OB:SVEG

Stock Analysis Report

Sparebanken Vest

Executive Summary

Sparebanken Vest, a financial services company, provides banking and financing services in the counties of Hordaland, Rogaland, and Sogn og Fjordane, Norway.

Rewards

Trading at 5.7% below its fair value

Earnings are forecast to grow 17.69% per year

Earnings grew by 30.9% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.3%

SVEG

1.2%

NO Banks

0.5%

NO Market


1 Year Return

21.2%

SVEG

9.1%

NO Banks

1.5%

NO Market

Return vs Industry: SVEG exceeded the Norwegian Banks industry which returned 9.1% over the past year.

Return vs Market: SVEG exceeded the Norwegian Market which returned 1.5% over the past year.


Shareholder returns

SVEGIndustryMarket
7 Day1.3%1.2%0.5%
30 Day12.5%-1.2%0.4%
90 Day18.0%0.4%-0.5%
1 Year26.7%21.2%14.4%9.1%7.1%1.5%
3 Year62.6%33.6%39.2%22.2%33.0%16.3%
5 Year115.9%31.4%88.7%49.4%65.6%27.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SVEG (NOK62.8) is trading below our estimate of fair value (NOK66.56)

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


Price To Earnings Ratio

PE vs Industry: SVEG is poor value based on its PE Ratio (8.8x) compared to the Banks industry average (8.2x).

PE vs Market: SVEG is good value based on its PE Ratio (8.8x) compared to the Norwegian market (13.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SVEG is good value based on its PB Ratio (0.2x) compared to the NO Banks industry average (0.5x).


Next Steps

Future Growth

How is Sparebanken Vest forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVEG's forecast earnings growth (17.7% per year) is above the savings rate (0.7%).

Earnings vs Market: SVEG's earnings (17.7% per year) are forecast to grow slower than the Norwegian market (20.9% per year).

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

Revenue vs Market: SVEG's revenue (3.6% per year) is forecast to grow slower than the Norwegian market (4.3% per year).

High Growth Revenue: SVEG's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SVEG's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Sparebanken Vest performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVEG has high quality earnings.

Growing Profit Margin: SVEG's current net profit margins (11.1%) are higher than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: SVEG's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: SVEG's earnings growth over the past year (30.9%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: SVEG earnings growth over the past year (30.9%) exceeded the Banks industry 13%.


Return on Equity

High ROE: SVEG's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sparebanken Vest'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: SVEG has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

Allowance for Bad Loans: SVEG has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: SVEG has an appropriate level of bad loans (0.18%)


Next Steps

Dividend

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

3.66%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.5%markettop25%5.9%industryaverage5.1%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: SVEG's dividend (3.66%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: SVEG's dividend (3.66%) is low compared to the top 25% of dividend payers in the Norwegian market (5.91%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), SVEG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SVEG's dividends in 3 years are forecast to be well covered by earnings (46.1% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jan Kjerpeseth (48yo)

6.2yrs

Tenure

kr6,545,000

Compensation

Mr. Jan Erik Kjerpeseth has been Chairman of the Board at Bergenshalvøens Kommunale Kraftselskap AS since June 07, 2018. Mr. Kjerpeseth has been Chief Executive Officer of Sparebanken Vest since October 31 ...


CEO Compensation Analysis

Compensation vs Market: Jan's total compensation ($USD722.22K) is above average for companies of similar size in the Norwegian market ($USD529.68K).

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


Management Age and Tenure

2.8yrs

Average Tenure

48yo

Average Age

Experienced Management: SVEG's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

53yo

Average Age

Experienced Board: SVEG's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr255,89226 Aug 19
Ahb Invest As
EntityCompany
Shares4,940
Max Pricekr51.80
Buykr1,012,92019 Aug 19
Ahb Invest As
EntityCompany
Shares18,400
Max Pricekr55.05
Buykr268,10016 Aug 19
Magne Morken
EntityIndividual
Role
Vice Chairman
Deputy Chairman
Shares5,000
Max Pricekr53.62
Buykr473,40027 May 19
Ahb Invest As
EntityCompany
Shares9,000
Max Pricekr52.60
Buykr232,29008 May 19
Jan Kjerpeseth
EntityIndividual
Role
Chief Executive Officer
MD & CEO
Shares4,350
Max Pricekr53.40

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.9%.


Management Team

  • Jan Kjerpeseth (48yo)

    MD & CEO

    • Tenure: 6.2yrs
    • Compensation: kr6.55m
  • Terje Mjelde

    Head of Management Accounting

    • Tenure: 0yrs
  • Frank Johannesen (60yo)

    Executive VP & CFO

    • Tenure: 0.3yrs
    • Compensation: kr3.33m
  • Ragnhild Fresvik (39yo)

    Executive VP & Head of Corporate Market

    • Tenure: 6.1yrs
    • Compensation: kr3.50m
  • Frank Bjørndal (54yo)

    Executive VP & Head of Retail Market

    • Tenure: 2.8yrs
    • Compensation: kr2.72m
  • Siren Sundland (48yo)

    Executive VP & Head of Operational Services

    • Tenure: 4yrs
    • Compensation: kr2.90m
  • Lars Breivik

    Chief Information Officer & Head of Communication

    • Tenure: 0yrs
  • Bjørg Eknes (50yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: kr2.85m
  • Stig Vangen

    Leader IR

    • Tenure: 0yrs
  • Tina Ødegård (42yo)

    Executive VP and Head of Organization & Development

    • Tenure: 2.3yrs
    • Compensation: kr2.08m

Board Members

  • Magne Morken (61yo)

    Deputy Chairman

    • Tenure: 0.3yrs
    • Compensation: kr224.00k
  • Arild Bødal (54yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: kr228.58k
  • Richard Rettedal (48yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: kr227.20k
  • Anne-Marit Hope (60yo)

    Employee Representative Board Member

    • Tenure: 9.7yrs
    • Compensation: kr184.30k
  • Kristin Axelsen (53yo)

    Employee Representative Board Member

    • Tenure: 6.7yrs
    • Compensation: kr170.00k
  • Birthe Lange (46yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: kr198.40k
  • Borghild Ones

    Chair of Supervisory Board

    • Tenure: 4.9yrs
  • Gunnar Skeie (64yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: kr234.60k
  • Fred David Risløw (38yo)

    Employee Representative Board Member

    • Tenure: 3.8yrs
    • Compensation: kr170.00k
  • Marianne Dorthea Jacobsen (39yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: kr180.60k

Company Information

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


Key Information

  • Name: Sparebanken Vest
  • Ticker: SVEG
  • Exchange: OB
  • Founded: 1823
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr3.780b
  • Shares outstanding: 60.19m
  • Website: https://www.spv.no

Number of Employees


Location

  • Sparebanken Vest
  • Jonsvollsgaten 2
  • Bergen
  • Hordaland
  • 5011
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVEGOB (Oslo Bors)YesPrimary Capital CertificatesNONOKJan 1995
SPIZ.FOTCPK (Pink Sheets LLC)YesPrimary Capital CertificatesUSUSDJan 1995
0G67LSE (London Stock Exchange)YesPrimary Capital CertificatesGBNOKJan 1995
SVEGOBATS-CHIXE (BATS 'Chi-X Europe')YesPrimary Capital CertificatesGBNOKJan 1995
SVEG58OB (Oslo Bors)8.05%-VAR SUB BDS PERP NOK500000NONOKJun 2010

Biography

Sparebanken Vest, a financial services company, provides banking and financing services in the counties of Hordaland, Rogaland, and Sogn og Fjordane, Norway. It operates through Corporate Market, Retail Ma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 20:41
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
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.