NasdaqGS:BSRR

Stock Analysis Report

Executive Summary

Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California.

Rewards

Trading at 34.9% below its fair value

Earnings grew by 33.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -0.9% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Sierra Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.8%

BSRR

1.3%

US Banks

0.6%

US Market


1 Year Return

13.1%

BSRR

24.6%

US Banks

20.8%

US Market

Return vs Industry: BSRR underperformed the US Banks industry which returned 24.6% over the past year.

Return vs Market: BSRR underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

BSRRIndustryMarket
7 Day4.8%1.3%0.6%
30 Day4.6%3.3%2.5%
90 Day6.4%8.9%4.9%
1 Year16.2%13.1%28.2%24.6%23.5%20.8%
3 Year26.2%17.5%26.0%17.2%46.5%37.0%
5 Year86.3%64.5%61.8%44.2%64.6%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sierra Bancorp undervalued compared to its fair value and its price relative to the market?

34.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSRR ($28.58) is trading below our estimate of fair value ($43.91)

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


Price To Earnings Ratio

PE vs Industry: BSRR is good value based on its PE Ratio (12.7x) compared to the Banks industry average (12.9x).

PE vs Market: BSRR is good value based on its PE Ratio (12.7x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BSRR is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Sierra Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSRR's earnings are forecast to decline over the next 3 years (-0.9% per year).

Earnings vs Market: BSRR's earnings are forecast to decline over the next 3 years (-0.9% per year).

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

Revenue vs Market: BSRR's revenue (2.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: BSRR's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BSRR's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Sierra Bancorp performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSRR has high quality earnings.

Growing Profit Margin: BSRR's current net profit margins (29.8%) are higher than last year (23.4%).


Past Earnings Growth Analysis

Earnings Trend: BSRR's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: BSRR's earnings growth over the past year (33.9%) exceeds its 5-year average (17.1% per year).

Earnings vs Industry: BSRR earnings growth over the past year (33.9%) exceeded the Banks industry 27.3%.


Return on Equity

High ROE: BSRR's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sierra Bancorp'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: BSRR has a low level of unsold assets or inventory.

Debt Coverage by Assets: BSRR's debt is not covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: BSRR has an appropriate level of bad loans (0.37%)


Next Steps

Dividend

What is Sierra Bancorp's current dividend yield, its reliability and sustainability?

2.66%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: BSRR's dividend (2.66%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BSRR's dividend (2.66%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.4%), BSRR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BSRR's dividends in 3 years are forecast to be well covered by earnings (35.7% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Kevin McPhaill (46yo)

4.7yrs

Tenure

US$949,875

Compensation

Mr. Kevin J. McPhaill has been President and Chief Executive Officer of Bank of the Sierra and of Sierra Bancorp since April 1, 2015 and their Director since January 1, 2015. He has been employed in the ba ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD949.88K) is below average for companies of similar size in the US market ($USD1.69M).

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


Management Age and Tenure

4.9yrs

Average Tenure

59.5yo

Average Age

Experienced Management: BSRR's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

78yo

Average Age

Experienced Board: BSRR's board of directors are considered experienced (4.9 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$1,23805 Aug 19
Vonn Christenson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50
Max PriceUS$24.75
BuyUS$90402 Aug 19
Vonn Christenson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares36
Max PriceUS$25.12
BuyUS$26,62522 May 19
Robb Evans
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$26.63
BuyUS$194,74307 May 19
Michael Olague
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer
Shares7,106
Max PriceUS$27.43
BuyUS$382,57103 May 19
Michael Olague
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer
Shares14,000
Max PriceUS$27.33
BuyUS$403,28906 Mar 19
Michael Olague
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer
Shares15,000
Max PriceUS$26.89
BuyUS$26,79031 Jan 19
Robb Evans
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$26.79
BuyUS$13,43028 Jan 19
Laurence Dutto
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$26.86

Ownership Breakdown

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


Management Team

  • Ken Taylor (59yo)

    Executive VP & CFO

    • Tenure: 18.2yrs
    • Compensation: US$702.68k
  • Jim Gardunio (68yo)

    Executive VP & Chief Credit Officer

    • Tenure: 14.8yrs
    • Compensation: US$558.81k
  • Kevin McPhaill (46yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$949.88k
  • Mike Olague (63yo)

    Executive VP & Chief Banking Officer

    • Tenure: 4.9yrs
    • Compensation: US$510.66k
  • Cindy Dabney (60yo)

    Senior VP & Controller

    • Tenure: 13.9yrs
  • Thomas Yamaguchi

    • Tenure: 0yrs
  • Alexandra Blazar

    Secretary

    • Tenure: 1.9yrs
  • Matthew Macia (50yo)

    Executive VP & Chief Risk Officer

    • Tenure: 0.8yrs

Board Members

  • Albert Berra (78yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$104.24k
  • Jim Holly (78yo)

    Vice Chairman of the Board

    • Tenure: 4.7yrs
    • Compensation: US$130.75k
  • Morris Tharp (79yo)

    Chairman of the Board

    • Tenure: 19.9yrs
    • Compensation: US$106.12k
  • Gordon Woods (83yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$101.87k
  • Kevin McPhaill (46yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$949.88k
  • Lynda Scearcy (73yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$93.86k
  • Robb Evans (79yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$75.26k
  • Laurence Dutto (71yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$68.66k
  • Vonn Christenson (39yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$70.46k

Company Information

Sierra Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sierra Bancorp
  • Ticker: BSRR
  • Exchange: NasdaqGS
  • Founded: 1977
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$438.747m
  • Shares outstanding: 15.29m
  • Website: https://www.sierrabancorp.com

Number of Employees


Location

  • Sierra Bancorp
  • 86 North Main Street
  • Porterville
  • California
  • 93257
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSRRNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDNov 1994

Biography

Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California. The company accepts various depo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:44
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.