OTCPK:SVNL.F

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, Denmark, Finland, Norway, and the Netherlands.

Snowflake

Fundamentals

6 star dividend payer and fair value.


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


Market Performance


7 Day Return

5.4%

SVNL.F

1.7%

US Banks

1.3%

US Market


1 Year Return

-18.3%

SVNL.F

0.3%

US Banks

5.9%

US Market

Return vs Industry: SVNL.F underperformed the US Banks industry which returned 0.3% over the past year.

Return vs Market: SVNL.F underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

SVNL.FIndustryMarket
7 Day5.4%1.7%1.3%
30 Day-2.2%-2.4%-1.9%
90 Day-3.7%1.0%-1.8%
1 Year-18.3%-18.3%3.2%0.3%8.3%5.9%
3 Year-31.8%-31.8%52.1%41.7%45.6%36.2%
5 Year-78.0%-78.0%69.8%51.4%66.1%47.9%

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

No news available

Valuation

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

10.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SVNL.F ($9.44) is trading below our estimate of fair value ($9.35)

Significantly Undervalued: SVNL.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SVNL.F is good value based on its PE Ratio (10.6x) compared to the Banks industry average (12.5x).

PE vs Market: SVNL.F is good value based on its PE Ratio (10.6x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: SVNL.F is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Svenska Handelsbanken forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVNL.F's forecast earnings growth (2.4% per year) is below the savings rate (2.7%).

Earnings vs Market: SVNL.F's earnings (2.4% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: SVNL.F's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SVNL.F's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SVNL.F's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Svenska Handelsbanken performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SVNL.F's earnings have grown by 2.9% per year over the past 5 years.

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

Earnings vs Industry: SVNL.F had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Banks industry average (31.8%).


Return on Equity

High ROE: SVNL.F's Return on Equity (11.5%) is considered low.


Return on Assets

ROA vs Industry: SVNL.F's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

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


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: SVNL.F has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: SVNL.F has an appropriate level of bad loans (0.35%)


Next Steps

Dividend

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

5.91%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years6.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SVNL.F's dividend (5.91%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SVNL.F's dividend (5.91%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: SVNL.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.6%), SVNL.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SVNL.F's dividends in 3 years are forecast to be covered by earnings (72.9% payout ratio).


Next Steps

Management

What is the CEO of Svenska Handelsbanken's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Carina Åkerström (57yo)

0.6yrs

Tenure

kr8,600,000

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

0.6yrs

Average Tenure

55yo

Average Age

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


Board Age and Tenure

7.6yrs

Average Tenure

57yo

Average Age

Experienced Board: SVNL.F's board of directors are considered experienced (7.6 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

Buykr4,309,32616 Aug 19
L E Lundbergföretagen AB (publ)
EntityCompany
Shares500,000
Max Pricekr8.62
Buykr4,295,35615 Aug 19
L E Lundbergföretagen AB (publ)
EntityCompany
Shares500,000
Max Pricekr8.59
Buykr19,705,13019 Jul 19
L E Lundbergföretagen AB (publ)
EntityCompany
Shares2,000,000
Max Pricekr9.85
Sellkr128,05623 May 19
Juha Rantamaa
EntityIndividual
Role
Chief Information Officer
Acting Chief Information Officer of IT & Infrastructure
Shares12,255
Max Pricekr10.45
Buykr129,70825 Apr 19
Ole Johansson
EntityIndividual
Shares11,650
Max Pricekr11.13
Buykr10,574,45626 Nov 18
L E Lundbergföretagen AB (publ)
EntityCompany
Shares1,000,000
Max Pricekr10.60
Buykr84,08802 Nov 18
Ole Johansson
EntityIndividual
Shares7,600
Max Pricekr11.06

Ownership Breakdown


Management Team

  • Yonnie Bergqvist (58yo)

    Head of Retail and E-Services

    • Tenure: 8.7yrs
  • Lars Höglund

    Head of Investor Relations

    • Tenure: 2.1yrs
  • Carina Åkerström (57yo)

    President

    • Tenure: 0.6yrs
    • Compensation: kr8.60m
  • Charlotte Skog (55yo)

    Executive Director

    • Tenure: 7.6yrs
  • Magnus Ericson (51yo)

    Chief Human Resources of Group HR

    • Tenure: 0.5yrs
  • Martin Wasteson (48yo)

    Chief Legal Officer of Group Legal

    • Tenure: 4.6yrs
  • Rolf Marquardt (55yo)

    CFO of Group Finance & Executive Director

    • Tenure: 3.1yrs
  • Juha Rantamaa (55yo)

    Acting Chief Information Officer of IT & Infrastructure

    • Tenure: 0.5yrs
  • Maria Wessman

    Acting Chief Communications & Sustainability Officer

    • Tenure: 0.5yrs
  • Maria Tornell

    Acting Chief Compliance Officer

    • Tenure: 0.4yrs

Board Members

  • Fredrik Lundberg (68yo)

    Vice Chairman of the Board

    • Tenure: 11.5yrs
  • Pär Boman (58yo)

    Chairman of the Board

    • Tenure: 4.6yrs
  • M. Widerberg (70yo)

    Chairman of Handel Och Industri

    • Tenure: 10.8yrs
  • Ulf Bergqvist

    Chairman of Central Sweden Regional Bank

    • Tenure: 0yrs
  • Jan Cedwall

    Chairman of Eastern Sweden Regional Bank

    • Tenure: 0yrs
  • Dag Tjernsmo (57yo)

    CEO of Handelsbanken Norway

    • Tenure: 0yrs
  • Göran Stille (53yo)

    Chairman of Subsidiary

    • Tenure: 0yrs
  • Lennart Mankert

    Chairman of Western Sweden Regional Bank

    • Tenure: 0yrs
  • Carina Åkerström (57yo)

    President

    • Tenure: 0.6yrs
    • Compensation: kr8.60m
  • Charlotte Skog (55yo)

    Executive Director

    • Tenure: 7.6yrs

Company Information

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


Key Information

  • Name: Svenska Handelsbanken AB (publ)
  • Ticker: SVNL.F
  • Exchange: OTCPK
  • Founded: 1871
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: kr183.972b
  • Listing Market Cap: kr18.793b
  • 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, Denmark, Finland, Norway, and the Netherlands. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:50
End of Day Share Price2019/10/15 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.