Svenska Handelsbanken AB (SHB.A) AI Stock Analysis

• Market Cap: kr253.91B
• Dividend Yield: 11.89%
• Average Volume (3M): 7.25M
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.67
• Revenue Growth: -3.90%
• EPS Growth: -6.02%
• Country: SE
• Employees: 11,799
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Diversified
• EPS (TTM): 3.20
• Shares Outstanding: 1,944,777,200
• 10 Day Avg. Volume: 6,727,500
• 30 Day Avg. Volume: 7,250,461
• PEG Ratio: -9.09
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.98
• 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: kr115.71
• Price Target Upside: -8.28% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

Svenska Handelsbanken AB has strong financial performance with excellent profitability and a robust balance sheet, which is a major strength. However, technical analysis suggests bearish momentum, which could be a concern. The valuation metrics indicate that the stock is potentially undervalued with an attractive dividend yield, providing a buffer against market downturns. These factors contribute to an overall balanced score, reflecting both strengths and areas for caution.

Svenska Handelsbanken AB Business Overview & Revenue Model

Company Description

Svenska Handelsbanken AB (SHB.A) is a prominent Swedish bank that operates primarily in the Nordic countries, the United Kingdom, and the Netherlands. Established in 1871, the bank is known for its decentralized approach to banking, focusing on local branch autonomy to provide personalized financial services. Its core offerings include retail banking, corporate banking, wealth management, and investment banking services. Handelsbanken emphasizes customer satisfaction and long-term relationships, distinguishing itself through its community-based banking model.

How the Company Makes Money

Svenska Handelsbanken AB generates revenue through a diversified portfolio of financial services. The primary source of income is interest income derived from loans offered to individuals and businesses. Additionally, the bank earns fees and commissions from various financial services such as asset management, brokerage, and advisory services. Handelsbanken also generates revenue through securities trading and investments. The bank's decentralized structure allows for efficient cost management and tailored financial solutions, contributing to its profitability. Significant partnerships with other financial institutions and businesses further support its revenue generation capabilities, alongside a strong focus on risk management to ensure sustained financial performance.

Svenska Handelsbanken AB Financial Statement Overview

Summary

Overall, Svenska Handelsbanken AB demonstrates strong financial stability and profitability, with consistent revenue growth, strong margins, and an excellent capital structure. The balance sheet is robust with zero debt in 2024, providing financial flexibility. Despite some volatility in cash flows, the company's cash generation capabilities are strong, supporting its operations and growth prospects. The financial health is reinforced by a strong equity base and effective cost management.

Income Statement

Svenska Handelsbanken AB shows strong financial performance with a consistent increase in total revenue from SEK 44,532 million in 2019 to SEK 62,315 million in 2024. The gross profit margin has remained robust, reflecting efficient cost management. The net profit margin is healthy, indicating strong profitability, although it slightly decreased from 46.8% in 2023 to 44% in 2024. The revenue growth rate from 2023 to 2024 is modest at 0.3%, suggesting stability. However, absence of EBIT and EBITDA figures in 2024 limits a complete profitability analysis for that year.

Balance Sheet

The company's balance sheet reflects solid financial health, with a notable increase in stockholders' equity from SEK 159,824 million in 2019 to SEK 210,022 million in 2024. The equity ratio has improved, demonstrating a strong capital position. With total debt at zero in 2024, the debt-to-equity ratio is very favorable, highlighting the company's low leverage. The return on equity (ROE) remains strong, although slightly lower than the previous year, supporting the company's ability to generate returns on equity investments.

Cash Flow

Svenska Handelsbanken AB's cash flow statements indicate healthy cash generation, with a significant increase in free cash flow from SEK 21,662 million in 2023 to SEK 43,300 million in 2024. The operating cash flow to net income ratio is strong, suggesting effective cash conversion. However, fluctuations in investing cash flow over the years and a negative operating cash flow in 2022 highlight potential volatility in cash management. The free cash flow growth rate from 2023 to 2024 is substantial, further enhancing the company's liquidity position.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
94.70B	62.31B	62.13B	49.20B	42.88B	44.23B
	Gross Profit
126.08B	62.31B	62.20B	49.20B	42.88B	44.23B
	EBIT
35.06B	34.85B	46.82B	55.04B	24.15B	20.13B
	EBITDA
0.00	0.00	38.01B	31.14B	25.53B	20.75B
	Net Income Common Stockholders
27.17B	27.45B	29.11B	21.68B	19.53B	15.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
634.12B	542.54B	448.71B	480.47B	292.84B	418.97B
	Total Assets
3.70T	3.54T	3.54T	3.45T	3.35T	3.14T
	Total Debt
0.00	0.00	1.57T	1.67T	1.44T	1.40T
	Net Debt
-634.12B	-542.54B	-482.45B	1.19T	1.15T	978.59B
	Total Liabilities
3.52T	3.33T	3.33T	3.26T	1.44T	2.96T
	Stockholders Equity
183.92B	210.02B	205.08B	196.03B	181.71B	171.46B
Cash Flow		Free Cash Flow
61.55B	42.90B	21.66B	-39.80B	47.65B	85.52B
	Operating Cash Flow
63.07B	44.53B	23.13B	-38.30B	49.38B	87.26B
	Investing Cash Flow
15.98B	15.75B	-1.52B	48.21B	-752.00M	220.00M
	Financing Cash Flow
5.71B	-33.41B	-41.80B	-1.05B	-26.80B	8.17B

Svenska Handelsbanken AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SHB.A, the sentiment is Positive. The current price of 126.15 is above the 20-day moving average (MA) of 120.47, above the 50-day MA of 116.81, and above the 200-day MA of 104.10, indicating a bullish trend. The MACD of 3.71 indicates Negative momentum. The RSI at 66.68 is Neutral, neither overbought nor oversold. The STOCH value of 69.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SHB.A.

Svenska Handelsbanken AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZA	82 Outperform	kr54.22B	22.53	35.82%	3.40%	12.79%	17.93%
SWED.A	75 Outperform	kr280.70B	8.13	17.65%	8.75%	0.71%	-1.05%
SEB.A	73 Outperform	kr335.81B	9.47	15.39%	5.35%	0.41%	-8.47%
SHB.A	70 Outperform	kr253.91B	9.26	14.54%	11.89%	-3.90%	-6.02%
Sector *	64 Neutral	$12.74B	9.85	7.88%	17015.07%	12.17%	-6.02%

Svenska Handelsbanken AB Corporate Events

Handelsbanken to Release Q1 2025 Interim Report

Svenska Handelsbanken AB announced the release of its interim report for January to March 2025, scheduled for April 30, 2025. The report will be presented by CEO Michael Green, followed by a Q&A session with key executives, providing stakeholders with insights into the company’s financial performance and strategic direction.

Handelsbanken to Release Q1 2025 Interim Report

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30, providing insights into its financial performance and strategic direction. The report presentation, led by CEO Michael Green, will be broadcast live, followed by a Q&A session, highlighting the bank’s commitment to transparency and stakeholder engagement.

Handelsbanken to Release Q1 2025 Interim Report

Svenska Handelsbanken AB, a prominent bank in the financial industry, is set to release its interim report for the first quarter of 2025. The report will be presented by CEO Michael Green, followed by a Q&A session with key executives, providing stakeholders with insights into the bank’s performance and strategic direction.

Handelsbanken to Release Q1 2025 Interim Report and Host Live Presentation

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30, with a presentation by CEO Michael Green. The event will include a live broadcast, a Q&A session with key executives, and opportunities for media interviews, indicating the bank’s commitment to transparency and stakeholder engagement.

Handelsbanken to Release Q1 2025 Interim Report

Svenska Handelsbanken AB is set to release its interim report for the first quarter of 2025 on April 30th. The report will be presented by CEO Michael Green, followed by a Q&A session with key executives. This event is significant for stakeholders as it provides insights into the bank’s financial performance and strategic direction for the year.

Handelsbanken to Release Q1 2025 Interim Report

Svenska Handelsbanken AB announced the release of its interim report for the first quarter of 2025, scheduled for April 30. The report will be presented by CEO Michael Green, followed by a live broadcast presentation and a Q&A session with key executives. This announcement is crucial for stakeholders as it provides insights into the bank’s financial performance and strategic direction.

Handelsbanken to Release Q1 2025 Interim Report

Svenska Handelsbanken AB announced the release of its interim report for the first quarter of 2025, scheduled for April 30. The report will be presented by CEO Michael Green, followed by a live broadcast and a Q&A session with key executives, indicating the bank’s commitment to transparency and stakeholder engagement.

Handelsbanken to Release Q1 2025 Interim Report

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30. The report will be presented by CEO Michael Green and will include a live broadcast followed by a Q&A session with key executives. This announcement is significant for stakeholders as it provides insights into the bank’s financial performance and strategic direction for the year.

Handelsbanken to Release Q1 2025 Interim Report

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30, with a presentation by CEO Michael Green. This announcement is significant for stakeholders as it provides insights into the bank’s financial performance and strategic direction, potentially impacting its market positioning.

Handelsbanken to Release Q1 2025 Interim Report

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30th. The announcement will be presented by CEO Michael Green, followed by a Q&A session with key executives, providing stakeholders an opportunity to gain insights into the company’s financial performance and strategic direction.