OB:SOR

Stock Analysis Report

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Sparebanken Sør

Executive Summary

Sparebanken Sør operates as an independent savings bank in Norway. More Details


Snowflake Analysis

Solid track record and fair value.

Share Price & News

How has Sparebanken Sør's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOR is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SOR's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

6.6%

SOR

6.2%

NO Banks

2.8%

NO Market


1 Year Return

22.8%

SOR

26.4%

NO Banks

26.2%

NO Market

Return vs Industry: SOR underperformed the Norwegian Banks industry which returned 26.4% over the past year.

Return vs Market: SOR underperformed the Norwegian Market which returned 26.4% over the past year.


Shareholder returns

SORIndustryMarket
7 Day6.6%6.2%2.8%
30 Day14.6%4.4%2.7%
90 Day21.1%12.4%12.4%
1 Year22.8%22.8%32.3%26.4%31.1%26.2%
3 Year48.3%31.0%30.8%14.2%19.3%5.5%
5 Year124.4%1.9%118.8%74.5%78.7%44.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sparebanken Sør undervalued compared to its fair value and its price relative to the market?

9.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOR (NOK137.5) is trading below our estimate of fair value (NOK151.81)

Significantly Below Fair Value: SOR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SOR is poor value based on its PE Ratio (12.8x) compared to the NO Banks industry average (10.6x).

PE vs Market: SOR is good value based on its PE Ratio (12.8x) compared to the Norwegian market (14.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SOR is good value based on its PB Ratio (0.2x) compared to the NO Banks industry average (0.6x).


Next Steps

Future Growth

How is Sparebanken Sør forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOR's forecast earnings growth (5.3% per year) is above the savings rate (1.4%).

Earnings vs Market: SOR's earnings (5.3% per year) are forecast to grow slower than the Norwegian market (26.7% per year).

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

Revenue vs Market: SOR's revenue (4.6% per year) is forecast to grow slower than the Norwegian market (7.3% per year).

High Growth Revenue: SOR's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOR's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Sparebanken Sør performed over the past 5 years?

44.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOR has high quality earnings.

Growing Profit Margin: SOR's current net profit margins (46.4%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: SOR's earnings have grown significantly by 44.6% per year over the past 5 years.

Accelerating Growth: SOR's earnings growth over the past year (485.4%) exceeds its 5-year average (44.6% per year).

Earnings vs Industry: SOR earnings growth over the past year (485.4%) exceeded the Banks industry -3.3%.


Return on Equity

High ROE: SOR's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Sparebanken Sør'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: SOR's Assets to Equity ratio (10.3x) is moderate.

Allowance for Bad Loans: SOR has a low allowance for bad loans (42%).

Low Risk Liabilities: 53% of SOR's liabilities are made up of primarily higher risk sources of funding.

Loan Level: SOR has an appropriate level of Loans to Assets ratio (80%).

Low Risk Deposits: SOR's Loans to Deposits ratio (191%) is high.

Level of Bad Loans: SOR has an appropriate level of bad loans (1%).


Next Steps

Dividend

What is Sparebanken Sør current dividend yield, its reliability and sustainability?

4.36%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SOR's dividend (4.36%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.91%).

High Dividend: SOR's dividend (4.36%) is low compared to the top 25% of dividend payers in the Norwegian market (5.24%).


Stability and Growth of Payments

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

Growing Dividend: SOR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.4%), SOR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SOR's dividends in 3 years are forecast to be covered by earnings (60.6% payout ratio).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Geir Bergskaug (60 yo)

7.17yrs

Tenure

kr5,333,000

Compensation

Mr. Geir Bergskaug has been Chief Executive Officer of Sparebanken Sør since January 1, 2014. Mr. Bergskaug served as Chief Executive Officer of Sparebanken Sør Boligkreditt AS (Former Name: Sør Boligkredi...


CEO Compensation Analysis

Compensation vs Market: Geir's total compensation ($USD623.13K) is above average for companies of similar size in the Norwegian market ($USD479.10K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Geir Bergskaug
Chief Executive Officer7.17yrskr5.33m0.42%
NOK 9.1m
Lasse Kvinlaug
Deputy CEO & Director of Corporate Market14.83yrskr2.39m0%
NOK 0
Bjørn Friestad
Director of Risk Management7.17yrskr2.03m0%
NOK 0
Gunnar Thomassen
Director of Retail Banking7.17yrskr2.40m0%
NOK 0
Rolf Soraker
Director of Group Support7.17yrskr1.96m0%
NOK 0
Gry Moen
Director of Business Support7.17yrskr1.91m0%
NOK 0
Marianne Lofthus
Director of Capital Market7.17yrskr1.93m0.0050%
NOK 106.6k
Steinar Vigsnes
Head of Financeno datano data0.037%
NOK 791.1k
Steinar Breen
Director of Strategy & Compliance0.92yrno data0.0039%
NOK 84.4k
Vidar Hansen
Chief Internal Auditorno datano data0.0042%
NOK 91.1k
Gunn Aina Bruin
Controller0.17yrno datano data
Lene Frustol
Controller0.17yrno datano data

7.2yrs

Average Tenure

59yo

Average Age

Experienced Management: SOR's management team is seasoned and experienced (7.2 years average tenure).


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

Sparebanken Sør's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sparebanken Sør
  • Ticker: SOR
  • Exchange: OB
  • Founded: 1824
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr2.154b
  • Shares outstanding: 15.66m
  • Website: https://www.sor.no

Number of Employees


Location

  • Sparebanken Sør
  • Rådhusgata 9
  • Kristiansand
  • Vest-Agder
  • 4662
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOROB (Oslo Bors)YesEquity CertificatesNONOKJul 1998

Biography

Sparebanken Sør operates as an independent savings bank in Norway. The company operates through two segments, Retail Market and Corporate Market. It is involved in banking, securities trading, and real est...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 17:21
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.