Skandinaviska Enskilda Banken (OM:SEB A) - Share price, News & Analysis

SEB A fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	4/6
Financial Health	4/6
Dividends	5/6

SEB A Stock Overview

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

Rewards

Trading at 53.9% below our estimate of its fair value

Earnings are forecast to grow 2.81% per year

Earnings grew by 33% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Skandinaviska Enskilda Banken Competitors

Nordea Bank Abp

OM:NDA SE

kr368.7b

Svenska Handelsbanken

OM:SHB A

kr195.1b

Swedbank

OM:SWED A

kr169.2b

Samsung Electronics

KOSE:A005930

₩452.8t

Price History & Performance

Summary of all time highs, changes and price drops for Skandinaviska Enskilda Banken
Historical stock prices
Current Share Price	kr109.80
52 Week High	kr141.85
52 Week Low	kr91.64
Beta	0.97
1 Month Change	3.29%
3 Month Change	-9.89%
1 Year Change	0.55%
3 Year Change	23.04%
5 Year Change	3.88%
Change since IPO	103.33%

Recent News & Updates

Mar 15

Most Shareholders Will Probably Agree With Skandinaviska Enskilda Banken AB (publ)'s (STO:SEB A) CEO Compensation

Under the guidance of CEO Johan Torgeby, Skandinaviska Enskilda Banken AB (publ) ( STO:SEB A ) has performed reasonably...

Shareholder Returns

	SEB A	SE Banks	SE Market
7D	5.7%	5.0%	5.8%
1Y	0.5%	4.1%	-11.6%

Return vs Industry: SEB A underperformed the Swedish Banks industry which returned 4.7% over the past year.

Return vs Market: SEB A exceeded the Swedish Market which returned -11.6% over the past year.

Price Volatility

Is SEB A's price volatile compared to industry and market?
SEB A volatility
SEB A Average Weekly Movement	6.0%
Banks Industry Average Movement	5.8%
Market Average Movement	8.0%
10% most volatile stocks in SE Market	12.9%
10% least volatile stocks in SE Market	5.1%

Stable Share Price: SEB A is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SEB A's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1856	16,066	Johan Torgeby	https://sebgroup.com

Skandinaviska Enskilda Banken AB (publ) provides corporate, retail, investment, and private banking services. It operates through Large Corporates & Financial Institutions, Corporate & Private Customers, Baltic, Life, and Investment Management divisions. The company offers research and strategy services; analysis, advisory, execution, and trading services in the foreign exchange, fixed income, equities, and commodities markets; transaction services, including cash management, trade and supply chain finance, and business services; and investor services.

Skandinaviska Enskilda Banken Fundamentals Summary

How do Skandinaviska Enskilda Banken's earnings and revenue compare to its market cap?
SEB A fundamental statistics
Market Cap	kr235.97b
Earnings (TTM)	kr25.81b
Revenue (TTM)	kr54.88b

9.1x

P/E Ratio

1.3x

P/B Ratio

Is SEB A overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SEB A income statement (TTM)
Revenue	kr54.88b
Cost of Revenue	kr0
Gross Profit	kr54.88b
Other Expenses	kr29.08b
Earnings	kr25.81b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 14, 2022

Earnings per share (EPS)	12.02
Gross Margin	100.00%
Net Profit Margin	47.02%
Debt/Equity Ratio	532.8%

How did SEB A perform over the long term?

See historical performance and comparison

Dividends

10.9%

Current Dividend Yield

85%

Payout Ratio

Valuation

Is Skandinaviska Enskilda Banken undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SEB A (SEK109.8) is trading below our estimate of fair value (SEK238.03)

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

Price To Earnings Ratio

PE vs Industry: SEB A is good value based on its PE Ratio (9.1x) compared to the Swedish Banks industry average (9.8x).

PE vs Market: SEB A is good value based on its PE Ratio (9.1x) compared to the Swedish market (17.8x).

Price to Earnings Growth Ratio

PEG Ratio: SEB A is poor value based on its PEG Ratio (3.2x)

Price to Book Ratio

PB vs Industry: SEB A's PB Ratio (1.3x) is in line with the SE Banks industry average.

Future Growth

How is Skandinaviska Enskilda Banken forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEB A's forecast earnings growth (2.8% per year) is above the savings rate (0.3%).

Earnings vs Market: SEB A's earnings (2.8% per year) are forecast to grow slower than the Swedish market (9.5% per year).

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

Revenue vs Market: SEB A's revenue (3.5% per year) is forecast to grow slower than the Swedish market (5.7% per year).

High Growth Revenue: SEB A's revenue (3.5% 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%).

Past Performance

How has Skandinaviska Enskilda Banken performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SEB A has a high level of non-cash earnings.

Growing Profit Margin: SEB A's current net profit margins (47%) are higher than last year (40.1%).

Past Earnings Growth Analysis

Earnings Trend: SEB A's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: SEB A's earnings growth over the past year (33%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: SEB A earnings growth over the past year (33%) exceeded the Banks industry 30.5%.

Return on Equity

High ROE: SEB A's Return on Equity (13.8%) is considered low.

Financial Health

How is Skandinaviska Enskilda Banken's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

4/6

Financial Health Score 4/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: SEB A's Assets to Equity ratio (20.2x) is very high.

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

Low Risk Liabilities: 56% of SEB A's liabilities are made up of primarily low risk sources of funding.

Loan Level: SEB A has an appropriate level of Loans to Assets ratio (51%).

Low Risk Deposits: SEB A's Loans to Deposits ratio (96%) is appropriate.

Level of Bad Loans: SEB A has an appropriate level of bad loans (0.4%).

Dividend

What is Skandinaviska Enskilda Banken current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

10.93%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SEB A's dividend (10.93%) is higher than the bottom 25% of dividend payers in the Swedish market (1.41%).

High Dividend: SEB A's dividend (10.93%) is in the top 25% of dividend payers in the Swedish market (4.73%)

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Earnings Coverage: At its current payout ratio (84.6%), SEB A's 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 (54.8% payout ratio).

Next Steps

Explore strong dividend paying companies in the Banks industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure

CEO

Johan Torgeby (47 yo)

5.17yrs

Tenure

kr21,093,000

Compensation

Mr. Johan Torgeby serves as Director at Mölnlycke Health Care AB since March 16, 2021. He has been Group Chief Executive Officer and President at Skandinaviska Enskilda Banken AB (publ) (Formerly Skandinav...

CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD2.13M) is about average for companies of similar size in the Swedish market ($USD2.59M).

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

Leadership Team

Experienced Management: SEB A's management team is considered experienced (4.2 years average tenure).

Board Members

Experienced Board: SEB A's board of directors are considered experienced (6.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: SEB A insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31