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Svenska Handelsbanken AB (SE:SHB.A)
:SHB.A
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Svenska Handelsbanken AB (SHB.A) AI Stock Analysis

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SE:SHB.A

Svenska Handelsbanken AB

(LSE:SHB.A)

Rating:70Outperform
Price Target:
Svenska Handelsbanken AB has strong financial performance with excellent profitability and a robust balance sheet, which is a major strength. However, technical analysis suggests bearish momentum, which could be a concern. The valuation metrics indicate that the stock is potentially undervalued with an attractive dividend yield, providing a buffer against market downturns. These factors contribute to an overall balanced score, reflecting both strengths and areas for caution.

Svenska Handelsbanken AB (SHB.A) vs. iShares MSCI Sweden ETF (EWD)

Svenska Handelsbanken AB Business Overview & Revenue Model

Company DescriptionSvenska 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 MoneySvenska 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
Overall, Svenska Handelsbanken AB demonstrates strong financial stability and profitability, with consistent revenue growth, strong margins, and an excellent capital structure. The balance sheet is robust with zero debt in 2024, providing financial flexibility. Despite some volatility in cash flows, the company's cash generation capabilities are strong, supporting its operations and growth prospects. The financial health is reinforced by a strong equity base and effective cost management.
Income Statement
85
Very Positive
Svenska Handelsbanken AB shows strong financial performance with a consistent increase in total revenue from SEK 44,532 million in 2019 to SEK 62,315 million in 2024. The gross profit margin has remained robust, reflecting efficient cost management. The net profit margin is healthy, indicating strong profitability, although it slightly decreased from 46.8% in 2023 to 44% in 2024. The revenue growth rate from 2023 to 2024 is modest at 0.3%, suggesting stability. However, absence of EBIT and EBITDA figures in 2024 limits a complete profitability analysis for that year.
Balance Sheet
90
Very Positive
The company's balance sheet reflects solid financial health, with a notable increase in stockholders' equity from SEK 159,824 million in 2019 to SEK 210,022 million in 2024. The equity ratio has improved, demonstrating a strong capital position. With total debt at zero in 2024, the debt-to-equity ratio is very favorable, highlighting the company's low leverage. The return on equity (ROE) remains strong, although slightly lower than the previous year, supporting the company's ability to generate returns on equity investments.
Cash Flow
78
Positive
Svenska Handelsbanken AB's cash flow statements indicate healthy cash generation, with a significant increase in free cash flow from SEK 21,662 million in 2023 to SEK 43,300 million in 2024. The operating cash flow to net income ratio is strong, suggesting effective cash conversion. However, fluctuations in investing cash flow over the years and a negative operating cash flow in 2022 highlight potential volatility in cash management. The free cash flow growth rate from 2023 to 2024 is substantial, further enhancing the company's liquidity position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue82.57B62.31B62.13B49.20B42.88B44.23B
Gross Profit60.10B62.31B62.20B49.20B42.88B44.23B
EBITDA7.67B0.0038.01B31.14B25.53B20.75B
Net Income25.86B27.45B29.11B21.68B19.53B15.59B
Balance Sheet
Total Assets3.66T3.54T3.54T3.45T3.35T3.14T
Cash, Cash Equivalents and Short-Term Investments631.77B571.79B448.71B480.47B292.84B418.97B
Total Debt1.57T1.84T1.57T1.67T1.44T1.40T
Total Liabilities3.47T3.33T3.33T3.26T1.44T2.96T
Stockholders Equity188.55B210.02B205.08B196.03B181.71B171.46B
Cash Flow
Free Cash Flow72.49B-33.57B21.66B-39.80B47.65B85.52B
Operating Cash Flow73.85B-32.63B23.13B-38.30B49.38B87.26B
Investing Cash Flow17.08B15.75B-1.52B48.21B-752.00M220.00M
Financing Cash Flow-24.00B-33.41B-41.80B-1.05B-26.80B8.17B

Svenska Handelsbanken AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price120.30
Price Trends
50DMA
122.75
Negative
100DMA
123.11
Negative
200DMA
115.98
Positive
Market Momentum
MACD
-0.19
Positive
RSI
39.45
Neutral
STOCH
11.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SHB.A, the sentiment is Negative. The current price of 120.3 is below the 20-day moving average (MA) of 123.53, below the 50-day MA of 122.75, and above the 200-day MA of 115.98, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 11.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SHB.A.

Svenska Handelsbanken AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
kr243.72B9.3213.61%12.41%-12.96%-9.56%
68
Neutral
$17.95B11.5410.27%3.74%9.64%1.17%
kr357.10B10.7515.21%
kr301.33B8.8416.62%
€22.15B
€32.44B
0.16%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SHB.A
Svenska Handelsbanken AB
120.30
26.97
28.89%
GB:0HBY
Skandinaviska Enskilda Banken AB
175.10
30.89
21.42%
GB:0H6T
Swedbank
264.03
65.40
32.93%
DE:SVHG
Svenska Handelsbanken AB Class B
18.13
7.75
74.66%
DE:SEBC
Skandinaviska Enskilda Banken AB Class C
15.88
2.86
21.97%

Svenska Handelsbanken AB Corporate Events

Handelsbanken to Release Q1 2025 Interim Report
Apr 28, 2025

Svenska Handelsbanken AB announced the release of its interim report for January to March 2025, scheduled for April 30, 2025. The report will be presented by CEO Michael Green, followed by a Q&A session with key executives, providing stakeholders with insights into the company’s financial performance and strategic direction.

Handelsbanken to Release Q1 2025 Interim Report
Apr 28, 2025

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30, providing insights into its financial performance and strategic direction. The report presentation, led by CEO Michael Green, will be broadcast live, followed by a Q&A session, highlighting the bank’s commitment to transparency and stakeholder engagement.

Handelsbanken to Release Q1 2025 Interim Report
Apr 28, 2025

Svenska Handelsbanken AB, a prominent bank in the financial industry, is set to release its interim report for the first quarter of 2025. The report will be presented by CEO Michael Green, followed by a Q&A session with key executives, providing stakeholders with insights into the bank’s performance and strategic direction.

Handelsbanken to Release Q1 2025 Interim Report and Host Live Presentation
Apr 28, 2025

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30, with a presentation by CEO Michael Green. The event will include a live broadcast, a Q&A session with key executives, and opportunities for media interviews, indicating the bank’s commitment to transparency and stakeholder engagement.

Handelsbanken to Release Q1 2025 Interim Report
Apr 28, 2025

Svenska Handelsbanken AB is set to release its interim report for the first quarter of 2025 on April 30th. The report will be presented by CEO Michael Green, followed by a Q&A session with key executives. This event is significant for stakeholders as it provides insights into the bank’s financial performance and strategic direction for the year.

Handelsbanken to Release Q1 2025 Interim Report
Apr 28, 2025

Svenska Handelsbanken AB announced the release of its interim report for the first quarter of 2025, scheduled for April 30. The report will be presented by CEO Michael Green, followed by a live broadcast presentation and a Q&A session with key executives. This announcement is crucial for stakeholders as it provides insights into the bank’s financial performance and strategic direction.

Handelsbanken to Release Q1 2025 Interim Report
Apr 28, 2025

Svenska Handelsbanken AB announced the release of its interim report for the first quarter of 2025, scheduled for April 30. The report will be presented by CEO Michael Green, followed by a live broadcast and a Q&A session with key executives, indicating the bank’s commitment to transparency and stakeholder engagement.

Handelsbanken to Release Q1 2025 Interim Report
Apr 28, 2025

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30. The report will be presented by CEO Michael Green and will include a live broadcast followed by a Q&A session with key executives. This announcement is significant for stakeholders as it provides insights into the bank’s financial performance and strategic direction for the year.

Handelsbanken to Release Q1 2025 Interim Report
Apr 28, 2025

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30, with a presentation by CEO Michael Green. This announcement is significant for stakeholders as it provides insights into the bank’s financial performance and strategic direction, potentially impacting its market positioning.

Handelsbanken to Release Q1 2025 Interim Report
Apr 28, 2025

Handelsbanken is set to release its interim report for the first quarter of 2025 on April 30th. The announcement will be presented by CEO Michael Green, followed by a Q&A session with key executives, providing stakeholders an opportunity to gain insights into the company’s financial performance and strategic direction.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 08, 2025