Svenska Handelsbanken AB Class B (SHB.B) AI Stock Analysis

• Market Cap: kr281.67B
• Dividend Yield: 3.34%
• Average Volume (3M): 91.06K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.85
• 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: 35,251,328
• 10 Day Avg. Volume: 97,450
• 30 Day Avg. Volume: 91,062
• PEG Ratio: -0.83
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.85
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 11.17
• Revenue Forecast (FY): kr55.76B

• Rating: 63 Neutral
• Price Target: kr252.00 ▲(10.33% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back mainly by uneven cash-flow quality and high leverage, despite strong reported profitability. Technicals are supportive (price above major moving averages with positive MACD), while valuation is fair-to-slightly expensive for the sector with a moderate dividend yield.

Positive Factors

Profitability and margins

Consistently healthy net margins and stronger 2025 revenue versus 2024 indicate durable earnings capacity. Over a 2–6 month horizon this supports internal capital generation, dividend capacity and resilience to cyclical swings, underpinning long-term profitability.

Diversified universal banking model

A broad universal banking model across retail, corporate, payments and wealth services creates diversified fee and interest income. Multiple customer segments and digital plus branch channels reduce single-market dependence and support more stable revenues over the medium term.

Returns on equity and capital resilience

Mid-to-high single-digit ROE through mid-teens shows the bank can generate returns on capital. Broadly stable equity despite elevated leverage suggests capital buffers and management discipline, supporting regulatory compliance and the ability to sustain payouts or reinvestment.

Negative Factors

High leverage

Significantly elevated debt-to-equity amplifies sensitivity to credit losses and funding stress. High leverage reduces shock-absorption capacity, raises regulatory and refinancing risks, and can constrain strategic moves or capital returns if macro or credit conditions deteriorate.

Inconsistent cash generation

Repeated negative operating and free cash flow in several recent years signals weak cash conversion and earnings quality. This pattern limits self-funding for capital, cushions and dividends, and increases reliance on external funding, a structural weakness if stress persists.

Revenue and earnings volatility

Sharp recent declines and volatile year-to-year results reduce predictability of core earnings and long-term planning. Persistent revenue and EPS weakness can erode franchise competitiveness, reduce internal reinvestment and increase sensitivity to market or credit cycles.

Svenska Handelsbanken AB Class B 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 several key streams. The primary source of income is interest income derived from loans and mortgages provided to personal and commercial clients. Additionally, the bank earns commission income from asset management services, insurance products, and other financial services. Handelsbanken also benefits from net fees and commissions from payment processing, advisory services, and wealth management. The bank's strong presence in various markets is bolstered by its decentralized approach, allowing branches significant autonomy to cater to local client needs effectively. Furthermore, Handelsbanken's conservative risk management strategy and focus on relationship banking contribute to its stable earnings.

Svenska Handelsbanken AB Class B Financial Statement Overview

Summary

Profitability is a strength (income statement score 72) with healthy margins and stronger 2025 revenue vs. 2024, but this is tempered by high bank leverage (balance sheet score 58) and notably inconsistent cash generation (cash flow score 41), including negative operating/free cash flow in multiple recent years.

Income Statement

Profitability is strong, with net margins consistently healthy in most years and solid operating profitability. Revenue has expanded markedly in 2025 versus 2024, supporting earnings capacity, but results show volatility year-to-year (including an unusual 2024 operating margin figure versus other years), which reduces confidence in trend quality.

Balance Sheet

The balance sheet reflects a typical bank profile with very high leverage: debt-to-equity sits around ~7.6–8.8x across the period, which can amplify returns but increases sensitivity to credit and funding conditions. Offsetting that, returns on equity are steady around ~9%–14% and equity has been broadly stable, suggesting reasonable capital resilience despite elevated leverage.

Cash Flow

Cash flow quality is the main weak spot: operating cash flow and free cash flow are negative in multiple recent years (2022, 2024, 2025), with a sharp decline in free cash flow in 2025. While some years show strong positive cash generation (2020, 2021, 2023), the pattern is inconsistent, indicating higher volatility in underlying cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	143.64B	62.31B	62.13B	49.20B	42.88B
Gross Profit	56.80B	62.31B	62.20B	49.20B	42.88B
EBITDA	32.77B	0.00	38.01B	31.14B	25.53B
Net Income	23.73B	27.45B	29.11B	21.68B	19.53B
Balance Sheet
Total Assets	3.39T	3.54T	3.54T	3.45T	3.35T
Cash, Cash Equivalents and Short-Term Investments	465.07B	571.79B	448.71B	480.47B	292.84B
Total Debt	1.53T	1.84T	1.57T	1.67T	1.44T
Total Liabilities	3.19T	3.33T	3.33T	3.26T	1.44T
Stockholders Equity	199.35B	210.02B	205.08B	196.03B	181.71B
Cash Flow
Free Cash Flow	-46.82B	-33.57B	21.66B	-39.80B	47.65B
Operating Cash Flow	-46.29B	-32.63B	23.13B	-38.30B	49.38B
Investing Cash Flow	123.00M	15.75B	-1.52B	48.21B	-752.00M
Financing Cash Flow	-29.70B	-33.41B	-41.80B	-1.05B	-26.80B

Svenska Handelsbanken AB Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 228.40
• 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.B, the sentiment is Positive. The current price of 228.4 is below the 20-day moving average (MA) of 239.92, below the 50-day MA of 235.90, and above the 200-day MA of 212.44, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 32.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SHB.B.

Svenska Handelsbanken AB Class B 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.B	63 Neutral	kr281.67B	11.21	―	3.34%	-18.75%	-11.69%