OB:DNB

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with questionable track record.


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

Stable Share Price: DNB is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DNB's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.7%

DNB

-1.8%

NO Banks

0.1%

NO Market


1 Year Return

3.5%

DNB

1.5%

NO Banks

-0.7%

NO Market

Return vs Industry: DNB matched the Norwegian Banks industry which returned 3% over the past year.

Return vs Market: DNB exceeded the Norwegian Market which returned 0.4% over the past year.


Shareholder returns

DNBIndustryMarket
7 Day-1.7%-1.8%0.1%
30 Day22.5%18.2%12.7%
90 Day17.1%14.0%8.8%
1 Year3.5%3.5%2.6%1.5%2.9%-0.7%
3 Year19.7%8.4%18.1%6.7%10.3%-2.1%
5 Year77.1%47.3%85.2%53.2%57.9%26.7%

Long-Term 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?

13.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DNB (NOK161.25) is trading above our estimate of fair value (NOK145.51)

Significantly Below Fair Value: DNB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DNB is poor value based on its PE Ratio (13x) compared to the NO Banks industry average (9.5x).

PE vs Market: DNB is good value based on its PE Ratio (13x) compared to the Norwegian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: DNB is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: DNB is overvalued based on its PB Ratio (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?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNB's forecast earnings growth (8.5% per year) is above the savings rate (1.6%).

Earnings vs Market: DNB's earnings (8.5% per year) are forecast to grow slower than the Norwegian market (33.8% per year).

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

Revenue vs Market: DNB's revenue (0.6% per year) is forecast to grow slower than the Norwegian market (6.3% per year).

High Growth Revenue: DNB's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DNB's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has DNB performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNB has high quality earnings.

Growing Profit Margin: DNB's current net profit margins (39.9%) are lower than last year (47.3%).


Past Earnings Growth Analysis

Earnings Trend: DNB's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: DNB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DNB had negative earnings growth (-25.5%) over the past year, making it difficult to compare to the Banks industry average (-8.2%).


Return on Equity

High ROE: DNB's Return on Equity (8.4%) is considered low.


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


Financial Institutions Analysis

Asset Level: DNB's Assets to Equity ratio (12.4x) is moderate.

Allowance for Bad Loans: DNB has a low allowance for bad loans (44%).

Low Risk Liabilities: 61% of DNB's liabilities are made up of primarily higher risk sources of funding.

Loan Level: DNB has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: DNB's Loans to Deposits ratio (161%) is high.

Level of Bad Loans: DNB has a high level of bad loans (2.1%).


Next Steps

Dividend

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

5.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DNB's dividend (5.58%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.5%).

High Dividend: DNB's dividend (5.58%) is low compared to the top 25% of dividend payers in the Norwegian market (5.88%).


Stability and Growth of Payments

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 (72.8%), 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 (67% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Kjerstin Braathen (50 yo)

1.25yrs

Tenure

kr8,820,000

Compensation

Ms. Kjerstin Rasmussen Braathen serves as Member of Corporate Assembly at Equinor ASA since May 15, 2020. Ms. Braathen has been Chief Executive Officer at DNB ASA since September 1, 2019. Ms. Braathen serv...


CEO Compensation Analysis

Compensation vs Market: Kjerstin's total compensation ($USD1.00M) is about average for companies of similar size in the Norwegian market ($USD1.06M).

Compensation vs Earnings: Kjerstin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kjerstin Braathen
Group Chief Executive Officer1.25yrskr8.82m0.0029%
NOK 7.3m
Ottar Ertzeid
Group Chief Financial Officer1.25yrskr13.13m0.018%
NOK 44.0m
Maria Løvold
Group Executive Vice President of Technology & Services1.25yrskr3.99m0.00029%
NOK 725.0k
Mirella Grant
Group Executive Vice President of Compliance2.67yrskr3.80m0.00010%
NOK 250.0k
Thomas Midteide
Group Executive Vice President of Communications1.92yrskr4.84m0.0018%
NOK 4.4m
Morten Opstad
Group Executive Vice President of Markets1.25yrskr10.58m0.0017%
NOK 4.2m
Kari Bech-Moen
Group Executive Vice President of People1.25yrskr2.13m0.00014%
NOK 350.0k
Harald Serck-Hanssen
Group Executive Vice President of Corporate Banking7.92yrskr6.80m0.0030%
NOK 7.5m
Ingjerd Cecilie Hafsteen Spiten
Group Executive Vice President of Personal Banking2.92yrskr5.38m0.00071%
NOK 1.8m
Ida Lerner
Group Executive Vice President of Group Risk Management3yrskr6.10m0.00043%
NOK 1.1m
Rasmus Aage Figenschou
Group Executive Vice President of Payments & Innovation3yrskr4.77m0.00093%
NOK 2.3m
Hakon Hansen
Group Executive Vice President of Wealth Management2.5yrskr5.07m0.0013%
NOK 3.1m

2.2yrs

Average Tenure

47.5yo

Average Age

Experienced Management: DNB's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gunnar Reitan
Director of Vital Forsikringno datano datano data
Olaug Svarva
Independent Chairman of the Board2.67yrskr1.08m0.00094%
NOK 2.3m
Gro Bakstad
Independent Director1.67yrskr516.00k0.00026%
NOK 650.0k
Lillian Hattrem
Employee Representative Director0.50yrno data0.000080%
NOK 200.0k
Karl Moursund
Director of DNB NOR Savings Bank Foundationno datano datano data
Jens Olsen
Director0.50yrno datano data
Stian Samuelsen
Employee Representative Director0.50yrno data0.000050%
NOK 125.0k
Jaan Gjærum Semlitsch
Independent Director6.5yrskr519.00k0.0019%
NOK 4.7m
Sigmund Hollerud
Deputy Employee Representative Director0.50yrno datano data
Ann-Mari Sæterlid
Deputy Employee Representative Director0.50yrno datano data
Svein Brandtzæg
Vice Chair of the Board0.50yrno datano data

0.5yrs

Average Tenure

59yo

Average Age

Experienced Board: DNB's board of directors are not considered experienced ( 0.5 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: DNB 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

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: kr249.996b
  • Shares outstanding: 1.55b
  • 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 Analysis2020/12/02 17:21
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
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.