OB:SOR

Stock Analysis Report

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Sparebanken Sør

Executive Summary

Sparebanken Sør operates as an independent savings bank in Norway.


Snowflake Analysis

Good value with proven track record.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

SOR

-0.2%

NO Banks

-0.06%

NO Market


1 Year Return

5.7%

SOR

-17.5%

NO Banks

-18.3%

NO Market

Return vs Industry: SOR exceeded the Norwegian Banks industry which returned -17.5% over the past year.

Return vs Market: SOR exceeded the Norwegian Market which returned -18.3% over the past year.


Shareholder returns

SORIndustryMarket
7 Day1.4%-0.2%-0.06%
30 Day2.5%-2.9%-2.3%
90 Day17.2%15.4%6.4%
1 Year5.7%5.7%-16.7%-17.5%-15.8%-18.3%
3 Year16.0%2.5%-1.4%-10.8%-4.3%-0.9%
5 Year16.8%-47.0%25.3%2.0%29.4%3.0%

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?

14.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOR (NOK99.4) is trading below our estimate of fair value (NOK116.85)

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 (9.2x) compared to the NO Banks industry average (9.1x).

PE vs Market: SOR is good value based on its PE Ratio (9.2x) compared to the Norwegian market (14.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SOR is good value based on its PB Ratio (0.1x) compared to the NO Banks industry average (0.5x).


Next Steps

Future Growth

How is Sparebanken Sør forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOR's forecast earnings growth (21.2% per year) is above the savings rate (1.6%).

Earnings vs Market: SOR's earnings (21.2% per year) are forecast to grow slower than the Norwegian market (35.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOR's revenue (4.4% per year) is forecast to grow slower than the Norwegian market (5.7% per year).

High Growth Revenue: SOR's revenue (4.4% 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 (8.1%).


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 (7.5%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: SOR has become profitable over the past 5 years, growing earnings by 44.6% per year.

Accelerating Growth: SOR's earnings growth over the past year (12.2%) is below its 5-year average (44.6% per year).

Earnings vs Industry: SOR earnings growth over the past year (12.2%) exceeded the Banks industry -3.5%.


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 (10.7x) is moderate.

Allowance for Bad Loans: SOR has a low allowance for bad loans (35%).

Low Risk Liabilities: 55% 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 (77%).

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

Level of Bad Loans: SOR has an appropriate level of bad loans (1.1%).


Next Steps

Dividend

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

6.08%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SOR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SOR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SOR is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOR's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Geir Bergskaug (60yo)

6.5yrs

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 ($USD569.17K) is about average for companies of similar size in the Norwegian market ($USD445.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Geir Bergskaug
Chief Executive Officer6.5yrskr5.33m0.39% NOK6.0m
Lasse Kvinlaug
Deputy CEO & Director of Corporate Market14.17yrskr2.39m0.016% NOK245.8k
Bjørn Friestad
Director of Risk Management6.5yrskr2.03m0.022% NOK348.5k
Gunnar Thomassen
Director of Retail Banking6.5yrskr2.40m0.017% NOK257.7k
Rolf Søraker
Director of Group Support6.5yrskr1.96m0.0066% NOK102.5k
Gry Moen
Director of Business Support6.5yrskr1.91m0.00075% NOK11.7k
Marianne Lofthus
Director of Capital Market6.5yrskr1.93m0.0010% NOK16.0k
Steinar Vigsnes
Finance Managerno datano data0.033% NOK510.9k
Steinar Breen
Director of Strategy & Compliance0.25yrno datano data
Tellef Myrvold
Director of Merger Secretary6.5yrskr1.78mno data
Dagfinn Vaage
Acting Director of Corporate Marketno datakr964.00k0.0018% NOK27.9k

6.5yrs

Average Tenure

59yo

Average Age

Experienced Management: SOR's management team is seasoned and experienced (6.5 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: kr1.557b
  • 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
0FN3LSE (London Stock Exchange)YesEquity CertificatesGBNOKJul 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 estate brokerage activities in Agder, Rogaland, Vestfold, and Telemark. The company also provides mortgaging, car financing, leasing, and property management services; and sells life and general insurance, pension, and group life insurance products to retail and corporate customers. It conducts banking operations in 34 locations and real estate brokerage business in 17 locations. The company was founded in 1824 and is headquartered in Kristiansand, Norway. Sparebanken Sør is a subsidiary of Sparebankstiftelsen Sparebanken Sør. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 20:53
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
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.