Svenska Handelsbanken AB (publ) (SHB-A.ST) stock analysis

In our weekly check, Svenska Handelsbanken AB (publ) is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 1, red flags: 8.

About Svenska Handelsbanken AB (publ)

Svenska Handelsbanken AB (publ) is a Financial Services company (Banks - Diversified) based in Sweden, listed on STO as SHB-A.ST.

What our checks show for SHB-A.ST

Red flags

• The net margin fell by 29 points over 5 years, to 16.5%: the company keeps less of each sale as profit.
• The gross margin fell by 60.5 points, to 39.5%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 24.8% a year.
• The dividend takes 1244% of profit: little cushion if profit falls.
• The stock has fallen as much as 61% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1%.

Warning signs

• Recovering from its deepest fall took about 1.7 years.

Strengths

• Operating cash flow is 2.31x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 24.7 points from today's 16.5%.
• Revenue grew 42.9% a year over the last 3 years.
• Free cash flow is 37.7% of revenue: cash for dividends, buybacks or growth.
• The price is 12.8 times earnings (P/E), reasonable for its growth.
• A large company: market value $29.32 billion.

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Questions

What grade does Svenska Handelsbanken AB (publ) (SHB-A.ST) have?

In our weekly check, Svenska Handelsbanken AB (publ) is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 1, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SHB-A.ST stock?

This week's biggest flags for Svenska Handelsbanken AB (publ): Margins falling, Gross margin falling, Weak revenue forecast. In total 9 of 25 checks show a warning or a red flag.

What does Svenska Handelsbanken AB (publ) do?

Svenska Handelsbanken AB (publ) is a Financial Services company (Banks - Diversified) based in Sweden, listed on STO as SHB-A.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 2026-10-24

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