OTCPK:NWEG.F

Stock Analysis Report

Norwegian Finans Holding

Executive Summary

Norwegian Finans Holding ASA, through its subsidiary, Bank Norwegian AS, provides various banking products and services to retail customers in Norway, Finland, Sweden, and Denmark.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

NWEG.F

2.9%

US Banks

0.07%

US Market


1 Year Return

n/a

NWEG.F

8.6%

US Banks

8.9%

US Market

Return vs Industry: NWEG.F underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: NWEG.F underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

NWEG.FIndustryMarket
7 Day0%2.9%0.07%
30 Day16.3%3.4%-0.3%
90 Dayn/a2.1%-1.6%
1 Yearn/a11.8%8.6%11.3%8.9%
3 Yearn/a54.8%44.1%46.3%36.8%
5 Yearn/a70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Norwegian Finans Holding undervalued compared to its fair value and its price relative to the market?

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWEG.F ($8.2) is trading below our estimate of fair value ($13.46)

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


Price To Earnings Ratio

PE vs Industry: NWEG.F is good value based on its PE Ratio (8.2x) compared to the Banks industry average (12.6x).

PE vs Market: NWEG.F is good value based on its PE Ratio (8.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NWEG.F is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: NWEG.F is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Norwegian Finans Holding forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWEG.F's forecast earnings growth (5.3% per year) is above the savings rate (2.7%).

Earnings vs Market: NWEG.F's earnings (5.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: NWEG.F's revenue (10.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: NWEG.F's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWEG.F's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Norwegian Finans Holding performed over the past 5 years?

36.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NWEG.F's earnings have grown significantly by 36.2% per year over the past 5 years.

Accelerating Growth: NWEG.F's earnings growth over the past year (5.4%) is below its 5-year average (36.2% per year).

Earnings vs Industry: NWEG.F earnings growth over the past year (5.4%) underperformed the Banks industry 29.7%.


Return on Equity

High ROE: NWEG.F's Return on Equity (21.9%) is considered high.


Return on Assets

ROA vs Industry: NWEG.F has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate NWEG.F's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Norwegian Finans 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: NWEG.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: NWEG.F's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: NWEG.F's level of assets compared to its equity is low.

Allowance for Bad Loans: NWEG.F has a low allowance for bad loans.

Low Risk Liabilities: NWEG.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: NWEG.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NWEG.F's loans are broadly funded by customer deposits.

Level of Bad Loans: NWEG.F has a high level of bad loans (13.05%)


Next Steps

Dividend

What is Norwegian Finans Holding's current dividend yield, its reliability and sustainability?

6.64%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years6.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NWEG.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NWEG.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NWEG.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NWEG.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NWEG.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.7yrs

Average board tenure


CEO

Tine Gottlob Wollebekk (57yo)

2.3yrs

Tenure

kr4,862,000

Compensation

Ms. Tine Gottlob Kirstan Wollebekk serves as Director of Ekornes ASA since 2017. Ms. Wollebekk serves as an Advisor of FSN Capital Partners AS. Ms. Wollebekk serves as the Managing Director of the card com ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Tine Gottlob's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Tine Gottlob's compensation has increased by more than 20% in the past year.


Board Age and Tenure

1.7yrs

Average Tenure

55yo

Average Age

Experienced Board: NWEG.F's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: NWEG.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr17,92313 Sep 19
Thomas Widlund
EntityIndividual
Shares2,020
Max Pricekr8.87
Buykr89,844,85619 Aug 19
Nordic Capital
EntityCompany
Shares11,851,792
Max Pricekr7.58
Buykr51,303,77619 Aug 19
Sampo Oyj
EntityCompany
Shares6,767,685
Max Pricekr7.58
Sellkr141,148,63219 Aug 19
Norwegian Air Shuttle ASA
EntityCompany
Shares18,619,477
Max Pricekr7.58
Buykr7,05818 Jun 19
Frode Bergland Bjørnstad
EntityIndividual
Role
Chief Compliance Officer
Chief Legal & Compliance Officer
Shares1,000
Max Pricekr7.06
Buykr28,55213 May 19
Taipan Invest AS
EntityCompany
Shares3,340
Max Pricekr8.55
Buykr22,67621 Dec 18
Fredrik Mundal
EntityIndividual
Shares3,000
Max Pricekr7.56
Buykr21,90921 Dec 18
Wollebekkgruppen As
EntityCompany
Shares3,000
Max Pricekr7.30
Buykr17,37213 Nov 18
Christine Rødsæther
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max Pricekr8.69
Buykr115,84405 Nov 18
Emerald Invest AS
EntityCompany
Shares12,500
Max Pricekr9.27
Buykr93,30202 Nov 18
John Høsteland
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max Pricekr9.33
Buykr14,29130 Oct 18
Frode Bergland Bjørnstad
EntityIndividual
Role
Chief Compliance Officer
Chief Legal & Compliance Officer
Shares1,500
Max Pricekr9.53

Ownership Breakdown


Management Team

  • Tine Gottlob Wollebekk (57yo)

    Chief Executive Officer

    • Tenure: 2.3yrs
    • Compensation: kr4.86m
  • Tore Widding

    Chief Risk Officer

    • Tenure: 0yrs
    • Compensation: kr271.00k
  • Nils Sælen

    Executive Officer

    • Tenure: 0yrs
    • Compensation: kr770.00k
  • Frode Bergland Bjørnstad

    Chief Legal & Compliance Officer

    • Tenure: 0.6yrs

Board Members

  • Christine Rødsæther (55yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: kr175.00k
  • Kjetil Garstad

    Director

    • Tenure: 0.4yrs
  • Rolv-Erik Spilling (52yo)

    Director

    • Tenure: 1.6yrs
  • John Høsteland (72yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: kr250.00k
  • Anita Marie Aarnæs (69yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: kr250.00k
  • Bjørn Østbø (55yo)

    Chairman of the Board

    • Tenure: 1.7yrs
  • Gunn Ingemundsen (51yo)

    Director

    • Tenure: 1.4yrs

Company Information

Norwegian Finans Holding ASA's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • Norwegian Finans Holding ASA
  • Snarøyveien 36
  • Fornebu
  • Akershus
  • 1364
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOFIOB (Oslo Bors)YesShare CapitalNONOKJun 2014
0RIULSE (London Stock Exchange)YesShare CapitalGBNOKJun 2014
NOFIOBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBNOKJun 2014
NWEG.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDJun 2014
4NFDB (Deutsche Boerse AG)YesShare CapitalDEEURJun 2014

Biography

Norwegian Finans Holding ASA, through its subsidiary, Bank Norwegian AS, provides various banking products and services to retail customers in Norway, Finland, Sweden, and Denmark. It offers deposit accoun ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:43
End of Day Share Price2019/10/01 00:00
Earnings2019/06/30
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.