Arion banki hf. (ARION-SDB.ST) stock analysis

In our weekly check, Arion banki hf. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7.

About Arion banki hf.

Arion banki hf. is a Financial Services company (Banks - Regional) based in Iceland, listed on STO as ARION-SDB.ST.

What our checks show for ARION-SDB.ST

Red flags

• The net margin fell by 19.4 points over 5 years, to 16.3%: the company keeps less of each sale as profit.
• The gross margin fell by 21.2 points, to 51.4%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 29.9% a year.
• Thinly traded (about 23 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 2.3%.

Warning signs

• Operating cash flow is only 0.7x net profit: part of the reported profit does not arrive as cash.
• A small company (market value $1.95 billion): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 54% from a peak. Would you have held through that?

Strengths

• Analysts expect the net margin to improve by 24.7 points from today's 16.3%.
• Revenue grew 23.6% a year over the last 3 years.
• Earnings per share grew 22.6% a year over the last 3 years.
• Free cash flow is 11% of revenue: cash for dividends, buybacks or growth.
• The price is 8.1 times earnings (P/E), reasonable for its growth.
• Beta 0.41: the stock usually moves less than the market.

Similar companies

RBI.VI · BCH · BAMI.MI · MARK.QA · BIRG.IR · EWBC

Questions

What grade does Arion banki hf. (ARION-SDB.ST) have?

In our weekly check, Arion banki hf. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ARION-SDB.ST stock?

This week's biggest flags for Arion banki hf.: Margins falling, Gross margin falling, Weak revenue forecast. In total 10 of 25 checks show a warning or a red flag.

What does Arion banki hf. do?

Arion banki hf. is a Financial Services company (Banks - Regional) based in Iceland, listed on STO as ARION-SDB.ST.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-11-07

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