SEB
UtilitiesValuation Breakdown
The Dividend Discount Model values a stock based on its future dividend payments, discounted to present value. The 3-stage variant captures three phases of a company's life: high growth (years 1-3), a transition period where growth declines linearly (years 4-6), and a terminal stage of stable, perpetual growth (year 7+). As John D. Rockefeller said: "The only thing that gives me pleasure is to see my dividends coming in."
Valuation Track Record
Retroactive intrinsic value vs actual close price — SEB
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2024
The Beneish M-Score of -2.9357 indicates that SEB is not likely to be manipulating earnings, as it is well below the threshold of -1.78. However, the earnings quality metrics reveal some concerns, particularly with revenue recognition and receivables, which could indicate potential risks in revenue reporting.
- Earnings Quality Score of 67.2/100 indicates moderate risk, particularly with an eq_revenue score of 0.0/100, suggesting a lack of reliable revenue recognition.
- SGAI at 1.1845 is above 1, indicating that selling, general, and administrative expenses are growing faster than revenue, which may signal inefficiencies.
- The DSRI of 0.8001 suggests that inventory is being managed effectively, as it is below 1, indicating lower risk of overstatement.
- The eq_cash_conv score of 100.0/100 indicates excellent cash conversion, suggesting that the company is effectively turning its revenues into cash.
The concentrated ownership structure, with the top two shareholders holding 50.2% of shares, may lead to governance risks and potential conflicts of interest. However, institutional ownership at 24% provides some level of oversight.
Investors should closely monitor revenue recognition practices and consider the potential impact of concentrated ownership on governance. It may be prudent to wait for improved earnings quality metrics before making significant investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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