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Melhus Sparebank

Market Cap

kr391.4m

Last Updated

2021/05/09 16:21 UTC

Data Sources

Company Financials +

Executive Summary

Melhus Sparebank, a savings bank, provides various banking products and services to companies, agriculture customers, and private individuals in Norway. More Details


Snowflake Analysis

Very undervalued average dividend payer.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

2.2%

MELG

2.9%

NO Mortgage

0.6%

NO Market


1 Year Return

11.9%

MELG

45.0%

NO Mortgage

37.4%

NO Market

Return vs Industry: MELG underperformed the Norwegian Mortgage industry which returned 45% over the past year.

Return vs Market: MELG underperformed the Norwegian Market which returned 37.4% over the past year.


Shareholder returns

MELGIndustryMarket
7 Day2.2%2.9%0.6%
30 Day0%1.4%0.9%
90 Day-4.7%11.1%4.9%
1 Year17.4%11.9%47.3%45.0%43.3%37.4%
3 Year46.9%21.6%8.7%-0.2%14.2%1.5%
5 Year78.2%28.2%67.6%45.5%79.8%46.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MELG (NOK141) is trading below our estimate of fair value (NOK497.77)

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


Price To Earnings Ratio

PE vs Industry: MELG is good value based on its PE Ratio (11.9x) compared to the XE Mortgage industry average (13.6x).

PE vs Market: MELG is good value based on its PE Ratio (11.9x) compared to the Norwegian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: MELG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MELG is good value based on its PB Ratio (0.4x) compared to the XE Mortgage industry average (0.8x).


Future Growth

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

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MELG's forecast earnings growth (21.5% per year) is above the savings rate (1.2%).

Earnings vs Market: MELG's earnings (21.5% per year) are forecast to grow faster than the Norwegian market (18.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MELG's revenue is expected to decline over the next 3 years (-2.5% per year).

High Growth Revenue: MELG's revenue is forecast to decline over the next 3 years (-2.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MELG's Return on Equity is forecast to be low in 3 years time (9.2%).


Past Performance

How has Melhus Sparebank performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MELG has high quality earnings.

Growing Profit Margin: MELG's current net profit margins (16.8%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: MELG's earnings have grown by 7.2% per year over the past 5 years.

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

Earnings vs Industry: MELG had negative earnings growth (-13.5%) over the past year, making it difficult to compare to the Mortgage industry average (-8.8%).


Return on Equity

High ROE: MELG's Return on Equity (7.9%) is considered low.


Financial Health

How is Melhus 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: MELG's Assets to Equity ratio (8.5x) is low.

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

Low Risk Liabilities: 72% of MELG's liabilities are made up of primarily low risk sources of funding.

Loan Level: MELG has an appropriate level of Loans to Assets ratio (87%).

Low Risk Deposits: MELG's Loans to Deposits ratio (136%) is high.

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


Dividend

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

4.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MELG's dividend (4.96%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.91%).

High Dividend: MELG's dividend (4.96%) is in the top 25% of dividend payers in the Norwegian market (4.95%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.1%), MELG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MELG's dividends in 3 years are forecast to be covered by earnings (75.8% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Ragnar Torland

8.33yrs

Tenure

kr2,687,000

Compensation

Mr. Ragnar Torland serves as Bank Manager of Melhus Sparebank.


CEO Compensation Analysis

Compensation vs Market: Ragnar's total compensation ($USD326.88K) is about average for companies of similar size in the Norwegian market ($USD361.25K).

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


Leadership Team

Experienced Management: MELG's management team is considered experienced (2.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MELG insiders have only sold shares 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

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


Key Information

  • Name: Melhus Sparebank
  • Ticker: MELG
  • Exchange: OB
  • Founded: 1840
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: kr391.448m
  • Shares outstanding: 2.78m
  • Website: https://www.melhusbanken.no

Number of Employees


Location

  • Melhus Sparebank
  • Rådhusvegen 3
  • Melhus
  • 7224
  • Norway

Listings


Biography

Melhus Sparebank, a savings bank, provides various banking products and services to companies, agriculture customers, and private individuals in Norway. The company offers savings accounts; construction an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/09 16:21
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
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.