NasdaqGS:CSTR

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Capstar Financial Holdings

Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

CSTR

-4.8%

US Banks

-4.6%

US Market


1 Year Return

-38.5%

CSTR

-31.0%

US Banks

11.5%

US Market

Return vs Industry: CSTR underperformed the US Banks industry which returned -28.3% over the past year.

Return vs Market: CSTR underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

CSTRIndustryMarket
7 Day-3.7%-4.8%-4.6%
30 Day9.0%2.4%-0.9%
90 Day2.1%-1.6%2.2%
1 Year-37.6%-38.5%-28.5%-31.0%14.0%11.5%
3 Year-44.7%-46.3%-21.7%-28.2%34.5%25.6%
5 Yearn/a11.2%-2.5%73.0%53.6%

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

Valuation

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

24.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSTR ($10.76) is trading below our estimate of fair value ($13.8)

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


Price To Earnings Ratio

PE vs Industry: CSTR's PE Ratio (10.1x) is in line with the US Banks industry average.

PE vs Market: CSTR is good value based on its PE Ratio (10.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CSTR is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CSTR is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Capstar Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSTR's forecast earnings growth (14.7% per year) is above the savings rate (2.2%).

Earnings vs Market: CSTR's earnings (14.7% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: CSTR's revenue (4.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CSTR's revenue (4.1% 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 (8.2%).


Next Steps

Past Performance

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

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSTR has high quality earnings.

Growing Profit Margin: CSTR's current net profit margins (21.2%) are higher than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: CSTR's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: CSTR's earnings growth over the past year (24.9%) is below its 5-year average (29.4% per year).

Earnings vs Industry: CSTR earnings growth over the past year (24.9%) exceeded the Banks industry -4%.


Return on Equity

High ROE: CSTR's Return on Equity (6.1%) is considered low.


Next Steps

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 (9.1x) is low.

Allowance for Bad Loans: CSTR has a sufficient allowance for bad loans (787%).

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 (62%).

Low Risk Deposits: CSTR's Loans to Deposits ratio (72%) is appropriate.

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


Next Steps

Dividend

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

1.91%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CSTR's dividend (1.86%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: CSTR's dividend (1.86%) is low compared to the top 25% of dividend payers in the US market (4.63%).


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 (18.8%), 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 (15.1% 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 (50 yo)

1.25yrs

Tenure

US$974,851

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 ($USD974.85K) is about average for companies of similar size in the US market ($USD1.27M).

Compensation vs Earnings: Insufficient data to compare Tim's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Schools
President1.25yrsUS$974.85k0.17%
$ 395.8k
Claire Tucker
Founding President & CEO Emerita1.25yrsUS$973.63k0.61%
$ 1.4m
Christopher Tietz
Chief Credit Officer - CapStar Bank4.58yrsUS$498.25k0.17%
$ 392.9k
Denis Duncan
Chief Financial Officer0.083yrno datano data
Michael Fowler
Treasurer0.083yrno datano data

1.3yrs

Average Tenure

60yo

Average Age

Experienced Management: CSTR's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Timothy Schools
President1.25yrsUS$974.85k0.17%
$ 395.8k
Dennis Bottorff
Independent Chairman of the Board4.75yrsUS$141.00k1.4%
$ 3.2m
Dale Polley
Independent Vice Chairman3.5yrsUS$100.50k0.22%
$ 496.8k
Toby Wilt
Independent Director12.75yrsUS$59.50k2.58%
$ 5.9m
Stephen Smith
Independent Director12.75yrsUS$52.50k0.24%
$ 546.5k
Lester Bentz
Independent Director12.75yrsUS$62.00k1.1%
$ 2.5m
James Turner
Independent Director12.75yrsUS$61.50k3.11%
$ 7.1m
Thomas Flynn
Independent Director12.75yrsUS$55.50k2.9%
$ 6.6m
Jeffrey Cunningham
Vice Chairman of the Board0.50yrno data1.55%
$ 3.6m
Myra Jenne
Independent Director2yrsUS$46.00k0.38%
$ 865.8k
Louis Green
Independent Director8.75yrsUS$47.50k0.52%
$ 1.2m
Joelle Phillips
Independent Director0.50yrno datano data

6.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CSTR's board of directors are considered experienced (6.8 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 been diluted in the past year, with total shares outstanding growing by 18.8%.


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: 2007
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$229.355m
  • Shares outstanding: 21.95m
  • Website: https://www.capstarbank.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSTRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2016

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 Analysis2020/10/28 23:56
End of Day Share Price2020/10/28 00:00
Earnings2020/09/30
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.