Avanza Bank Holding AB (AZA) AI Stock Analysis

• Market Cap: kr51.43B
• Dividend Yield: 3.62%
• Average Volume (3M): 332.46K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.03
• Revenue Growth: 12.79%
• EPS Growth: 17.93%
• Country: SE
• Employees: 679
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Regional
• EPS (TTM): 4.48
• Shares Outstanding: 157,236,950
• 10 Day Avg. Volume: 273,885
• 30 Day Avg. Volume: 332,459
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr311.14
• Price Target Upside: -3.52% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Avanza Bank Holding AB receives a high overall stock score due to its exceptional financial performance, characterized by strong growth, zero debt, and robust cash flows. Technical analysis suggests a neutral trend with potential consolidation, and the valuation remains fair. The lack of recent corporate events or earnings call data slightly limits the analysis but does not detract from its solid financial foundation.

Avanza Bank Holding AB Business Overview & Revenue Model

Company Description

Avanza Bank Holding AB (publ) provides online stock trading services in Sweden. The company offers share and fund, investment savings, endowment insurance, endowment child insurance, external deposit, and pension insurance savings accounts, as well as occupational pensions and individual pension plans. It also trades in equities, funds, and other securities; and provides external and green mortgages, private banking mortgages, and margin loans and lending products. In addition, the company offers decision support services; and publishes topical news and independent advice on the financial website, Placera, as well as on the weekly financial magazine, Börsveckan. It primarily serves individual investors; and professional investors and corporate customers, such as entrepreneurs and asset managers. The company was founded in 1999 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Avanza Bank Holding AB makes money through several key revenue streams. The primary source of revenue is the fees and commissions it charges on trading activities conducted by its users on its platform. This includes transaction fees from buy and sell orders of securities such as stocks and mutual funds. Additionally, Avanza earns interest income from its lending activities, including loans and mortgages offered to customers. The company also generates revenue from management fees related to its asset management services and other financial products. Avanza's focus on technology and digital services allows it to maintain a low-cost structure, which contributes to its profitability. The bank benefits from a significant customer base and has several strategic partnerships with financial institutions and technology providers to enhance its service offerings.

Avanza Bank Holding AB Financial Statement Overview

Summary

Avanza Bank Holding AB displays strong profitability with a net profit margin of 57% and solid revenue growth of 5.4%. The robust equity position and low debt enhance financial stability, although the decline in cash flows signals potential liquidity challenges.

Income Statement

Avanza Bank Holding AB has shown strong revenue growth with an increase from SEK 3,752 million in 2023 to SEK 3,953 million in 2024, representing a growth rate of 5.4%. The gross profit margin remains robust at 100%, indicative of efficient cost management. The net profit margin climbed to 57.0% in 2024, demonstrating excellent profitability. However, the lack of reported EBIT and EBITDA for 2024 suggests potential concerns in operational profitability metrics.

Balance Sheet

The company maintains a solid equity position with stockholders' equity increasing to SEK 6,320 million in 2024. The debt-to-equity ratio is exceptionally low due to zero debt, highlighting financial stability. The equity ratio stands at 1.8%, suggesting a strong reliance on liabilities, which is typical in the banking industry but could pose risks if not managed carefully. Return on equity improved to 35.7%, indicating efficient use of equity to generate profits.

Cash Flow

Operating cash flow decreased significantly from SEK 8,743 million in 2023 to SEK 4,001 million in 2024, while free cash flow also dropped from SEK 8,719 million to SEK 3,959 million. Despite these declines, the free cash flow to net income ratio remains high at 1.76, reflecting good cash conversion. However, the significant reduction in cash flows could impact future operational flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.90B	3.75B	2.97B	3.30B	2.35B
	Gross Profit
3.95B	3.35B	2.42B	2.70B	1.90B
	EBIT
2.62B	2.29B	2.09B	2.44B	1.58B
	EBITDA
0.00	2.38B	3.45B	2.52B	1.69B
	Net Income Common Stockholders
2.25B	1.98B	1.67B	2.05B	1.33B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.19B	8.63B	4.92B	2.94B	1.43B
	Total Assets
343.61B	282.45B	241.09B	279.08B	204.78B
	Total Debt
0.00	92.00M	83.00M	122.00M	171.00M
	Net Debt
-8.19B	-8.63B	-4.83B	-2.82B	-1.26B
	Total Liabilities
337.29B	276.62B	236.14B	274.38B	201.60B
	Stockholders Equity
6.32B	5.83B	4.95B	4.70B	3.17B
Cash Flow		Free Cash Flow
3.96B	8.72B	7.61B	4.47B	6.83B
	Operating Cash Flow
4.00B	8.74B	7.65B	4.53B	6.89B
	Investing Cash Flow
-1.21B	-3.60B	-4.37B	-2.62B	-5.95B
	Financing Cash Flow
-1.83B	-1.09B	-1.36B	-554.00M	-347.00M

Avanza Bank Holding AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 322.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AZA, the sentiment is Positive. The current price of 322.5 is above the 20-day moving average (MA) of 296.91, above the 50-day MA of 303.94, and above the 200-day MA of 260.65, indicating a bullish trend. The MACD of 5.50 indicates Negative momentum. The RSI at 65.69 is Neutral, neither overbought nor oversold. The STOCH value of 84.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:AZA.

Avanza Bank Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZA	82 Outperform	kr51.43B	21.38	35.82%	3.62%	12.79%	17.93%
SWED.A	75 Outperform	kr271.27B	7.86	17.65%	8.98%	0.71%	-1.05%
SEB.A	73 Outperform	kr290.20B	7.84	15.39%	5.57%	0.41%	-8.47%
SHB.A	70 Outperform	kr252.99B	9.23	14.54%	11.81%	-3.90%	-6.02%
TFBANK	65 Neutral	€7.35B	12.19	26.39%	―	23.77%	58.98%
Sector *	64 Neutral	$12.61B	9.78	8.01%	16985.69%	12.73%	-4.58%