NasdaqGS:BUSE

Stock Analysis Report

Executive Summary

First Busey Corporation operates as the bank holding company for Busey Bank that provides retail and commercial banking products and services to individual, corporate, institutional, and governmental customers in the United States.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has First Busey's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

6.7%

BUSE

6.0%

US Banks

7.2%

US Market


1 Year Return

-32.7%

BUSE

-26.4%

US Banks

-10.4%

US Market

Return vs Industry: BUSE underperformed the US Banks industry which returned -26.4% over the past year.

Return vs Market: BUSE underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

BUSEIndustryMarket
7 Day6.7%6.0%7.2%
30 Day-24.6%-24.0%-12.6%
90 Day-39.5%-38.0%-19.4%
1 Year-30.4%-32.7%-24.1%-26.4%-8.5%-10.4%
3 Year-37.6%-42.7%-15.8%-21.9%15.8%8.3%
5 Year-2.3%-15.7%13.2%0.2%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First Busey undervalued compared to its fair value and its price relative to the market?

32.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BUSE ($16.65) is trading below our estimate of fair value ($24.72)

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


Price To Earnings Ratio

PE vs Industry: BUSE is good value based on its PE Ratio (8.9x) compared to the Banks industry average (8.9x).

PE vs Market: BUSE is good value based on its PE Ratio (8.9x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: BUSE is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: BUSE is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is First Busey forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BUSE's forecast earnings growth (4.3% per year) is above the savings rate (1.7%).

Earnings vs Market: BUSE's earnings (4.3% per year) are forecast to grow slower than the US market (12.2% per year).

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

Revenue vs Market: BUSE's revenue (1.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BUSE's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BUSE's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has First Busey performed over the past 5 years?

25.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BUSE has high quality earnings.

Growing Profit Margin: BUSE's current net profit margins (26.2%) are lower than last year (30.3%).


Past Earnings Growth Analysis

Earnings Trend: BUSE's earnings have grown significantly by 25.8% per year over the past 5 years.

Accelerating Growth: BUSE's earnings growth over the past year (4.1%) is below its 5-year average (25.8% per year).

Earnings vs Industry: BUSE earnings growth over the past year (4.1%) underperformed the Banks industry 10.9%.


Return on Equity

High ROE: BUSE's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is First Busey'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: BUSE has a low level of unsold assets or inventory.

Debt Coverage by Assets: BUSE's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: BUSE has an appropriate level of bad loans (0.44%)


Next Steps

Dividend

What is First Busey's current dividend yield, its reliability and sustainability?

5.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BUSE's dividend (5.29%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: BUSE's dividend (5.29%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

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

Growing Dividend: BUSE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.8%), BUSE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BUSE's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Van Dukeman (60yo)

12.58s

Tenure

US$2,063,717

Compensation

Mr. Dukeman is President & Chief Executive Officer of First Busey, as well as Chairman of Busey Bank. Mr. Dukeman also serves as a director of Busey Wealth Management and FirsTech, Inc. Mr. Dukeman served  ...


CEO Compensation Analysis

Compensation vs Market: Van's total compensation ($USD2.06M) is below average for companies of similar size in the US market ($USD3.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Van Dukeman
Former Chairman12.58yrsUS$2.06m0.33% $3.0m
Amy Randolph
Executive VP2.83yrsUS$837.67k0.013% $121.6k
Robert Plecki
Executive VP & Chief Credit Officer10yrsUS$844.26k0.089% $804.8k
Robin Elliott
President & CEO of Busey Bankno dataUS$1.16m0.12% $1.1m
Jeffrey Jones
Executive VP & CFO0.58yrno data0.0043% $39.0k
John Powers
Executive VP & General Counsel8.25yrsUS$343.03k0.070% $629.5k
Monica Bowe
Executive VP & Chief Risk Officer0.17yrno datano data

5.5yrs

Average Tenure

46yo

Average Age

Experienced Management: BUSE's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Van Dukeman
Former Chairman12.58yrsUS$2.06m0.33% $3.0m
Gregory Lykins
Vice Chairman of the Board26.17yrsUS$699.45k3.23% $29.2m
George Shapland
Independent Director26.17yrsUS$85.50k0.64% $5.8m
David Downey
Director28.17yrsUS$87.45k0.49% $4.4m
Stephen King
Independent Director7.17yrsUS$83.70k0.23% $2.1m
Stanley Bradshaw
Lead Director14.17yrsUS$82.53k0.53% $4.8m
Frederic Kenney
Independent Director1.83yrsUS$71.03k0.31% $2.8m
Thomas Sloan
Independent Director9.42yrsUS$85.50k0.42% $3.8m
George Barr
Independent Director14.17yrsUS$81.93k0.42% $3.8m
Michael Cassens
Independent Director17.17yrsno data0.34% $3.0m

15.7yrs

Average Tenure

63yo

Average Age

Experienced Board: BUSE's board of directors are seasoned and experienced ( 15.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BUSE 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 diluted in the past year, with total shares outstanding growing by 12.3%.


Top Shareholders

Company Information

First Busey Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Busey Corporation
  • Ticker: BUSE
  • Exchange: NasdaqGS
  • Founded: 1868
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$905.543m
  • Shares outstanding: 54.39m
  • Website: https://www.busey.com

Number of Employees


Location

  • First Busey Corporation
  • 100 West University Avenue
  • Champaign
  • Illinois
  • 61820
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BUSENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1990

Biography

First Busey Corporation operates as the bank holding company for Busey Bank that provides retail and commercial banking products and services to individual, corporate, institutional, and governmental customers in the United States. The company operates in three segments: Banking, Remittance Processing, and Wealth Management. It offers customary types of demand and savings deposits; and commercial, agricultural, real estate construction, commercial and residential real estate, and consumer loans, as well as home equity lines of credit. The company also provides money transfer, safe deposit, IRA, and other fiduciary services through banking center, ATM and technology-based networks. In addition, it offers investment management, trust, estate advisory, and financial planning services, as well as business succession planning, and employee retirement planning services; investment strategy consulting and fiduciary services; and security brokerage services. Further, the company provides pay processing solutions, such as walk-in payment processing for payments delivered by customers to retail pay agents; online bill payment solutions for payments made by customers on a billing company’s Website; customer service payments for payments accepted over the telephone; mobile bill pay; direct debit services; electronic concentration of payments delivered by the automated clearing house network; money management software and credit card networks; and lockbox remittance processing of payments delivered by mail. It has 61 banking centers in Illinois; 13 in Missouri; five in southwest Florida; and one in Indianapolis, Indiana. The company was founded in 1868 and is headquartered in Champaign, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:00
End of Day Share Price2020/03/30 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.