Svenska Handelsbanken AB (SHB.A) AI Stock Analysis

• Market Cap: kr294.26B
• Dividend Yield: 11.24%
• Average Volume (3M): 4.26M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.62
• Revenue Growth: -18.75%
• EPS Growth: -11.69%
• Country: SE
• Employees: 11,799
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 3.08
• Shares Outstanding: 1,944,777,200
• 10 Day Avg. Volume: 4,490,503
• 30 Day Avg. Volume: 4,262,725
• PEG Ratio: -0.83
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.83
• P/FCF Ratio: -5.68
• 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: kr137.00
• Price Target Upside: -2.46% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: kr148.00 ▲(5.38% Upside)

The score is held back primarily by weak and volatile cash flow (negative operating and free cash flow in 2024–2025) alongside high balance-sheet leverage, despite strong 2025 revenue growth and adequate profitability. Technicals are moderately positive, and valuation is supportive with a reasonable P/E and very high dividend yield.

Svenska Handelsbanken AB Business Overview & Revenue Model

Company Description

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, China, Germany, France, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, group and health, and travel insurance products; forestry and farming banking products; and online and mobile banking services. In addition, the company offers transaction, trade finance, cash management, risk management, and foreign exchange services, as well as various banking services for children and young people. It operates approximately 214 branches in Sweden, 196 in the Great Britain, 41 in Norway, 42 in Denmark, 27 in Finland, and 28 in the Netherlands. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.

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

Income statement is supportive (Income Statement Score 72) with a sharp 2025 revenue step-up and still-solid margins, but profitability is less consistent than 2021–2024. Balance sheet risk is elevated (Balance Sheet Score 56) due to structurally high leverage despite steady equity growth and respectable ROE. Cash flow is the main weakness (Cash Flow Score 34) with negative operating and free cash flow in 2024–2025, raising durability/quality concerns.

Income Statement

Revenue shows a sharp step-up in 2025 (annual growth of ~75.9% vs near-flat 2024), indicating strong top-line momentum. Profitability remains solid in 2025 with an operating margin of ~21.2% and a net margin of ~16.3%, but both are materially lower than the unusually high margin profile seen in 2021–2024 (net margins ~35%–47%). Net income has also softened from 2023–2024 levels into 2025, suggesting earnings power is less consistent than the revenue growth implies.

Balance Sheet

The balance sheet is highly levered, with debt-to-equity consistently elevated (~7.6x–8.8x across 2020–2025), which increases sensitivity to funding conditions and credit cycles. Equity has grown over time (from ~171bn in 2020 to ~199bn in 2025), providing some cushion, and returns on equity are respectable and fairly steady (~9%–14%). Overall, adequate profitability is offset by structurally high leverage typical of the sector, leaving less room for error if conditions deteriorate.

Cash Flow

Cash generation is volatile and has turned notably weaker in the last two years: operating cash flow and free cash flow were negative in 2024 and 2025 (and also negative in 2022), after being positive in 2020–2021 and 2023. The deterioration is meaningful, with free cash flow declining sharply in 2025 (growth ~-164.6%). This inconsistency raises questions about the quality and durability of cash conversion versus accounting earnings, even though some years showed strong positive cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	82.57B	145.24B	62.31B	62.13B	49.20B	42.88B
Gross Profit	60.10B	0.00	62.31B	62.20B	49.20B	42.88B
EBITDA	7.67B	30.75B	0.00	38.01B	31.14B	25.53B
Net Income	25.86B	23.73B	27.45B	29.11B	21.68B	19.53B
Balance Sheet
Total Assets	3.66T	3.39T	3.54T	3.54T	3.45T	3.35T
Cash, Cash Equivalents and Short-Term Investments	631.77B	0.00	571.79B	448.71B	480.47B	292.84B
Total Debt	1.69T	1.53T	1.84T	1.57T	1.67T	1.44T
Total Liabilities	3.47T	3.19T	3.33T	3.33T	3.26T	1.44T
Stockholders Equity	188.55B	199.35B	210.02B	205.08B	196.03B	181.71B
Cash Flow
Free Cash Flow	72.49B	-46.82B	-33.57B	21.66B	-39.80B	47.65B
Operating Cash Flow	73.85B	-46.29B	-32.63B	23.13B	-38.30B	49.38B
Investing Cash Flow	17.08B	123.00M	15.75B	-1.52B	48.21B	-752.00M
Financing Cash Flow	-24.00B	-29.70B	-33.41B	-41.80B	-1.05B	-26.80B

Svenska Handelsbanken AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.45
• 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:SHB.A, the sentiment is Positive. The current price of 140.45 is below the 20-day moving average (MA) of 140.64, above the 50-day MA of 135.10, and above the 200-day MA of 126.46, indicating a neutral trend. The MACD of 2.42 indicates Positive momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHB.A	61 Neutral	kr294.26B	12.25	12.67%	11.24%	-18.75%	-11.69%

Svenska Handelsbanken AB Corporate Events

Handelsbanken Balances Lower 2025 Earnings With Cost Cuts, Strong Capital and Higher Dividend

Handelsbanken reported a decline in full-year 2025 operating profit to SEK 30.75bn from SEK 35.02bn and lower return on equity of 13.0% versus 14.6%, as lower market rates compressed net interest margins and total income fell 9%. Despite this, the bank highlighted record assets under management and continued lending growth in the UK and Netherlands, a 7% year-on-year reduction in expenses driven by improved efficiency, and strong asset quality with net credit loss reversals for an eighth consecutive quarter. The common equity tier 1 ratio stood at 17.6%, or 2.85 percentage points above the regulatory minimum after proposed dividends, underscoring its capital strength and supporting the Board’s plan to raise the total dividend to SEK 17.50 per share, reinforcing Handelsbanken’s positioning as a highly rated, financially robust bank geared for continued stable, profitable growth.

The most recent analyst rating on ($SE:SHB.A) stock is a Sell with a SEK137.00 price target. To see the full list of analyst forecasts on Svenska Handelsbanken AB stock, see the SE:SHB.A Stock Forecast page.

Handelsbanken Sets Date for 2025 Annual Report Highlights and Investor Presentation

Handelsbanken will publish its Highlights of the Annual Report for January–December 2025 on Wednesday, 4 February, at 07:00 a.m. CET, accompanied by a slide presentation and Fact Book on the bank’s investor relations website. CEO Michael Green will present the year-end figures in a live webcast at 08:15 a.m. CET, followed by a Q&A session with senior management, and both the presentation and Q&A will be made available as recordings, with additional interview opportunities offered to media, underscoring the bank’s emphasis on open communication with investors and other stakeholders ahead of its full-year results.

The most recent analyst rating on ($SE:SHB.A) stock is a Sell with a SEK137.00 price target. To see the full list of analyst forecasts on Svenska Handelsbanken AB stock, see the SE:SHB.A Stock Forecast page.

Handelsbanken Sets 4 February Date for 2025 Year-End Results Presentation

Handelsbanken will publish its Highlights of the Annual Report for January–December 2025 at 07:00 a.m. CET on Wednesday, 4 February, accompanied by a slide presentation and fact book on its investor relations website. Chief Executive Officer Michael Green will present the year-end results in a live webcast at 08:15 a.m. CET, followed by a Q&A session with the CFO and Head of Investor Relations, with replays available online and opportunities for media to book interviews, underscoring the bank’s continued emphasis on transparent communication with investors and the press around its full-year performance.

The most recent analyst rating on ($SE:SHB.A) stock is a Sell with a SEK137.00 price target. To see the full list of analyst forecasts on Svenska Handelsbanken AB stock, see the SE:SHB.A Stock Forecast page.