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%

SPOG

4.3%

NO Banks

1.9%

NO Market


1 Year Return

-3.3%

SPOG

-1.9%

NO Banks

-8.2%

NO Market

Return vs Industry: SPOG underperformed the Norwegian Banks industry which returned -1.9% over the past year.

Return vs Market: SPOG exceeded the Norwegian Market which returned -8.2% over the past year.


Share holder returns

SPOGIndustryMarket
7 Day0%4.3%1.9%
30 Day-0.8%1.2%0.007%
90 Day-3.0%-1.3%-0.7%
1 Year4.9%-3.3%2.8%-1.9%-3.3%-8.2%
3 Year32.9%4.4%58.1%39.0%40.8%22.5%
5 Year58.8%6.5%89.5%50.1%63.9%26.3%

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?

9.96x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: SPOG (NOK52.2) is trading above our estimate of fair value (NOK50.48)

Significantly Undervalued: SPOG is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: SPOG is poor value based on its PE Ratio (10x) compared to the Banks industry average (7.9x).

PE vs Market: SPOG is good value based on its PE Ratio (10x) compared to the Norwegian market (13.3x).


Price Based on Expected Growth

Low PEG Ratio: SPOG is good value based on its PEG Ratio (0.8x)


Price Based on Value of Assets

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 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

Earnings vs Savings Rate: SPOG's forecast earnings growth (12.8% per year) is above the savings rate (1.8%).

Earnings vs Market: SPOG's earnings (12.8% per year) are forecast to grow slower than the Norwegian market (15% per year).

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

Revenue vs Market: SPOG's revenue (6.6% per year) is forecast to grow faster than the Norwegian market (4.9% per year).

High Growth Revenue: SPOG's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: SPOG's Return on Equity is forecast to be low in 3 years time (8.1%).


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

Earnings Trend: SPOG's earnings have declined by -2% 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 (-7.9%) over the past year, making it difficult to compare to the Banks industry average (13.3%).


Return on Equity

High ROE: SPOG's Return on Equity (8.2%) is considered low.


Return on Assets

ROA vs Industry: SPOG's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SPOG's Return on Capital Employed to determine if it has improved over the past 3 years.


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?

7.50%

Expected Dividend Yield


Dividend Yield vs Market

company8.8%marketbottom25%2.6%markettop25%6.3%industryaverage5.5%forecastin3Years7.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SPOG's dividend (8.81%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.56%).

High Dividend: SPOG's dividend (8.81%) is in the top 25% of dividend payers in the Norwegian market (6.31%)

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.7%), SPOG's 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 (79.5% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Pål Strand (54yo)

8.3yrs

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 ($USD335.20K) is about average for companies of similar size in the Norwegian market ($USD332.33K).

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


Management Age and Tenure

1.6yrs

Average Tenure

54yo

Average Age

Experienced Management: SPOG's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

60yo

Average Age

Experienced Board: SPOG's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SPOG insiders have bought more shares than they have sold 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: 0.8yrs
    • Compensation: kr15.00k
  • Pål Strand (54yo)

    Managing Director

    • Tenure: 8.3yrs
    • 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 Digitalization & Technology

    • Tenure: 0.6yrs
    • Compensation: kr1.18m
  • Thor-Henning Bråthen (38yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • 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: 0.8yrs
    • Compensation: kr226.00k
  • Frank Borgen

    Chair of Trustees

    • Tenure: 0yrs
  • Tom Svendsen

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

    Director

    • Tenure: 0.8yrs
    • Compensation: kr15.00k
  • Øivind Andersson (63yo)

    Chair of the Board of Directors

    • Tenure: 2.6yrs
    • Compensation: kr353.00k
  • Th Thoresen (62yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: kr155.00k
  • Ole-Martin Solberg (41yo)

    Employee Representative Director

    • Tenure: 3.5yrs
    • Compensation: kr721.00k
  • Morten Yttreeide (52yo)

    Deputy Chairman of the Board

    • Tenure: 0.8yrs
    • 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: kr1.082b
  • 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 Analysis2019/10/12 20:58
End of Day Share Price2019/10/11 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.

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