OM:SHB A

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Svenska Handelsbanken

Market Cap

kr190.8b

Last Updated

2021/07/24 19:57 UTC

Data Sources

Company Financials +

Executive Summary

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, Denmark, Finland, the Netherlands, and internationally. More Details


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: SHB A's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

SHB A

-1.0%

SE Banks

2.9%

SE Market


1 Year Return

11.8%

SHB A

26.9%

SE Banks

44.6%

SE Market

Return vs Industry: SHB A underperformed the Swedish Banks industry which returned 26.9% over the past year.

Return vs Market: SHB A underperformed the Swedish Market which returned 44.6% over the past year.


Shareholder returns

SHB AIndustryMarket
7 Day-2.9%-1.0%2.9%
30 Day-2.1%1.8%7.8%
90 Day2.1%11.0%8.3%
1 Year16.5%11.8%30.8%26.9%49.9%44.6%
3 Year-1.8%-10.7%11.8%-0.6%77.9%60.6%
5 Year14.7%-6.6%46.4%15.0%117.6%75.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SHB A (SEK96.22) is trading below our estimate of fair value (SEK153.48)

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


Price To Earnings Ratio

PE vs Industry: SHB A is good value based on its PE Ratio (11.3x) compared to the Swedish Banks industry average (11.6x).

PE vs Market: SHB A is good value based on its PE Ratio (11.3x) compared to the Swedish market (23.3x).


Price to Earnings Growth Ratio

PEG Ratio: SHB A is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: SHB A is good value based on its PB Ratio (1.1x) compared to the SE Banks industry average (1.3x).


Future Growth

How is Svenska Handelsbanken forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHB A's forecast earnings growth (4.6% per year) is above the savings rate (0.3%).

Earnings vs Market: SHB A's earnings (4.6% per year) are forecast to grow faster than the Swedish market (4.3% per year).

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

Revenue vs Market: SHB A's revenue (2.8% per year) is forecast to grow faster than the Swedish market (2.7% per year).

High Growth Revenue: SHB A's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHB A's Return on Equity is forecast to be low in 3 years time (10.2%).


Past Performance

How has Svenska Handelsbanken performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHB A has high quality earnings.

Growing Profit Margin: SHB A's current net profit margins (37.1%) are higher than last year (36.6%).


Past Earnings Growth Analysis

Earnings Trend: SHB A's earnings have declined by 0.4% per year over the past 5 years.

Accelerating Growth: SHB A's earnings growth over the past year (6%) exceeds its 5-year average (-0.4% per year).

Earnings vs Industry: SHB A earnings growth over the past year (6%) underperformed the Banks industry 36.6%.


Return on Equity

High ROE: SHB A's Return on Equity (9.4%) is considered low.


Financial Health

How is Svenska Handelsbanken'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


Financial Institutions Analysis

Asset Level: SHB A's Assets to Equity ratio (19.2x) is moderate.

Allowance for Bad Loans: SHB A has a low allowance for bad loans (45%).

Low Risk Liabilities: 57% of SHB A's liabilities are made up of primarily higher risk sources of funding.

Loan Level: SHB A has an appropriate level of Loans to Assets ratio (69%).

Low Risk Deposits: SHB A's Loans to Deposits ratio (167%) is high.

Level of Bad Loans: SHB A has an appropriate level of bad loans (0.3%).


Dividend

What is Svenska Handelsbanken current dividend yield, its reliability and sustainability?

4.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHB A's dividend (4.26%) is higher than the bottom 25% of dividend payers in the Swedish market (0.95%).

High Dividend: SHB A's dividend (4.26%) is in the top 25% of dividend payers in the Swedish market (3.5%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.3%), SHB A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHB A's dividends in 3 years are forecast to be covered by earnings (74.7% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Carina Akerstrom (59 yo)

2.33yrs

Tenure

kr17,300,000

Compensation

Ms. Carina Akerstrom has been President, Group Chief Executive and Executive Director of Svenska Handelsbanken AB (publ) since March 27, 2019. Ms. Akerstrom served as Deputy Group Chief Executive at Svensk...


CEO Compensation Analysis

Compensation vs Market: Carina's total compensation ($USD1.99M) is about average for companies of similar size in the Swedish market ($USD2.40M).

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


Leadership Team

Experienced Management: SHB A's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: SHB A's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Svenska Handelsbanken AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Svenska Handelsbanken AB (publ)
  • Ticker: SHB A
  • Exchange: OM
  • Founded: 1871
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr190.775b
  • Shares outstanding: 1.98b
  • Website: https://www.handelsbanken.se

Number of Employees


Location

  • Svenska Handelsbanken AB (publ)
  • Kungsträdgårdsgatan 2
  • Stockholm
  • Stockholm County
  • 106 70
  • Sweden

Listings


Biography

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, Denmark, Finland, the Netherlands, and in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/24 19:57
End of Day Share Price2021/07/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.