CapStar Financial Holdings, Inc. operates as the bank holding company for CapStar Bank that provides banking services to consumer and corporate customers located primarily in Tennessee, the United States.
Very undervalued with flawless balance sheet.
Share Price & News
How has Capstar Financial Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CSTR's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: CSTR underperformed the US Banks industry which returned -26.4% over the past year.
Return vs Market: CSTR underperformed the US Market which returned -10.4% over the past year.
Price Volatility Vs. Market
How volatile is Capstar Financial Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall StHow Does Capstar Financial Holdings's (NASDAQ:CSTR) P/E Compare To Its Industry, After The Share Price Drop?
2 weeks ago | Simply Wall StHow Does Capstar Financial Holdings's (NASDAQ:CSTR) P/E Compare To Its Industry, After The Share Price Drop?
4 weeks ago | Simply Wall StHow Much Are Capstar Financial Holdings, Inc. (NASDAQ:CSTR) Insiders Spending On Buying Shares?
Is Capstar Financial Holdings 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: CSTR ($9.5) is trading below our estimate of fair value ($14.21)
Significantly Below Fair Value: CSTR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CSTR is good value based on its PE Ratio (7.6x) compared to the Banks industry average (8.9x).
PE vs Market: CSTR is good value based on its PE Ratio (7.6x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: CSTR is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: CSTR is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).
How is Capstar Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CSTR's forecast earnings growth (9.7% per year) is above the savings rate (1.7%).
Earnings vs Market: CSTR's earnings (9.7% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: CSTR's earnings are forecast to grow, but not significantly.
Revenue vs Market: CSTR's revenue (10% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: CSTR's revenue (10% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CSTR's Return on Equity is forecast to be low in 3 years time (7.8%).
How has Capstar Financial Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CSTR has a high level of non-cash earnings.
Growing Profit Margin: CSTR's current net profit margins (24.6%) are higher than last year (15.5%).
Past Earnings Growth Analysis
Earnings Trend: CSTR's earnings have grown significantly by 24.9% per year over the past 5 years.
Accelerating Growth: CSTR's earnings growth over the past year (132.2%) exceeds its 5-year average (24.9% per year).
Earnings vs Industry: CSTR earnings growth over the past year (132.2%) exceeded the Banks industry 10.9%.
Return on Equity
High ROE: CSTR's Return on Equity (8.2%) is considered low.
How is Capstar Financial Holdings's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: CSTR has a low level of unsold assets or inventory.
Debt Coverage by Assets: CSTR's debt is covered by short term assets (assets are 27.3x debt).
Financial Institutions Analysis
Asset Level: CSTR's level of assets compared to its equity is low.
Allowance for Bad Loans: CSTR has a sufficient allowance for bad loans.
Low Risk Liabilities: CSTR's liabilities are made up of primarily low risk sources of funding.
Loan Level: CSTR has an acceptable proportion of non-loan assets held.
Low Risk Deposits: CSTR's loans are broadly funded by customer deposits.
Level of Bad Loans: CSTR has an appropriate level of bad loans (0.1%)
What is Capstar Financial Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CSTR's dividend (2.11%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: CSTR's dividend (2.11%) is low compared to the top 25% of dividend payers in the US market (5.4%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CSTR has been paying a dividend for less than 10 years.
Growing Dividend: CSTR'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 (16%), CSTR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CSTR's dividends in 3 years are forecast to be well covered by earnings (17.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tim Schools (49yo)
Mr. Timothy K. Schools, also known as Tim, is the Chief Executive Officer and Director at CapStar Financial Holdings, Inc. since July 31, 2019 and President since May 13, 2019. Mr. Schools is Director of C ...
|Founding President & CEO Emerita||0.75yr||US$772.23k||0.73% $1.3m|
|Chief Credit Officer||4.08yrs||US$654.58k||0.21% $371.9k|
|President||0.75yr||no data||0.21% $374.6k|
|IR Contact||no data||no data||no data|
|Senior VP & Human Resources Director||no data||no data||no data|
|Executive VP & Healthcare Group Manager||no data||no data||no data|
Experienced Management: CSTR's management team is considered experienced (2.3 years average tenure).
|President||0.75yr||no data||0.21% $374.6k|
|Independent Vice Chairman||4.25yrs||US$71.00k||3.64% $6.6m|
|Independent Chairman of the Board||4.25yrs||US$91.50k||1.66% $3.0m|
|Independent Vice Chairman||3yrs||US$75.50k||0.26% $470.2k|
|Independent Director||12.25yrs||US$55.00k||3.09% $5.6m|
|Independent Director||12.25yrs||US$52.50k||0.29% $517.2k|
|Independent Director||12.25yrs||US$58.50k||1.31% $2.4m|
|Independent Director||12.25yrs||US$62.00k||3.73% $6.7m|
|Independent Director||12.25yrs||US$55.00k||3.47% $6.3m|
|Independent Director||8.25yrs||US$47.50k||0.63% $1.1m|
Experienced Board: CSTR's board of directors are seasoned and experienced ( 10.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CSTR insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 34.7%.
Capstar Financial Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Capstar Financial Holdings, Inc.
- Ticker: CSTR
- Exchange: NasdaqGS
- Founded: 2007
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$181.064m
- Shares outstanding: 18.31m
- Website: https://www.capstarbank.com
Number of Employees
- Capstar Financial Holdings, Inc.
- 1201 Demonbreun Street
- Suite 700
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CSTR||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Sep 2016|
CapStar Financial Holdings, Inc. operates as the bank holding company for CapStar Bank that provides banking services to consumer and corporate customers located primarily in Tennessee, the United States. It offers a range of deposit products and services, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, certificates of deposit, and CDARS reciprocal products. The company also provides commercial and consumer real estate, construction and land development, commercial and industrial, consumer, and other loans. In addition, it offers private banking and wealth management services for the owners and operators of business clients and other high net worth individuals; and correspondent banking services to community banks. Further, the company provides telephone and online banking, direct deposit, mobile banking, safe deposit boxes, remote deposit, and cash management services for individuals, and small and medium sized businesses. CapStar Financial Holdings, Inc. was founded in 2007 and is headquartered in Nashville, Tennessee.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/01 01:26|
|End of Day Share Price||2020/03/31 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.