OM:SHB A

Stock Analysis Report

Svenska Handelsbanken

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, and the Netherlands.


Snowflake Analysis

6 star dividend payer with mediocre balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.6%

SHB A

-3.8%

SE Banks

0.3%

SE Market


1 Year Return

-24.9%

SHB A

-28.3%

SE Banks

-13.2%

SE Market

Return vs Industry: SHB A exceeded the Swedish Banks industry which returned -27.7% over the past year.

Return vs Market: SHB A underperformed the Swedish Market which returned -12.2% over the past year.


Shareholder returns

SHB AIndustryMarket
7 Day-7.6%-3.8%0.3%
30 Day-22.1%-29.5%-19.3%
90 Day-25.1%-28.6%-23.1%
1 Year-24.9%-24.9%-26.5%-28.3%-11.0%-13.2%
3 Year-27.9%-36.3%-33.9%-45.1%-0.2%-14.7%
5 Year-27.2%-41.4%-46.0%-56.8%6.0%-16.1%

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?

2.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SHB A (SEK76.62) is trading below our estimate of fair value (SEK78.25)

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


Price To Earnings Ratio

PE vs Industry: SHB A is poor value based on its PE Ratio (8.9x) compared to the Banks industry average (6.6x).

PE vs Market: SHB A is good value based on its PE Ratio (8.9x) compared to the Swedish market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: SHB A's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SHB A is overvalued based on its PB Ratio (0.9x) compared to the SE Banks industry average (0.9x).


Next Steps

Future Growth

How is Svenska Handelsbanken forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHB A's forecast earnings growth (-0.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: SHB A's earnings are forecast to decline over the next 3 years (-0.1% per year).

High Growth Earnings: SHB A's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SHB A's revenue (2.1% per year) is forecast to grow slower than the Swedish market (4.1% per year).

High Growth Revenue: SHB A's revenue (2.1% 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 (9.5%).


Next Steps

Past Performance

How has Svenska Handelsbanken performed over the past 5 years?

2.4%

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 (38.9%) are lower than last year (40.4%).


Past Earnings Growth Analysis

Earnings Trend: SHB A's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: SHB 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: SHB A had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Banks industry average (7.4%).


Return on Equity

High ROE: SHB A's Return on Equity (10.6%) is considered low.


Next Steps

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

Inventory Level: SHB A has a low level of unsold assets or inventory.

Debt Coverage by Assets: SHB A's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: SHB A has a low allowance for bad loans.

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

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

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

Level of Bad Loans: SHB A has an appropriate level of bad loans (0.38%)


Next Steps

Dividend

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

7.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHB A's dividend (7.18%) is higher than the bottom 25% of dividend payers in the Swedish market (1.99%).

High Dividend: SHB A's dividend (7.18%) is in the top 25% of dividend payers in the Swedish market (6.49%)


Stability and Growth of Payments

Stable Dividend: SHB A's dividends per share have been stable 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 reasonable payout ratio (63.6%), SHB A's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHB A's dividends in 3 years are forecast to be covered by earnings (66.8% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Carina Åkerström (57yo)

1.08s

Tenure

kr12,500,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Carina's total compensation ($USD1.23M) is below average for companies of similar size in the Swedish market ($USD1.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Carina Åkerström
President1.08yrskr12.50m0.00053% SEK805.7k
Charlotte Skog
Executive Officerno datano data0.00018% SEK273.6k
Carl Cederschiöld
CFO & CFO of Handelsbankenno datano datano data
Mattias Forsberg
Chief Information Officer of IT & Infrastructure0.17yrno datano data
Lars Höglund
Head of Investor Relations2.58yrsno datano data
Martin Wasteson
Chief Legal Officer of Group Legal5.08yrsno datano data
Martin Noréus
Chief Compliance Officer & Executive Director0.083yrno datano data
Jan Larsson
Chief Communications Officer of Group Communications & Sustainability and Executive Directorno datano datano data
Magnus Ericson
Group Chief Human Resources Officer & Executive Director1yrno data0.000050% SEK76.0k
Yonnie Bergqvist
Head of Retail & E-Services9.17yrsno datano data

1.1yrs

Average Tenure

53yo

Average Age

Experienced Management: SHB A's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Carina Åkerström
President1.08yrskr12.50m0.00053% SEK805.7k
Fredrik Lundberg
Independent Vice Chairman of the Board12yrsno data1.04% SEK1.6b
Par Boman
Independent Chairman of the Board5.08yrsno data0.0050% SEK7.7m
M. Widerberg
Chairman of Handel Och Industri11.25yrsno datano data
Bjørn Flatgård
Chairman of Norway Regional Bankno datano datano data
Charlotta Falvin
Chairman of Southern Sweden Regional Bankno datano datano data
Ulf Bergqvist
Chairman of Central Sweden Regional Bankno datano datano data
Jan Cedwall
Chairman of Eastern Sweden Regional Bankno datano datano data
Göran Stille
Chairman of Subsidiaryno datano datano data
Lennart Mankert
Chairman of Western Sweden Regional Bankno datano datano data

8.2yrs

Average Tenure

58yo

Average Age

Experienced Board: SHB A's board of directors are considered experienced (8.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SHB A 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: kr152.026b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVNL.FOTCPK (Pink Sheets LLC)YesClass A Ordinary SharesUSUSDJan 1981
SHB AOM (OMX Nordic Exchange Stockholm)YesClass A Ordinary SharesSESEKJan 1981
SVHHDB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURJan 1981
0R7RLSE (London Stock Exchange)YesClass A Ordinary SharesGBSEKJan 1981
0R7RLSE (London Stock Exchange)YesClass A Ordinary SharesGBSEKJan 1981
SHB BOM (OMX Nordic Exchange Stockholm)Class B Ordinary SharesSESEKJan 1992
0R7SLSE (London Stock Exchange)Class B Ordinary SharesGBSEKJan 1992
SVHGDB (Deutsche Boerse AG)Class B Ordinary SharesDEEURJan 1992
SVNL.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

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, and the Netherlands. The company offers savings, business, currency, and investment accounts and deposits, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans, as well as business debt services; mutual funds; pension products; and accounts, business card, and payment and reconciliation services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as real estate financing services; green loans and advisor services; investment and other financing services; medical care and group and health insurance products; and online and mobile banking services. In addition, the company offers trade finance, cash management, risk management, and foreign exchange services, as well as various banking services for children and young people. It operates approximately 383 branches in Sweden; and 56 branches in Denmark, 36 in Finland, 207 in the United Kingdom, 29 in the Netherlands, and 47 in Norway, as well as branches in 11 countries. Svenska Handelsbanken AB (publ) was founded in 1871 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 20:41
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.