OM:SEB A

Stock Analysis Report

Skandinaviska Enskilda Banken AB (publ.)

Executive Summary

Skandinaviska Enskilda Banken AB (publ.) provides corporate, retail, investment, and private banking services in Sweden and internationally.

Rewards

Trading at 4.4% below its fair value

Earnings are forecast to grow 3.11% per year

Pays a high and reliable dividend of 7.15%

Risk Analysis

No risks detected for SEB A from our risk checks.


Snowflake Analysis

6 star dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Skandinaviska Enskilda Banken AB (publ.)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.2%

SEB A

2.7%

SE Banks

1.9%

SE Market


1 Year Return

-5.8%

SEB A

-17.5%

SE Banks

24.0%

SE Market

Return vs Industry: SEB A exceeded the Swedish Banks industry which returned -17.5% over the past year.

Return vs Market: SEB A underperformed the Swedish Market which returned 24% over the past year.


Shareholder returns

SEB AIndustryMarket
7 Day3.2%2.7%1.9%
30 Day-11.6%-8.2%-0.04%
90 Day-6.0%-4.5%7.8%
1 Year1.1%-5.8%-9.6%-17.5%29.2%24.0%
3 Year4.0%-13.9%-15.0%-31.6%34.2%13.6%
5 Year18.4%-11.8%-2.4%-26.1%63.5%28.3%

Price Volatility Vs. Market

How volatile is Skandinaviska Enskilda Banken AB (publ.)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Skandinaviska Enskilda Banken AB (publ.) undervalued compared to its fair value and its price relative to the market?

4.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEB A (SEK83.92) is trading below our estimate of fair value (SEK87.75)

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


Price To Earnings Ratio

PE vs Industry: SEB A is poor value based on its PE Ratio (9.6x) compared to the Banks industry average (9.6x).

PE vs Market: SEB A is good value based on its PE Ratio (9.6x) compared to the Swedish market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: SEB A is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: SEB A is overvalued based on its PB Ratio (1.2x) compared to the SE Banks industry average (1.2x).


Next Steps

Future Growth

How is Skandinaviska Enskilda Banken AB (publ.) forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEB A's forecast earnings growth (3.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: SEB A's earnings (3.1% per year) are forecast to grow slower than the Swedish market (9.4% per year).

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

Revenue vs Market: SEB A's revenue (2.9% per year) is forecast to grow slower than the Swedish market (4.4% per year).

High Growth Revenue: SEB A's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SEB A's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Skandinaviska Enskilda Banken AB (publ.) performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEB A has high quality earnings.

Growing Profit Margin: SEB A's current net profit margins (41.1%) are lower than last year (48.2%).


Past Earnings Growth Analysis

Earnings Trend: SEB A's earnings have grown by 5.2% per year over the past 5 years.

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

Earnings vs Industry: SEB A had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Banks industry average (-6.8%).


Return on Equity

High ROE: SEB A's Return on Equity (13%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Skandinaviska Enskilda Banken AB (publ.)'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: SEB A has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

Asset Level: SEB A's level of assets compared to its equity is very high.

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

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

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

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

Level of Bad Loans: SEB A has an appropriate level of bad loans (0.66%)


Next Steps

Dividend

What is Skandinaviska Enskilda Banken AB (publ.)'s current dividend yield, its reliability and sustainability?

7.15%

Current Dividend Yield


Dividend Yield vs Market

company7.1%marketbottom25%1.6%markettop25%4.7%industryaverage6.0%forecastin3Years8.0%

Current dividend yield vs market & industry

Notable Dividend: SEB A's dividend (7.15%) is higher than the bottom 25% of dividend payers in the Swedish market (1.61%).

High Dividend: SEB A's dividend (7.15%) is in the top 25% of dividend payers in the Swedish market (4.75%)


Stability and Growth of Payments

Stable Dividend: SEB A's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.5%), SEB A's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SEB A's dividends in 3 years are forecast to be covered by earnings (75.7% payout ratio).


Next Steps

Management

What is the CEO of Skandinaviska Enskilda Banken AB (publ.)'s salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Johan Torgeby (45yo)

2.8yrs

Tenure

kr16,430,000

Compensation

Mr. Johan Torgeby has been the Chief Executive Officer and President at Skandinaviska Enskilda Banken AB (publ) since March 29, 2017. Mr. Torgeby served as Co-Head of Division Large Corporates & Financial  ...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD1.72M) is about average for companies of similar size in the Swedish market ($USD1.82M).

Compensation vs Earnings: Johan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.2yrs

Average Tenure

47yo

Average Age

Experienced Management: SEB A's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SEB A's board of directors are considered experienced (6.3 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

Buykr31,60826 Feb 19
Jeanette Almberg
EntityIndividual
Shares339
Max Pricekr93.24

Ownership Breakdown

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


Management Team

  • John Abrahamson (61yo)

    Head of Corporate Finance Unit

    • Tenure: 14.5yrs
  • Johan Torgeby (45yo)

    President

    • Tenure: 2.8yrs
    • Compensation: kr16.43m
  • Javiera Ragnartz

    Head of Investment Management Division

    • Tenure: 0yrs
  • Gent Jansson

    Head of Group Compliance

    • Tenure: 0yrs
  • Ainar Leppänen (47yo)

    Head of Retail & Banking Technology and Member of Management Board

    • Tenure: 3.6yrs
  • Christoffer Geijer

    Head of Investor Relations

    • Tenure: 1.7yrs
  • Nina Korfu-Pedersen (46yo)

    Head of Group Finance

    • Tenure: 3.9yrs
  • Ausra Matuseviciene (46yo)

    Head of Operations

    • Tenure: 4.9yrs
  • Nicholas Moch (47yo)

    Chief Information Officer

    • Tenure: 1.9yrs
  • Petra Ålund (52yo)

    Head of Technology

    • Tenure: 0.7yrs

Board Members

  • Winnie Fok (63yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: kr965.00k
  • Marcus Wallenberg (63yo)

    Chairman of the Board

    • Tenure: 14.7yrs
    • Compensation: kr3.75m
  • Sven Nyman (60yo)

    Vice Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: kr930.00k
  • Johan Andresen (58yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: kr700.00k
  • Helena Saxon (49yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: kr1.13m
  • Signhild Hansen (59yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: kr1.09m
  • Jens Ovesen (62yo)

    Vice Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: kr1.75m
  • Samir Brikho (61yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: kr1.05m
  • Johan Torgeby (45yo)

    President

    • Tenure: 2.8yrs
    • Compensation: kr16.43m
  • Håkan Westerberg (51yo)

    Director

    • Tenure: 4.9yrs

Company Information

Skandinaviska Enskilda Banken AB (publ.)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Skandinaviska Enskilda Banken AB (publ.)
  • Ticker: SEB A
  • Exchange: OM
  • Founded: 1856
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr181.489b
  • Shares outstanding: 2.16b
  • Website: https://www.sebgroup.com

Number of Employees


Location

  • Skandinaviska Enskilda Banken AB (publ.)
  • Kungsträdgårdsgatan 8
  • Stockholm
  • Stockholm County
  • 106 40
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVKE.FOTCPK (Pink Sheets LLC)YesSeries A SharesUSUSDJan 1980
SEB AOM (OMX Nordic Exchange Stockholm)YesSeries A SharesSESEKJan 1980
SEBADB (Deutsche Boerse AG)YesSeries A SharesDEEURJan 1980
0HBYLSE (London Stock Exchange)YesSeries A SharesGBSEKJan 1980
SEBASBATS-CHIXE (BATS 'Chi-X Europe')YesSeries A SharesGBSEKJan 1980
SEB COM (OMX Nordic Exchange Stockholm)Series C SharesSESEKAug 1992
SEBCDB (Deutsche Boerse AG)Series C SharesDEEURAug 1992
0GUXLSE (London Stock Exchange)Series C SharesGBSEKAug 1992
SEBCSBATS-CHIXE (BATS 'Chi-X Europe')Series C SharesGBSEKAug 1992
SKVK.YOTCPK (Pink Sheets LLC)SPONADR REPSHS AUSUSDNov 2013

Biography

Skandinaviska Enskilda Banken AB (publ.) provides corporate, retail, investment, and private banking services in Sweden and internationally. It operates through Large Corporates & Financial Institutions, C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 20:48
End of Day Share Price2019/12/09 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.