Swedbank AB (SWDBY) AI Stock Analysis

• Market Cap: $30.87B
• Dividend Yield: 7.8%
• Average Volume (3M): 1.40K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.71
• Revenue Growth: 0.37%
• EPS Growth: -1.32%
• Country: US
• Employees: 16,933
• Sector: Financial
• Sector Strength: 67
• Industry: Banks - Regional
• EPS (TTM): 0.72
• Shares Outstanding: 1,132,005,700
• 10 Day Avg. Volume: 1,609
• 30 Day Avg. Volume: 1,404
• PEG Ratio: 2.97
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 3.36
• P/FCF Ratio: 3.06
• Enterprise Value/Market Cap: 3.52
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: 10.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ―

Swedbank's overall strong financial performance, characterized by high profitability and improved cash flow, is a significant strength. Technical indicators suggest positive momentum, though caution is advised due to potential overbought conditions. Valuation metrics are attractive, with a low P/E ratio and high dividend yield. Earnings call insights reaffirm robust fundamentals but highlight areas of concern, such as declining net interest income and regional tax impacts. These factors collectively position Swedbank as a solid investment choice in the regional banking sector.

Swedbank AB 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 AB generates revenue through multiple streams. A significant portion of its income comes from interest earned on loans and advances to both retail and corporate clients. The bank also earns fees and commissions from a variety of financial services such as asset management, investment banking activities, and payment processing. Additionally, Swedbank's insurance products contribute to its revenue through premiums collected. The bank benefits from strategic partnerships with businesses and financial institutions, enhancing its ability to offer competitive financial solutions. Swedbank's focus on digital banking services helps in cost reduction and expands its customer base, further driving profitability.

Swedbank AB Financial Statement Overview

Summary

Swedbank AB's financial performance is strong, driven by impressive profit margins and revenue growth. The balance sheet reflects stability with no debt, though the equity ratio indicates a higher leverage. Cash flow has improved significantly, showing better cash management. While the company is financially robust, attention to operational efficiencies can further enhance performance.

Income Statement

Swedbank AB has shown strong revenue growth with a consistent increase year-over-year, notably a 4.8% increase from 2023 to 2024. The net profit margin is robust at 47.5% in 2024, indicating high profitability. However, there is no reported EBIT or EBITDA margin for 2024, which limits a comprehensive understanding of operational efficiency.

Balance Sheet

The balance sheet is strong, with no reported debt in 2024, demonstrating excellent financial stability. The equity ratio is healthy at 7.3%, and the return on equity is impressive at 15.9%, indicating efficient use of equity to generate profits. However, the comparatively low equity ratio suggests high leverage relative to industry norms.

Cash Flow

Operating cash flow improved significantly to 80.8 billion in 2024, showing a positive turnaround from negative cash flow in 2023. Free cash flow also improved considerably. However, the operating cash flow to net income ratio is approximately 2.3, which indicates strong cash generation relative to net income but could be better balanced.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.41B	73.33B	72.25B	52.48B	45.91B	45.09B
Gross Profit	71.29B	73.33B	73.12B	52.48B	45.91B	45.09B
EBITDA	10.56B	0.00	0.00	0.00	0.00	0.00
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	325.60B	252.99B	365.99B	360.15B	293.81B
Total Debt	943.36B	916.01B	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 AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.67
• 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 SWDBY, the sentiment is Positive. The current price of 27.67 is above the 20-day moving average (MA) of 26.54, above the 50-day MA of 26.43, and above the 200-day MA of 22.51, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 64.03 is Neutral, neither overbought nor oversold. The STOCH value of 92.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWDBY.

Swedbank AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWDBY	79 Outperform	$30.87B	9.40	16.05%	7.80%	0.37%	-1.32%
FITB	78 Outperform	$27.59B	12.87	11.58%	3.59%	2.08%	2.87%
RF	77 Outperform	$22.25B	11.62	11.59%	4.06%	2.83%	20.85%
MTB	77 Outperform	$29.39B	12.18	9.47%	2.94%	0.62%	14.75%
FCNCA	75 Outperform	$24.50B	10.99	10.70%	0.41%	-2.10%	-6.84%
HBAN	73 Outperform	$23.51B	11.94	10.43%	3.91%	5.28%	28.03%
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%