Swedbank (SWED.A) AI Stock Analysis

• Market Cap: kr322.19B
• Dividend Yield: 7.65%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.94
• Revenue Growth: -7.47%
• EPS Growth: -1.55%
• Country: SE
• Employees: 16,933
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 6.99
• Shares Outstanding: 1,132,005,700
• 10 Day Avg. Volume: 1,515,296
• 30 Day Avg. Volume: 1,406,116
• PEG Ratio: 3.34
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 3.05
• 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: kr273.82
• Price Target Upside: -3.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: ―

Swedbank's strong financial performance, marked by robust revenue and profit growth, excellent margins, and solid cash flow, underpins its stable position within the banking sector. Despite high leverage, the bank's profitability and liquidity remain strong. Technical indicators show positive momentum, though they suggest caution due to overbought conditions. Valuation metrics point to an undervalued stock with a high dividend yield, appealing to value and income investors. Overall, Swedbank presents a compelling investment opportunity, balanced by the need to monitor leverage and market conditions.

Swedbank Business Overview & Revenue Model

Company Description

Swedbank AB (SWED.A) is a leading Nordic-Baltic banking group headquartered in Stockholm, Sweden. The bank primarily operates in Sweden, Estonia, Latvia, and Lithuania, offering a comprehensive range of financial services including retail banking, corporate banking, asset management, and insurance. Swedbank's core products and services cater to private individuals, small and medium-sized enterprises (SMEs), and large corporations, providing solutions such as savings accounts, loans, mortgages, investment products, and payment services.

How the Company Makes Money

Swedbank makes money through a diverse revenue model primarily centered around interest income from lending activities and fees and commissions from various financial services. The bank earns interest income by providing loans and mortgages to retail and corporate customers, charging interest on these financial products. Additionally, Swedbank generates revenue through fees and commissions from services like asset management, payment processing, and insurance products. The bank also benefits from trading and investment activities, where it earns income from buying and selling securities. Significant partnerships with businesses and government entities further bolster Swedbank's earnings, allowing it to offer tailored financial solutions and expand its customer base in key markets.

Swedbank Financial Statement Overview

Summary

Swedbank demonstrates strong revenue and profit growth with excellent margins, underscoring its effective operations in the banking industry. The balance sheet reflects a well-capitalized institution with high leverage, typical for the sector, yet manageable given current profitability. Cash flow statements show some volatility, but overall liquidity and cash generation remain solid. Swedbank's financials position it well for sustained performance, although attention to leverage and cash flow consistency is advisable.

Income Statement

Swedbank has demonstrated robust revenue growth, with a notable increase of 58.7% from 2024 to TTM (Trailing-Twelve-Months). The gross profit margin remains extremely high at 99.6%, indicating efficient cost management. Net profit margin is solid at 29.3%, driven by strong profitability. EBIT margin is also strong at 38.4%. These metrics highlight Swedbank's effective operational performance and profitability, positioning it well within the banking industry.

Balance Sheet

Swedbank's balance sheet is characterized by a high debt-to-equity ratio of 3.76, indicating significant leverage, which is typical for banks. However, the bank maintains a healthy equity ratio of 6.5%, reflecting a strong capital base. Return on equity is robust at 17.3%, showcasing effective use of shareholder equity to generate profits. Overall, Swedbank's balance sheet shows stability but relies heavily on leverage, which could pose risks if not managed carefully.

Cash Flow

The cash flow analysis reveals a significant decline in operating cash flow compared to prior periods, but the current free cash flow of 43.8 billion is a positive indicator of liquidity. The operating cash flow to net income ratio is 1.28, reflecting solid cash generation relative to net income. Despite recent fluctuations, the cash flow position remains strong, providing Swedbank with the financial flexibility needed for future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.30B	144.06B	71.38B	52.48B	45.91B	45.09B
Gross Profit	71.59B	73.33B	72.25B	52.48B	45.91B	45.09B
EBITDA	33.55B	0.00	44.74B	27.72B	26.47B	17.78B
Net Income	33.93B	34.87B	34.13B	21.36B	20.87B	12.93B
Balance Sheet
Total Assets	3.13T	3.01T	2.86T	2.85T	2.75T	2.59T
Cash, Cash Equivalents and Short-Term Investments	325.02B	492.04B	252.99B	365.99B	360.15B	293.81B
Total Debt	943.36B	923.10B	866.22B	881.36B	806.11B	770.22B
Total Liabilities	2.92T	2.79T	2.66T	2.68T	806.11B	770.22B
Stockholders Equity	208.68B	218.87B	198.76B	176.06B	161.67B	155.17B
Cash Flow
Free Cash Flow	36.13B	80.41B	-146.00B	-18.98B	49.16B	108.87B
Operating Cash Flow	36.58B	80.82B	-145.15B	-18.62B	49.41B	109.24B
Investing Cash Flow	-180.00M	-147.00M	-418.00M	691.00M	628.00M	1.38B
Financing Cash Flow	-23.81B	-12.64B	32.17B	10.02B	14.15B	-8.70B

Swedbank Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 283.80
• 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:SWED.A, the sentiment is Neutral. The current price of 283.8 is below the 20-day moving average (MA) of 283.92, above the 50-day MA of 276.42, and above the 200-day MA of 247.40, indicating a neutral trend. The MACD of 3.58 indicates Positive momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 55.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:SWED.A.

Swedbank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZA	82 Outperform	kr58.93B	22.50	42.92%	3.14%	7.33%	23.01%
SWED.A	75 Outperform	kr322.19B	9.52	16.62%	7.65%	-7.47%	-1.55%
SEB.A	73 Outperform	kr362.54B	11.02	15.21%	4.72%	-7.62%	-10.61%
SAVE	72 Outperform	€71.40B	25.45	45.35%	2.88%	4.85%	5.40%
SHB.A	70 Outperform	kr248.22B	9.48	13.61%	12.12%	-12.96%	-9.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%