Skandinaviska Enskilda Banken AB (SEB.A) AI Stock Analysis

• Market Cap: kr364.53B
• Dividend Yield: 4.68%
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.02
• Revenue Growth: -13.83%
• EPS Growth: -12.61%
• Country: SE
• Employees: 19,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 3.83
• Shares Outstanding: 2,018,544,900
• 10 Day Avg. Volume: 2,268,313
• 30 Day Avg. Volume: 2,224,171
• PEG Ratio: -2.28
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 3.83
• P/FCF Ratio: 13.94
• 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: kr184.29
• Price Target Upside: 1.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: ―

Skandinaviska Enskilda Banken AB demonstrates strong financial performance with robust revenue and profitability, but faces challenges with cash flow that could impact liquidity. Valuation is attractive with a low P/E ratio and high dividend yield, making it appealing for value and income-focused investors. Technical analysis presents a mixed picture with potential resistance and overbought signals. Overall, while the stock has solid fundamentals, investors should monitor cash flow and market conditions closely.

Skandinaviska Enskilda Banken AB Business Overview & Revenue Model

Company Description

Skandinaviska Enskilda Banken AB (publ) provides corporate, retail, investment, and private banking services. It operates through Large Corporates & Financial Institutions, Corporate & Private Customers, Baltic, Life, and Investment Management divisions. The company offers research and strategy services; analysis, advisory, execution, and trading services in the foreign exchange, fixed income, equities, and commodities markets; transaction services, including cash management, trade and supply chain finance, and business services; and investor services. It also provides investment banking services, such as corporate finance advisory services related to acquisitions, divestments, and mergers; equity capital market services related to initial public offerings, rights issues, and placings; debt transaction services comprising bonds, corporate acquisition financing, and general corporate refinancing services; leveraged and structured finance services, as well as real estate and shipping finance services. In addition, the company offers venture capital for entrepreneurs and innovators; asset management products that include equities, fixed income securities, hedge funds, commodities, and private equity solutions; and pensions, life insurance, health care insurance, and disability insurance. It serves large corporations and financial institutions, private customers, and small and medium-sized corporates. The company offers its services through 156 branch offices. It operates in Sweden, Norway, Denmark, Finland, Estonia, Latvia, Lithuania, Germany, the United Kingdom, the United States, Ireland, Luxembourg, China, Singapore, Russia, Poland, Hong Kong, Ukraine, and internationally. The company was founded in 1856 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

SEB generates revenue through various streams, primarily from its corporate and institutional banking services, which include lending, advisory, and capital market services. Another significant revenue source is its wealth management division, providing investment advice, asset management, and private banking services. Retail banking also contributes to its earnings through deposit accounts, personal loans, and mortgage products offered to individual customers. Additionally, SEB benefits from transaction fees, foreign exchange services, and investments in financial markets. The bank's strategic partnerships and collaborations with other financial institutions and technology providers enhance its service offerings and expand its customer base, further contributing to its revenue.

Skandinaviska Enskilda Banken AB Financial Statement Overview

Summary

Skandinaviska Enskilda Banken AB exhibits strong revenue growth and profitability, supported by effective cost management and a robust balance sheet. However, the cash flow challenges, particularly the negative operating cash flow, may raise concerns about liquidity and operational efficiency. The company's ability to manage its increasing debt while improving cash flow will be crucial for sustaining its financial health.

Income Statement

The income statement shows strong revenue growth with a notable increase in total revenue from previous years. The gross profit margin is high, indicating efficient cost management. However, the net profit margin shows a slight decrease in recent periods, which might suggest increasing costs or other expenses affecting net income. The EBIT and EBITDA margins are robust, supporting profitability.

Balance Sheet

The balance sheet is solid with a strong equity base. The debt-to-equity ratio is relatively moderate, reflecting a balanced approach to leverage. The equity ratio has improved, indicating a healthier capital structure. Return on equity remains strong, suggesting effective use of shareholder funds. However, the substantial increase in total debt over the TTM period could be a concern if not managed properly.

Cash Flow

The cash flow statement indicates a challenging environment with negative operating cash flows in recent periods, which could strain liquidity if persistent. Free cash flow is also negative, reflecting potential difficulties in covering capital expenditures and other obligations. The operating cash flow to net income ratio is unfavorable, suggesting issues with converting revenue into cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.35B	81.00B	79.23B	64.58B	54.59B	49.65B
Gross Profit	80.27B	81.61B	80.20B	64.58B	54.59B	49.65B
EBITDA	33.93B	0.00	0.00	35.71B	32.73B	21.59B
Net Income	33.02B	35.87B	38.12B	26.88B	25.42B	15.75B
Balance Sheet
Total Assets	4.11T	3.76T	3.61T	3.53T	3.30T	3.04T
Cash, Cash Equivalents and Short-Term Investments	526.71B	275.62B	409.07B	451.93B	443.32B	324.18B
Total Debt	944.42B	1.07T	867.84B	830.98B	765.44B	790.10B
Total Liabilities	3.89T	3.53T	3.39T	3.33T	3.11T	2.87T
Stockholders Equity	216.57B	231.15B	221.78B	204.52B	193.23B	171.94B
Cash Flow
Free Cash Flow	-463.92B	22.27B	-38.39B	-71.19B	129.65B	190.00B
Operating Cash Flow	-443.16B	-34.43B	-38.39B	-70.17B	130.29B	190.32B
Investing Cash Flow	-153.21B	-5.00B	-607.00M	-805.00M	-846.00M	56.00M
Financing Cash Flow	345.67B	-15.80B	-30.76B	-17.83B	-22.23B	-10.26B

Skandinaviska Enskilda Banken AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 180.90
• 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 SE:SEB.A, the sentiment is Neutral. The current price of 180.9 is below the 20-day moving average (MA) of 182.20, above the 50-day MA of 180.66, and above the 200-day MA of 164.59, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 48.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:SEB.A.

Skandinaviska Enskilda Banken AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZA	―	kr58.66B	22.68	42.92%	3.15%	7.33%	23.01%
SHB.B	―	kr248.67B	16.89	―	3.61%	-18.75%	-11.69%
SWED.A	―	kr324.77B	9.84	15.50%	7.49%	-14.95%	-4.73%
SEB.A	―	kr364.53B	11.67	13.97%	4.68%	-13.83%	-12.61%
SHB.A	―	kr248.67B	9.92	12.67%	12.09%	-18.75%	-11.69%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%