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CSTR

CapStar Financial Holdings NasdaqGS:CSTR Stock Report

Last Price

US$19.54

Market Cap

US$431.2m

7D

-3.8%

1Y

-6.5%

Updated

15 May, 2022

Data

Company Financials +
CSTR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends3/6

CSTR Stock 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.

CapStar Financial Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CapStar Financial Holdings
Historical stock prices
Current Share PriceUS$19.54
52 Week HighUS$23.00
52 Week LowUS$18.92
Beta0.98
1 Month Change-3.98%
3 Month Change-7.61%
1 Year Change-6.51%
3 Year Change32.03%
5 Year Change11.85%
Change since IPO22.89%

Recent News & Updates

Shareholder Returns

CSTRUS BanksUS Market
7D-3.8%-4.3%-2.5%
1Y-6.5%-19.6%-10.4%

Return vs Industry: CSTR exceeded the US Banks industry which returned -19.6% over the past year.

Return vs Market: CSTR exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is CSTR's price volatile compared to industry and market?
CSTR volatility
CSTR Average Weekly Movement2.5%
Banks Industry Average Movement3.9%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

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.

About the Company

FoundedEmployeesCEOWebsite
2007397Tim Schoolshttps://www.capstarbank.com

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. Its deposit products and services include 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, PPP, and other loans.

CapStar Financial Holdings Fundamentals Summary

How do CapStar Financial Holdings's earnings and revenue compare to its market cap?
CSTR fundamental statistics
Market CapUS$431.17m
Earnings (TTM)US$48.32m
Revenue (TTM)US$134.46m

8.9x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSTR income statement (TTM)
RevenueUS$134.46m
Cost of RevenueUS$0
Gross ProfitUS$134.46m
Other ExpensesUS$86.14m
EarningsUS$48.32m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.19
Gross Margin100.00%
Net Profit Margin35.94%
Debt/Equity Ratio8.0%

How did CSTR perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

13%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CSTR ($19.54) is trading below our estimate of fair value ($50.75)

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 (8.9x) compared to the US Banks industry average (9.7x).

PE vs Market: CSTR is good value based on its PE Ratio (8.9x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: CSTR is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: CSTR's PB Ratio (1.2x) is in line with the US Banks industry average.


Future Growth

How is CapStar Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSTR's forecast earnings growth (4.9% per year) is above the savings rate (1.9%).

Earnings vs Market: CSTR's earnings (4.9% per year) are forecast to grow slower than the US market (12.6% per year).

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

Revenue vs Market: CSTR's revenue (6.6% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: CSTR's revenue (6.6% 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 (11.6%).


Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


46.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CSTR has high quality earnings.

Growing Profit Margin: CSTR's current net profit margins (35.9%) are higher than last year (27.6%).


Past Earnings Growth Analysis

Earnings Trend: CSTR's earnings have grown significantly by 46.4% per year over the past 5 years.

Accelerating Growth: CSTR's earnings growth over the past year (40.5%) is below its 5-year average (46.4% per year).

Earnings vs Industry: CSTR earnings growth over the past year (40.5%) exceeded the Banks industry 20.9%.


Return on Equity

High ROE: CSTR's Return on Equity (13.1%) 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 Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CSTR's Assets to Equity ratio (8.6x) is low.

Allowance for Bad Loans: CSTR has a sufficient allowance for bad loans (596%).

Low Risk Liabilities: 98% 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 (64%).

Low Risk Deposits: CSTR's Loans to Deposits ratio (74%) 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?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.05%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CSTR's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: CSTR's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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 4 years.


Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.8%), 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 well covered by earnings (21.8% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Tim Schools (51 yo)

3yrs

Tenure

US$1,130,435

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 has been its President since May 13, 2019. Mr. Schools is...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD1.13M) is below average for companies of similar size in the US market ($USD2.65M).

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 ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: CSTR's board of directors are seasoned and experienced ( 12.3 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

CapStar Financial Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: CapStar Financial Holdings, Inc.
  • Ticker: CSTR
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$431.171m
  • Shares outstanding: 22.07m
  • Website: https://www.capstarbank.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.