LIVE OAK BANCSHARES INC (LOB) Stock Fundamental Analysis
NYSE:LOB - New York Stock Exchange, Inc. - US53803X1054 - Common Stock - Currency: USD
Taking everything into account, LOB scores 4 out of 10 in our fundamental rating. LOB was compared to 396 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!
1. Profitability
1.1 Basic Checks
LOB had positive earnings in the past year.
In the past year LOB had a positive cash flow from operations.
LOB had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: LOB reported negative operating cash flow in multiple years.
1.2 Ratios
LOB's Return On Assets of 0.44% is on the low side compared to the rest of the industry. LOB is outperformed by 78.79% of its industry peers.
The Return On Equity of LOB (5.80%) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.44% | ||
| ROE | 5.8% | ||
| 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
With a Profit Margin value of 11.70%, LOB is not doing good in the industry: 82.83% of the companies in the same industry are doing better.
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) | 11.7% | ||
| 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
LOB has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.21, LOB belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that LOB is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.11, LOB is doing good in the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC33.94%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for LOB have decreased strongly by -34.67% in the last year.
The Earnings Per Share has been growing by 26.65% on average over the past years. This is a very strong growth
LOB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.03%.
LOB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.67% yearly.
EPS 1Y (TTM)-34.67%
EPS 3Y-26.89%
EPS 5Y26.65%
EPS Q2Q%-41.67%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y3.02%
Revenue growth 5Y19.67%
Sales Q2Q%8.52%
3.2 Future
The Earnings Per Share is expected to grow by 55.69% on average over the next years. This is a very strong growth
Based on estimates for the next years, LOB will show a quite strong growth in Revenue. The Revenue will grow by 15.42% on average per year.
EPS Next Y47.32%
EPS Next 2Y55.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.26%
Revenue Next 2Y15.42%
Revenue Next 3YN/A
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.90, LOB is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of LOB indicates a rather expensive valuation: LOB more expensive than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.46. LOB is around the same levels.
Based on the Price/Forward Earnings ratio of 9.21, the valuation of LOB can be described as reasonable.
Based on the Price/Forward Earnings ratio, LOB is valued a bit cheaper than 70.45% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. LOB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 9.21 |
4.2 Price Multiples
97.22% of the companies in the same industry are more expensive than LOB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.84 | ||
| 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.
LOB's earnings are expected to grow with 55.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)0.93
EPS Next 2Y55.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, LOB is not a good candidate for dividend investing.
With a Dividend Yield of 0.37, LOB pays less dividend than the industry average, which is at 3.29. 86.62% of the companies listed in the same industry pay a better dividend than LOB!
Compared to an average S&P500 Dividend Yield of 2.34, LOB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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
9.10% of the earnings are spent on dividend by LOB. This is a low number and sustainable payout ratio.
The dividend of LOB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP9.1%
EPS Next 2Y55.69%
EPS Next 3YN/A
NYSE:LOB (7/22/2025, 2:36:49 PM)
32.365
+0.51 (+1.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners67.38%
Inst Owner Change-0.1%
Ins Owners19.58%
Ins Owner Change3.32%
Market Cap1.48B
Analysts48
Price Target33.15 (2.43%)
Short Float %5.28%
Short Ratio7.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.12
Dividend Growth(5Y)0.13%
DP9.1%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-49.8%
Min EPS beat(2)-59.96%
Max EPS beat(2)-39.65%
EPS beat(4)1
Avg EPS beat(4)-30.83%
Min EPS beat(4)-59.96%
Max EPS beat(4)26.3%
EPS beat(8)3
Avg EPS beat(8)-7.59%
EPS beat(12)4
Avg EPS beat(12)-25.6%
EPS beat(16)7
Avg EPS beat(16)-9.08%
Revenue beat(2)2
Avg Revenue beat(2)2.67%
Min Revenue beat(2)2.67%
Max Revenue beat(2)2.68%
Revenue beat(4)4
Avg Revenue beat(4)3.21%
Min Revenue beat(4)2.67%
Max Revenue beat(4)4.06%
Revenue beat(8)7
Avg Revenue beat(8)3.43%
Revenue beat(12)9
Avg Revenue beat(12)12.88%
Revenue beat(16)13
Avg Revenue beat(16)13.77%
PT rev (1m)3.17%
PT rev (3m)-12.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 9.21 | ||
| P/S | 2.9 | ||
| P/FCF | 2.84 | ||
| P/OCF | 2.68 | ||
| P/B | 1.44 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.3
EY4.02%
EPS(NY)3.51
Fwd EY10.86%
FCF(TTM)11.41
FCFY35.27%
OCF(TTM)12.07
OCFY37.3%
SpS11.17
BVpS22.52
TBVpS21.27
PEG (NY)0.53
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.44% | ||
| ROE | 5.8% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 11.7% | ||
| GM | N/A | ||
| FCFM | 102.17% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.21 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 118.4% | ||
| Cap/Sales | 5.87% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 873.46% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC33.94%
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)-34.67%
EPS 3Y-26.89%
EPS 5Y26.65%
EPS Q2Q%-41.67%
EPS Next Y47.32%
EPS Next 2Y55.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.03%
Revenue growth 3Y3.02%
Revenue growth 5Y19.67%
Sales Q2Q%8.52%
Revenue Next Year20.26%
Revenue Next 2Y15.42%
Revenue Next 3YN/A
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 1Y463.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y334.88%
OCF growth 3YN/A
OCF growth 5YN/A