The average target price of RESURS.ST is 20 and suggests 22% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decrease one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 20.0. This is lower than the current market price, meaning that even the most optimistic analyst does not see upside potential. On the other hand, the most pessimistic analyst has a target price of 20.0. This is equivalent to 22% downside potential in the worst case. 

Resurs Holding AB (publ), through its subsidiaries, provides payment solutions and consumer loans in Sweden, Norway, Finland, and Denmark. The company's payment solutions comprise retail finance, which includes sales-driving finance, and payment and loyalty solutions; credit cards for retail finance partners; and factoring services. It also offers unsecured loans to consumers. Resurs Holding AB (publ) was founded in 1977 and is headquartered in Helsingborg, Sweden.

Sweden

Resurs Holding AB (publ)

Financial Services

The company pays dividends most of the time. It has paid dividends in almost every one of the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. At the same time, the average five-year yield has been significantly higher and exceeded nearly all its peers. On average, the company pays dividends annually. 

RESURS.ST reported revenue of SEK 3 450mn in the last 12 months, up 2% from FY24. The institution earned SEK 0 mn of interest before provisioning and taxes (IBPT) in the trailing 12 months (TTM), a decline of 0% from FY24 The dynamics of more stable income, as measure by recurring income before provisioning and taxes (RIBPT), were rather similar. Market expects EPS to reach SEK 2.32 in FY25.

The stock has been growing steadily in the past six months, adding 12% in total. The stock has outperformed its global peers from the same sector and industry (as shown above), surpassing them by 7ppts in total. At the same time, the stock's performance relative to its the peers from the same country and sector is different. It underperformed these peers by 6ppts over six months and grew 5ppts faster in the past month. With respect to the stock's valuation against its peers, its overall price performance is neutral.

Resurs Holding AB (publ) reported a return on equity (RoE) of 0.9% in the last 12 months, down from 2.6% in FY23. The market consensus projects a RoE of 2.3% in FY24.

Another important profitability metric, return on assets (RoA), amounted to 0.1% in the last 12 months, a decrease from 0.4% in FY23. The market analysts predict that RoA will be 0.1% in FY24.

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

RESURS.ST has poor trading liquidity. It will take at least a day or two for the average private investor to sell a common position under normal market conditions. Liquidity is unstable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The solvency (credit quality) of RESURS.ST is low. The credit profile rests on (a) a robust capital position, (b) weak asset quality, (с) a moderate corporate governance framework, (d) very weak earnings power and cost efficiency, and (e) its weak liquidity profile. We draw special attention to the fairly low asset quality driven by low loss absorption capacity, rather weak ability to generate capital through ongoing operations, fairly weak liquidity position, which could instantly become a critical factor in the case of an unexpected bank run.

In highly turbulent market conditions, RESURS.ST is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, RESURS.ST is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to notable. 

Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. Specifically, the stock is fairly valued on P/E, underpriced on P/RIBP. 
	Editor's note: P/CR is Price to Core Revenue (CR), similar to P/S for corporates. CR = Net interest income + Net fee & commission income. P/IBPT is Price to Income Before Provisioning and Taxes (IBPT), similar to EV/EBITDA for corporates. IBPT = Core revenue -- Operating expenses + Non-recurring income. P/RIBPT is Price to Recurring Income Before Provisioning and Taxes (RIBPT), similar to P/FCF for corporates. RIBPT = Core revenue -- Operating expenses. 

Resurs Holding AB (publ)

SEK 26.4

3

Resurs Holding AB (publ)

SEK 26.4

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

SEK 26.4

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