Swedbank (SWED.A) AI Stock Analysis

• Market Cap: kr269.93B
• Dividend Yield: 8.83%
• Average Volume (3M): 3.76M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.95
• Revenue Growth: 0.71%
• EPS Growth: -1.05%
• Country: SE
• Employees: 16,933
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 7.26
• Shares Outstanding: 1,132,005,700
• 10 Day Avg. Volume: 2,676,511
• 30 Day Avg. Volume: 3,761,475
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: kr230.17
• Price Target Upside: -6.36% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

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 (publ) provides various banking products and services to individuals and companies. The company operates through Swedish Banking, Baltic Banking, and Large Corporates & Institutions segments. It offers savings accounts, mutual funds and insurance savings, pension savings, institutional asset management, and other savings and investment products; private residential lending, consumer financing, corporate lending, leasing, other financing products, trade finance, and factoring services; and current accounts, cash handling, debit and credit cards, card acquiring, other payment products, as well as domestic, international, mobile, and document payments. The company also provides equity trading, structured products, corporate finance, custody services, fixed income and currency trading, and other capital market products; and administrative services, treasury operations, real estate brokerage and management, legal services, safe deposit boxes, and others. In addition, it offers asset management, as well as life insurance and pension services; investment and trading services, including currency, fixed income, and equity and related derivatives services, as well as structured products; advisory and investment banking products and services, such as corporate financing, debt capital market, leveraged finance, and loans and syndication; and transaction banking services comprising cash management, trade finance, securities, commercial payments, account, and clearing and settlement services. Further, the company provides telephone, Internet, and mobile banking services. The company operates 153 branches in Sweden, 17 branches in Estonia, 21 in Latvia, and 42 in Lithuania. It also has operations in Norway, Finland, Denmark, China, the United States, and South Africa. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
74.37B	71.38B	52.48B	45.91B	45.09B
	Gross Profit
73.33B	72.25B	52.48B	45.91B	45.09B
	EBIT
44.00B	47.42B	39.48B	25.82B	16.78B
	EBITDA
0.00	44.74B	27.72B	26.47B	17.78B
	Net Income Common Stockholders
34.87B	34.13B	21.36B	20.87B	12.93B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
325.60B	252.99B	365.99B	360.15B	293.81B
	Total Assets
3.01T	2.86T	2.85T	2.75T	2.59T
	Total Debt
0.00	866.22B	881.36B	806.11B	770.22B
	Net Debt
-325.60B	-252.99B	515.37B	445.96B	476.41B
	Total Liabilities
2.79T	2.66T	2.68T	806.11B	770.22B
	Stockholders Equity
218.87B	198.76B	176.06B	161.67B	155.17B
Cash Flow		Free Cash Flow
80.41B	-146.00B	-18.98B	49.16B	108.87B
	Operating Cash Flow
80.82B	-145.15B	-18.62B	49.41B	109.24B
	Investing Cash Flow
-147.00M	-418.00M	691.00M	628.00M	1.38B
	Financing Cash Flow
-12.64B	32.17B	10.02B	14.15B	-8.70B

Swedbank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 245.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SWED.A, the sentiment is Positive. The current price of 245.8 is above the 20-day moving average (MA) of 225.28, above the 50-day MA of 230.43, and above the 200-day MA of 209.66, indicating a bullish trend. The MACD of 5.39 indicates Negative momentum. The RSI at 68.53 is Neutral, neither overbought nor oversold. The STOCH value of 92.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SWED.A.

Swedbank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWED.A	75 Outperform	kr269.93B	7.92	17.65%	8.83%	0.71%	-1.05%
Sector *	64 Neutral	$12.54B	9.79	7.92%	16985.69%	12.58%	-6.07%