PARETO BANK ASA (PARB.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:PARB - NO0010397581 - Common Stock
86.4 NOK
-1.1 (-1.26%)
We assign a fundamental rating of 4 out of 10 to PARB. PARB was compared to 114 industry peers in the Banks industry. PARB may be in some trouble as it scores bad on both profitability and health. PARB is not valued too expensively and it also shows a decent growth rate. PARB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- PARB had positive earnings in the past year.
- PARB had a positive operating cash flow in the past year.
- Each year in the past 5 years PARB has been profitable.
- The reported operating cash flow has been mixed in the past 5 years: PARB reported negative operating cash flow in multiple years.
1.2 Ratios
- The Return On Assets of PARB (2.49%) is better than 97.37% of its industry peers.
- The Return On Equity of PARB (11.81%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 11.81% | ||
| ROIC | N/A |
ROA(3y)2.39%
ROA(5y)2.38%
ROE(3y)12.32%
ROE(5y)12.46%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- PARB has a Profit Margin of 51.06%. This is amongst the best in the industry. PARB outperforms 99.12% of its industry peers.
- PARB's Profit Margin has declined in the last couple of years.
- The Operating Margin and Gross Margin are not available for PARB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 51.06% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.01%
PM growth 5Y-2.39%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- PARB does not have a ROIC to compare to the WACC, probably because it is not profitable.
- PARB has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PARB has more shares outstanding
- Compared to 1 year ago, PARB has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of PARB is 5.61, which is a neutral value as it means it would take PARB, 5.61 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 5.61, PARB belongs to the best of the industry, outperforming 85.96% of the companies in the same industry.
- A Debt/Equity ratio of 1.32 is on the high side and indicates that PARB has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.32, PARB is in the better half of the industry, outperforming 62.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.61 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.82%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- PARB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.38%.
- Measured over the past 5 years, PARB shows a small growth in Earnings Per Share. The EPS has been growing by 7.22% on average per year.
- Looking at the last year, PARB shows a small growth in Revenue. The Revenue has grown by 4.61% in the last year.
- PARB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.57% yearly.
EPS 1Y (TTM)7.38%
EPS 3Y5.3%
EPS 5Y7.22%
EPS Q2Q%2.4%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y13.77%
Revenue growth 5Y12.57%
Sales Q2Q%-3.02%
3.2 Future
- Based on estimates for the next years, PARB will show a small growth in Earnings Per Share. The EPS will grow by 5.36% on average per year.
- Based on estimates for the next years, PARB will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
EPS Next Y7.54%
EPS Next 2Y2.72%
EPS Next 3Y5.36%
EPS Next 5YN/A
Revenue Next Year4.09%
Revenue Next 2Y1.68%
Revenue Next 3Y3.69%
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 decreasing.
- 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
- The Price/Earnings ratio is 10.42, which indicates a very decent valuation of PARB.
- PARB's Price/Earnings ratio is a bit cheaper when compared to the industry. PARB is cheaper than 69.30% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. PARB is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 9.88 indicates a reasonable valuation of PARB.
- Based on the Price/Forward Earnings ratio, PARB is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- PARB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
- 86.84% of the companies in the same industry are more expensive than PARB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.38
PEG (5Y)1.44
EPS Next 2Y2.72%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
- PARB has a Yearly Dividend Yield of 4.74%, which is a nice return.
- PARB's Dividend Yield is a higher than the industry average which is at 3.93.
- PARB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
- On average, the dividend of PARB grows each year by 43.77%, which is quite nice.
Dividend Growth(5Y)43.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PARB pays out 47.90% of its income as dividend. This is a bit on the high side, but may be sustainable.
- PARB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.9%
EPS Next 2Y2.72%
EPS Next 3Y5.36%
PARETO BANK ASA / PARB.OL FAQ
What is the fundamental rating for PARB stock?
ChartMill assigns a fundamental rating of 4 / 10 to PARB.OL.
What is the valuation status of PARETO BANK ASA (PARB.OL) stock?
ChartMill assigns a valuation rating of 6 / 10 to PARETO BANK ASA (PARB.OL). This can be considered as Fairly Valued.
How profitable is PARETO BANK ASA (PARB.OL) stock?
PARETO BANK ASA (PARB.OL) has a profitability rating of 3 / 10.
Can you provide the financial health for PARB stock?
The financial health rating of PARETO BANK ASA (PARB.OL) is 3 / 10.
What is the expected EPS growth for PARETO BANK ASA (PARB.OL) stock?
The Earnings per Share (EPS) of PARETO BANK ASA (PARB.OL) is expected to grow by 7.54% in the next year.