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SWED

Swedbank OM:SWED A Stock Report

Last Price

kr150.65

Market Cap

kr169.2b

7D

3.9%

1Y

-1.7%

Updated

17 May, 2022

Data

Company Financials +
SWED A fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends5/6

SWED A Stock Overview

Swedbank AB (publ) provides various banking products and services to individuals and companies.

Swedbank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Swedbank
Historical stock prices
Current Share Pricekr150.65
52 Week Highkr196.70
52 Week Lowkr130.80
Beta0.69
1 Month Change-3.46%
3 Month Change-11.34%
1 Year Change-1.69%
3 Year Change4.98%
5 Year Change-27.08%
Change since IPO270.45%

Recent News & Updates

Shareholder Returns

SWED ASE BanksSE Market
7D3.9%4.4%5.6%
1Y-1.7%4.7%-11.6%

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

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

Price Volatility

Is SWED A's price volatile compared to industry and market?
SWED A volatility
SWED A Average Weekly Movement5.7%
Banks Industry Average Movement5.8%
Market Average Movement8.0%
10% most volatile stocks in SE Market12.9%
10% least volatile stocks in SE Market5.1%

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

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

About the Company

FoundedEmployeesCEOWebsite
182016,600Jens Henrikssonhttps://www.swedbank.com

Swedbank AB (publ) provides various banking products and services to individuals and companies. 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.

Swedbank Fundamentals Summary

How do Swedbank's earnings and revenue compare to its market cap?
SWED A fundamental statistics
Market Capkr169.16b
Earnings (TTM)kr20.51b
Revenue (TTM)kr46.63b

8.2x

P/E Ratio

1.1x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SWED A income statement (TTM)
Revenuekr46.63b
Cost of Revenuekr126.00m
Gross Profitkr46.51b
Other Expenseskr25.99b
Earningskr20.51b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 19, 2022

Earnings per share (EPS)18.27
Gross Margin99.73%
Net Profit Margin43.99%
Debt/Equity Ratio680.6%

How did SWED A perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

51%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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: SWED A (SEK150.65) is trading below our estimate of fair value (SEK382.47)

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 good value based on its PE Ratio (8.2x) compared to the Swedish Banks industry average (9.8x).

PE vs Market: SWED A is good value based on its PE Ratio (8.2x) compared to the Swedish market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SWED A is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SWED A is good value based on its PB Ratio (1.1x) compared to the SE Banks industry average (1.2x).


Future Growth

How is Swedbank 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


5.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWED A's forecast earnings growth (5.5% per year) is above the savings rate (0.3%).

Earnings vs Market: SWED A's earnings (5.5% per year) are forecast to grow slower than the Swedish market (9.5% per year).

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

Revenue vs Market: SWED A's revenue (4.2% per year) is forecast to grow slower than the Swedish market (5.7% per year).

High Growth Revenue: SWED A's revenue (4.2% 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 (12.1%).


Past Performance

How has Swedbank performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2.0%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: SWED A's current net profit margins (44%) are higher than last year (43.9%).


Past Earnings Growth Analysis

Earnings Trend: SWED A's earnings have declined by 2% per year over the past 5 years.

Accelerating Growth: SWED A's earnings growth over the past year (4.7%) exceeds its 5-year average (-2% per year).

Earnings vs Industry: SWED A earnings growth over the past year (4.7%) underperformed the Banks industry 30.5%.


Return on Equity

High ROE: SWED A's Return on Equity (13.3%) is considered low.


Financial Health

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

Financial Health Score

3/6

Financial Health Score 3/6

  • 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: SWED A's Assets to Equity ratio (18.7x) is moderate.

Allowance for Bad Loans: SWED A has a low allowance for bad loans (81%).

Low Risk Liabilities: 53% 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 (61%).

Low Risk Deposits: SWED A's Loans to Deposits ratio (138%) is high.

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


Dividend

What is Swedbank 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


6.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SWED A's dividend (6.14%) is higher than the bottom 25% of dividend payers in the Swedish market (1.41%).

High Dividend: SWED A's dividend (6.14%) is in the top 25% of dividend payers in the Swedish market (4.73%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (50.6%), SWED A's dividend 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 (56.4% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jens Henriksson (54 yo)

2.58yrs

Tenure

kr17,361,000

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 ($USD1.75M) is below average for companies of similar size in the Swedish market ($USD2.59M).

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


Leadership Team

Experienced Management: SWED A's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: SWED A's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SWED 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

Swedbank AB (publ)'s 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
  • Implied Market Cap: kr169.159b
  • Shares outstanding: 1.12b
  • Website: https://www.swedbank.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.