Secure Trust Bank PLC provides banking and financial products and services in the United Kingdom.
Undervalued with adequate balance sheet.
Share Price & News
How has Secure Trust Bank's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STB's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: STB underperformed the UK Banks industry which returned -40% over the past year.
Return vs Market: STB underperformed the UK Market which returned -12.2% over the past year.
Price Volatility Vs. Market
How volatile is Secure Trust Bank's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StDoes Secure Trust Bank Plc's (LON:STB) CEO Salary Compare Well With Others?
2 months ago | Simply Wall StIs It Time To Consider Buying Secure Trust Bank Plc (LON:STB)?
3 months ago | Simply Wall StInvestors Who Bought Secure Trust Bank (LON:STB) Shares Five Years Ago Are Now Down 48%
Is Secure Trust Bank undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STB (£8.85) is trading below our estimate of fair value (£13.32)
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 (5.3x) compared to the Banks industry average (5.6x).
PE vs Market: STB is good value based on its PE Ratio (5.3x) compared to the UK market (14.4x).
Price to Earnings Growth Ratio
PEG Ratio: STB is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: STB is overvalued based on its PB Ratio (0.6x) compared to the GB Banks industry average (0.5x).
How is Secure Trust Bank forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STB's forecast earnings growth (17.4% per year) is above the savings rate (1.2%).
Earnings vs Market: STB's earnings (17.4% per year) are forecast to grow slower than the UK market (20.1% per year).
High Growth Earnings: STB's earnings are forecast to grow, but not significantly.
Revenue vs Market: STB's revenue (8.2% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: STB's revenue (8.2% 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 (11.7%).
How has Secure Trust Bank performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STB has a high level of non-cash earnings.
Growing Profit Margin: STB's current net profit margins (23.4%) are lower than last year (23.7%).
Past Earnings Growth Analysis
Earnings Trend: STB's earnings have grown by 16.8% per year over the past 5 years.
Accelerating Growth: STB's earnings growth over the past year (9.9%) is below its 5-year average (16.8% per year).
Earnings vs Industry: STB earnings growth over the past year (9.9%) exceeded the Banks industry 9.1%.
Return on Equity
High ROE: STB's Return on Equity (12.2%) is considered low.
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
Financial Institutions Analysis
Asset Level: STB's Assets to Equity ratio (10.6x) is moderate.
Allowance for Bad Loans: STB has a low allowance for bad loans (50%).
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 (91%).
Low Risk Deposits: STB's Loans to Deposits ratio (121%) is appropriate.
Level of Bad Loans: STB has a high level of bad loans (4.6%).
What is Secure Trust Bank's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate STB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate STB'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 STB's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if STB's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: STB is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of STB's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Paul Lynam (51yo)
Mr. Paul Anthony Lynam, ACIB, AMCT, FIFS, has been the Chief Executive of Secure Trust Bank Plc since September 13, 2010. Mr. Lynam served as the Managing Director of Banking at Royal Bank of Scotland Grou ...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD2.20M) is above average for companies of similar size in the UK market ($USD746.40K).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
|CEO & Director||9.67yrs||UK£1.80m||0.32% £535.4k|
|Interim CFO & Group Financial Controller||0.17yr||no data||no data|
|Chief Operating Officer||no data||no data||no data|
|Chief Technology Officer||no data||no data||no data|
|General Counsel||no data||no data||no data|
|Chief Compliance Officer & Money Laundering Reporting Officer||no data||no data||no data|
|HR Director||no data||no data||no data|
|Head of Dealer Sales||2yrs||no data||no data|
|Managing Director - Motor Finance||no data||no data||no data|
|Chief Risk Officer||no data||no data||no data|
Experienced Management: STB's management team is considered experienced (2 years average tenure).
|CEO & Director||9.67yrs||UK£1.80m||0.32% £535.4k|
|Senior Independent Director||no data||UK£93.00k||no data|
|Independent Non-Executive Chairman||3.58yrs||UK£206.00k||0.019% £31.0k|
|Independent Non-Executive Director||3.5yrs||UK£78.00k||no data|
|Senior Independent Director||4.33yrs||UK£116.00k||0.029% £48.1k|
|Independent Non Executive Director||0.42yr||UK£3.00k||no data|
|Independent Non-Executive Director||1.5yrs||UK£71.00k||0.019% £31.0k|
|Independent Non-Executive Director||1.5yrs||UK£71.00k||no data|
Experienced Board: STB's board of directors are considered experienced (3.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Secure Trust Bank PLC's company bio, employee growth, exchange listings and data sources
- Name: Secure Trust Bank PLC
- Ticker: STB
- Exchange: LSE
- Founded: 1952
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: UK£164.811m
- Shares outstanding: 18.62m
- Website: https://www.securetrustbank.com
Number of Employees
- Secure Trust Bank PLC
- One Arleston Way
- West Midlands
- B90 4LH
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|STB||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||GBP||Nov 2011|
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 finance for commercial and residential real estate developments and investments, as well as for mixed development projects. The Asset Finance segment offers loans to acquire the commercial assets, such as commercial vehicles, and building and manufacturing equipment to small and medium sized enterprises (SMEs). The Commercial Finance segment provides invoice financing solutions, including invoice discounting and factoring to businesses. The Motor Finance segment provides hire purchase agreements secured against the vehicle being financed. This segment distributes its motor finance products through motor dealers, brokers, and Internet introducers. The Retail Finance segment offers point of sale unsecured finance for in-store and online retailers under the V12 brand name. This segment serves retailers of various industries, including cycle, music, furniture, outdoor/leisure, electronics, dental, jewelry, home improvements, and football season tickets. The Debt Management segment provides debt collection services. The Consumer Mortgages segment provides residential mortgages for self-employed and contract workers through mortgage intermediaries. The company also provides term deposits, notice, and sight deposits; property rental services; and leasing services. Secure Trust Bank PLC was founded in 1952 and is headquartered in Solihull, the United Kingdom.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/28 09:31|
|End of Day Share Price||2020/05/27 00:00|
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.