OB:SBVG

Stock Analysis Report

SpareBank 1 BV

Executive Summary

SpareBank 1 BV provides various banking products and services in Norway.


Snowflake Analysis

Undervalued established dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.3%

SBVG

0.6%

NO Banks

0.5%

NO Market


1 Year Return

8.5%

SBVG

5.8%

NO Banks

-0.5%

NO Market

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

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


Shareholder returns

SBVGIndustryMarket
7 Day0.3%0.6%0.5%
30 Day1.9%-5.0%-0.8%
90 Day4.6%4.9%3.4%
1 Year17.3%8.5%11.0%5.8%4.9%-0.5%
3 Year75.1%41.5%34.0%17.6%32.7%15.8%
5 Year112.7%-21.4%91.3%51.4%74.0%33.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SpareBank 1 BV undervalued compared to its fair value and its price relative to the market?

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBVG (NOK38.5) is trading below our estimate of fair value (NOK69.82)

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


Price To Earnings Ratio

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

PE vs Market: SBVG is good value based on its PE Ratio (8.4x) compared to the Norwegian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

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

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBVG's forecast earnings growth (9.7% per year) is above the savings rate (0.7%).

Earnings vs Market: SBVG's earnings (9.7% per year) are forecast to grow slower than the Norwegian market (21.1% per year).

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

Revenue vs Market: SBVG's revenue (6.5% per year) is forecast to grow faster than the Norwegian market (4.4% per year).

High Growth Revenue: SBVG's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBVG's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has SpareBank 1 BV performed over the past 5 years?

42.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBVG has high quality earnings.

Growing Profit Margin: SBVG's current net profit margins (24.1%) are lower than last year (29.2%).


Past Earnings Growth Analysis

Earnings Trend: SBVG's earnings have grown significantly by 42.3% per year over the past 5 years.

Accelerating Growth: SBVG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SBVG had negative earnings growth (-19.7%) over the past year, making it difficult to compare to the Banks industry average (13%).


Return on Equity

High ROE: SBVG's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SpareBank 1 BV'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: SBVG has a low level of unsold assets or inventory.

Debt Coverage by Assets: SBVG's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: SBVG has a low allowance for bad loans.

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

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

Low Risk Deposits: SBVG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: SBVG has an appropriate level of bad loans (0.84%)


Next Steps

Dividend

What is SpareBank 1 BV's current dividend yield, its reliability and sustainability?

7.66%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%2.5%markettop25%5.9%industryaverage5.2%forecastin3Years7.8%

Current dividend yield vs market & industry

Notable Dividend: SBVG's dividend (7.66%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.52%).

High Dividend: SBVG's dividend (7.66%) is in the top 25% of dividend payers in the Norwegian market (5.93%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.3%), SBVG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBVG's dividends in 3 years are forecast to be covered by earnings (63.4% payout ratio).


Next Steps

Management

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

2.9yrs

Average board tenure


CEO

Rune Fjeldstad (57yo)

4.6yrs

Tenure

kr6,447,000

Compensation

Mr. Rune Fjeldstad has been Managing Director of SpareBank 1 BV since May 1, 2015 and served as its Director since April 2014 until February 2015. He has a Master's degree in Economics and Master of Manage ...


CEO Compensation Analysis

Compensation vs Market: Rune's total compensation ($USD703.13K) is above average for companies of similar size in the Norwegian market ($USD422.84K).

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


Board Age and Tenure

2.9yrs

Average Tenure

60yo

Average Age

Experienced Board: SBVG's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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

Buykr375,00024 Jun 19
Finn Haugan
EntityIndividual
Role
Chairman of Corporate Board
Chairman of the Board
Shares10,000
Max Pricekr37.50
Buykr101,25014 Jun 19
Elisabeth Haug
EntityIndividual
Shares2,700
Max Pricekr37.50
Sellkr75,00007 Jun 19
Britt Westlin
EntityIndividual
Shares2,000
Max Pricekr37.50
Buykr994,85309 May 19
Heine Wang
EntityIndividual
Role
Vice Chairman
Deputy Chair
Shares27,000
Max Pricekr36.85
Sellkr20,58028 Mar 19
Britt Westlin
EntityIndividual
Shares525
Max Pricekr39.20

Ownership Breakdown

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


Management Team

  • Per Grøtterød

    Bank Manager

    • Tenure: 0yrs
    • Compensation: kr1.00m
  • Ola Saltrøe

    Executive Officer of Legal Affairs & Business Operations

    • Tenure: 0yrs
    • Compensation: kr1.08m
  • Geir Hansen (60yo)

    Deputy CEO

    • Tenure: 11.1yrs
    • Compensation: kr1.96m
  • Marianne Evensen (49yo)

    Director of Risk Management

    • Tenure: 0yrs
    • Compensation: kr1.53m
  • Tonje Stormoen (54yo)

    Director of Business Support

    • Tenure: 0yrs
    • Compensation: kr1.25m
  • Rune Fjeldstad (57yo)

    Managing Director

    • Tenure: 4.6yrs
    • Compensation: kr6.45m
  • Live Stensholt

    Head of Communication

    • Tenure: 0yrs
    • Compensation: kr709.00k
  • Lasse Olsen (44yo)

    Director of Person Market

    • Tenure: 0yrs
    • Compensation: kr1.80m
  • Johan Hjerkinn (49yo)

    Director of Business & Organizational Development

    • Tenure: 0yrs
    • Compensation: kr1.61m
  • Ørjan Larsen

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Finn Haugan (66yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Kristin Barkost (65yo)

    Director

    • Tenure: 0yrs
    • Compensation: kr165.00k
  • Bjørn Hellevammen (71yo)

    Member of Supervisory Board

    • Tenure: 0yrs
  • Hanne Gravdal (55yo)

    Employee Representative Director

    • Tenure: 11.1yrs
    • Compensation: kr132.00k
  • Lars Bjørnsrud

    Chairman of the Supervisory Board

    • Tenure: 0.7yrs
    • Compensation: kr57.00k
  • Tom Mello

    Deputy Chairman of the Supervisory Board

    • Tenure: 0.7yrs
  • Janne Weseth (40yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: kr160.00k
  • Eric Sandtrø (47yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: kr22.00k
  • Øyvind Birkeland (64yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: kr321.00k
  • Heine Wang (56yo)

    Deputy Chair

    • Tenure: 0yrs

Company Information

SpareBank 1 BV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SpareBank 1 BV
  • Ticker: SBVG
  • Exchange: OB
  • Founded: 1859
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: kr2.410b
  • Shares outstanding: 63.10m
  • Website: https://www.sparebank1.no/nb/bv

Number of Employees


Location

  • SpareBank 1 BV
  • Anton Jenssens gate 2
  • Tønsberg
  • Vestfold
  • 3125
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBVGOB (Oslo Bors)YesPrimary Capital CertificatesNONOKMay 1994
0NY7LSE (London Stock Exchange)YesPrimary Capital CertificatesGBNOKMay 1994

Biography

SpareBank 1 BV provides various banking products and services in Norway. The company offers share and housing savings accounts; mortgages and loans; car, auto, and housing insurance products; and mobile an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 20:38
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.