CSTR

Capstar Financial HoldingsNasdaqGS:CSTR Stock Report

Market Cap

US$482.1m

7D

1.2%

1Y

120.6%

Updated

18 Sep, 2021

Data

Company Financials +
CSTR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends2/6

CSTR Overview

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.

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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CSTR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

CSTR

0.9%

US Banks

-0.6%

US Market


1 Year Return

120.6%

CSTR

63.3%

US Banks

33.8%

US Market

Return vs Industry: CSTR exceeded the US Banks industry which returned 63.3% over the past year.

Return vs Market: CSTR exceeded the US Market which returned 33.8% over the past year.


Shareholder returns

CSTRIndustryMarket
7 Day1.2%0.9%-0.6%
30 Day7.0%0.07%1.6%
90 Day7.4%4.6%4.6%
1 Year123.7%120.6%67.7%63.3%35.8%33.8%
3 Year28.0%22.8%21.9%11.4%60.0%50.1%
5 Year39.8%33.8%94.7%70.1%123.0%98.7%

Long-Term 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

Capstar Financial Holdings Fundamentals Summary

How do Capstar Financial Holdings's earnings and revenue compare to its market cap?
CSTR fundamental statistics
Market CapUS$482.05m
Earnings (TTM)US$40.28m
Revenue (TTM)US$131.52m

12.0x

P/E Ratio

1.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSTR income statement (TTM)
RevenueUS$131.52m
Cost of RevenueUS$0
Gross ProfitUS$131.52m
ExpensesUS$91.25m
EarningsUS$40.28m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.83
Gross Margin100.00%
Net Profit Margin30.62%
Debt/Equity Ratio8.2%

How did CSTR perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

12%

Payout Ratio

Valuation

Is Capstar Financial Holdings undervalued compared to its fair value and its price relative to the market?

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSTR ($21.75) is trading below our estimate of fair value ($42.66)

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


Price To Earnings Ratio

PE vs Industry: CSTR is poor value based on its PE Ratio (12x) compared to the US Banks industry average (10.8x).

PE vs Market: CSTR is good value based on its PE Ratio (12x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CSTR is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.1x).


Future Growth

How is Capstar Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSTR's earnings are forecast to decline over the next 3 years (-0.8% per year).

Earnings vs Market: CSTR's earnings are forecast to decline over the next 3 years (-0.8% per year).

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

Revenue vs Market: CSTR's revenue (1.9% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CSTR's revenue (1.9% 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 (10.6%).


Past Performance

How has Capstar Financial Holdings performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSTR has high quality earnings.

Growing Profit Margin: CSTR's current net profit margins (30.6%) are higher than last year (22.1%).


Past Earnings Growth Analysis

Earnings Trend: CSTR's earnings have grown significantly by 39.1% per year over the past 5 years.

Accelerating Growth: CSTR's earnings growth over the past year (107.5%) exceeds its 5-year average (39.1% per year).

Earnings vs Industry: CSTR earnings growth over the past year (107.5%) exceeded the Banks industry 36%.


Return on Equity

High ROE: CSTR's Return on Equity (11.2%) is considered low.


Financial Health

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


Balance Sheet


Financial Institutions Analysis

Asset Level: CSTR's Assets to Equity ratio (8.9x) is low.

Allowance for Bad Loans: CSTR has a sufficient allowance for bad loans (571%).

Low Risk Liabilities: 97% of CSTR's liabilities are made up of primarily low risk sources of funding.

Loan Level: CSTR has an appropriate level of Loans to Assets ratio (59%).

Low Risk Deposits: CSTR's Loans to Deposits ratio (68%) is appropriate.

Level of Bad Loans: CSTR has an appropriate level of bad loans (0.2%).


Dividend

What is Capstar Financial Holdings's current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSTR's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: CSTR's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12%), CSTR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSTR's dividends in 3 years are forecast to be thoroughly covered by earnings (14.8% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Tim Schools (51 yo)

2.17yrs

Tenure

US$959,767

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD959.77K) is below average for companies of similar size in the US market ($USD1.67M).

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


Leadership Team

Experienced Management: CSTR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: CSTR's board of directors are considered experienced (7.7 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

Capstar Financial Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capstar Financial Holdings, Inc.
  • Ticker: CSTR
  • Exchange: NasdaqGS
  • Founded: 2015
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$482.051m
  • Shares outstanding: 22.16m
  • Website: https://www.capstarbank.com

Number of Employees


Location

  • Capstar Financial Holdings, Inc.
  • 1201 Demonbreun Street
  • Suite 700
  • Nashville
  • Tennessee
  • 37203
  • United States

Listings


Biography

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....


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:11
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.