OB:HELG

Stock Analysis Report

Helgeland Sparebank

Executive Summary

Helgeland Sparebank provides various banking and financial services in Norway.

Rewards

Trading at 11.2% below its fair value

Earnings are forecast to grow 14.89% per year

Risk Analysis

No risks detected for HELG from our risk checks.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.9%

HELG

-0.2%

NO Banks

0.6%

NO Market


1 Year Return

14.6%

HELG

8.0%

NO Banks

3.4%

NO Market

Return vs Industry: HELG exceeded the Norwegian Banks industry which returned 10.1% over the past year.

Return vs Market: HELG exceeded the Norwegian Market which returned 4.5% over the past year.


Shareholder returns

HELGIndustryMarket
7 Day1.9%-0.2%0.6%
30 Day0.6%1.7%2.7%
90 Day1.9%3.4%5.9%
1 Year17.1%14.6%13.3%8.0%9.1%3.4%
3 Year4.9%-6.3%40.7%23.4%34.3%17.7%
5 Year80.1%47.3%97.7%56.5%66.1%27.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HELG (NOK81) is trading below our estimate of fair value (NOK91.23)

Significantly Below Fair Value: HELG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HELG is poor value based on its PE Ratio (13.2x) compared to the Banks industry average (8.7x).

PE vs Market: HELG is good value based on its PE Ratio (13.2x) compared to the Norwegian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: HELG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Helgeland Sparebank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HELG's forecast earnings growth (14.9% per year) is above the savings rate (0.7%).

Earnings vs Market: HELG's earnings (14.9% per year) are forecast to grow slower than the Norwegian market (20.2% per year).

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

Revenue vs Market: HELG's revenue (9.2% per year) is forecast to grow faster than the Norwegian market (3.2% per year).

High Growth Revenue: HELG's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Helgeland Sparebank performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HELG has high quality earnings.

Growing Profit Margin: HELG's current net profit margins (24%) are lower than last year (30.1%).


Past Earnings Growth Analysis

Earnings Trend: HELG's earnings have declined by -6% per year over the past 5 years.

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

Earnings vs Industry: HELG had negative earnings growth (-24%) over the past year, making it difficult to compare to the Banks industry average (13%).


Return on Equity

High ROE: HELG's Return on Equity (5.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Helgeland 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

Inventory Level: HELG has a low level of unsold assets or inventory.

Debt Coverage by Assets: HELG's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: HELG's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: HELG has an appropriate level of bad loans (1.7%)


Next Steps

Dividend

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

1.94%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.3%markettop25%5.6%industryaverage4.9%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: HELG's dividend (1.98%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (2.4%).

High Dividend: HELG's dividend (1.98%) is low compared to the top 25% of dividend payers in the Norwegian market (5.71%).


Stability and Growth of Payments

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

Growing Dividend: HELG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.1%), HELG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HELG's dividends in 3 years are forecast to be well covered by earnings (42.4% payout ratio).


Next Steps

Management

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

5.0yrs

Average board tenure


CEO

Hanne Nordgaard (48yo)

2.3yrs

Tenure

kr2,388,000

Compensation

Ms. Hanne J. Nordgaard serves as Chief Executive Officer of Helgeland Sparebank since September 1, 2017. Ms. Nordgaard served as an Executive Vice President of Helgeland Region and Senior Group General Man ...


CEO Compensation Analysis

Compensation vs Market: Hanne's total compensation ($USD269.00K) is below average for companies of similar size in the Norwegian market ($USD485.40K).

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


Board Age and Tenure

5.0yrs

Average Tenure

51yo

Average Age

Experienced Board: HELG's board of directors are considered experienced (5 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

Buykr44,00016 Aug 19
Bjørn-Tore Brønlund
EntityIndividual
Shares550
Max Pricekr80.00
Buykr49,41016 May 19
Stein Herigstad-Olsen
EntityIndividual
Shares610
Max Pricekr81.00
Buykr35,50014 Feb 19
Ove Brattbakk
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares500
Max Pricekr71.00
Buykr141,70013 Feb 19
Ove Brattbakk
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,000
Max Pricekr70.85
Buykr49,00012 Feb 19
Hanne Nordgaard
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares700
Max Pricekr70.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Hanne Nordgaard (48yo)

    Chief Executive Officer

    • Tenure: 2.3yrs
    • Compensation: kr2.39m
  • Dag Hugo Heimstad (51yo)

    Private Market Director & Director of Retail Market

    • Compensation: kr1.74m
  • Sverre Klausen (60yo)

    CFO & Finance Director

    • Tenure: 5yrs
    • Compensation: kr1.52m
  • Ranveig Kråkstad (61yo)

    Chief Accounting Officer & Economic Director

    • Compensation: kr1.38m
  • Martin Søreng

    Business Advisor

    • Tenure: 5yrs
    • Compensation: kr17.00

Board Members

  • Øyvin Trønsdal

    • Ove Brattbakk (64yo)

      Chairman of the Board

      • Tenure: 4.8yrs
      • Compensation: kr304.00k
    • Marianne Steinrud (51yo)

      Vice Chairman of Trustees

      • Tenure: 5yrs
      • Compensation: kr75.00k
    • Nils Furunes

      Director

      • Tenure: 5yrs
      • Compensation: kr108.00k
    • Bjørn Risøy (44yo)

      Vice Chairman of the Board

      • Tenure: 1.8yrs
      • Compensation: kr169.00k
    • Inga-Marie Lund

      Director

      • Tenure: 5yrs
      • Compensation: kr108.00k
    • Eva Hestvik

      Director

      • Tenure: 5yrs
      • Compensation: kr172.00k
    • Martin Søreng

      Business Advisor

      • Tenure: 5yrs
      • Compensation: kr17.00
    • Per Hjorthen

      Chairman of Trustee

      • Tenure: 5yrs
    • Marianne Steinmo

      Director

      • Tenure: 3.8yrs
      • Compensation: kr108.00k

    Company Information

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


    Key Information

    • Name: Helgeland Sparebank
    • Ticker: HELG
    • Exchange: OB
    • Founded: 1860
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: kr1.721b
    • Shares outstanding: 20.86m
    • Website: https://www.hsb.no

    Number of Employees


    Location

    • Helgeland Sparebank
    • Jernbanegata 15
    • Mo i Rana
    • Nordland
    • 8622
    • Norway

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    HELGOB (Oslo Bors)YesPrimary Capital CertificatesNONOKFeb 2000
    HGDP.FOTCPK (Pink Sheets LLC)YesPrimary Capital CertificatesUSUSDFeb 2000
    0EO8LSE (London Stock Exchange)YesPrimary Capital CertificatesGBNOKFeb 2000

    Biography

    Helgeland Sparebank provides various banking and financial services in Norway. The company operates in two segments, The Retail Market and The Corporate Market. It offers savings, allocation, and investment and insurance products, as well as leasing and collateral services. The company also rents real estate properties. It operates through five branches located in Mosjøen, Brønnøysund, Sandnessjøen, Sømna og, and Korgen in Helgeland. The company was founded in 1860 and is headquartered in Mo i Rana, 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 20:35
    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.