Melhus Sparebank, a savings bank, provides various banking products and services to companies, agriculture customers, and private individuals in Norway. More Details
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.
7 Day Return
1 Year Return
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.
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
3 weeks ago | Simply Wall StMelhus Sparebank (OB:MELG) Has Compensated Shareholders With A Respectable 79% Return On Their Investment
2 months ago | Simply Wall StHow Much is Melhus Sparebank's (OB:MELG) CEO Getting Paid?
4 months ago | Simply Wall StAre Dividend Investors Getting More Than They Bargained For With Melhus Sparebank's (OB:MELG) Dividend?
Is Melhus Sparebank undervalued compared to its fair value and its price relative to the market?
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).
How is Melhus Sparebank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
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%).
How has Melhus Sparebank performed over the past 5 years?
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.
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
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.
What is Melhus Sparebank current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
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.
Experienced Management: MELG's management team is considered experienced (2.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Melhus Sparebank's company bio, employee growth, exchange listings and data sources
- 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
- Melhus Sparebank
- Rådhusvegen 3
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/09 16:21|
|End of Day Share Price||2021/05/07 00:00|
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.