OM:AZA

Stock Analysis Report

Executive Summary

Avanza Bank Holding AB (publ), together with its subsidiaries, provides online stock trading services in Sweden.


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Avanza Bank Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.4%

AZA

-1.6%

SE Capital Markets

2.1%

SE Market


1 Year Return

29.8%

AZA

27.7%

SE Capital Markets

24.5%

SE Market

Return vs Industry: AZA exceeded the Swedish Capital Markets industry which returned 27.8% over the past year.

Return vs Market: AZA exceeded the Swedish Market which returned 24.5% over the past year.


Shareholder returns

AZAIndustryMarket
7 Day-2.4%-1.6%2.1%
30 Day10.8%10.8%3.6%
90 Day23.0%20.6%9.7%
1 Year33.2%29.8%31.5%27.7%29.7%24.5%
3 Year43.4%32.3%40.6%28.2%40.8%19.2%
5 Year128.5%100.0%136.5%105.3%58.0%24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Avanza Bank Holding undervalued compared to its fair value and its price relative to the market?

40.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AZA (SEK104.2) is trading above our estimate of fair value (SEK91.21)

Significantly Below Fair Value: AZA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AZA is poor value based on its PE Ratio (40.9x) compared to the Capital Markets industry average (21.6x).

PE vs Market: AZA is poor value based on its PE Ratio (40.9x) compared to the Swedish market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: AZA is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: AZA is overvalued based on its PB Ratio (8.7x) compared to the SE Capital Markets industry average (1.6x).


Next Steps

Future Growth

How is Avanza Bank Holding forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZA's forecast earnings growth (16.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: AZA's earnings (16.8% per year) are forecast to grow faster than the Swedish market (9.6% per year).

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

Revenue vs Market: AZA's revenue (9.2% per year) is forecast to grow faster than the Swedish market (4.4% per year).

High Growth Revenue: AZA's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AZA's Return on Equity is forecast to be high in 3 years time (26.8%)


Next Steps

Past Performance

How has Avanza Bank Holding performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZA has high quality earnings.

Growing Profit Margin: AZA's current net profit margins (29%) are lower than last year (31.4%).


Past Earnings Growth Analysis

Earnings Trend: AZA's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: AZA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AZA had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Capital Markets industry average (-1.7%).


Return on Equity

High ROE: AZA's Return on Equity (21%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Avanza Bank Holding'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: AZA has a low level of unsold assets or inventory.

Debt Coverage by Assets: AZA's debt is covered by short term assets (assets are 154.8x debt).


Financial Institutions Analysis

Asset Level: AZA's level of assets compared to its equity is very high.

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

Low Risk Liabilities: AZA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AZA has an acceptable proportion of non-loan assets held.

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

Level of Bad Loans: Insufficient data to determine if AZA has an appropriate level of bad loans.


Next Steps

Dividend

What is Avanza Bank Holding's current dividend yield, its reliability and sustainability?

2.01%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.6%markettop25%4.4%industryaverage3.1%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: AZA's dividend (2.02%) is higher than the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: AZA's dividend (2.02%) is low compared to the top 25% of dividend payers in the Swedish market (4.45%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.4%), AZA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AZA's dividends in 3 years are forecast to be covered by earnings (77.7% payout ratio).


Next Steps

Management

What is the CEO of Avanza Bank Holding's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Rikard Josefson (54yo)

3yrs

Tenure

0

Mr. Rikard Josefson has been the Chief Executive Officer of Avanza Bank Holding AB (publ) since 2017. Mr. Josefson has been the President of Länsförsäkringar Bank AB (publ) since June 2011. He served as Gl ...


Management Age and Tenure

2.0yrs

Average Tenure

49yo

Average Age

Experienced Management: AZA's management team is considered experienced (2 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

51yo

Average Age

Experienced Board: AZA's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr11,977,84008 Nov 19
Creades AB
EntityCompany
Shares140,000
Max Pricekr86.44
Buykr7,305,55919 Aug 19
Creades AB
EntityCompany
Shares90,000
Max Pricekr81.50
Buykr273,52029 May 19
Rikard Josefson
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares4,000
Max Pricekr68.38
Buykr137,65529 May 19
Maria Johansson
EntityIndividual
Shares1,995
Max Pricekr69.00
Buykr473,64328 May 19
Birgitta Hagenfeldt
EntityIndividual
Role
Chief Financial Officer
Deputy CEO & CFO
Shares7,000
Max Pricekr68.00
Buykr2,265,00017 Apr 19
Biovestor AB
EntityCompany
Shares30,000
Max Pricekr75.50
Buykr76,09016 Apr 19
Rikard Josefson
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares1,000
Max Pricekr76.09
Buykr115,36816 Apr 19
Gunnar Olsson
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,500
Max Pricekr76.92

Ownership Breakdown

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


Management Team

  • Birgitta Hagenfeldt (58yo)

    Deputy CEO & CFO

    • Tenure: 7.1yrs
  • Rikard Josefson (54yo)

    Chief Executive Officer

    • Tenure: 3yrs
  • Peter Westling (48yo)

    Marketing Director

    • Tenure: 2yrs
  • Peter Strömberg (47yo)

    Chief Information Officer

    • Tenure: 5.3yrs
  • Peter Aronsson

    Head of Private Banking & Pro

    • Tanya Forsstedt

      Compliance Officer

      • Sofia Svavar

        Head of Investor Relations

        • Gunnar Olsson (47yo)

          Chief Operating Officer

          • Tenure: 1.8yrs
        • Teresa Schechter (49yo)

          Chief Legal Officer

          • Tenure: 2yrs
        • Camilla Hedenfelt (51yo)

          Head of Human Resources/CHRO

          • Tenure: 1yrs

        Board Members

        • Birgitta Klasén (70yo)

          Independent Director

          • Tenure: 6yrs
          • Compensation: kr506.00k
        • Sven Hagströmer (76yo)

          Independent Chairman of the Board

          • Tenure: 21yrs
          • Compensation: kr425.00k
        • Jaqueline Winberg (60yo)

          Independent Director

          • Tenure: 17yrs
          • Compensation: kr377.00k
        • Mattias Miksche (51yo)

          Independent Director

          • Tenure: 12yrs
          • Compensation: kr368.00k
        • Hans Toll (49yo)

          Independent Director

          • Tenure: 6yrs
          • Compensation: kr446.00k
        • Viktor Fritzén (34yo)

          Independent Director

          • Tenure: 1.8yrs
          • Compensation: kr323.00k
        • Jonas Hagströmer (37yo)

          Independent Director

          • Tenure: 4.8yrs
          • Compensation: kr338.00k

        Company Information

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


        Key Information

        • Name: Avanza Bank Holding AB (publ)
        • Ticker: AZA
        • Exchange: OM
        • Founded: 1999
        • Industry: Investment Banking and Brokerage
        • Sector: Diversified Financials
        • Market Cap: kr16.055b
        • Shares outstanding: 153.79m
        • Website: https://www.avanza.se

        Number of Employees


        Location

        • Avanza Bank Holding AB (publ)
        • Regeringsgatan 103
        • Box 1399
        • Stockholm
        • Stockholm County
        • 111 93
        • Sweden

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        AZAOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKOct 1993
        0NUKLSE (London Stock Exchange)YesOrdinary SharesGBSEKOct 1993
        AZASBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKOct 1993
        1JJADB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1993

        Biography

        Avanza Bank Holding AB (publ), together with its subsidiaries, provides online stock trading services in Sweden. It trades in equities, funds, and other securities; and offers external mortgages, private banking mortgages, and margin loans. The company also provides share and fund, investment savings, endowment insurance, child savings, external deposit, pension insurance, and other savings accounts; mortgage loans and margin lending products; and occupational pensions and individual pension plans. In addition, it offers decision making support services; and publishes topical news and independent advice on the financial Website, Placera, as well as on the weekly financial magazine, Börsveckan. The company primarily serves individual investors; and professional traders and corporate customers, such as entrepreneurs and asset managers. Avanza Bank Holding AB (publ) was founded in 1999 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 Analysis2020/01/18 20:39
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.