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Grong Sparebank

Market Cap

kr401.3m

Last Updated

2021/05/10 16:24 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Good value with proven track record.


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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 is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GRONG's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

GRONG

2.5%

NO Banks

0.2%

NO Market


1 Year Return

32.4%

GRONG

55.2%

NO Banks

37.8%

NO Market

Return vs Industry: GRONG underperformed the Norwegian Banks industry which returned 55.2% over the past year.

Return vs Market: GRONG underperformed the Norwegian Market which returned 37.8% over the past year.


Shareholder returns

GRONGIndustryMarket
7 Day1.5%2.5%0.2%
30 Day2.3%2.8%1.2%
90 Day1.5%10.3%4.8%
1 Year38.6%32.4%62.1%55.2%43.7%37.8%
3 Year57.1%31.1%34.9%22.0%14.1%1.5%
5 Yearn/a128.2%89.7%79.8%46.6%

Long-Term 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?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRONG (NOK135) is trading below our estimate of fair value (NOK254.05)

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


Price To Earnings Ratio

PE vs Industry: GRONG is good value based on its PE Ratio (10.1x) compared to the NO Banks industry average (11.4x).

PE vs Market: GRONG is good value based on its PE Ratio (10.1x) compared to the Norwegian market (15.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GRONG's PB Ratio (0.5x) is in line with the NO Banks industry average.


Future Growth

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

11.9%

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.


Past Performance

How has Grong Sparebank performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRONG has high quality earnings.

Growing Profit Margin: GRONG's current net profit margins (19.3%) are higher than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: GRONG's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: GRONG's earnings growth over the past year (53.7%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: GRONG earnings growth over the past year (53.7%) exceeded the Banks industry 10.4%.


Return on Equity

High ROE: GRONG's Return on Equity (10.4%) is considered low.


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's Assets to Equity ratio (8.6x) is low.

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

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

Loan Level: GRONG has an appropriate level of Loans to Assets ratio (84%).

Low Risk Deposits: GRONG's Loans to Deposits ratio (119%) is appropriate.

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


Dividend

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

4.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRONG's dividend (4.44%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.91%).

High Dividend: GRONG's dividend (4.44%) is low compared to the top 25% of dividend payers in the Norwegian market (4.95%).


Stability and Growth of Payments

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

Growing Dividend: GRONG has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.1%), GRONG's dividend payments are well 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?

16.3yrs

Average management tenure


CEO

Jon Solum (54 yo)

21.33yrs

Tenure

kr2,365,000

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 ($USD287.71K) is about average for companies of similar size in the Norwegian market ($USD376.15K).

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


Leadership Team

Experienced Management: GRONG's management team is seasoned and experienced (16.3 years average tenure).


Board Members

Experienced Board: GRONG's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

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


Key Information

  • Name: Grong Sparebank
  • Ticker: GRONG
  • Exchange: OB
  • Founded: 1862
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: kr401.284m
  • Shares outstanding: 2.97m
  • Website: https://www.grong-sparebank.no

Number of Employees


Location

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

Listings


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 Analysis2021/05/10 16:24
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.