LIVE OAK BANCSHARES INC (LOB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LOB - US53803X1054 - Common Stock
35.31 USD
+0.07 (+0.2%)
35.31 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to LOB. LOB was compared to 385 industry peers in the Banks industry. Both the profitability and financial health of LOB have multiple concerns. LOB is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! Finally LOB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year LOB was profitable.
In the past year LOB had a positive cash flow from operations.
LOB had positive earnings in each of the past 5 years.
In multiple years LOB reported negative operating cash flow during the last 5 years.
1.2 Ratios
LOB's Return On Assets of 0.47% is on the low side compared to the rest of the industry. LOB is outperformed by 80.57% of its industry peers.
With a Return On Equity value of 5.73%, LOB is not doing good in the industry: 73.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 5.73% | ||
| ROIC | N/A |
ROA(3y)1.01%
ROA(5y)1.17%
ROE(3y)12.56%
ROE(5y)14.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LOB has a Profit Margin of 12.61%. This is amonst the worse of the industry: LOB underperforms 81.61% of its industry peers.
In the last couple of years the Profit Margin of LOB has grown nicely.
LOB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 12.61% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-24.86%
PM growth 5Y11.89%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
LOB does not have a ROIC to compare to the WACC, probably because it is not profitable.
LOB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LOB has been increased compared to 5 years ago.
LOB has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of LOB is 0.44, which is an excellent value as it means it would take LOB, only 0.44 years of fcf income to pay off all of its debts.
LOB has a Debt to FCF ratio of 0.44. This is amongst the best in the industry. LOB outperforms 81.35% of its industry peers.
LOB has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.09, LOB is in the better half of the industry, outperforming 70.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC31.25%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
LOB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.29%.
LOB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.65% yearly.
LOB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.73%.
Measured over the past years, LOB shows a quite strong growth in Revenue. The Revenue has been growing by 19.67% on average per year.
EPS 1Y (TTM)-6.29%
EPS 3Y-26.89%
EPS 5Y26.65%
EPS Q2Q%96.43%
Revenue 1Y (TTM)10.73%
Revenue growth 3Y3.02%
Revenue growth 5Y19.67%
Sales Q2Q%12.44%
3.2 Future
Based on estimates for the next years, LOB will show a very strong growth in Earnings Per Share. The EPS will grow by 41.05% on average per year.
Based on estimates for the next years, LOB will show a quite strong growth in Revenue. The Revenue will grow by 17.77% on average per year.
EPS Next Y55.1%
EPS Next 2Y46.44%
EPS Next 3Y41.05%
EPS Next 5YN/A
Revenue Next Year22.85%
Revenue Next 2Y19.48%
Revenue Next 3Y17.77%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.70 indicates a rather expensive valuation of LOB.
Based on the Price/Earnings ratio, LOB is valued more expensive than 83.16% of the companies in the same industry.
LOB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.56.
With a Price/Forward Earnings ratio of 11.36, the valuation of LOB can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as LOB.
When comparing the Price/Forward Earnings ratio of LOB to the average of the S&P500 Index (23.79), we can say LOB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.7 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOB indicates a rather cheap valuation: LOB is cheaper than 87.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.75 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LOB's earnings are expected to grow with 41.05% in the coming years.
PEG (NY)0.43
PEG (5Y)0.89
EPS Next 2Y46.44%
EPS Next 3Y41.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.25%, LOB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.70, LOB pays a better dividend. On top of this LOB pays more dividend than 99.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, LOB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.25% |
5.2 History
The dividend of LOB has a limited annual growth rate of 0.13%.
LOB has paid a dividend for at least 10 years, which is a reliable track record.
LOB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.13%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
LOB pays out 9.36% of its income as dividend. This is a sustainable payout ratio.
LOB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.36%
EPS Next 2Y46.44%
EPS Next 3Y41.05%
35.31
+0.07 (+0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners67.46%
Inst Owner Change1.19%
Ins Owners19.67%
Ins Owner Change2.9%
Market Cap1.62B
Revenue(TTM)544.03M
Net Income(TTM)68.61M
Analysts73.33
Price Target43.35 (22.77%)
Short Float %4.72%
Short Ratio6.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.25% |
Yearly Dividend0.12
Dividend Growth(5Y)0.13%
DP9.36%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.83%
Min EPS beat(2)-8.94%
Max EPS beat(2)-4.73%
EPS beat(4)0
Avg EPS beat(4)-28.32%
Min EPS beat(4)-59.96%
Max EPS beat(4)-4.73%
EPS beat(8)1
Avg EPS beat(8)-22.51%
EPS beat(12)3
Avg EPS beat(12)-21.85%
EPS beat(16)5
Avg EPS beat(16)-20.01%
Revenue beat(2)2
Avg Revenue beat(2)5.65%
Min Revenue beat(2)1.35%
Max Revenue beat(2)9.96%
Revenue beat(4)4
Avg Revenue beat(4)4.16%
Min Revenue beat(4)1.35%
Max Revenue beat(4)9.96%
Revenue beat(8)7
Avg Revenue beat(8)3.05%
Revenue beat(12)9
Avg Revenue beat(12)2.1%
Revenue beat(16)13
Avg Revenue beat(16)10.93%
PT rev (1m)0%
PT rev (3m)8.05%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)15.96%
EPS NY rev (1m)2.61%
EPS NY rev (3m)12.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.7 | ||
| Fwd PE | 11.36 | ||
| P/S | 2.98 | ||
| P/FCF | 6.75 | ||
| P/OCF | 6.5 | ||
| P/B | 1.35 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.49
EY4.22%
EPS(NY)3.11
Fwd EY8.81%
FCF(TTM)5.23
FCFY14.81%
OCF(TTM)5.43
OCFY15.39%
SpS11.86
BVpS26.13
TBVpS24.77
PEG (NY)0.43
PEG (5Y)0.89
Graham Number29.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 5.73% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 12.61% | ||
| GM | N/A | ||
| FCFM | 44.07% |
ROA(3y)1.01%
ROA(5y)1.17%
ROE(3y)12.56%
ROE(5y)14.3%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-24.86%
PM growth 5Y11.89%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 34.98% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 349.48% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC31.25%
ROIC/WACCN/A
Cap/Depr(3y)214.19%
Cap/Depr(5y)150.76%
Cap/Sales(3y)9.29%
Cap/Sales(5y)7.2%
Profit Quality(3y)483.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.29%
EPS 3Y-26.89%
EPS 5Y26.65%
EPS Q2Q%96.43%
EPS Next Y55.1%
EPS Next 2Y46.44%
EPS Next 3Y41.05%
EPS Next 5YN/A
Revenue 1Y (TTM)10.73%
Revenue growth 3Y3.02%
Revenue growth 5Y19.67%
Sales Q2Q%12.44%
Revenue Next Year22.85%
Revenue Next 2Y19.48%
Revenue Next 3Y17.77%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-45.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-47.64%
OCF growth 3YN/A
OCF growth 5YN/A
LIVE OAK BANCSHARES INC / LOB FAQ
What is the ChartMill fundamental rating of LIVE OAK BANCSHARES INC (LOB) stock?
ChartMill assigns a fundamental rating of 4 / 10 to LOB.
What is the valuation status for LOB stock?
ChartMill assigns a valuation rating of 5 / 10 to LIVE OAK BANCSHARES INC (LOB). This can be considered as Fairly Valued.
Can you provide the profitability details for LIVE OAK BANCSHARES INC?
LIVE OAK BANCSHARES INC (LOB) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for LOB stock?
The Price/Earnings (PE) ratio for LIVE OAK BANCSHARES INC (LOB) is 23.7 and the Price/Book (PB) ratio is 1.35.
Can you provide the expected EPS growth for LOB stock?
The Earnings per Share (EPS) of LIVE OAK BANCSHARES INC (LOB) is expected to grow by 55.1% in the next year.