Foroya Banki (FOBANK.CO) — 2026-W112

Analysis date: 2026-05-31 | Country: DK | Currency: DKK

Recommendation Summary

Field	Value
Rating	Buy
Intrinsic Value	290.0 DKK
24m Target	272.0 DKK
Price at Analysis	253.5 DKK
Buffett Score	13/20
ROIC	15.2%
Economic Profit	+133.7M DKK
Implied Upside (IV)	14.4%

Research history · this company (3 notes)

2026-W112 · 2026-05-31 · FOBANK.COviewingBuy · ROIC 15% · tgt 272 DKKΔ tgt +9% · IV +16% · HOLD→Buy · MEDIUM→medium convForoya Banki: Starkt värdeskapande ROIC 15.15% >> WACC 8%

2026-06-15 · 2026-06-15 · FOBANK.COHOLD · tgt 250 DKK 2026-06-09 · 2026-06-09 · FOBANK.COHOLD · tgt 250 DKKfirst note

0. Company Identification

Ticker: FOBANK.CO | Name: Foroya Banki | Country: DK | Sector: Bank/Savings Bank

1. What the Company Sells

Foroya Banki operates in the Nordic market. ROIC 15.2% vs WACC 8% → EP +133.7M DKK.

2. Who Pays and Why They Stay

Retail and corporate customers pay interest on loans and fees for financial services.

3. Revenue Model

Net interest income (NII) is the primary revenue driver, supplemented by fees and commissions.

4. Margin and Cash Mechanics

ROIC 15.2% vs WACC 8.0% → Economic Profit +133.7M DKK.

5. Supply-side Dependencies

Funding cost, credit quality (LLP), and regulatory capital requirements (CET1).

6. Competitive Position

Moat strength: 3/5. Geographic presence, customer loyalty, and local market share.

7. Growth Engine

Volume growth in mortgage and corporate portfolios plus interest rate environment.

8. Business Model Risks

Top risks: Credit risk, interest rate risk, Basel IV regulatory requirements, neobank competition.

9. History, Management & ESG

Conservative credit culture, stable dividend policy, CSRD reporting obligations.

10. Synthesis and Recommendation

Buy — Foroya Banki: Strong value creation, ROIC 15.2% >> WACC 8%, attractive at current price.

mttssn research · Foroya Banki (FOBANK.CO) · 2026-W112 · 2026-05-31