OB:STB

Stock Analysis Report

Executive Summary

Storebrand ASA, through its subsidiaries, primarily provides insurance products and services for private individuals, companies, municipalities, and public sector in Norway and Sweden.

Rewards

Trading at 31.3% below its fair value

Earnings are forecast to grow 2.27% per year

Earnings grew by 41.2% over the past year

Risk Analysis

Dividend of 4.25% is not well covered by earnings



Snowflake Analysis

Undervalued with solid 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

STB

-0.5%

NO Insurance

0.8%

NO Market


1 Year Return

12.5%

STB

13.4%

NO Insurance

3.7%

NO Market

Return vs Industry: STB matched the Norwegian Insurance industry which returned 14.4% over the past year.

Return vs Market: STB exceeded the Norwegian Market which returned 4.5% over the past year.


Shareholder returns

STBIndustryMarket
7 Day2.8%-0.5%0.8%
30 Day5.9%-0.7%2.7%
90 Day20.2%3.1%6.0%
1 Year17.5%12.5%20.7%13.4%9.3%3.7%
3 Year71.8%54.0%41.5%20.8%33.6%17.0%
5 Year229.3%195.2%56.7%20.2%66.0%27.8%

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?

28.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STB (NOK70.6) is trading below our estimate of fair value (NOK102.69)

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


Price To Earnings Ratio

PE vs Industry: STB is good value based on its PE Ratio (10.1x) compared to the Insurance industry average (12.8x).

PE vs Market: STB is good value based on its PE Ratio (10.1x) compared to the Norwegian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: STB is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: STB is good value based on its PB Ratio (1x) compared to the XE Insurance industry average (1.2x).


Next Steps

Future Growth

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

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STB's forecast earnings growth (2.3% per year) is above the savings rate (0.7%).

Earnings vs Market: STB's earnings (2.3% per year) are forecast to grow slower than the Norwegian market (20.2% 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 (-70.8% per year).

High Growth Revenue: STB's revenue is forecast to decline over the next 3 years (-70.8% 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 (7.5%).


Next Steps

Past Performance

How has Storebrand performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STB has high quality earnings.

Growing Profit Margin: STB's current net profit margins (4.9%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: STB's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: STB's earnings growth over the past year (41.2%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: STB earnings growth over the past year (41.2%) exceeded the Insurance industry 8.5%.


Return on Equity

High ROE: STB's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Storebrand'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: STB has a low level of unsold assets or inventory.

Debt Coverage by Assets: STB's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: Insufficient data to determine if STB has a sufficient allowance for bad loans.

Low Risk Liabilities: STB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if STB has an acceptable proportion of non-loan assets held.

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

Level of Bad Loans: Insufficient data to determine if STB has an appropriate level of bad loans.


Next Steps

Dividend

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

4.09%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.3%markettop25%5.7%industryaverage4.6%forecastin3Years6.4%

Current dividend yield vs market & industry

Notable Dividend: STB's dividend (4.25%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.4%).

High Dividend: STB's dividend (4.25%) is low compared to the top 25% of dividend payers in the Norwegian market (5.71%).


Stability and Growth of Payments

Stable Dividend: STB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: STB's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.1%), STB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STB's dividends in 3 years are not forecast to be well covered by earnings (133.7% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Odd Grefstad (54yo)

7.6yrs

Tenure

kr8,208,000

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 ($USD924.62K) is about average for companies of similar size in the Norwegian market ($USD925.23K).

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


Management Age and Tenure

2.4yrs

Average Tenure

54yo

Average Age

Experienced Management: STB's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

60yo

Average Age

Experienced Board: STB's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: STB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr75,53211 Dec 19
Arne Håstein
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,150
Max Pricekr65.68
Buykr53,00019 Aug 19
Lars Løddesøl
EntityIndividual
Role
Chief Financial Officer
Group Chief Financial Officer
Shares1,000
Max Pricekr53.00
Buykr190,08005 Aug 19
Heidi Skaaret
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Norwegian Retail Market
Shares3,300
Max Pricekr57.60
Buykr123,48012 Jul 19
Odd Grefstad
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive Officer
Shares2,000
Max Pricekr61.74
Buykr218,88912 Jul 19
Martin Skancke
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,586
Max Pricekr61.04
Buykr64,15512 Jul 19
Lars Løddesøl
EntityIndividual
Role
Chief Financial Officer
Group Chief Financial Officer
Shares1,050
Max Pricekr61.10
Buykr63,04031 May 19
Lars Løddesøl
EntityIndividual
Role
Chief Financial Officer
Group Chief Financial Officer
Shares1,000
Max Pricekr63.04
Buykr130,90027 May 19
Laila Dahlen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max Pricekr65.45
Buykr334,95016 May 19
Didrik Munch
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares5,000
Max Pricekr66.99
Buykr197,88015 May 19
Karl Sandlund
EntityIndividual
Shares3,000
Max Pricekr65.96
Buykr24,24608 May 19
Arne Håstein
EntityIndividual
Role
Member of the Board of Directors
Director
Shares355
Max Pricekr68.30
Buykr137,16008 May 19
Martin Skancke
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max Pricekr68.58
Buykr807,60025 Feb 19
Didrik Munch
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares12,000
Max Pricekr67.30

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Lars Løddesøl (55yo)

    Group Chief Financial Officer

    • Tenure: 8.8yrs
    • Compensation: kr6.33m
  • Odd Grefstad (54yo)

    Group Chief Executive Officer

    • Tenure: 7.6yrs
    • Compensation: kr8.21m
  • Heidi Skaaret (58yo)

    Executive Vice President of Norwegian Retail Market

    • Tenure: 0.4yrs
    • Compensation: kr5.22m
  • Jan Saugestad (54yo)

    Executive Vice President of Asset Management

    • Tenure: 4.3yrs
    • Compensation: kr6.95m
  • Staffan Hansén (54yo)

    Executive Vice President of SPP Pension & Insurance AB

    • Compensation: kr6.12m
  • Karin Greve-Isdahl (40yo)

    Executive Vice President of Communications & Investor Relations - Storebrand

    • Compensation: kr2.94m
  • Geir Holmgren (47yo)

    Managing Director of Customer Service & Product

    • Compensation: kr5.27m
  • Kjetil Krøkje

    Head of Investor Relations

    • Tove Selnes (50yo)

      Executive Vice President of People

      • Tenure: 0.4yrs
    • Trygve Håkedal (40yo)

      Executive Vice President of Technology

      • Tenure: 0.4yrs

    Board Members

    • Didrik Munch (63yo)

      Chairman of the Board

      • Tenure: 2.8yrs
      • Compensation: kr760.00k
    • Terje Venold (69yo)

      Chairman of the Board of Representatives

      • Rune Pedersen

        Observer and Member of Board of Representatives

        • Vibeke Madsen (64yo)

          Deputy Chairman of Board of Representatives

          • Heidi Storruste (54yo)

            Director

            • Tenure: 7yrs
            • Compensation: kr433.00k
          • Karin Orgland (60yo)

            Independent Director

            • Tenure: 4.7yrs
            • Compensation: kr482.00k
          • Laila Dahlen (51yo)

            Independent Director

            • Tenure: 6.8yrs
            • Compensation: kr340.00k
          • Per Dyb (64yo)

            Chairman of Nominating Committee

            • Martin Skancke (53yo)

              Independent Director

              • Tenure: 5.3yrs
              • Compensation: kr720.00k
            • Arne Håstein (46yo)

              Director

              • Tenure: 5.7yrs
              • Compensation: kr355.00k

            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: kr34.212b
            • Shares outstanding: 466.87m
            • Website: https://www.storebrand.no

            Number of Employees


            Location

            • Storebrand ASA
            • Professor Kohts vei 9
            • Lysaker
            • Akershus
            • 1366
            • 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 for private individuals, companies, municipalities, and public sector in Norway and Sweden. It operates through Savings, Insurance, Guaranteed Pension, and Other segments. The Savings segment offers pension saving products, including retirement, defined contribution pensions, asset management, and retail banking products for private individuals. The Insurance segment provides health insurance, property and casualty insurance, personal risk products, employer’s liability insurance, and pension-related insurance products to the corporate and retail markets. The Guaranteed Pension segment offers long-term pension savings products, such as retirement, defined benefit pensions, paid-up policies, and individual capital and pension insurance products. The Other segment provides life insurance products; and lending products to commercial enterprises. 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 Analysis2020/01/20 20:40
            End of Day Share Price2020/01/20 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.