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

• Market Cap: kr385.63B
• Dividend Yield: 4.41%
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.00
• Revenue Growth: -13.83%
• EPS Growth: -12.61%
• Country: SE
• Employees: 19,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 3.67
• 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): 1.67
• P/FCF Ratio: -8.71
• 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: kr193.20
• Price Target Upside: 0.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: kr225.00 ▲(17.59% Upside)

The overall stock score of 71 reflects strong financial performance with robust revenue growth and profitability, despite cash flow challenges. The valuation is attractive with a low P/E ratio and high dividend yield. Technical analysis suggests a cautious outlook, with the stock trading near its moving averages and neutral RSI.

Positive Factors

Market Position

SEB's status as a leading Nordic bank serving corporate, institutional and private clients across the Nordic and Baltic regions gives it durable client relationships and scale advantages. These entrenched flows support recurring lending, fee income and cross‑sell opportunities over months.

Balance Sheet Strength

A solid equity base and improved equity ratio provide regulatory buffers and capital to sustain lending and capital markets activities. Strong ROE implies efficient capital deployment, enabling the bank to absorb shocks and fund strategic initiatives over the medium term.

Profitability and Margins

High gross margins and robust operating margins indicate efficient cost management and profitable core franchises. Stable margins across lending, fee-based services and trading support sustainable earnings generation and the ability to finance investments and shareholder returns over 2–6 months.

Negative Factors

Operating Cash Flow Weakness

Persistent negative operating and free cash flow undermines the conversion of reported profits into liquid resources. Over time this can constrain loan growth, capital expenditures and dividend capacity, and force reliance on wholesale funding or asset sales if not corrected.

Rising Total Debt

A marked rise in total debt elevates leverage and interest‑rate sensitivity, reducing financial flexibility. Higher debt levels can strain regulatory capital ratios and increase funding costs, potentially forcing deleveraging or capital measures that hinder strategic initiatives over the medium term.

Negative Revenue and EPS Trends

Negative revenue and EPS growth metrics indicate weakening top‑line and earnings momentum. If these trends persist, they erode internal cash generation and investment capacity, pressure margins and could necessitate cost cuts or strategic shifts to restore sustainable organic growth.

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 channels, primarily by offering interest-bearing loans and credit services to individuals and businesses, which constitute a significant portion of its income. The bank earns interest income from the difference between the interest rates it pays on deposits and the rates it charges on loans (net interest income). Additionally, SEB generates fee and commission income from its investment banking services, asset management, and advisory services. This includes fees for underwriting securities, managing investment funds, and providing financial consulting. The bank also earns income from trading and capital markets activities, which involve buying and selling financial instruments on behalf of clients or for its own account. Significant partnerships with corporations and institutional clients enhance SEB's ability to provide tailored financial solutions, contributing to its overall earnings.

Skandinaviska Enskilda Banken AB Financial Statement Overview

Summary

Skandinaviska Enskilda Banken AB shows strong revenue growth and profitability, supported by effective cost management and a robust balance sheet. However, cash flow challenges, particularly negative operating cash flow, raise concerns about liquidity and operational efficiency. The company's ability to manage increasing debt while improving cash flow is crucial for sustaining 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	170.95B	185.76B	167.83B	87.17B	60.89B	62.09B
Gross Profit	80.27B	81.61B	79.96B	64.47B	55.61B	49.65B
EBITDA	44.61B	48.21B	49.93B	35.63B	32.77B	21.66B
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	-124.64B	-35.62B	-39.42B	-71.19B	129.65B	190.32B
Operating Cash Flow	-103.88B	-34.43B	-38.39B	-70.17B	130.29B	190.32B
Investing Cash Flow	-67.69B	-5.00B	-607.00M	-805.00M	-846.00M	56.00M
Financing Cash Flow	5.06B	-15.80B	-19.33B	-17.83B	-22.23B	-10.26B

Skandinaviska Enskilda Banken AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 191.35
• 50DMA: Negative
• 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 Negative. The current price of 191.35 is below the 20-day moving average (MA) of 198.91, below the 50-day MA of 192.03, and above the 200-day MA of 175.67, indicating a neutral trend. The MACD of 1.07 indicates Positive momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
SEB.A	71 Outperform	kr385.63B	12.11	13.97%	4.41%	-13.83%	-12.61%
SWED.A	70 Outperform	kr388.80B	11.86	15.50%	6.87%	-14.95%	-4.73%
AZA	69 Neutral	kr54.84B	21.06	42.92%	3.34%	7.33%	23.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHB.A	67 Neutral	kr281.68B	11.33	12.67%	11.24%	-18.75%	-11.69%
SHB.B	59 Neutral	kr281.68B	18.68	―	3.34%	-18.75%	-11.69%