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.


Snowflake Analysis

Very undervalued with flawless balance sheet 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.0%

NONG

2.8%

NO Banks

6.5%

NO Market


1 Year Return

-16.1%

NONG

-29.1%

NO Banks

-24.1%

NO Market

Return vs Industry: NONG exceeded the Norwegian Banks industry which returned -31.5% over the past year.

Return vs Market: NONG exceeded the Norwegian Market which returned -24.3% over the past year.


Shareholder returns

NONGIndustryMarket
7 Day6.0%2.8%6.5%
30 Day-18.5%-18.7%-9.9%
90 Day-31.1%-30.3%-23.5%
1 Year-9.5%-16.1%-25.5%-29.1%-20.2%-24.1%
3 Year15.1%-5.5%-3.2%-15.1%3.5%-9.3%
5 Year81.8%33.3%11.0%-11.7%16.3%-9.8%

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?

49.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NONG (NOK51.7) is trading below our estimate of fair value (NOK108.54)

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 (5.5x) compared to the Banks industry average (6.7x).

PE vs Market: NONG is good value based on its PE Ratio (5.5x) compared to the Norwegian market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: NONG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

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


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?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NONG's forecast earnings growth (14.2% per year) is above the savings rate (0.7%).

Earnings vs Market: NONG's earnings (14.2% per year) are forecast to grow slower than the Norwegian market (19.9% per year).

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

Revenue vs Market: NONG's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: NONG's revenue is forecast to decline over the next 3 years (-1.5% 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 (11.4%).


Next Steps

Past Performance

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

26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NONG has a high level of non-cash earnings.

Growing Profit Margin: NONG's current net profit margins (23%) are higher than last year (20.9%).


Past Earnings Growth Analysis

Earnings Trend: NONG's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: NONG's earnings growth over the past year (33.1%) exceeds its 5-year average (26.9% per year).

Earnings vs Industry: NONG earnings growth over the past year (33.1%) exceeded the Banks industry 18.4%.


Return on Equity

High ROE: NONG's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is SpareBank 1 Nord-Norge's financial position?


Financial Position Analysis

Short Term Liabilities: NONG's short term assets (NOK6.9B) do not cover its short term liabilities (NOK70.9B).

Long Term Liabilities: NONG's short term assets (NOK6.9B) do not cover its long term liabilities (NOK26.4B).


Debt to Equity History and Analysis

Debt Level: NONG's debt to equity ratio (187.7%) is considered high.

Reducing Debt: NONG's debt to equity ratio has reduced from 287.7% to 187.7% over the past 5 years.

Debt Coverage: NONG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if NONG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

7.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NONG's dividend (7.74%) is higher than the bottom 25% of dividend payers in the Norwegian market (3.78%).

High Dividend: NONG's dividend (7.74%) is low compared to the top 25% of dividend payers in the Norwegian market (8.06%).


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 (42.5%), 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 (59.8% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Liv Ulriksen

0.17

Tenure

kr2,369,000

Compensation

Ms. Liv Bortne Ulriksen has been Acting Chief Executive Officer at SpareBank 1 Nord-Norge since February 26, 2020. She served as Chief Risk Officer at SpareBank 1 Nord-Norge until February 26, 2020. She se ...


CEO Compensation Analysis

Compensation vs Market: Liv's total compensation ($USD227.52K) is below average for companies of similar size in the Norwegian market ($USD393.14K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Liv Ulriksen
Acting Chief Executive Officer0.17yrkr2.37m0.084% NOK4.6m
Bengt Olsen
Chief Financial Officer1yrkr221.00k0.014% NOK781.8k
Geir Andreassen
Chief Technology Officer2.42yrskr2.25m0.078% NOK4.3m
Ronni Pettersen
Chief Marketing Officer0.25yrkr2.24m0.036% NOK2.0m
Trude Glad
Executive Vice President of Corporate Banking2.42yrskr2.48m0.079% NOK4.4m
Lasse Hagerupsen
Executive Vice President of Personal Banking2.42yrskr1.87m0.079% NOK4.3m
Tom-Robin Solstad-Nøis
Director of SNN Markets7.25yrskr1.82mno data
Nina Wihuri
Head of Compliance & Corporate Governanceno datano datano data
Stein Loftås
Chief Communications Officerno datano data0.0047% NOK260.2k
Turid Aspenes
Chief of Staff0.25yrno datano data

1.7yrs

Average Tenure

Experienced Management: NONG's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Ownership

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


Insider Trading Volume

Insider Buying: NONG insiders have bought more shares than they have sold 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

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: kr5.502b
  • 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, as well as payment services. Its activities also include hedging instruments and trading in interest rate and currency instruments; hedging instruments in the commodity derivatives market; sale of Norwegian bonds and certificates, as well as bond market issues; purchase and sale of equities and fund units; and provision of corporate finance, as well as trading and investment advice services. In addition, the company is involved in leasing, consumer financing, real estate brokerage, and accounting operations. It operates through a network of 38 offices across 36 municipalities in Nordland, Troms, Finnmark, and Svalbard. The company was founded in 1836 and is headquartered in Tromsø, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 20:49
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.