Svenska Handelsbanken AB (SHB.A) AI Stock Analysis

• Market Cap: kr279.91B
• Dividend Yield: 11.24%
• Average Volume (3M): 4.26M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.64
• Revenue Growth: -18.75%
• EPS Growth: -11.69%
• Country: SE
• Employees: 11,799
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 3.04
• Shares Outstanding: 1,944,777,200
• 10 Day Avg. Volume: 4,490,503
• 30 Day Avg. Volume: 4,262,725
• PEG Ratio: -1.44
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 3.63
• P/FCF Ratio: -6.73
• 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: kr132.67
• Price Target Upside: -5.91% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: kr144.00 ▲(2.13% Upside)

The score is primarily held back by financial performance quality concerns—especially cash-flow volatility, the latest revenue decline, and high leverage—despite solid profitability. Offsetting that, technicals indicate a constructive uptrend, and valuation looks attractive with a low 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

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.57B	62.31B	62.13B	49.20B	42.88B	44.23B
Gross Profit	60.10B	62.31B	62.20B	49.20B	42.88B	44.23B
EBITDA	7.67B	0.00	38.01B	31.14B	25.53B	20.75B
Net Income	25.86B	27.45B	29.11B	21.68B	19.53B	15.59B
Balance Sheet
Total Assets	3.66T	3.54T	3.54T	3.45T	3.35T	3.14T
Cash, Cash Equivalents and Short-Term Investments	631.77B	571.79B	448.71B	480.47B	292.84B	418.97B
Total Debt	1.69T	1.84T	1.57T	1.67T	1.44T	1.40T
Total Liabilities	3.47T	3.33T	3.33T	3.26T	1.44T	2.96T
Stockholders Equity	188.55B	210.02B	205.08B	196.03B	181.71B	171.46B
Cash Flow
Free Cash Flow	72.49B	-33.57B	21.66B	-39.80B	47.65B	85.52B
Operating Cash Flow	73.85B	-32.63B	23.13B	-38.30B	49.38B	87.26B
Investing Cash Flow	17.08B	15.75B	-1.52B	48.21B	-752.00M	220.00M
Financing Cash Flow	-24.00B	-33.41B	-41.80B	-1.05B	-26.80B	8.17B

Svenska Handelsbanken AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 141.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 141 is above the 20-day moving average (MA) of 133.87, above the 50-day MA of 130.40, and above the 200-day MA of 124.12, indicating a bullish trend. The MACD of 2.44 indicates Negative momentum. The RSI at 72.05 is Negative, neither overbought nor oversold. The STOCH value of 97.11 is Negative, 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	67 Neutral	kr279.91B	11.24	12.67%	11.24%	-18.75%	-11.69%

Svenska Handelsbanken AB Corporate Events

Handelsbanken Reports Strong Q3 2025 Performance Amidst Industry Challenges

Handelsbanken reported an 8% increase in operating profit for Q3 2025, with improved return on equity and earnings per share. Despite a decrease in total income for the first nine months compared to the previous year, the bank maintained strong credit quality and high customer satisfaction, contributing to its recognition as one of the world’s safest commercial banks. The common equity tier 1 ratio exceeded regulatory requirements, indicating financial strength and stability.

The most recent analyst rating on ($SE:SHB.A) stock is a Hold with a SEK122.00 price target. To see the full list of analyst forecasts on Svenska Handelsbanken AB stock, see the SE:SHB.A Stock Forecast page.