DB:SV4

Stock Analysis Report

SVB Financial Group

Executive Summary

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services.

Snowflake

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has SVB Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SV4 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

SV4

-5.0%

DE Banks

-0.4%

DE Market


1 Year Return

2.3%

SV4

-27.1%

DE Banks

10.4%

DE Market

Return vs Industry: SV4 exceeded the German Banks industry which returned -27.1% over the past year.

Return vs Market: SV4 underperformed the German Market which returned 10.4% over the past year.


Shareholder returns

SV4IndustryMarket
7 Day-3.7%-5.0%-0.4%
30 Day9.6%-6.1%3.0%
90 Day18.5%4.5%11.1%
1 Year2.3%2.3%-24.8%-27.1%13.8%10.4%
3 Year40.5%40.5%-17.0%-21.1%24.8%13.8%
5 Year139.0%139.0%-10.7%-32.4%34.1%15.7%

Price Volatility Vs. Market

How volatile is SVB Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SVB Financial Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SV4 (€206) is trading below our estimate of fair value (€420.21)

Significantly Below Fair Value: SV4 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SV4 is good value based on its PE Ratio (10.5x) compared to the Banks industry average (15.7x).

PE vs Market: SV4 is good value based on its PE Ratio (10.5x) compared to the German market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: SV4's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SV4 is overvalued based on its PB Ratio (2x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is SVB Financial Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SV4's earnings are forecast to decline over the next 3 years (-3.4% per year).

Earnings vs Market: SV4's earnings are forecast to decline over the next 3 years (-3.4% per year).

High Growth Earnings: SV4's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SV4's revenue (3.3% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: SV4's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SV4's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has SVB Financial Group performed over the past 5 years?

32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SV4 has high quality earnings.

Growing Profit Margin: SV4's current net profit margins (37.1%) are higher than last year (34.5%).


Past Earnings Growth Analysis

Earnings Trend: SV4's earnings have grown significantly by 32.9% per year over the past 5 years.

Accelerating Growth: SV4's earnings growth over the past year (38.3%) exceeds its 5-year average (32.9% per year).

Earnings vs Industry: SV4 earnings growth over the past year (38.3%) exceeded the Banks industry 3.9%.


Return on Equity

High ROE: SV4's Return on Equity (19.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SVB Financial Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SV4 has a low level of unsold assets or inventory.

Debt Coverage by Assets: SV4's debt is covered by short term assets (assets are 9.5x debt).


Financial Institutions Analysis

Asset Level: SV4's level of assets compared to its equity is moderate.

Allowance for Bad Loans: SV4 has a sufficient allowance for bad loans.

Low Risk Liabilities: SV4's liabilities are made up of primarily low risk sources of funding.

Loan Level: SV4 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SV4's loans are broadly funded by customer deposits.

Level of Bad Loans: SV4 has an appropriate level of bad loans (0.34%)


Next Steps

Dividend

What is SVB Financial Group's current dividend yield, its reliability and sustainability?

0.051%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.9%forecastin3Years0.05%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SV4's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SV4's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SV4's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SV4's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SV4's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of SVB Financial Group's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Greg Becker (51yo)

8.6yrs

Tenure

US$7,648,576

Compensation

Mr. Gregory W. Becker, also known as Greg, has been the President at Silicon Valley Bank, Inc. ( formerly known as Silicon Valley Bank) since March 2008 and the President of SVB Financial Group since April ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD7.65M) is above average for companies of similar size in the German market ($USD4.50M).

Compensation vs Earnings: Greg's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.4yrs

Average Tenure

51yo

Average Age

Experienced Management: SV4's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

67yo

Average Age

Experienced Board: SV4's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$177,55429 May 19
John Clendening
EntityIndividual
Shares900
Max PriceUS$197.28
SellUS$367,39415 Feb 19
Christopher Edmonds-Waters
EntityIndividual
Shares1,721
Max PriceUS$213.48
SellUS$131,30830 Nov 18
Philip Cox
EntityIndividual
Role
Chief Operating Officer
Chief Operations Officer
Shares620
Max PriceUS$211.79

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Greg Becker (51yo)

    President

    • Tenure: 8.6yrs
    • Compensation: US$7.65m
  • Mike Dreyer (55yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: US$2.26m
  • Mike Descheneaux (51yo)

    President of Silicon Valley Bank

    • Tenure: 2.4yrs
    • Compensation: US$3.99m
  • Phil Cox (52yo)

    Chief Operations Officer

    • Tenure: 0.6yrs
    • Compensation: US$1.46m
  • Dan Beck (45yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: US$2.80m
  • John China (53yo)

    President of SVB Capital

    • Tenure: 0.5yrs
    • Compensation: US$2.56m
  • Michelle Draper (51yo)

    Chief Marketing Officer

    • Tenure: 6.8yrs
  • Michael Zuckert (60yo)

    General Counsel

    • Tenure: 5.7yrs
  • Meghan O'Leary

    Head of Investor Relations

    • Tenure: 0yrs
  • Karen Hon (42yo)

    Interim Chief Accounting Officer & Head of Financial Planning & Analysis

    • Tenure: 0.2yrs

Board Members

  • Jeff Maggioncalda (50yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$248.54k
  • Joel Friedman (71yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$275.29k
  • Kate Mitchell (60yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$267.54k
  • Ken Wilcox (71yo)

    Chairman Emeritus

    • Tenure: 0yrs
    • Compensation: US$5.14m
  • Eric Benhamou (63yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$272.29k
  • Greg Becker (51yo)

    President

    • Tenure: 8.6yrs
    • Compensation: US$7.65m
  • Garen Staglin (74yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$274.54k
  • Roger Dunbar (73yo)

    Independent Chairman of the Board

    • Tenure: 7.6yrs
    • Compensation: US$487.90k
  • Mary Miller (63yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$267.79k
  • John Robinson (72yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$312.04k

Company Information

SVB Financial Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SVB Financial Group
  • Ticker: SV4
  • Exchange: DB
  • Founded: 1983
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$11.835b
  • Listing Market Cap: US$10.695b
  • Shares outstanding: 51.57m
  • Website: https://www.svb.com

Number of Employees


Location

  • SVB Financial Group
  • 3003 Tasman Drive
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIVBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1987
SV4DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1987
SIVB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1987

Biography

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. The company operates through three segments: Global Commercial Bank, SVB Private ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 20:52
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.