeid (54yo)

    CFO & Group Executive VP of Finance

    • Tenure: 0.08yrs
    • Compensation: kr13.73m
  • Rasmus Aage Figenschou (40yo)

    Group Executive Vice President of New Business

    • Tenure: 1.8yrs
    • Compensation: kr4.74m
  • Solveig Hellebust (52yo)

    Group Executive Vice President of People & Operations

    • Tenure: 2.8yrs
    • Compensation: kr4.91m
  • Harald Serck-Hanssen (54yo)

    Group Executive Vice President of Large Corporates & International

    • Tenure: 6.8yrs
    • Compensation: kr6.48m
  • Thomas Midteide (45yo)

    Group Executive Vice President of Media & Marketing

    • Tenure: 6.8yrs
    • Compensation: kr4.57m
  • Kjerstin Braathen (49yo)

    Group Chief Executive

    • Tenure: 0.08yrs
    • Compensation: kr6.40m
  • Ingjerd Cecilie Hafsteen Spiten (48yo)

    Group Executive Vice President of Personal Banking

    • Tenure: 1.8yrs
    • Compensation: kr4.90m
  • Alf Otterstad (54yo)

    Group Executive Vice President of Information Technology

    • Tenure: 1.8yrs
    • Compensation: kr4.65m
  • Ida Lerner (44yo)

    Group Executive Vice President of Risk Management

    • Tenure: 1.8yrs
    • Compensation: kr6.40m
  • Mirella Wassiluk (50yo)

    Group Executive Vice President of Compliance

    • Tenure: 1.5yrs
    • Compensation: kr7.22m

Board Members

  • Karl-Christian Agerup (57yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: kr364.00k
  • Gunnar Reitan (65yo)

    Director of Vital Forsikring

    • Tenure: 0yrs
  • Tore Rimmereid (57yo)

    Vice Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: kr536.00k
  • Fjell Løvås (62yo)

    Deputy Director

    • Tenure: 3.8yrs
  • Carl Løvvik (67yo)

    Employee Representative Director

    • Tenure: 8.3yrs
    • Compensation: kr1.13m
  • Olaug Svarva (62yo)

    Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: kr718.00k
  • Gro Bakstad (53yo)

    Director

    • Tenure: 0.5yrs
  • Vigdis Mathisen (61yo)

    Employee Representative Director

    • Tenure: 7.3yrs
    • Compensation: kr1.26m
  • Stian Samuelsen (55yo)

    Deputy Director

    • Tenure: 3.8yrs
  • Jaan Gjærum Semlitsch (48yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: kr524.00k

Company Information

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


Key Information

  • Name: DNB ASA
  • Ticker: DNB
  • Exchange: OB
  • Founded: 1822
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr246.161b
  • Shares outstanding: 1.56b
  • Website: https://www.dnb.no

Number of Employees


Location

  • DNB ASA
  • Dronning Eufemias gate 30
  • Bjørvika
  • Oslo
  • Oslo
  • 191
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNBH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
NBADB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
DNBOB (Oslo Bors)YesCommon SharesNONOKJan 1992
0O84LSE (London Stock Exchange)YesCommon SharesGBNOKJan 1992
DNBOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKJan 1992
DNHB.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDAug 2010

Biography

DNB ASA provides various banking products and services for retail and corporate customers in Norway and internationally. The company offers savings and investment products, including saving accounts, home  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:39
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.