JAREN SPAREBANK (JAREN.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:JAREN - NO0010359433 - Common Stock
359 NOK
-1.95 (-0.54%)
We assign a fundamental rating of 3 out of 10 to JAREN. JAREN was compared to 114 industry peers in the Banks industry. Both the profitability and financial health of JAREN have multiple concerns. JAREN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- JAREN had positive earnings in the past year.
- JAREN had a negative operating cash flow in the past year.
- Each year in the past 5 years JAREN has been profitable.
- In multiple years JAREN reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.75%, JAREN is in line with its industry, outperforming 51.75% of the companies in the same industry.
- JAREN has a worse Return On Equity (5.63%) than 71.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 5.63% | ||
| ROIC | N/A |
ROA(3y)0.69%
ROA(5y)0.59%
ROE(3y)4.89%
ROE(5y)4.27%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 25.42%, JAREN is in line with its industry, outperforming 59.65% of the companies in the same industry.
- JAREN's Profit Margin has improved in the last couple of years.
- JAREN does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 25.42% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y6.09%
PM growth 5Y3.11%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- JAREN does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for JAREN remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, JAREN has less shares outstanding
- JAREN has a worse debt/assets ratio than last year.
2.2 Solvency
- JAREN has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
- JAREN has a Debt to Equity ratio of 1.60. This is comparable to the rest of the industry: JAREN outperforms 58.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.31%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.42% over the past year.
- Measured over the past years, JAREN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.05% on average per year.
- The Revenue has grown by 8.07% in the past year. This is quite good.
- JAREN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.61% yearly.
EPS 1Y (TTM)8.42%
EPS 3Y21.35%
EPS 5Y11.05%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y14.93%
Revenue growth 5Y8.61%
Sales Q2Q%1.2%
3.2 Future
- JAREN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.86% yearly.
- Based on estimates for the next years, JAREN will show a small growth in Revenue. The Revenue will grow by 6.36% on average per year.
EPS Next Y16.76%
EPS Next 2Y7.29%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue Next Year6.19%
Revenue Next 2Y5.77%
Revenue Next 3Y6.36%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- JAREN is valuated correctly with a Price/Earnings ratio of 12.13.
- The rest of the industry has a similar Price/Earnings ratio as JAREN.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, JAREN is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.26 indicates a reasonable valuation of JAREN.
- JAREN's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of JAREN to the average of the S&P500 Index (25.96), we can say JAREN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- JAREN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.72
PEG (5Y)1.1
EPS Next 2Y7.29%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.54%, JAREN is a good candidate for dividend investing.
- JAREN's Dividend Yield is a higher than the industry average which is at 3.93.
- JAREN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
- On average, the dividend of JAREN grows each year by 31.60%, which is quite nice.
Dividend Growth(5Y)31.6%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- JAREN pays out 118.20% of its income as dividend. This is not a sustainable payout ratio.
- JAREN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP118.2%
EPS Next 2Y7.29%
EPS Next 3Y9.86%
JAREN SPAREBANK / JAREN.OL FAQ
What is the fundamental rating for JAREN stock?
ChartMill assigns a fundamental rating of 3 / 10 to JAREN.OL.
What is the valuation status of JAREN SPAREBANK (JAREN.OL) stock?
ChartMill assigns a valuation rating of 4 / 10 to JAREN SPAREBANK (JAREN.OL). This can be considered as Fairly Valued.
How profitable is JAREN SPAREBANK (JAREN.OL) stock?
JAREN SPAREBANK (JAREN.OL) has a profitability rating of 2 / 10.
How financially healthy is JAREN SPAREBANK?
The financial health rating of JAREN SPAREBANK (JAREN.OL) is 1 / 10.
What is the expected EPS growth for JAREN SPAREBANK (JAREN.OL) stock?
The Earnings per Share (EPS) of JAREN SPAREBANK (JAREN.OL) is expected to grow by 16.76% in the next year.