OB:GRONG-ME

Stock Analysis Report

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Executive Summary

Grong Sparebank, an independent savings bank, provides a range of banking products and services in Norway. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GRONG-ME has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

GRONG-ME

3.0%

NO Banks

-0.3%

NO Market


1 Year Return

8.6%

GRONG-ME

-11.4%

NO Banks

-6.4%

NO Market

Return vs Industry: GRONG-ME exceeded the Norwegian Banks industry which returned -12.3% over the past year.

Return vs Market: GRONG-ME exceeded the Norwegian Market which returned -6.3% over the past year.


Shareholder returns

GRONG-MEIndustryMarket
7 Day-3.4%3.0%-0.3%
30 Day0%2.9%-0.05%
90 Day0%-1.9%2.1%
1 Year15.7%8.6%-10.6%-11.4%-3.2%-6.4%
3 Year31.0%7.0%-1.1%-10.5%2.9%-8.7%
5 Yearn/a62.9%32.5%43.9%14.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRONG-ME (NOK114) is trading below our estimate of fair value (NOK219.66)

Significantly Below Fair Value: GRONG-ME is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GRONG-ME is poor value based on its PE Ratio (13.4x) compared to the NO Banks industry average (9.6x).

PE vs Market: GRONG-ME is good value based on its PE Ratio (13.4x) compared to the Norwegian market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GRONG-ME's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GRONG-ME's PB Ratio (0.4x) is in line with the NO Banks industry average.


Next Steps

Future Growth

How is Grong Sparebank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.8%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Grong Sparebank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Grong Sparebank performed over the past 5 years?

-4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRONG-ME has high quality earnings.

Growing Profit Margin: GRONG-ME's current net profit margins (14.2%) are lower than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: GRONG-ME's earnings have declined by 4.9% per year over the past 5 years.

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

Earnings vs Industry: GRONG-ME had negative earnings growth (-17.3%) over the past year, making it difficult to compare to the Banks industry average (-5.2%).


Return on Equity

High ROE: GRONG-ME's Return on Equity (7%) is considered low.


Next Steps

Financial Health

How is Grong Sparebank'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: GRONG-ME's Assets to Equity ratio (9.1x) is low.

Allowance for Bad Loans: Insufficient data to determine if GRONG-ME has a sufficient allowance for bad loans.

Low Risk Liabilities: 80% of GRONG-ME's liabilities are made up of primarily low risk sources of funding.

Loan Level: GRONG-ME has an appropriate level of Loans to Assets ratio (86%).

Low Risk Deposits: GRONG-ME's Loans to Deposits ratio (120%) is appropriate.

Level of Bad Loans: Insufficient data to determine if GRONG-ME has an appropriate level of bad loans.


Next Steps

Dividend

What is Grong Sparebank current dividend yield, its reliability and sustainability?

6.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRONG-ME's dividend (6.14%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: GRONG-ME's dividend (6.14%) is low compared to the top 25% of dividend payers in the Norwegian market (6.61%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GRONG-ME has been paying a dividend for less than 10 years.

Growing Dividend: GRONG-ME has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.5%), GRONG-ME's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

15.8yrs

Average management tenure


CEO

Jon Solum (54 yo)

20.75yrs

Tenure

kr1,994,000

Compensation

Mr. Jon Håvard Solum has been General Manager at Grong Sparebank since 2000. Mr. Solum serves as Chairman of Nord-Trøndelag Elektrisitetsverk AS. He serves as a Member of Supervisory Board of Eika Forsikri ...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD214.30K) is below average for companies of similar size in the Norwegian market ($USD372.19K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jon Solum
General Manager20.75yrskr1.99m1.25%
NOK 4.3m
Odd Myrvold
Bank Chief of Corporate Market15.75yrskr1.32m0.14%
NOK 483.3k
Kårhild Berg
Bank Manager of Private Marketno datakr1.28m0.034%
NOK 118.3k
Johan Trapnes
Finance Manager3.75yrsno data0.076%
NOK 264.0k
Fredrik Hagen
Head of Department Mosjøenno datano datano data
Torgeir Hanssen
Head of Division Namsosno datano datano data

15.8yrs

Average Tenure

Experienced Management: GRONG-ME's management team is seasoned and experienced (15.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jo Aunet
Employee Representative Director2.58yrskr33.00k0.19%
NOK 655.0k
Audun Veium
Chairman of the Board13.75yrskr88.00k0.37%
NOK 1.3m
Heidi Wang
Vice Chairman0.75yrkr33.00kno data
May Båtstrand
Employee Representative Directorno datakr33.00k0.0062%
NOK 21.5k
Renathe Nilsen
Director2.58yrskr33.00k0.012%
NOK 41.7k
Christoffer Petersen
Board Memberno datano data0.011%
NOK 37.0k
Espen Ledang
Directorno datano datano data
Øyvind Kveli
Deputy Directorno datano datano data
Lars Berg-Hansen
Board memberno datano data1.83%
NOK 6.4m

2.6yrs

Average Tenure

Experienced Board: GRONG-ME's board of directors are not considered experienced ( 2.6 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: GRONG-ME 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

Grong Sparebank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grong Sparebank
  • Ticker: GRONG-ME
  • Exchange: OB
  • Founded: 1862
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: kr347.780m
  • Shares outstanding: 2.97m
  • Website: https://www.grong-sparebank.no

Number of Employees


Location

  • Grong Sparebank
  • Sundspetvegen 2
  • Grong
  • Nord-Trøndelag
  • 7870
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRONG-MEOB (Oslo Bors)YesShare CapitalNONOKJun 2017

Biography

Grong Sparebank, an independent savings bank, provides a range of banking products and services in Norway. It offers bank savings accounts; fund savings; retirement savings; and car loans, mortgage loans, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 22:10
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.