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STB

Secure Trust BankLSE:STB Stock Report

Market Cap

UK£242.3m

7D

-0.8%

1Y

39.9%

Updated

26 Nov, 2021

Data

Company Financials +
STB fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends4/6

STB Stock Overview

Secure Trust Bank PLC provides banking and financial products and services in the United Kingdom.

Secure Trust Bank Competitors

HSBC Holdings

LSE:HSBA

UK£83.5b

Lloyds Banking Group

LSE:LLOY

UK£32.7b

Barclays

LSE:BARC

UK£30.4b

NatWest Group

LSE:NWG

UK£23.5b

Price History & Performance

Summary of all time highs, changes and price drops for Secure Trust Bank
Historical stock prices
Current Share PriceUK£13.00
52 Week HighUK£14.20
52 Week LowUK£8.33
Beta1.19
1 Month Change5.91%
3 Month Change0%
1 Year Change39.93%
3 Year Change-9.41%
5 Year Change-41.44%
Change since IPO72.19%

Recent News & Updates

Shareholder Returns

STBGB BanksGB Market
7D-0.8%-5.3%-3.0%
1Y39.9%16.7%11.7%

Return vs Industry: STB exceeded the UK Banks industry which returned 30.6% over the past year.

Return vs Market: STB exceeded the UK Market which returned 17.9% over the past year.

Price Volatility

Is STB's price volatile compared to industry and market?
STB volatility
STB Average Weekly Movement4.1%
Banks Industry Average Movement4.2%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: STB is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: STB's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19521,003David McCreadiehttps://www.securetrustbank.com

Secure Trust Bank PLC provides banking and financial products and services in the United Kingdom. It operates in seven segments: Real Estate Finance, Asset Finance, Commercial Finance, Motor Finance, Retail Finance, Debt Management, and Consumer Mortgages. The Real Estate Finance segment provides loans for residential and commercial investment and development, as well as for mixed development projects.

Secure Trust Bank Fundamentals Summary

How do Secure Trust Bank's earnings and revenue compare to its market cap?
STB fundamental statistics
Market CapUK£242.30m
Earnings (TTM)UK£38.30m
Revenue (TTM)UK£143.90m

6.3x

P/E Ratio

0.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STB income statement (TTM)
RevenueUK£143.90m
Cost of RevenueUK£0
Gross ProfitUK£143.90m
ExpensesUK£105.60m
EarningsUK£38.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.05
Gross Margin100.00%
Net Profit Margin26.62%
Debt/Equity Ratio126.7%

How did STB perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Secure Trust 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: STB (£13) is trading below our estimate of fair value (£34.4)

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


Price To Earnings Ratio

PE vs Industry: STB is good value based on its PE Ratio (6.3x) compared to the UK Banks industry average (8.2x).

PE vs Market: STB is good value based on its PE Ratio (6.3x) compared to the UK market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: STB is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: STB is overvalued based on its PB Ratio (0.8x) compared to the GB Banks industry average (0.7x).


Future Growth

How is Secure Trust Bank forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STB's forecast earnings growth (11.4% per year) is above the savings rate (0.9%).

Earnings vs Market: STB's earnings (11.4% per year) are forecast to grow slower than the UK market (11.5% per year).

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

Revenue vs Market: STB's revenue (13.3% per year) is forecast to grow faster than the UK market (5.7% per year).

High Growth Revenue: STB's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STB's Return on Equity is forecast to be low in 3 years time (14.4%).


Past Performance

How has Secure Trust Bank performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STB has high quality earnings.

Growing Profit Margin: STB's current net profit margins (26.6%) are higher than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: STB's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: STB's earnings growth over the past year (87.7%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: STB earnings growth over the past year (87.7%) underperformed the Banks industry 87.7%.


Return on Equity

High ROE: STB's Return on Equity (13.3%) is considered low.


Financial Health

How is Secure Trust 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: STB's Assets to Equity ratio (9.1x) is low.

Allowance for Bad Loans: STB has a low allowance for bad loans (42%).

Low Risk Liabilities: 83% of STB's liabilities are made up of primarily low risk sources of funding.

Loan Level: STB has an appropriate level of Loans to Assets ratio (88%).

Low Risk Deposits: STB's Loans to Deposits ratio (120%) is appropriate.

Level of Bad Loans: STB has a high level of bad loans (7.2%).


Dividend

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

3.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STB's dividend (3.08%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: STB's dividend (3.08%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

Stable Dividend: STB's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.1%), STB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STB's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

David McCreadie (52 yo)

0.83

Tenure

UK£80,000

Compensation

Mr. David Andrew McCreadie, FCBI, serves as Chief Executive Officer and Director at Secure Trust Bank Plc since January 5, 2021. He had been Independent Non-Executive Director of Secure Trust Bank Plc sinc...


Leadership Team

Experienced Management: STB's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: STB's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Secure Trust Bank PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Secure Trust Bank PLC
  • Ticker: STB
  • Exchange: LSE
  • Founded: 1952
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£242.299m
  • Shares outstanding: 18.64m
  • Website: https://www.securetrustbank.com

Number of Employees


Location

  • Secure Trust Bank PLC
  • One Arleston Way
  • Shirley
  • Solihull
  • West Midlands
  • B90 4LH
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 21:26
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.