LIVE OAK BANCSHARES INC (LOB)

US53803X1054 - Common Stock

41.51  +0.29 (+0.7%)

After market: 41.51 0 (0%)

Fundamental Rating

4

Taking everything into account, LOB scores 4 out of 10 in our fundamental rating. LOB was compared to 415 industry peers in the Banks industry. While LOB seems to be doing ok healthwise, there are quite some concerns on its profitability. LOB is not valued too expensively and it also shows a decent growth rate.



2

1. Profitability

1.1 Basic Checks

In the past year LOB was profitable.
LOB had a positive operating cash flow in the past year.
Each year in the past 5 years LOB has been profitable.
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

With a Return On Assets value of 0.66%, LOB is not doing good in the industry: 72.05% of the companies in the same industry are doing better.
LOB has a Return On Equity of 8.18%. This is in the lower half of the industry: LOB underperforms 63.61% of its industry peers.
Industry RankSector Rank
ROA 0.66%
ROE 8.18%
ROIC N/A
ROA(3y)1.49%
ROA(5y)1.12%
ROE(3y)17.76%
ROE(5y)13.42%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

LOB has a Profit Margin of 16.16%. This is amonst the worse of the industry: LOB underperforms 80.48% of its industry peers.
LOB's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for LOB so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 16.16%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.63%
PM growth 5Y-8.46%
GM growth 3YN/A
GM growth 5YN/A

4

2. Health

2.1 Basic Checks

LOB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for LOB has been increased compared to 1 year ago.
The number of shares outstanding for LOB has been increased compared to 5 years ago.
The debt/assets ratio for LOB has been reduced compared to a year ago.

2.2 Solvency

The Debt to FCF ratio of LOB is 0.04, which is an excellent value as it means it would take LOB, only 0.04 years of fcf income to pay off all of its debts.
LOB has a better Debt to FCF ratio (0.04) than 88.43% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that LOB is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.03, LOB belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.03
Debt/FCF 0.04
Altman-Z N/A
ROIC/WACCN/A
WACC24.1%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

5

3. Growth

3.1 Past

LOB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.38%.
The Earnings Per Share has been growing slightly by 4.44% on average over the past years.
LOB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.17%.
LOB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.47% yearly.
EPS 1Y (TTM)-8.38%
EPS 3Y5.67%
EPS 5Y4.44%
EPS growth Q2Q800%
Revenue 1Y (TTM)-19.17%
Revenue growth 3Y17.64%
Revenue growth 5Y17.47%
Revenue growth Q2Q13.98%

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 36.70% on average per year.
The Revenue is expected to grow by 13.92% on average over the next years. This is quite good.
EPS Next Y36.77%
EPS Next 2Y36.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.63%
Revenue Next 2Y13.92%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.31, LOB can be considered very expensive at the moment.
LOB's Price/Earnings ratio is rather expensive when compared to the industry. LOB is more expensive than 89.40% of the companies in the same industry.
LOB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.48.
LOB is valuated rather expensively with a Price/Forward Earnings ratio of 18.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOB indicates a slightly more expensive valuation: LOB is more expensive than 75.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.79. LOB is around the same levels.
Industry RankSector Rank
PE 25.31
Fwd PE 18.51

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 94.70% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.24
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 36.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)5.7
EPS Next 2Y36.7%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.29%, LOB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.70, LOB's dividend is way lower than its industry peers. On top of this 88.19% 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 RankSector Rank
Dividend Yield 0.29%

5.2 History

The dividend of LOB has a limited annual growth rate of 0.03%.
LOB has been paying a dividend for at least 10 years, so it has a reliable track record.
As LOB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.03%
Div Incr Years0
Div Non Decr Years8

5.3 Sustainability

7.21% 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.
DP7.21%
EPS Next 2Y36.7%
EPS Next 3YN/A

LIVE OAK BANCSHARES INC

NYSE:LOB (3/28/2024, 8:22:18 PM)

After market: 41.51 0 (0%)

41.51

+0.29 (+0.7%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.86B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.29%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 25.31
Fwd PE 18.51
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.69
PEG (5Y)5.7
Profitability
Industry RankSector Rank
ROA 0.66%
ROE 8.18%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) 16.16%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 0.03
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.38%
EPS 3Y5.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y36.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.17%
Revenue growth 3Y17.64%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y