OB:STB

Stock Analysis Report

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Executive Summary

Storebrand ASA, through its subsidiaries, primarily provides insurance products and services in Norway and Sweden.


Snowflake Analysis

Fair value with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: STB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.2%

STB

8.8%

NO Insurance

2.5%

NO Market


1 Year Return

-17.7%

STB

-12.9%

NO Insurance

-10.7%

NO Market

Return vs Industry: STB underperformed the Norwegian Insurance industry which returned -20% over the past year.

Return vs Market: STB underperformed the Norwegian Market which returned -14.4% over the past year.


Shareholder returns

STBIndustryMarket
7 Day9.2%8.8%2.5%
30 Day16.0%13.7%7.8%
90 Day1.6%-5.7%-1.1%
1 Year-17.7%-17.7%-8.3%-12.9%-7.8%-10.7%
3 Year9.8%1.1%6.8%-8.0%-3.9%3.2%
5 Year93.4%73.4%25.2%-2.8%36.5%7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STB (NOK51.32) is trading below our estimate of fair value (NOK64.51)

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


Price To Earnings Ratio

PE vs Industry: STB is poor value based on its PE Ratio (13x) compared to the Insurance industry average (9.2x).

PE vs Market: STB is poor value based on its PE Ratio (13x) compared to the Norwegian market (12x).


Price to Earnings Growth Ratio

PEG Ratio: STB is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: STB is good value based on its PB Ratio (0.7x) compared to the XE Insurance industry average (1x).


Next Steps

Future Growth

How is Storebrand forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STB's forecast earnings growth (6.4% per year) is above the savings rate (1.6%).

Earnings vs Market: STB's earnings (6.4% per year) are forecast to grow slower than the Norwegian market (35.3% per year).

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

Revenue vs Market: STB's revenue is expected to decline over the next 3 years (-35.6% per year).

High Growth Revenue: STB's revenue is forecast to decline over the next 3 years (-35.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STB's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Storebrand performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STB has high quality earnings.

Growing Profit Margin: STB's current net profit margins (4.4%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: STB's earnings have grown by 14.2% per year over the past 5 years.

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

Earnings vs Industry: STB had negative earnings growth (-46.7%) over the past year, making it difficult to compare to the Insurance industry average (9.3%).


Return on Equity

High ROE: STB's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Storebrand's financial position?


Financial Position Analysis

Short Term Liabilities: STB's short term assets (NOK28.1B) do not cover its short term liabilities (NOK39.2B).

Long Term Liabilities: STB's short term assets (NOK28.1B) do not cover its long term liabilities (NOK575.4B).


Debt to Equity History and Analysis

Debt Level: STB's debt to equity ratio (92.2%) is considered high.

Reducing Debt: STB's debt to equity ratio has increased from 91.4% to 92.2% over the past 5 years.

Debt Coverage: STB's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: STB's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

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

6.40%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate STB'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 STB's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STB'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?

0.8yrs

Average management tenure


CEO

Odd Grefstad (54yo)

8yrs

Tenure

kr8,443,000

Compensation

Mr. Odd Arild Grefstad has been Chief Executive Officer of Storebrand ASA since June 1, 2012 and also served as its Managing Director. Mr. Grefstad served as the Chairman of the Board of Directors at Skage ...


CEO Compensation Analysis

Compensation vs Market: Odd's total compensation ($USD884.06K) is about average for companies of similar size in the Norwegian market ($USD868.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Odd Grefstad
Group Chief Executive Officer8yrskr8.44m0.042% NOK10.6m
Lars Løddesøl
Group Chief Financial Officer9.25yrskr6.58m0.026% NOK6.6m
Trygve Håkedal
Executive Vice President of Technology0.83yrkr2.94m0.0034% NOK878.8k
Karin Flaa
Executive Vice President of Communications & Investor Relations - Storebrandno datakr3.10m0.0045% NOK1.1m
Tove Selnes
Executive Vice President of People0.83yrkr3.45m0.0047% NOK1.2m
Heidi Skaaret
Executive Vice President of Norwegian Retail Market0.83yrkr5.48m0.020% NOK5.2m
Jan Saugestad
Executive Vice President of Asset Management4.75yrskr7.19m0.022% NOK5.5m
Geir Holmgren
Managing Director of Customer Service & Productno datakr5.58m0.018% NOK4.6m
Staffan Hansén
Executive Vice President of SPP Pension & Insurance ABno datakr6.78m0.018% NOK4.6m
Terje Løken
Executive Vice President of Digital & Innovation0.83yrkr3.04m0.0035% NOK899.2k

0.8yrs

Average Tenure

52yo

Average Age

Experienced Management: STB's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Didrik Munch
Independent Chairman of the Board3.17yrskr855.00k0.0086% NOK2.2m
Terje Venold
Chairman of the Board of Representativesno datano datano data
Rune Pedersen
Observer and Member of Board of Representativesno datano datano data
Vibeke Madsen
Deputy Chairman of Board of Representativesno datano datano data
Karin Orgland
Independent Director5.08yrskr523.00k0.0058% NOK1.5m
Laila Dahlen
Independent Director7.25yrskr392.00k0.0033% NOK845.7k
Per Dyb
Chairman of Nominating Committeeno datano datano data
Martin Skancke
Independent Director5.75yrskr628.00k0.0053% NOK1.4m
Liv Sandbæk
Independent Director2.17yrskr438.00kno data
Karl Sandlund
Independent Director1.17yrskr327.00k0.00064% NOK163.0k

4.1yrs

Average Tenure

60yo

Average Age

Experienced Board: STB's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STB 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

Storebrand ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Storebrand ASA
  • Ticker: STB
  • Exchange: OB
  • Founded: 1767
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: kr25.473b
  • Shares outstanding: 467.39m
  • Website: https://www.storebrand.no

Number of Employees


Location

  • Storebrand ASA
  • Professor Kohts vei 9
  • P.O. Box 500
  • Lysaker
  • Akershus
  • 1327
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRED.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
STBOB (Oslo Bors)YesOrdinary SharesNONOKJan 1992
SKTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0NO0LSE (London Stock Exchange)YesOrdinary SharesGBNOKJan 1992
STBOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJan 1992
SRED.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Storebrand ASA, through its subsidiaries, primarily provides insurance products and services in Norway and Sweden. It operates through four segments: Savings, Guaranteed Pension, Insurance, and Other. The Savings segment offers retirement savings, defined contribution pensions, asset management, and retail banking products. The Insurance segment provides health insurance, property and casualty insurance, personal risk products, employer’s liability insurance, and pension-related insurance products. The Guaranteed Pension segment offers long-term pension savings products, such as defined benefit pensions, paid-up policies, and individual capital and pension insurance products. The Other segment provides life insurance products; and loans. The company also offers securities, and banking and investment services. It serves private individuals, corporate and retail markets, companies, municipalities, and public sector. Storebrand ASA was founded in 1767 and is headquartered in Lysaker, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 11:47
End of Day Share Price2020/06/04 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.