DB:UMQ

Stock Analysis Report

Umpqua Holdings

Executive Summary

Umpqua Holdings Corporation operates as the holding company of Umpqua Bank that provides commercial and retail banking, and retail brokerage services.

Rewards

Trading at 46.3% below its fair value

Earnings grew by 12.7% over the past year

Pays a high and reliable dividend of 4.8%

Risk Analysis

Earnings are forecast to decline by an average of -2.1% per year for the next 3 years



Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has Umpqua Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.0%

UMQ

3.2%

DE Banks

1.0%

DE Market


1 Year Return

2.4%

UMQ

-15.3%

DE Banks

14.2%

DE Market

Return vs Industry: UMQ exceeded the German Banks industry which returned -15.3% over the past year.

Return vs Market: UMQ underperformed the German Market which returned 14.2% over the past year.


Shareholder returns

UMQIndustryMarket
7 Day4.0%3.2%1.0%
30 Day4.0%-4.4%0.04%
90 Day2.6%-4.0%6.0%
1 Year7.8%2.4%-12.5%-15.3%17.8%14.2%
3 Year-2.4%-13.8%-20.0%-23.7%19.2%8.7%
5 Year35.4%10.6%-3.7%-26.9%36.0%17.5%

Price Volatility Vs. Market

How volatile is Umpqua Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Umpqua Holdings undervalued compared to its fair value and its price relative to the market?

46.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UMQ (€15.5) is trading below our estimate of fair value (€28.85)

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


Price To Earnings Ratio

PE vs Industry: UMQ is good value based on its PE Ratio (11x) compared to the Banks industry average (16.1x).

PE vs Market: UMQ is good value based on its PE Ratio (11x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UMQ is overvalued based on its PB Ratio (0.9x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Umpqua Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UMQ's earnings are forecast to decline over the next 3 years (-2.1% per year).

Earnings vs Market: UMQ's earnings are forecast to decline over the next 3 years (-2.1% per year).

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

Revenue vs Market: UMQ's revenue (1.9% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: UMQ's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UMQ's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Umpqua Holdings performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UMQ has high quality earnings.

Growing Profit Margin: UMQ's current net profit margins (29.7%) are higher than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: UMQ's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: UMQ's earnings growth over the past year (12.7%) is below its 5-year average (15.3% per year).

Earnings vs Industry: UMQ earnings growth over the past year (12.7%) exceeded the Banks industry 3.9%.


Return on Equity

High ROE: UMQ's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Umpqua Holdings'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: UMQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: UMQ's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: UMQ's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: UMQ has an appropriate level of bad loans (0.31%)


Next Steps

Dividend

What is Umpqua Holdings's current dividend yield, its reliability and sustainability?

4.80%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: UMQ's dividend (4.8%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: UMQ's dividend (4.8%) is in the top 25% of dividend payers in the German market (3.58%)


Stability and Growth of Payments

Stable Dividend: UMQ's dividends per share have been stable in the past 10 years.

Growing Dividend: UMQ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.8%), UMQ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UMQ's dividends in 3 years are forecast to be covered by earnings (60.4% payout ratio).


Next Steps

Management

What is the CEO of Umpqua Holdings's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Cort O’Haver (56yo)

2.9yrs

Tenure

US$3,551,514

Compensation

Mr. Cort Lane O’Haver has been the President of Umpqua Bank since April 25, 2016 and as its Chief Executive Officer since January 1, 2017. Mr. O’Haver has been Chief Executive Officer and President of Umpq ...


CEO Compensation Analysis

Compensation vs Market: Cort's total compensation ($USD3.55M) is above average for companies of similar size in the German market ($USD2.52M).

Compensation vs Earnings: Cort's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

50yo

Average Age

Experienced Management: UMQ's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: UMQ's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: UMQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€181,71113 Nov 19
Susan Stevens
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,000
Max Price€15.14
Sell€73,64005 Sep 19
Torran Nixon
EntityIndividual
Role
Other Key Executive
Senior Executive VP & Chief Banking Officer for Umpqua Bank
Shares5,303
Max Price€13.89
Sell€150,32624 Jul 19
Luis Machuca
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max Price€15.03

Ownership Breakdown

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


Management Team

  • Ron Farnsworth (48yo)

    Executive VP & CFO

    • Tenure: 12.6yrs
    • Compensation: US$1.54m
  • Neal McLaughlin (50yo)

    Principal Accounting Officer

    • Tenure: 12.6yrs
  • David Shotwell (60yo)

    Executive VP & Chief Risk Officer

    • Tenure: 4.4yrs
    • Compensation: US$1.10m
  • Cort O’Haver (56yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$3.55m
  • Rilla Delorier (52yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 2.7yrs
    • Compensation: US$1.42m
  • Eve Callahan (45yo)

    Executive VP & Chief Communications Officer of Umpqua Bank

    • Tenure: 8.9yrs
  • Andrew Ognall (47yo)

    Executive VP

    • Tenure: 5.7yrs
    • Compensation: US$787.92k
  • Tory Nixon (57yo)

    Senior Executive VP & Chief Banking Officer for Umpqua Bank

    • Tenure: 3.9yrs
    • Compensation: US$1.66m
  • Sheri Burns (49yo)

    EVP & Chief People Officer

    • Tenure: 1.9yrs
  • Drew Anderson

    Senior VP & Director of Investor Relations

    • Tenure: 0.8yrs

Board Members

  • Jim Greene (65yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$140.04k
  • Ray Davis (69yo)

    Chairman Emeritus

    • Tenure: 1.9yrs
    • Compensation: US$2.51m
  • Luis Machuca (61yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$140.04k
  • Bryan Timm (55yo)

    Independent Vice Chairman of the Board

    • Tenure: 7.7yrs
    • Compensation: US$145.03k
  • Peggy Fowler (67yo)

    Chairman & Lead Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$185.02k
  • John Schultz (55yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$130.05k
  • Stephen Gambee (55yo)

    Director

    • Tenure: 14.4yrs
    • Compensation: US$130.05k
  • Hilliard Terry (49yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$140.06k
  • Cort O’Haver (56yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$3.55m
  • Susan Stevens (68yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$140.04k

Company Information

Umpqua Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Umpqua Holdings Corporation
  • Ticker: UMQ
  • Exchange: DB
  • Founded: 1953
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.854b
  • Listing Market Cap: US$3.465b
  • Shares outstanding: 220.22m
  • Website: https://www.umpquabank.com

Number of Employees


Location

  • Umpqua Holdings Corporation
  • One SW Columbia Street
  • Suite 1200
  • Portland
  • Oregon
  • 97258
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UMPQNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1997
UMQDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1997

Biography

Umpqua Holdings Corporation operates as the holding company of Umpqua Bank that provides commercial and retail banking, and retail brokerage services. It operates through four segments: Wholesale Bank, Wea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 21:24
End of Day Share Price2019/12/13 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.