Fact based stock research
SpareBank 1 SR-Bank (OB:SRBANK)

NO0010631567

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

SpareBank 1 SR-Bank stock research in summary

sparebank1.no

ANALYSIS: With an Obermatt Combined Rank of 15 (worse than 85% compared with investment alternatives), SpareBank 1 SR-Bank (Regional Banks, Norway) shares have lower financial characteristics compared with similar stocks. Shares of SpareBank 1 SR-Bank are low in value (priced high) with a consolidated Value Rank of 21 (worse than 79% of alternatives), and are riskily financed (Safety Rank of 15, which means above-average debt burdens) but show above-average growth (Growth Rank of 71). ...read more

RECOMMENDATION: A Combined Rank of 15, is a sell recommendation based on SpareBank 1 SR-Bank's financial characteristics. As the company SpareBank 1 SR-Bank shows low value with an Obermatt Value Rank of 21 (79% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 71% of comparable companies (Obermatt Growth Rank is 71). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 15 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for SpareBank 1 SR-Bank, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	21
Growth Rank	71
Safety Rank	15
Combined Rank	15

Country	Norway
Industry	Regional Banks
Index	Human Rights, SDG 13, SDG 5, SDG 8, Sound Pay Europe
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: SpareBank 1 SR-Bank

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	28	26	32	21
GROWTH
GROWTH	100	67	50	71
SAFETY
SAFETY	5	27	21	15
SENTIMENT
SENTIMENT	n/a	77	43	^new
360° VIEW
360° VIEW	n/a	43	26	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better SpareBank 1 SR-Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	28	26	32	21
GROWTH
GROWTH	100	67	50	71
SAFETY
SAFETY	5	27	21	15
COMBINED
COMBINED	32	27	22	15

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of SpareBank 1 SR-Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 21 (worse than 79% compared with alternatives), SpareBank 1 SR-Bank shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for SpareBank 1 SR-Bank. Price-to-Sales is 11 which means that the stock price compared with what market professionals expect for future profits is higher than 89% of comparable companies, indicating a low value concerning SpareBank 1 SR-Bank's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 38, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of SpareBank 1 SR-Bank. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 34 and Dividend Yield, which is lower than 53% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 21, is a sell recommendation based on SpareBank 1 SR-Bank's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for SpareBank 1 SR-Bank? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as SpareBank 1 SR-Bank? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. SpareBank 1 SR-Bank may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	15	14	19	11
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	31	38	37	34
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	34	34	37	38
DIVIDEND YIELD
DIVIDEND YIELD	34	52	53	47
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	28	26	32	21

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of SpareBank 1 SR-Bank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), SpareBank 1 SR-Bank shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for SpareBank 1 SR-Bank. Sales Growth has a rank of 96, which means that, currently, professionals expect the company to grow more than 96% of its competitors. Profit Growth with a rank of 62 is also above average. But Capital Growth has only a rank of 43, and Stock Returns with 43 are also below-average. Stock returns for SpareBank 1 SR-Bank have recently been below 57% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for SpareBank 1 SR-Bank. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	90	67	98	96
PROFIT GROWTH
PROFIT GROWTH	n/a	65	39	62
CAPITAL GROWTH
CAPITAL GROWTH	n/a	39	33	43
STOCK RETURNS
STOCK RETURNS	84	67	44	43
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	100	67	50	71

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of SpareBank 1 SR-Bank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 15 (better than 15% compared with alternatives), the company SpareBank 1 SR-Bank has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of SpareBank 1 SR-Bank is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for SpareBank 1 SR-Bank. Liquidity is at 76, meaning the company generates more profit to service its debt than 76% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 25, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 75% of its competitors. Leverage is also high at a rank of 14, which means that the company has an above-average debt-to-equity ratio. It has more debt than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 15 (worse than 85% compared with alternatives), SpareBank 1 SR-Bank has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	6	12	4	14
REFINANCING
REFINANCING	39	26	49	25
LIQUIDITY
LIQUIDITY	4	81	74	76
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	5	27	21	15

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of SpareBank 1 SR-Bank and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	44	72	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	75	29	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	88	56	^new
MARKET PULSE
MARKET PULSE	n/a	51	51	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	77	43	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for SpareBank 1 SR-Bank.
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