OB:SPOG

Stock Analysis Report

Sparebanken Øst

Executive Summary

Sparebanken Øst operates as a savings bank in Eastern Norway.

Snowflake

Fundamentals

Established dividend payer and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OB:SPOG

2.8%

NO Banks

1.6%

NO Market


1 Year Return

-3.7%

OB:SPOG

-5.9%

NO Banks

-8.3%

NO Market

SPOG outperformed the Banks industry which returned -5.9% over the past year.

SPOG outperformed the Market in Norway which returned -8.3% over the past year.


Share holder returns

SPOGIndustryMarket
7 Day0%2.8%1.6%
30 Day0%5.6%7.6%
90 Day-3.3%2.1%2.7%
1 Year4.5%-3.7%-1.3%-5.9%-3.1%-8.3%
3 Year44.3%13.4%71.2%50.5%50.8%31.1%
5 Year60.1%7.3%75.4%39.2%51.9%16.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sparebanken Øst undervalued based on future cash flows and its price relative to the stock market?

13%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sparebanken Øst's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Sparebanken Øst's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sparebanken Øst is overvalued based on earnings compared to the NO Banks industry average.

Sparebanken Øst is good value based on earnings compared to the Norway market.


Price Based on Expected Growth

Sparebanken Øst is good value based on expected growth next year.


Price Based on Value of Assets

Sparebanken Øst is good value based on assets compared to the NO Banks industry average.


Next Steps

Future Growth

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

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sparebanken Øst's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Sparebanken Øst's earnings are expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).

Sparebanken Øst's revenue growth is expected to exceed the Norway market average.

Sparebanken Øst's earnings growth is positive but not above the Norway market average.

Sparebanken Øst's earnings growth is expected to exceed the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Sparebanken Øst is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sparebanken Øst performed over the past 5 years?

-2.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sparebanken Øst's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Sparebanken Øst's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Sparebanken Øst's 1-year earnings growth is negative, it can't be compared to the NO Banks industry average.


Return on Equity

Sparebanken Øst has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sparebanken Øst used its assets less efficiently than the NO Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Sparebanken Øst improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Sparebanken Øst'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

Information is not available.

Information is not available.


Financial Institutions Analysis

Sparebanken Øst has an acceptable proportion of non-loan assets held.

Sparebanken Øst has a low allowance for bad loans.

Sparebanken Øst's liabilities are made up of primarily higher risk sources of funding.

Sparebanken Øst's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Sparebanken Øst has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).

Sparebanken Øst has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Sparebanken Øst's current dividend yield, its reliability and sustainability?

7.45%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sparebanken Øst's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.54%).

Sparebanken Øst's dividend is above the markets top 25% of dividend payers in Norway (6.4%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

What is the CEO of Sparebanken Øst's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Pål Strand (54yo)

8.2yrs

Tenure

kr3,035,000

Compensation

Mr. Pål Strand serves as Managing Director of Sparebanken Øst. He was appointed as the Chief Executive Officer of Sparebanken Øst on July 1, 2011. Mr. Strand served as its Director of Private & Corporate M ...


CEO Compensation Analysis

Pål's remuneration is about average for companies of similar size in Norway.

Pål's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.5yrs

Average Tenure

54yo

Average Age

The average tenure for the Sparebanken Øst management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

60yo

Average Age

The average tenure for the Sparebanken Øst board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Sparebanken Øst individual insiders in the past 3 months.


Recent Insider Transactions

Buykr263,00012 Sep 19
Øivind Andersson
EntityIndividual
Role
Chairman of the Board
Chair of the Board of Directors
Shares5,000
Max Pricekr52.60
Buykr70,20010 Dec 18
Magne Borgersen
EntityIndividual
Shares1,300
Max Pricekr54.00
Sellkr97928 Nov 18
Elly Thoresen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares18
Max Pricekr54.40
Buykr19,94428 Nov 18
Elly Thoresen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares360
Max Pricekr55.40
Buykr3,68526 Nov 18
Magne Borgersen
EntityIndividual
Shares67
Max Pricekr55.00

Ownership Breakdown


Management Team

  • Anne Siri Jensen (58yo)

    Director of Credit Person Market & Trustee

    • Tenure: 0yrs
    • Compensation: kr3.79m
  • Arne Stokke (73yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: kr15.00k
  • Pål Strand (54yo)

    Managing Director

    • Tenure: 8.2yrs
    • Compensation: kr3.04m
  • Kjell Engen (50yo)

    Deputy CEO

    • Tenure: 0yrs
    • Compensation: kr2.44m
  • Halvor Kirkebøen (64yo)

    Head of Management & Control Department

    • Tenure: 0yrs
    • Compensation: kr1.68m
  • Arnljot Lien (54yo)

    Director of Technology

    • Tenure: 0.5yrs
    • Compensation: kr1.18m
  • Thor-Henning Bråthen (38yo)

    Chief Financial Officer

    • Tenure: 2.1yrs
    • Compensation: kr1.76m

Board Members

  • Anne Siri Jensen (58yo)

    Director of Credit Person Market & Trustee

    • Tenure: 0yrs
    • Compensation: kr3.79m
  • Jorund Indrelid (60yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: kr226.00k
  • Frank Borgen

    Chair of Trustees

    • Tenure: 0yrs
  • Tom Svendsen

    • Tenure: 0yrs
  • Arne Stokke (73yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: kr15.00k
  • Øivind Andersson (63yo)

    Chair of the Board of Directors

    • Tenure: 2.5yrs
    • Compensation: kr353.00k
  • Th Thoresen (62yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: kr155.00k
  • Ole-Martin Solberg (41yo)

    Employee Representative Director

    • Tenure: 3.4yrs
    • Compensation: kr721.00k
  • Morten Yttreeide (52yo)

    Deputy Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: kr190.00k
  • Lars Lunde

    Deputy Chair of Trustees

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Sparebanken Øst
  • Ticker: SPOG
  • Exchange: OB
  • Founded: 1843
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr1.090b
  • Shares outstanding: 20.73m
  • Website: https://www.oest.no

Number of Employees


Location

  • Sparebanken Øst
  • Bragernes Torg 2
  • Drammen
  • Buskerud
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPOGOB (Oslo Bors)YesPrimary Capital CertificatesNONOKOct 1993

Biography

Sparebanken Øst operates as a savings bank in Eastern Norway. The company offers financial products, such as savings, credit, and payment products; mortgages on homes; and debenture financing for second-ha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 20:44
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
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.