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

• Market Cap: kr285.14B
• Dividend Yield: 3.34%
• Average Volume (3M): 91.06K
• Price to Earnings (P/E): 19.0
• 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): 3.04
• Shares Outstanding: 35,251,328
• 10 Day Avg. Volume: 97,450
• 30 Day Avg. Volume: 91,062
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: kr239.00 ▲(4.64% Upside)

The score is held back primarily by weaker recent financial performance (notably the sharp 2024 revenue decline), high leverage typical of banks, and volatile/negative cash flow in multiple years. Offsetting this, technicals are positive with price above key moving averages and supportive momentum, while valuation is moderate with a ~3.3% dividend yield.

Positive Factors

Profitability

Strong profitability and solid margins indicate a robust business model capable of withstanding economic fluctuations, supporting long-term stability.

Market Position

The bank's established presence in the Nordic markets provides a competitive advantage and a stable customer base, fostering long-term growth opportunities.

Equity Growth

Gradual equity growth and consistent returns on equity reflect effective capital management, enhancing financial resilience and shareholder value.

Negative Factors

Revenue Decline

A significant revenue decline indicates potential challenges in maintaining market share or pricing power, impacting future growth prospects.

High Leverage

High leverage limits financial flexibility and increases risk, particularly if credit conditions tighten or funding costs rise, affecting long-term stability.

Cash Flow Volatility

Volatile cash flow patterns reduce predictability and can strain liquidity, complicating strategic investments and operational planning.

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 with solid margins and resilient net income, but 2024 revenue fell sharply versus 2023 and operating performance appears pressured. The balance sheet shows high leverage (debt-to-equity ~7.6x–9.2x), and cash flow has been highly volatile with negative operating/free cash flow in multiple years (including 2024), reducing predictability.

Income Statement

Profitability is a clear strength: net margin has remained strong (roughly mid-30% to high-40% range across the period), and net income has stayed solid even as conditions changed. However, growth and consistency have weakened—2024 revenue fell sharply versus 2023 (about -34%), and 2024 operating profitability appears pressured versus prior years. Overall, the earnings base looks resilient, but recent top-line contraction and margin volatility temper the score.

Balance Sheet

The balance sheet reflects typical bank leverage, but it is still high: debt-to-equity sits in a ~7.6x–9.2x range, with 2024 elevated versus 2023. Equity has grown gradually over time, and returns on equity have been steady and decent (roughly ~9%–14%). The main drawback is the high leverage profile, which reduces flexibility if credit conditions or funding costs move against the bank.

Cash Flow

Cash generation has been volatile. Operating and free cash flow were negative in multiple years (notably 2022 and 2024), while other years were strongly positive (2020–2021). This swingy pattern suggests uneven cash conversion and/or working-capital and balance-sheet movement impacts common in banking, but it still raises predictability risk. The sharp deterioration in free cash flow in 2024 versus 2023 weighs heavily on the score.

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 Class B Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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 Neutral. The current price of 228.4 is below the 20-day moving average (MA) of 234.67, above the 50-day MA of 226.78, and above the 200-day MA of 205.09, indicating a neutral trend. The MACD of 2.34 indicates Positive momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 52.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	59 Neutral	kr285.14B	18.97	―	3.34%	-18.75%	-11.69%