NasdaqGS:CBTX

Stock Analysis Report

Executive Summary

CBTX, Inc. operates as the bank holding company for CommunityBank of Texas, National Association that provides commercial banking solutions to small and mid-sized businesses, and professionals in the United States.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

NasdaqGS:CBTX

0.3%

US Banks

0.9%

US Market


1 Year Return

-23.6%

NasdaqGS:CBTX

-13.6%

US Banks

0.3%

US Market

CBTX underperformed the Banks industry which returned -14.2% over the past year.

CBTX underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

CBTXIndustryMarket
7 Day0.2%0.3%0.9%
30 Day-1.9%-5.1%-1.9%
90 Day0.9%-3.5%1.6%
1 Year-22.9%-23.6%-11.2%-13.6%2.6%0.3%
3 Yearn/a43.6%33.7%41.0%31.8%
5 Yearn/a53.7%37.0%55.2%38.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CBTX undervalued based on future cash flows and its price relative to the stock market?

13.71x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

CBTX's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

CBTX's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

CBTX is overvalued based on earnings compared to the US Banks industry average.

CBTX is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

CBTX earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

CBTX is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is CBTX expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

-2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CBTX's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

CBTX's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

CBTX's revenue growth is positive but not above the United States of America market average.

CBTX's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

CBTX's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if CBTX will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has CBTX performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CBTX has delivered over 20% year on year earnings growth in the past 5 years.

CBTX's 1-year earnings growth exceeds its 5-year average (61.5% vs 22.8%)

CBTX's earnings growth has exceeded the US Banks industry average in the past year (61.5% vs 33.2%).


Return on Equity

CBTX has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CBTX used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if CBTX improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is CBTX'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

Information is not available.

Information is not available.


Financial Institutions Analysis

CBTX has an acceptable proportion of non-loan assets held.

CBTX has a sufficient allowance for bad loans.

CBTX's liabilities are made up of primarily low risk sources of funding.

CBTX's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at CBTX are broadly funded by customer deposits.

CBTX has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

1.25%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CBTX's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

CBTX's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, CBTX has been paying a dividend for less than 10 years.

Dividend payments have increased, but CBTX only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (7x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

6.6yrs

Average board tenure


CEO

Bob Franklin (64yo)

6.2yrs

Tenure

US$1,625,351

Compensation

Mr. Robert R. Franklin, Jr., also known as Bob, has been Chairman, President and Chief Executive Officer at CBTX, Inc. since January 2015, December 2015 and January 2014 respectively. Mr. Franklin has been ...


CEO Compensation Analysis

Bob's remuneration is lower than average for companies of similar size in United States of America.

Bob's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

6.6yrs

Average Tenure

65.5yo

Average Age

The tenure for the CBTX board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$1,073,03320 Nov 18
Penland Foundation, Endowment Arm
EntityCompany
Shares30,670
Max PriceUS$34.99

Ownership Breakdown


Management Team

  • James Sturgeon (68yo)

    Investor Relations Officer

    • Tenure: 0.0yrs
  • Bob Franklin (64yo)

    Chairman

    • Tenure: 6.2yrs
    • Compensation: US$1.63m
  • John Parsons (70yo)

    Vice Chairman

    • Tenure: 4.6yrs
    • Compensation: US$1.09m
  • Ted Pigott (64yo)

    CFO & Advisory Director

    • Tenure: 0.0yrs
    • Compensation: US$544.50k

Board Members

  • Tommy Lott (82yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$57.73k
  • Joe Penland (68yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$38.33k
  • Wayne Reaud (71yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$37.33k
  • Bob Franklin (64yo)

    Chairman

    • Tenure: 6.2yrs
    • Compensation: US$1.63m
  • Glen Morgan (66yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$28.33k
  • John Williams (65yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$30.83k
  • John Parsons (70yo)

    Vice Chairman

    • Tenure: 4.6yrs
    • Compensation: US$1.09m
  • Michael Havard (62yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$61.63k
  • Bill Wilson (64yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$60.13k
  • Ted Pigott (64yo)

    CFO & Advisory Director

    • Tenure: 0.0yrs
    • Compensation: US$544.50k

Company Information

CBTX, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CBTX, Inc.
  • Ticker: CBTX
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$719.765m
  • Shares outstanding: 25.16m
  • Website: https://www.communitybankoftx.com

Number of Employees


Location

  • CBTX, Inc.
  • 9 Greenway Plaza
  • Suite 110
  • Houston
  • Texas
  • 77046
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBTXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2017

Biography

CBTX, Inc. operates as the bank holding company for CommunityBank of Texas, National Association that provides commercial banking solutions to small and mid-sized businesses, and professionals in the Unite ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:58
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
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.