OB:SPOG

Stock Analysis Report

Sparebanken Øst

Executive Summary

Sparebanken Øst operates as a savings bank in Eastern Norway.


Snowflake Analysis

Undervalued with reasonable growth potential and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.7%

SPOG

-8.2%

NO Banks

-10.1%

NO Market


1 Year Return

-11.7%

SPOG

-0.01%

NO Banks

-9.4%

NO Market

Return vs Industry: SPOG underperformed the Norwegian Banks industry which returned 4.6% over the past year.

Return vs Market: SPOG underperformed the Norwegian Market which returned -5.6% over the past year.


Shareholder returns

SPOGIndustryMarket
7 Day-5.7%-8.2%-10.1%
30 Day-7.7%-1.3%-10.0%
90 Day-3.7%3.1%-7.2%
1 Year-4.3%-11.7%4.9%-0.01%-4.7%-9.4%
3 Year19.1%-6.5%32.2%15.9%18.9%3.9%
5 Year40.1%-6.1%68.1%33.4%43.8%11.8%

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 compared to its fair value and its price relative to the market?

34.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPOG (NOK52.6) is trading below our estimate of fair value (NOK80.67)

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


Price To Earnings Ratio

PE vs Industry: SPOG is poor value based on its PE Ratio (10.8x) compared to the Banks industry average (8.5x).

PE vs Market: SPOG is good value based on its PE Ratio (10.8x) compared to the Norwegian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: SPOG is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SPOG is good value based on its PB Ratio (0.3x) compared to the NO Banks industry average (0.5x).


Next Steps

Future Growth

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

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPOG's forecast earnings growth (21.5% per year) is above the savings rate (0.7%).

Earnings vs Market: SPOG's earnings (21.5% per year) are forecast to grow faster than the Norwegian market (18.2% per year).

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

Revenue vs Market: SPOG's revenue (6.9% per year) is forecast to grow faster than the Norwegian market (3.3% per year).

High Growth Revenue: SPOG's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPOG's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Sparebanken Øst performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPOG has high quality earnings.

Growing Profit Margin: SPOG's current net profit margins (16.9%) are higher than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: SPOG's earnings have grown by 6.3% per year over the past 5 years.

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

Earnings vs Industry: SPOG had negative earnings growth (-4.7%) over the past year, making it difficult to compare to the Banks industry average (22.2%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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

Inventory Level: SPOG has a low level of unsold assets or inventory.

Debt Coverage by Assets: SPOG's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: SPOG's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: SPOG has an appropriate level of bad loans (0.57%)


Next Steps

Dividend

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

6.84%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sparebanken Øst before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.8%marketbottom25%3.0%markettop25%6.5%industryaverage5.5%forecastin3Years7.6%

Current dividend yield vs market & industry

Notable Dividend: SPOG's dividend (6.84%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.99%).

High Dividend: SPOG's dividend (6.84%) is in the top 25% of dividend payers in the Norwegian market (6.42%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.9%), SPOG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPOG's dividends in 3 years are forecast to be covered by earnings (69.6% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Pål Strand (54yo)

8.6yrs

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

Compensation vs Market: Pål's total compensation ($USD323.09K) is about average for companies of similar size in the Norwegian market ($USD397.07K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pål Strand
Managing Director8.6yrskr3.04m0.19% NOK2.1m
Thor-Henning Bråthen
Chief Financial Officer2.5yrskr1.76m0.0097% NOK105.2k
Anne Siri Jensen
Director of Credit Person Market & Trustee0yrskr3.79m0.0020% NOK21.9k
Kjell Engen
Deputy CEO0yrskr2.44mno data
Halvor Kirkebøen
Head of Management & Control Department0yrskr1.68m0.013% NOK136.3k
Arnljot Lien
Director of Digitalization & Technology0.9yrskr1.18mno data
Arne Stokke
Director1.1yrskr15.00kno data

1.9yrs

Average Tenure

54yo

Average Age

Experienced Management: SPOG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anne Siri Jensen
Director of Credit Person Market & Trustee0yrskr3.79m0.0020% NOK21.9k
Arne Stokke
Director1.1yrskr15.00kno data
Jorund Indrelid
Director1.1yrskr226.00kno data
Frank Borgen
Chair of Trustees0yrsno data0.16% NOK1.7m
Tom Svendsen
0yrsno data0.0024% NOK26.3k
Øivind Andersson
Chair of the Board of Directors2.9yrskr353.00k0.12% NOK1.3m
Elly Thoresen
Director8.1yrskr155.00k0.0017% NOK19.0k
Ole-Martin Solberg
Employee Representative Director3.8yrskr721.00kno data
Morten Yttreeide
Deputy Chairman of the Board1.1yrskr190.00k0.19% NOK2.1m
Lars Lunde
Deputy Chair of Trustees0yrsno datano data

2.0yrs

Average Tenure

60yo

Average Age

Experienced Board: SPOG's board of directors are not considered experienced ( 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: SPOG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.8%.


Top Shareholders

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
0G45LSE (London Stock Exchange)YesPrimary Capital CertificatesGBNOKOct 1993
SPOGOBATS-CHIXE (BATS 'Chi-X Europe')YesPrimary Capital CertificatesGBNOKOct 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-hand cars, as well as services in the areas of financing, savings and investment, and money-transfer. It also distributes insurance, fund shares, interest rate hedging, currency, and letters of credit, as well as operates, manages, and sells real estate properties. The company was founded in 1843 and is headquartered in Drammen, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 21:04
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.