DNB ASA (DNBBY) AI Stock Analysis

• Market Cap: $40.18B
• Dividend Yield: 6.06%
• Average Volume (3M): 2.17K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.51
• Revenue Growth: 2.59%
• EPS Growth: 15.15%
• Country: US
• Employees: 11,188
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 1,492,530,300
• 10 Day Avg. Volume: 2,559
• 30 Day Avg. Volume: 2,174
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.47
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 3.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ―

DNB ASA's overall score reflects strong financial performance with robust revenue growth and profitability, despite concerns about negative cash flows. The technical analysis indicates positive momentum, while the valuation suggests the stock is undervalued. The recent earnings call supports a positive outlook with strong performance metrics and guidance. However, challenges such as inflation and regulatory requirements pose risks.

DNB ASA Business Overview & Revenue Model

Company Description

DNB Bank ASA provides financial services for retail and corporate customers in Norway and internationally. The company offers personal banking products and services, including savings and investment products; loans, such as home mortgages, and car and consumer loans; pet, home and property, travel, and personal insurance products, as well as insurance products for vehicles; retirement savings products; foreign exchange and treasury activities; and Internet and mobile banking services, as well as cards. It also provides business banking products and services comprising savings and investment products consisting of savings accounts, fixed rate deposits, exchange traded products, bonds and commercial papers, asset management, and equity services; financing, such as installment loans, overdraft facility, bank guarantees, leasing, factoring, and trade and export financing services; transaction banking services; research, commodities, bonds and commercial papers, corporate finance, debt capital market, equities, foreign exchange and interest rates, and securities services; and Internet services, including online equity trading, online FX trading, e-confirmation, equities execution, and investor and margin accounts, as well as pension services. In addition, the company provides investment banking services, such as mergers and acquisition, and equity and debt capital market services; foreign exchange, interest rates, equities, commodities, fixed income, research, private equity, and securities services; and corporate banking services. Further, it offers private banking services. The company offers its products and services to various sectors, including energy; financial institutions; healthcare; manufacturing; packaging and forest products; seafood; shipping, offshore, and logistics; and telecom, media, and technology. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.

How the Company Makes Money

DNB ASA generates revenue through various streams, primarily from interest income on loans and credit extended to personal and corporate customers. The bank also earns income from fees and commissions associated with its wealth management, asset management, and investment banking services. Additionally, DNB generates revenue through its insurance products, including life and non-life insurance offerings. Key partnerships with international financial institutions and a strong focus on digital banking solutions further contribute to its revenue growth. Foreign exchange services and treasury operations also play a role in the company's earnings.

DNB ASA Financial Statement Overview

Summary

DNB ASA demonstrates strong revenue growth and profitability with increasing revenue and net profit margins. However, the lack of EBIT and EBITDA data for 2024 and negative cash flows present potential risks. The balance sheet shows financial stability with zero debt and a strong equity position.

Income Statement

DNB ASA shows a strong revenue growth trajectory with a notable increase in total revenue from NOK 79.06 billion in 2023 to NOK 84.82 billion in 2024, marking a revenue growth rate of approximately 7.79%. The gross profit margin remains consistently high as total revenue equals gross profit. However, the lack of reported EBIT and EBITDA for 2024 raises concerns about operational efficiency and transparency in this period. The net profit margin improved significantly from 49.93% in 2023 to 53.95% in 2024, indicating strong profitability.

Balance Sheet

The company's balance sheet is robust, with a solid stockholders' equity to total assets ratio of 7.83% in 2024, indicating a strong equity base. The company has no total debt reported in 2024, which significantly reduces financial risk. The return on equity (ROE) improved to 16.17% in 2024, showcasing enhanced profitability and efficient use of equity. Overall, the balance sheet reflects financial stability with a strong equity position and minimal financial leverage.

Cash Flow

DNB ASA's cash flow statement indicates challenges in cash generation, with a negative operating cash flow of NOK -156.44 billion in 2024, significantly impacting free cash flow, which is also negative at NOK -159.12 billion. This represents a substantial deterioration compared to previous years, raising concerns about liquidity and cash management. The operating cash flow to net income ratio is negative, suggesting that the company's operations are not generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	149.92B	85.33B	79.06B	65.39B	55.39B	56.00B
Gross Profit	87.11B	85.33B	81.25B	65.50B	55.39B	56.00B
EBITDA	44.72B	0.00	0.00	0.00	0.00	0.00
Net Income	46.10B	45.77B	39.48B	33.36B	25.33B	19.85B
Balance Sheet
Total Assets	3.84T	3.61T	3.44T	3.23T	2.92T	2.92T
Cash, Cash Equivalents and Short-Term Investments	434.62B	179.96B	335.58B	317.12B	400.72B	373.01B
Total Debt	1.03T	1.01T	952.37B	838.67B	778.50B	824.50B
Total Liabilities	3.56T	3.33T	3.17T	2.98T	2.68T	2.67T
Stockholders Equity	275.95B	283.11B	269.13B	249.61B	243.65B	248.28B
Cash Flow
Free Cash Flow	-47.49B	-159.12B	43.00M	5.44B	37.10B	80.74B
Operating Cash Flow	-44.98B	-156.44B	4.12B	8.95B	41.59B	84.57B
Investing Cash Flow	-15.46B	-880.00M	-1.76B	-7.65B	-4.39B	-4.72B
Financing Cash Flow	-19.30B	-29.57B	14.18B	5.48B	-15.74B	-102.23B

DNB ASA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNBBY, the sentiment is Positive. The current price of 26.6 is below the 20-day moving average (MA) of 27.07, above the 50-day MA of 26.56, and above the 200-day MA of 24.97, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 35.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNBBY.

DNB ASA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RF	77 Outperform	$23.08B	12.05	11.59%	3.92%	2.94%	20.85%
DNBBY	75 Outperform	$40.18B	9.78	17.29%	6.06%	2.59%	15.15%
TFC	70 Outperform	$58.45B	12.32	8.13%	4.71%	18.31%	―
FITB	70 Outperform	$28.98B	13.82	11.58%	3.46%	1.90%	2.87%
MTB	68 Neutral	$29.69B	12.31	9.47%	2.93%	0.69%	14.79%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KB	65 Neutral	$29.94B	7.85	10.14%	2.28%	-3.11%	28.74%