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Svenska Handelsbanken (OM:SHB A)

SE0007100599

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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.

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Svenska Handelsbanken stock research in summary

handelsbanken.se

ANALYSIS: With an Obermatt Combined Rank of 34 (worse than 66% compared with investment alternatives), Svenska Handelsbanken (Diversified Banks, Sweden) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Svenska Handelsbanken are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives), are safely financed (Safety Rank of 52, which means low debt burdens), but show below-average growth (Growth Rank of 23). ...read more

RECOMMENDATION: A Combined Rank of 34, is a hold recommendation based on Svenska Handelsbanken's financial characteristics. As the company Svenska Handelsbanken's key financial metrics exhibit good value (Obermatt Value Rank of 51) but low growth (Obermatt Growth Rank of 23) while being safely financed (Obermatt Safety Rank of 52), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 51% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	Sweden
Industry	Diversified Banks
Index	Dividends Europe, Employee Focus EU, Diversity Europe, Renewables Users, OMX 30
Size class	X-Large

This stock has achievements: Top 10 Stock.

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Research History: Svenska Handelsbanken

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	38	46	30	n/a
GROWTH
GROWTH	17	21	24	n/a
SAFETY
SAFETY	17	66	26	n/a
SENTIMENT
SENTIMENT	n/a	64	32	^new
360° VIEW
360° VIEW	n/a	41	1	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Svenska Handelsbanken is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	38	46	30	n/a
GROWTH
GROWTH	17	21	24	n/a
SAFETY
SAFETY	17	66	26	n/a
COMBINED
COMBINED	11	40	8	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Svenska Handelsbanken the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% compared with alternatives), Svenska Handelsbanken shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Svenska Handelsbanken. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 98% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 26 which means that the stock price compared with what market professionals expect for future profits is higher than 74% of comparable companies, indicating a low value concerning Svenska Handelsbanken's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 40 which means that the stock price compared with what market professionals expect for future profit levels is higher than 60% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 47 is also low. Compared with invested capital, the stock price is higher than for 53% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, is a buy recommendation based on Svenska Handelsbanken's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Svenska Handelsbanken? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Svenska Handelsbanken only if they reasonably expect the low current profit levels to be transitory. 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)	19	25	23	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	29	52	39	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	54	40	43	n/a
DIVIDEND YIELD
DIVIDEND YIELD	54	94	77	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	38	46	30	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Svenska Handelsbanken; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 23 (better than 23% compared with alternatives), Svenska Handelsbanken shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Svenska Handelsbanken. While Profit Growth has a good rank of 56, as professionals currently expect the company to grow its profits more than 56% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 31, which means that currently professionals expect the company to grow less than 69% of its competitors, while Capital Growth has a rank of 25 and Stock Returns have been below market median, with a rank of 49 (51% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 23, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. 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 Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	17	18	31	n/a
PROFIT GROWTH
PROFIT GROWTH	24	18	57	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	89	29	n/a
STOCK RETURNS
STOCK RETURNS	52	39	48	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	17	21	24	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Svenska Handelsbanken.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 52 (better than 52% compared with alternatives), the company Svenska Handelsbanken has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Svenska Handelsbanken is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Svenska Handelsbanken. Refinancing is at 53, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 53% of its competitors. Liquidity is also good at 92, meaning the company generates more profit to service its debt than 92% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 6, which means the company has an above-average debt-to-equity ratio. It has more debt than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 52 (better than 52% compared with alternatives), Svenska Handelsbanken has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Svenska Handelsbanken could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Svenska Handelsbanken and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	8	12	6	n/a
REFINANCING
REFINANCING	94	55	38	n/a
LIQUIDITY
LIQUIDITY	6	98	90	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	17	66	26	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Svenska Handelsbanken 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	56	21	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	54	66	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	90	68	^new
MARKET PULSE
MARKET PULSE	n/a	26	16	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	64	32	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Svenska Handelsbanken.
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