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Market Cap

kr3.6b

Last Updated

2021/05/18 16:22 UTC

Data Sources

Company Financials +

Executive Summary

Pareto Bank ASA provides various banking products and services in Norway. More Details


Snowflake Analysis

Solid track record and good value.

Share Price & News

How has Pareto Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

1.0%

PARB

1.1%

NO Banks

-0.7%

NO Market


1 Year Return

79.8%

PARB

53.0%

NO Banks

34.5%

NO Market

Return vs Industry: PARB exceeded the Norwegian Banks industry which returned 53% over the past year.

Return vs Market: PARB exceeded the Norwegian Market which returned 34.5% over the past year.


Shareholder returns

PARBIndustryMarket
7 Day1.0%1.1%-0.7%
30 Day2.7%-0.8%-2.5%
90 Day22.1%11.3%2.7%
1 Year89.3%79.8%59.9%53.0%39.4%34.5%
3 Year44.5%34.6%34.5%21.6%11.6%-0.5%
5 Year99.9%69.9%121.5%84.5%75.4%43.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pareto Bank undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PARB (NOK52.1) is trading below our estimate of fair value (NOK99.7)

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


Price To Earnings Ratio

PE vs Industry: PARB is good value based on its PE Ratio (7.8x) compared to the Norwegian Banks industry average (11.2x).

PE vs Market: PARB is good value based on its PE Ratio (7.8x) compared to the Norwegian market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: PARB is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: PARB is overvalued based on its PB Ratio (1x) compared to the NO Banks industry average (0.6x).


Future Growth

How is Pareto Bank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PARB's forecast earnings growth (3.2% per year) is above the savings rate (1.2%).

Earnings vs Market: PARB's earnings (3.2% per year) are forecast to grow slower than the Norwegian market (17.4% per year).

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

Revenue vs Market: PARB's revenue (4.8% per year) is forecast to grow faster than the Norwegian market (4.5% per year).

High Growth Revenue: PARB's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Pareto Bank performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PARB has high quality earnings.

Growing Profit Margin: PARB's current net profit margins (60.9%) are higher than last year (59.4%).


Past Earnings Growth Analysis

Earnings Trend: PARB's earnings have grown by 14.9% per year over the past 5 years.

Accelerating Growth: PARB's earnings growth over the past year (29.2%) exceeds its 5-year average (14.9% per year).

Earnings vs Industry: PARB earnings growth over the past year (29.2%) exceeded the Banks industry 12.9%.


Return on Equity

High ROE: PARB's Return on Equity (13.1%) is considered low.


Financial Health

How is Pareto Bank'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: PARB's Assets to Equity ratio (5.1x) is low.

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

Low Risk Liabilities: 65% of PARB's liabilities are made up of primarily low risk sources of funding.

Loan Level: PARB has an appropriate level of Loans to Assets ratio (82%).

Low Risk Deposits: PARB's Loans to Deposits ratio (156%) is high.

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


Dividend

What is Pareto Bank current dividend yield, its reliability and sustainability?

2.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PARB's dividend (2.88%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.9%).

High Dividend: PARB's dividend (2.88%) is low compared to the top 25% of dividend payers in the Norwegian market (5.04%).


Stability and Growth of Payments

Stable Dividend: PARB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PARB's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.3%), PARB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PARB's dividends in 3 years are forecast to be well covered by earnings (48% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Tiril Villum

10.33yrs

Tenure

kr4,235,000

Compensation

Ms. Tiril Haug Villum has been Chief Executive Officer at Pareto Bank ASA at Pareto AS since 2011. Ms. Villum served as Chief Financial Officer at Pareto Bank ASA. She served as Chief Financial Officer of ...


CEO Compensation Analysis

Compensation vs Market: Tiril's total compensation ($USD511.75K) is about average for companies of similar size in the Norwegian market ($USD558.47K).

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


Leadership Team

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


Board Members

Experienced Board: PARB's board of directors are not considered experienced ( 2.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Pareto Bank ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pareto Bank ASA
  • Ticker: PARB
  • Exchange: OB
  • Founded: 2007
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr3.639b
  • Shares outstanding: 69.85m
  • Website: https://www.paretobank.no

Number of Employees


Location

  • Pareto Bank ASA
  • Dronning Mauds gate 3
  • Oslo
  • Oslo
  • 250
  • Norway

Listings


Biography

Pareto Bank ASA provides various banking products and services in Norway. The company offers financing for housing and business projects; companies with a specific need for capital; conventional and indust...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/18 16:22
End of Day Share Price2021/05/18 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.