OM:SWED A

Stock Analysis Report

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Executive Summary

Swedbank AB (publ) provides various banking products and services to private, corporate, and organizational customers.


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SWED A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.5%

SWED A

9.0%

SE Banks

4.1%

SE Market


1 Year Return

-13.2%

SWED A

-8.1%

SE Banks

8.9%

SE Market

Return vs Industry: SWED A underperformed the Swedish Banks industry which returned -6.4% over the past year.

Return vs Market: SWED A underperformed the Swedish Market which returned 9.1% over the past year.


Shareholder returns

SWED AIndustryMarket
7 Day10.5%9.0%4.1%
30 Day2.3%1.3%5.8%
90 Day-19.8%-15.9%-2.2%
1 Year-13.2%-13.2%-7.6%-8.1%10.4%8.9%
3 Year-32.4%-43.2%-27.6%-38.6%11.5%-3.4%
5 Year-17.1%-38.5%-40.1%-51.7%30.8%5.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWED A (SEK118) is trading below our estimate of fair value (SEK170.9)

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


Price To Earnings Ratio

PE vs Industry: SWED A is poor value based on its PE Ratio (10.4x) compared to the Banks industry average (8.4x).

PE vs Market: SWED A is good value based on its PE Ratio (10.4x) compared to the Swedish market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SWED A is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Swedbank forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWED A's forecast earnings growth (21.8% per year) is above the savings rate (0.5%).

Earnings vs Market: SWED A's earnings (21.8% per year) are forecast to grow faster than the Swedish market (16.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SWED A's revenue (3.4% per year) is forecast to grow slower than the Swedish market (5.9% per year).

High Growth Revenue: SWED A's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWED A's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Swedbank performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWED A has high quality earnings.

Growing Profit Margin: SWED A's current net profit margins (30.8%) are lower than last year (48.3%).


Past Earnings Growth Analysis

Earnings Trend: SWED A's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: SWED 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: SWED A had negative earnings growth (-40.4%) over the past year, making it difficult to compare to the Banks industry average (0.09%).


Return on Equity

High ROE: SWED A's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Swedbank'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: SWED A's Assets to Equity ratio (18.9x) is moderate.

Allowance for Bad Loans: SWED A has a low allowance for bad loans (65%).

Low Risk Liabilities: 59% of SWED A's liabilities are made up of primarily higher risk sources of funding.

Loan Level: SWED A has an appropriate level of Loans to Assets ratio (63%).

Low Risk Deposits: SWED A's Loans to Deposits ratio (161%) is high.

Level of Bad Loans: SWED A has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

7.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SWED A's dividend (7.46%) is higher than the bottom 25% of dividend payers in the Swedish market (1.74%).

High Dividend: SWED A's dividend (7.46%) is in the top 25% of dividend payers in the Swedish market (5.59%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.3%), SWED A's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SWED A's dividends in 3 years are forecast to be covered by earnings (52.1% payout ratio).


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Jens Henriksson (52yo)

0.58

Tenure

kr13,996,000

Compensation

Mr. Jens Henriksson serves as President and Chief Executive Officer at Swedbank AB (publ) since October 1, 2019. Mr. Henriksson has been the Chief Executive Officer and President of Folksam AB since 2013.  ...


CEO Compensation Analysis

Compensation vs Market: Jens's total compensation ($USD1.49M) is below average for companies of similar size in the Swedish market ($USD2.58M).

Compensation vs Earnings: Insufficient data to compare Jens's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jens Henriksson
President & CEO0.58yrkr14.00m0.0018% SEK2.4m
Anders Karlsson
Chief Financial Officer0.58yrkr14.75m0.0020% SEK2.7m
Gregori Karamouzis
Head of Investor Relationsno datano datano data
Ingrid Harbo
Head of Group Compliance0.58yrno data0.00013% SEK171.8k
Stefan Frisk
Interim Chief Legal Officer & Head of Group Legalno datano datano data
Johan Eriksson
Acting Head of Group Communications & Sustainabilityno datano datano data
Erik Ljungberg
Head of Group Communications & Sustainability0.33yrno datano data
Carina Strand
Head of Group HR & Infrastructure2.58yrsno datano data
Gith Bengtsson
Head of HR Channels & Concepts7.33yrsno datano data
Anders Ekedahl
Head of Anti-Financial Crime Unit12.33yrsno data0.0020% SEK2.7m

0.6yrs

Average Tenure

55yo

Average Age

Experienced Management: SWED A's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Magnus Uggla
Independent Director3.17yrskr1.04m0.00089% SEK1.2m
Mats Granryd
Independent Director3.17yrskr845.00k0.000090% SEK118.9k
Bodil Eriksson
Independent Director4yrskr710.00kno data
Bo Magnusson
Independent Vice Chairman of the Board0.83yrkr1.64m0.0018% SEK2.4m
Göran Persson
Independent Chairman of the Board0.83yrkr2.99m0.0022% SEK2.9m
Camilla Linder
Employee Representative Director5.33yrsno data0.00011% SEK145.3k
Roger Ljung
Employee Representative Director5.33yrsno data0.000010% SEK13.2k
Bosse Johansson
Director3.17yrskr855.00k0.00058% SEK766.3k
Anna Mossberg
Independent Director2.17yrskr942.00k0.00016% SEK211.4k
Kerstin Hermansson
Independent Director1.17yrskr845.00kno data

3.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: SWED A's board of directors are considered experienced (3.2 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

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


Key Information

  • Name: Swedbank AB (publ)
  • Ticker: SWED A
  • Exchange: OM
  • Founded: 1820
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr132.127b
  • Shares outstanding: 1.12b
  • Website: https://www.swedbank.com

Number of Employees


Location

  • Swedbank AB (publ)
  • Landsvägen 40
  • Sundbyberg
  • Stockholm County
  • 172 63
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWED AOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKJun 1995
0H6TLSE (London Stock Exchange)YesCommon SharesGBSEKJun 1995
SWDB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 1995
FRYADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1995
SWEDASBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKJun 1995
SWDB.YOTCPK (Pink Sheets LLC)SPD ADRUSUSDJun 2003

Biography

Swedbank AB (publ) provides various banking products and services to private, corporate, and organizational customers. The company operates through Swedish Banking, Baltic Banking, and Large Corporates & Institutions segments. It offers savings, salary, and current accounts; private residential and corporate lending; leasing, factoring, and financing services; consumer, mortgage, acquisition and project, export, and marine financing; mutual funds; and asset management, and life insurance and pension services. The company also offers investment and trading services, including currency, fixed income, and equity derivatives and related derivatives services, as well as structured products; advisory and investment banking products and services, such as corporate financing, debt capital market, structured finance, and loans and syndication services; and transaction banking services, such as cash management, trade finance, securities, commercial payments, account, and clearing and settlement services. In addition, it provides domestic, international, mobile, document, and other payment products; debit and credit cards; real estate brokerage and management; legal services; and safe deposit boxes, as well as telephone, Internet, and mobile banking services. The company has 168 branches in Sweden, 26 branches in Estonia, 30 in Latvia, and 43 in Lithuania. It also operates in Norway, Finland, Denmark, Luxembourg, China, the United States, and South Africa. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 20:57
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
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.