The underlying tendency is to the upside for shares in Swedbank AB and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary
● The company has a good ESG score relative to its sector, according to MSCI.
Strengths
● Its low valuation, with P/E ratio at 10.65 and 11.11 for the ongoing fiscal year and 2026 respectively, makes the stock pretty attractive with regard to earnings multiples.
● This company will be of major interest to investors in search of a high dividend stock.
● Sales forecast by analysts have been recently revised upwards.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The divergence of price targets given by the various analysts who make up the consensus is relatively low, suggesting a consensus method of evaluating the company and its prospects.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● Most analysts recommend that the stock should be sold or reduced.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
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Swedbank AB is a banking group organized around 3 business areas:
- retail banking (70.5% of Net interest income): operating in particular in Sweden (61.1% of Net interest income) and the Baltic States (38.9%; Estonia, Lettonia and Lithuania);
- investment, financial, and market banking (26%): transactions on the stock, interest rate, and exchange markets, financing for large and specialized companies (for projects, acquisitions, etc.), stock brokerage, etc. The group also develops asset management and insurance activities;
- private banking (3.5%).
At the end of 2024, the group managed SEK 1,288.6 billion in current deposits and SEK 1,882.2 billion in current loans;
Banking products and services are marketed through a network of 214 branches located primarily in Sweden (142) and the Baltic States (72).
Net interest income (including intragroup) is distributed geographically as follows: Sweden (63.4%), Lithuania (14.2%), Estonia (11.7%), Latvia (7.3%), Norway (2.1%), the United States (0.3%) and other (1%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
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Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
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Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
