OB:NONG

Stock Analysis Report

SpareBank 1 Nord-Norge

Executive Summary

SpareBank 1 Nord-Norge provides financial products and services to personal customers, companies, and organizations in Northern Norway.

Rewards

Trading at 40.8% below its fair value

Earnings grew by 37.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -4.6% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has SpareBank 1 Nord-Norge's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.1%

NONG

0.6%

NO Banks

0.5%

NO Market


1 Year Return

14.8%

NONG

5.8%

NO Banks

-0.5%

NO Market

Return vs Industry: NONG exceeded the Norwegian Banks industry which returned 5.8% over the past year.

Return vs Market: NONG exceeded the Norwegian Market which returned -0.5% over the past year.


Shareholder returns

NONGIndustryMarket
7 Day2.1%0.6%0.5%
30 Day1.0%-5.0%-0.8%
90 Day7.6%4.9%3.4%
1 Year21.9%14.8%11.0%5.8%4.9%-0.5%
3 Year66.2%38.4%34.0%17.6%32.7%15.8%
5 Year158.3%95.0%91.3%51.4%74.0%33.6%

Price Volatility Vs. Market

How volatile is SpareBank 1 Nord-Norge's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SpareBank 1 Nord-Norge undervalued compared to its fair value and its price relative to the market?

40.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NONG (NOK73.7) is trading below our estimate of fair value (NOK124.6)

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


Price To Earnings Ratio

PE vs Industry: NONG is good value based on its PE Ratio (7.4x) compared to the Banks industry average (8.4x).

PE vs Market: NONG is good value based on its PE Ratio (7.4x) compared to the Norwegian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: NONG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

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


Next Steps

Future Growth

How is SpareBank 1 Nord-Norge forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NONG's earnings are forecast to decline over the next 3 years (-4.6% per year).

Earnings vs Market: NONG's earnings are forecast to decline over the next 3 years (-4.6% per year).

High Growth Earnings: NONG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NONG's revenue is expected to decline over the next 3 years (-3.3% per year).

High Growth Revenue: NONG's revenue is forecast to decline over the next 3 years (-3.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NONG's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has SpareBank 1 Nord-Norge performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NONG has high quality earnings.

Growing Profit Margin: NONG's current net profit margins (24.4%) are higher than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: NONG's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: NONG's earnings growth over the past year (37.1%) exceeds its 5-year average (16.5% per year).

Earnings vs Industry: NONG earnings growth over the past year (37.1%) exceeded the Banks industry 13%.


Return on Equity

High ROE: NONG's Return on Equity (15.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SpareBank 1 Nord-Norge'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: NONG has a low level of unsold assets or inventory.

Debt Coverage by Assets: NONG's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: NONG has a sufficient allowance for bad loans.

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

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

Low Risk Deposits: NONG's loans are broadly funded by customer deposits.

Level of Bad Loans: NONG has an appropriate level of bad loans (0.61%)


Next Steps

Dividend

What is SpareBank 1 Nord-Norge's current dividend yield, its reliability and sustainability?

5.43%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%2.5%markettop25%5.9%industryaverage5.2%forecastin3Years7.2%

Current dividend yield vs market & industry

Notable Dividend: NONG's dividend (5.43%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.52%).

High Dividend: NONG's dividend (5.43%) is low compared to the top 25% of dividend payers in the Norwegian market (5.93%).


Stability and Growth of Payments

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

Growing Dividend: NONG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.9%), NONG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NONG's dividends in 3 years are forecast to be covered by earnings (62.2% payout ratio).


Next Steps

Management

What is the CEO of SpareBank 1 Nord-Norge's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Petter Høiseth 0

0.8yrs

Tenure

kr2,394,000

Compensation

Mr. Petter Høiseth serves as Chief Executive Officer at SpareBank 1 Nord-Norge since March 15, 2019. He was Chief of Staff at SpareBank 1 Nord-Norge until March 15, 2019 and served as its Group Executive V ...


CEO Compensation Analysis

Compensation vs Market: Petter's total compensation ($USD261.10K) is below average for companies of similar size in the Norwegian market ($USD532.07K).

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


Management Age and Tenure

2.1yrs

Average Tenure

Experienced Management: NONG's management team is considered experienced (2.1 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

Sellkr3,040,57808 Mar 19
Jan-Frode Janson
EntityIndividual
Shares45,000
Max Pricekr67.57

Ownership Breakdown

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


Management Team

  • Bengt Olsen (49yo)

    Chief Financial Officer

    • Tenure: 0.7yrs
    • Compensation: kr221.00k
  • Geir Andreassen

    Chief Technology Officer

    • Tenure: 2.1yrs
    • Compensation: kr2.25m
  • Liv Ulriksen

    Chief Risk Officer

    • Tenure: 0yrs
    • Compensation: kr2.37m
  • Petter Høiseth

    Chief Executive Officer

    • Tenure: 0.8yrs
    • Compensation: kr2.39m
  • Tom-Robin Solstad-Nøis

    Director of SNN Markets

    • Tenure: 6.9yrs
    • Compensation: kr1.82m
  • Trude Glad

    Chief Regional Officer of Helgeland & Salten

    • Tenure: 2.1yrs
    • Compensation: kr2.48m
  • Christian Overvaag

    Chief Regional Officer of Troms

    • Tenure: 2.1yrs
    • Compensation: kr1.94m
  • Lasse Hagerupsen

    Chief Regional Officer of Hålogaland

    • Tenure: 2.1yrs
    • Compensation: kr1.87m
  • Trond Hanssen

    Chief Regional Officer of Finnmark

    • Tenure: 0yrs
    • Compensation: kr1.87m
  • Ronni Pettersen

    Chief Commercial Officer

    • Tenure: 0yrs
    • Compensation: kr2.24m

Board Members

  • Vivi Ann Pedersen (66yo)

    Employee Representative Director

    • Tenure: 0yrs
    • Compensation: kr210.00k
  • Roar Dons

    Chairman of Supervisory Board

    • Tenure: 0yrs
    • Compensation: kr40.00k
  • Dag Lund

    Supervisory Board Member

    • Tenure: 0yrs
  • Kari Olsen Lind

    Supervisory Board Vice Chairman

    • Tenure: 0yrs
  • Charlotte Ringkjøb

    Supervisory Board Member

    • Tenure: 6.9yrs
  • Rita Myrvang

    GM & Supervisory Board Member

    • Tenure: 7.8yrs
  • Hans-Tore Bjerkaas (68yo)

    Deputy Chairman of the Board

    • Tenure: 0yrs
    • Compensation: kr357.00k
  • Karl Schjøtt-Pedersen (60yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: kr486.00k
  • Chris Martinsen

    Head of Department & Supervisory Board Member

    • Tenure: 0yrs
  • Tor Oppheim

    Head of Department & Supervisory Board Member

    • Tenure: 0yrs

Company Information

SpareBank 1 Nord-Norge's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SpareBank 1 Nord-Norge
  • Ticker: NONG
  • Exchange: OB
  • Founded: 1836
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: kr7.329b
  • Shares outstanding: 100.40m
  • Website: https://www.sparebank1.no/nb/nord-norge

Number of Employees


Location

  • SpareBank 1 Nord-Norge
  • Sjøgata 8
  • Tromsø
  • Troms
  • 9008
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NONGOB (Oslo Bors)YesPrimary Capital CertificatesNONOKMay 1994
0J1NLSE (London Stock Exchange)YesPrimary Capital CertificatesGBNOKMay 1994
SPXX.FOTCPK (Pink Sheets LLC)YesPrimary Capital CertificatesUSUSDMay 1994
NONGOBATS-CHIXE (BATS 'Chi-X Europe')YesPrimary Capital CertificatesGBNOKMay 1994
93SDB (Deutsche Boerse AG)YesPrimary Capital CertificatesDEEURMay 1994

Biography

SpareBank 1 Nord-Norge provides financial products and services to personal customers, companies, and organizations in Northern Norway. The company offers various savings, lending, and insurance products,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 20:37
End of Day Share Price2019/12/06 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.