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Jæren Sparebank

Market Cap

kr811.8m

Last Updated

2021/05/17 16:22 UTC

Data Sources

Company Financials +

Executive Summary

Jæren Sparebank provides various financial products and services in Norway. More Details


Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JAREN is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: JAREN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

JAREN

1.1%

NO Banks

-0.7%

NO Market


1 Year Return

9.3%

JAREN

53.0%

NO Banks

34.5%

NO Market

Return vs Industry: JAREN underperformed the Norwegian Banks industry which returned 58.2% over the past year.

Return vs Market: JAREN underperformed the Norwegian Market which returned 36.1% over the past year.


Shareholder returns

JARENIndustryMarket
7 Day-1.8%1.1%-0.7%
30 Day-2.9%-0.8%-2.5%
90 Day2.5%11.3%2.7%
1 Year14.2%9.3%59.9%53.0%39.4%34.5%
3 Year51.0%29.9%34.5%21.6%11.6%-0.5%
5 Year148.3%94.1%121.5%84.5%75.4%43.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JAREN (NOK165) is trading below our estimate of fair value (NOK212.52)

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


Price To Earnings Ratio

PE vs Industry: JAREN is poor value based on its PE Ratio (13.7x) compared to the Norwegian Banks industry average (11.2x).

PE vs Market: JAREN is good value based on its PE Ratio (13.7x) compared to the Norwegian market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: JAREN is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: JAREN is good value based on its PB Ratio (0.4x) compared to the NO Banks industry average (0.6x).


Future Growth

How is Jæren Sparebank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JAREN's forecast earnings growth (18.5% per year) is above the savings rate (1.2%).

Earnings vs Market: JAREN's earnings (18.5% per year) are forecast to grow faster than the Norwegian market (17.2% per year).

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

Revenue vs Market: JAREN's revenue (2.4% per year) is forecast to grow slower than the Norwegian market (4.5% per year).

High Growth Revenue: JAREN's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JAREN's Return on Equity is forecast to be low in 3 years time (6.3%).


Past Performance

How has Jæren Sparebank performed over the past 5 years?

-0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JAREN has high quality earnings.

Growing Profit Margin: JAREN's current net profit margins (17.9%) are lower than last year (23.3%).


Past Earnings Growth Analysis

Earnings Trend: JAREN's earnings have declined by 0.9% per year over the past 5 years.

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

Earnings vs Industry: JAREN had negative earnings growth (-28.7%) over the past year, making it difficult to compare to the Banks industry average (19.2%).


Return on Equity

High ROE: JAREN's Return on Equity (5.6%) is considered low.


Financial Health

How is Jæren 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: JAREN's Assets to Equity ratio (7.6x) is low.

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

Low Risk Liabilities: 74% of JAREN's liabilities are made up of primarily low risk sources of funding.

Loan Level: JAREN has an appropriate level of Loans to Assets ratio (85%).

Low Risk Deposits: JAREN's Loans to Deposits ratio (133%) is high.

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


Dividend

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

4.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JAREN's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.9%).

High Dividend: JAREN's dividend (4.55%) is low compared to the top 25% of dividend payers in the Norwegian market (5.04%).


Stability and Growth of Payments

Stable Dividend: JAREN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: JAREN's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.3%), JAREN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JAREN's dividends in 3 years are forecast to be covered by earnings (63.9% payout ratio).


Next Steps

Management

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

kr4m

CEO Compensation


CEO

Tor Lie (65 yo)

11.17yrs

Tenure

kr4,476,000

Compensation

Mr. Tor Egil Lie has been a Managing Bank Director at Jaeren Sparebank since January 1, 2015 and serves as its Director. Mr. Lie serves as a Member of the Supervisory Board at Eika Forsikring AS. Mr. Lie s...


CEO Compensation Analysis

Compensation vs Market: Tor's total compensation ($USD543.13K) is above average for companies of similar size in the Norwegian market ($USD375.19K).

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


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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Jæren Sparebank
  • Ticker: JAREN
  • Exchange: OB
  • Founded: NaN
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: kr811.799m
  • Shares outstanding: 4.92m
  • Website: https://www.jaerensparebank.no

Number of Employees


Location

  • Jæren Sparebank
  • Jernbanegata 6
  • PO Box 325
  • Bryne
  • Rogaland
  • 4340
  • Norway

Listings


Biography

Jæren Sparebank provides various financial products and services in Norway. It offers accounts; bank guarantees, construction loans, overdrafts, leasing services, and corporate loans; payment and cards ser...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/17 16:22
End of Day Share Price2021/05/14 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.