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 Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.1%

CBTX

-1.2%

US Banks

-1.1%

US Market


1 Year Return

-16.7%

CBTX

10.3%

US Banks

17.9%

US Market

Return vs Industry: CBTX underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: CBTX underperformed the US Market which returned 18% over the past year.


Shareholder returns

CBTXIndustryMarket
7 Day-4.1%-1.2%-1.1%
30 Day-8.9%-0.3%1.4%
90 Day-5.4%-0.9%6.9%
1 Year-15.6%-16.7%13.5%10.3%20.3%17.9%
3 Yearn/a24.0%15.1%47.8%38.3%
5 Yearn/a73.8%54.1%71.9%53.0%

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 compared to its fair value and its price relative to the market?

3.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBTX ($28.25) is trading below our estimate of fair value ($29.22)

Significantly Below Fair Value: CBTX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CBTX is poor value based on its PE Ratio (13.9x) compared to the Banks industry average (12.6x).

PE vs Market: CBTX is good value based on its PE Ratio (13.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CBTX is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBTX's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: CBTX's earnings are forecast to decline over the next 3 years (-1.4% per year).

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

Revenue vs Market: CBTX's revenue (5.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CBTX's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBTX's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has CBTX performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBTX has a high level of non-cash earnings.

Growing Profit Margin: CBTX's current net profit margins (34.6%) are higher than last year (33.6%).


Past Earnings Growth Analysis

Earnings Trend: CBTX's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: CBTX's earnings growth over the past year (6.8%) is below its 5-year average (22.4% per year).

Earnings vs Industry: CBTX earnings growth over the past year (6.8%) underperformed the Banks industry 12.1%.


Return on Equity

High ROE: CBTX's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: CBTX has a low level of unsold assets or inventory.

Debt Coverage by Assets: CBTX's debt is covered by short term assets (assets are 7.4x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: CBTX has an appropriate level of bad loans (0.04%)


Next Steps

Dividend

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

1.42%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: CBTX's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CBTX's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

Growing Dividend: CBTX's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.7%), CBTX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBTX's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).


Next Steps

Management

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

7.1yrs

Average board tenure


CEO

Bob Franklin (64yo)

6.7yrs

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

Compensation vs Market: Bob's total compensation ($USD1.63M) is below average for companies of similar size in the US market ($USD2.50M).

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


Board Members

NamePositionTenureCompensationOwnership
Robert Franklin
Chairman6.7yrsUS$1.63m1.11% $7.8m
John Parsons
Vice Chairman5.1yrsUS$1.09m0.50% $3.6m
Robert Pigott
CFO & Advisory Director0yrsUS$544.50k0.22% $1.6m
Tommy Lott
Independent Director7.1yrsUS$57.73k0.85% $6.0m
Joe Penland
Independent Director13.1yrsUS$38.33k1.39% $9.8m
Wayne Reaud
Independent Director13.1yrsUS$37.33k4.88% $34.4m
Glen Morgan
Independent Director13.1yrsUS$28.33k4.89% $34.5m
John Williams
Independent Director13.1yrsUS$30.83k4.92% $34.7m
Michael Havard
Independent Director2.4yrsUS$61.63k0.18% $1.3m
William Wilson
Independent Director2.4yrsUS$60.13k0.21% $1.5m

7.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: CBTX's board of directors are considered experienced (7.1 years average tenure).


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

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$705.685m
  • Shares outstanding: 24.98m
  • 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 United States. The company offers various deposit products, including demand, savings, money market, and time accounts; and loans, such as commercial and industrial loans, commercial real estate loans, construction and development loans, 1-4 family residential mortgage loans, multi-family residential loans, consumer loans, and agricultural loans. It also provides treasury and online banking services. CBTX, Inc. operates 35 banking locations, including 19 branches in Houston; 15 branches in Beaumont; and 1 branch in Dallas. The company was formerly known as CBFH, Inc. and changed its name to CBTX, Inc. in September 2017. CBTX, Inc. was founded in 2007 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:52
End of Day Share Price2020/02/21 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.