LSE:OSB

Stock Analysis Report

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Executive Summary

OneSavings Bank plc operates as a specialist lending and retail savings company in the United Kingdom and the Channel Islands.


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has OneSavings Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OSB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.5%

OSB

-5.9%

GB Mortgage

-2.7%

GB Market


1 Year Return

-27.9%

OSB

-14.5%

GB Mortgage

-16.3%

GB Market

Return vs Industry: OSB underperformed the UK Mortgage industry which returned -14.5% over the past year.

Return vs Market: OSB underperformed the UK Market which returned -16.3% over the past year.


Shareholder returns

OSBIndustryMarket
7 Day-6.5%-5.9%-2.7%
30 Day-10.8%-5.6%-3.1%
90 Day-1.2%0.8%4.3%
1 Year-26.8%-27.9%-13.3%-14.5%-12.5%-16.3%
3 Year-34.8%-40.3%-12.9%-18.3%-9.2%-20.3%
5 Year-6.7%-19.2%-12.4%-26.3%9.8%-14.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is OneSavings Bank 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: OSB (£2.4) is trading below our estimate of fair value (£5.55)

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


Price To Earnings Ratio

PE vs Industry: OSB is good value based on its PE Ratio (4.6x) compared to the GB Mortgage industry average (7x).

PE vs Market: OSB is good value based on its PE Ratio (4.6x) compared to the UK market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: OSB is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: OSB's PB Ratio (0.7x) is in line with the GB Mortgage industry average.


Next Steps

Future Growth

How is OneSavings Bank forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSB's forecast earnings growth (9.6% per year) is above the savings rate (1.2%).

Earnings vs Market: OSB's earnings (9.6% per year) are forecast to grow slower than the UK market (22% per year).

High Growth Earnings: OSB's earnings are forecast to grow, but not significantly.

Revenue vs Market: OSB's revenue (11.1% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: OSB's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OSB's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has OneSavings Bank performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OSB has a high level of non-cash earnings.

Growing Profit Margin: OSB's current net profit margins (46.8%) are lower than last year (49.7%).


Past Earnings Growth Analysis

Earnings Trend: OSB's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: OSB's earnings growth over the past year (13.1%) is below its 5-year average (15.2% per year).

Earnings vs Industry: OSB earnings growth over the past year (13.1%) exceeded the Mortgage industry -10.3%.


Return on Equity

High ROE: OSB's Return on Equity (10.8%) is considered low.


Next Steps

Financial Health

How is OneSavings Bank'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


Financial Institutions Analysis

Asset Level: OSB's Assets to Equity ratio (14.5x) is moderate.

Allowance for Bad Loans: OSB has a low allowance for bad loans (10%).

Low Risk Liabilities: 82% of OSB's liabilities are made up of primarily low risk sources of funding.

Loan Level: OSB has an appropriate level of Loans to Assets ratio (86%).

Low Risk Deposits: OSB's Loans to Deposits ratio (113%) is appropriate.

Level of Bad Loans: OSB has a high level of bad loans (2.3%).


Next Steps

Dividend

What is OneSavings Bank current dividend yield, its reliability and sustainability?

5.51%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: OSB is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Andy Golding (51 yo)

8.58yrs

Tenure

UK£1,609,000

Compensation

Mr. Andrew John Golding, also known as Andy, serves as Director at Charter Court Financial Services Ltd. since October 4, 2019 and serves as its Chief Executive Officer. Mr. Golding has been Director at Ch ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD2.10M) is about average for companies of similar size in the UK market ($USD1.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Golding
Group CEO & Director8.58yrsUK£1.61m0.19%
£ 2.1m
April Talintyre
CFO & Director8.17yrsUK£1.03m0.10%
£ 1.1m
Clive Kornitzer
Group Chief Operating Officerno datano data0.14%
£ 1.5m
Alastair Pate
Group Head of Investor Relations and Head of Marketing & Communicationsno datano datano data
Jason Elphick
Group General Counsel & Company Secretaryno datano datano data
Richard Davis
Chief Information Officerno datano data0.065%
£ 697.5k
Richard Wilson
Group Chief Credit Officerno datano data0.079%
£ 841.4k
Hasan Kazmi
Chief Risk Officer4.92yrsno data0.031%
£ 327.4k
Nicholas Hurst
Head of Portfolio Credit Riskno datano datano data
Craig Richardson
Head of Underwritingno datano datano data
Nickesha Graham-Burrell
Head of Company Secretariatno datano datano data
Paul Whitlock
Group Managing Director of Savingsno datano data0.038%
£ 407.3k

8.3yrs

Average Tenure

51yo

Average Age

Experienced Management: OSB's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Golding
Group CEO & Director8.58yrsUK£1.61m0.19%
£ 2.1m
April Talintyre
CFO & Director8.17yrsUK£1.03m0.10%
£ 1.1m
David Weymouth
Independent Non-Executive Chairman0.50yrUK£250.00k0.0042%
£ 44.9k
Elizabeth Harwerth
Senior Independent Director0.83yrUK£31.00kno data
Sarah Hedger
Independent Non-Executive Director1.5yrsUK£67.00kno data
Mary McNamara
Independent Non-Executive Director6.25yrsUK£90.00k0.0088%
£ 94.5k
John Allatt
Independent Non-Executive Director6.25yrsUK£91.00kno data
Rajan Kapoor
Independent Non-Executive Director0.83yrUK£29.00k0.0045%
£ 48.0k

3.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: OSB's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 82%.


Top Shareholders

Company Information

OneSavings Bank Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OneSavings Bank Plc
  • Ticker: OSB
  • Exchange: LSE
  • Founded: 1847
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: UK£1.071b
  • Shares outstanding: 446.24m
  • Website: https://www.osb.co.uk

Number of Employees


Location

  • OneSavings Bank Plc
  • Reliance House
  • Sun Pier
  • Chatham
  • Kent
  • ME4 4ET
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1SBALSE (London Stock Exchange)6.591%-VAR SUB BDS PERP GBP1000 'REGS'GBGBPMar 2011
1SBBLSE (London Stock Exchange)7.875%-STP SUB NTS PERP GBP1000GBGBPMar 2011
OSBLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2014
OSBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2014
OSVB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2014
2OSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014

Biography

OneSavings Bank plc operates as a specialist lending and retail savings company in the United Kingdom and the Channel Islands. The company provides private rented sector related buy-to-let, commercial and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 21:16
End of Day Share Price2020/08/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.