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What Storebrand Holders Bought Into

Simply Wall St · 2d ago

If you had looked at Storebrand in October 2025, the arguments on record pulled in opposite directions. One bullish camp sketched aggressive profit margin expansion, while a more cautious view focused on the cost of heavy buybacks and execution risks. Investors who held Storebrand over the past year are up 23.6%, including dividends. With recent earnings strength and a fresh NOK 1b repurchase in play, what exactly was visible a year ago that might explain this outcome?

Storebrand has already moved. See which of 185 high quality undervalued stocks still trade below our estimates.

The Two Storebrand Stories Investors Were Arguing About

The shares cost NOK156 at the start of the period, and Storebrand sat between two competing stories that both sounded reasonable.

The bullish view pointed to a Fair Value of NOK165, a price implied by expectations of ageing Nordic populations, digitalisation and strong ESG positioning driving revenue, fee and asset growth above industry rates. Supporters leaned on assumptions of sharply higher profit margins and a future P/E of 16.4x on 2028 earnings.

The cautious narrative worked off a Fair Value of NOK139, reflecting worries that heavy share buybacks might strain future earnings power. This camp focused on assumptions that earnings in 2028 could sit at NOK4.9b with revenue declining by 48.1% annually, even as margins were expected to widen to 42.8%.

OB:STB 1-Year Stock Price Chart
OB:STB 1-Year Stock Price Chart

What The Storebrand Results Actually Tested

Storebrand’s Q2 2026 report showed revenue at NOK62,750m and net income at NOK1,424m, compared with NOK27,534m and NOK1,200m a year earlier. That scale in sales and profit supported the optimistic story on growth potential, yet the net margin moved from 4.4% to 2.3%, which challenged the idea of cleanly expanding profitability. Overall, the evidence cut both ways.

The period turned on one assumption: Could Storebrand grow and still lift profitability? When you test a similar claim elsewhere, track net margin alongside revenue and profit, then judge whether scale is translating into better economics or just a bigger operation.

What Storebrand’s One Year Run Now Asks Of You

Storebrand now trades at NOK187 after a 23.6% gain over the past year. The selected Narrative’s Fair Value sits below that price, even while it highlights how Nordic pensions, asset management and sustainability initiatives could keep lifting revenue and brand strength.

At this level you would be judging whether digital spending, capital returns and leadership changes can all keep working together without eroding future earnings power.

"Large investments in share buybacks and dividends, supported by strong cash flow and operational results, indicate anticipated continuous shareholder returns, although they may also be critiqued as over-leveraging future earnings potential."

The price and this Narrative do not agree. → Uncover what this Narrative says Storebrand is actually worth

Where Could You Get There Earlier?

You may be late to this rally, but that does not have to mean arriving late to every opportunity. Start with companies whose prices leave room for a different view of their future. Here are three trading below our estimates.

  • Company 1 - 32% below our estimate - targets higher priced, software rich gear for hybrid work, creators and immersive devices.
  • Company 2 - 35% below our estimate - pursues underpenetrated pension and wealth clients as energy transition fundraising broadens its fee base.
  • Company 3 - 38% below our estimate - converts a record technology backlog into multiyear data center, modular build and electrical projects.

Three companies from the same screener. Open the full list of 204 financially solid companies →

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.