OB:NOFI

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Norwegian Finans Holding

Market Cap

kr18.5b

Last Updated

2021/06/22 22:26 UTC

Data Sources

Company Financials +

Executive Summary

Norwegian Finans Holding ASA, through its subsidiary, Bank Norwegian AS, provides various digital banking products and services to retail customers in Norway, Finland, Sweden, and Denmark. More Details


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.

Share Price & News

How has Norwegian Finans Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0.3%

NOFI

1.9%

NO Banks

-0.6%

NO Market


1 Year Return

44.9%

NOFI

46.8%

NO Banks

36.1%

NO Market

Return vs Industry: NOFI underperformed the Norwegian Banks industry which returned 46.8% over the past year.

Return vs Market: NOFI exceeded the Norwegian Market which returned 36.1% over the past year.


Shareholder returns

NOFIIndustryMarket
7 Day0.3%1.9%-0.6%
30 Day-0.2%1.6%1.8%
90 Day2.1%7.9%4.9%
1 Year52.7%44.9%53.4%46.8%41.5%36.1%
3 Year16.1%10.2%37.8%24.6%19.8%6.3%
5 Year39.3%32.1%135.5%95.9%85.7%51.6%

Long-Term Price Volatility Vs. Market

How volatile is Norwegian Finans Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Norwegian Finans Holding 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: NOFI (NOK99.1) is trading below our estimate of fair value (NOK223.31)

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


Price To Earnings Ratio

PE vs Industry: NOFI is good value based on its PE Ratio (9.8x) compared to the Norwegian Banks industry average (10.8x).

PE vs Market: NOFI is good value based on its PE Ratio (9.8x) compared to the Norwegian market (14.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NOFI is overvalued based on its PB Ratio (1.6x) compared to the NO Banks industry average (0.6x).


Future Growth

How is Norwegian Finans Holding forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOFI's forecast earnings growth (11.3% per year) is above the savings rate (1.2%).

Earnings vs Market: NOFI's earnings (11.3% per year) are forecast to grow slower than the Norwegian market (15.1% per year).

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

Revenue vs Market: NOFI's revenue (12.4% per year) is forecast to grow faster than the Norwegian market (4.3% per year).

High Growth Revenue: NOFI's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOFI's Return on Equity is forecast to be low in 3 years time (17.5%).


Past Performance

How has Norwegian Finans Holding performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOFI has high quality earnings.

Growing Profit Margin: NOFI's current net profit margins (49%) are higher than last year (47.6%).


Past Earnings Growth Analysis

Earnings Trend: NOFI's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: NOFI's earnings growth over the past year (3.3%) is below its 5-year average (16.6% per year).

Earnings vs Industry: NOFI earnings growth over the past year (3.3%) underperformed the Banks industry 18.7%.


Return on Equity

High ROE: NOFI's Return on Equity (16.4%) is considered low.


Financial Health

How is Norwegian Finans Holding'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: NOFI's Assets to Equity ratio (5.1x) is low.

Allowance for Bad Loans: NOFI has a low allowance for bad loans (46%).

Low Risk Liabilities: 83% of NOFI's liabilities are made up of primarily low risk sources of funding.

Loan Level: NOFI has an appropriate level of Loans to Assets ratio (60%).

Low Risk Deposits: NOFI's Loans to Deposits ratio (90%) is appropriate.

Level of Bad Loans: NOFI has a high level of bad loans (26.2%).


Dividend

What is Norwegian Finans Holding current dividend yield, its reliability and sustainability?

6.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NOFI's dividend (6.05%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.88%).

High Dividend: NOFI's dividend (6.05%) is in the top 25% of dividend payers in the Norwegian market (5.03%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether NOFI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NOFI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.5%), NOFI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NOFI's dividends in 3 years are forecast to be covered by earnings (64.4% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Tine Gottlob Wollebekk (59 yo)

4yrs

Tenure

kr5,520,000

Compensation

Ms. Tine Gottlob Kirstan Wollebekk serves as Director of Ekornes ASA since 2017. She serves as Chief Executive Officer of Bank Norwegian AS. Ms. Wollebekk serves as an Advisor of FSN Capital Partners AS. M...


CEO Compensation Analysis

Compensation vs Market: Tine Gottlob's total compensation ($USD643.40K) is about average for companies of similar size in the Norwegian market ($USD661.99K).

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


Leadership Team

Experienced Management: NOFI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: NOFI's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

Norwegian Finans Holding ASA's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Norwegian Finans Holding ASA
  • Snarøyveien 36
  • Fornebu
  • Akershus
  • 1364
  • Norway

Listings


Biography

Norwegian Finans Holding ASA, through its subsidiary, Bank Norwegian AS, provides various digital banking products and services to retail customers in Norway, Finland, Sweden, and Denmark. The company offe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/22 22:26
End of Day Share Price2021/06/22 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.