NasdaqGS:CSTR

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet with questionable track record.


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


Market Performance


7 Day Return

-0.4%

CSTR

1.7%

US Banks

1.3%

US Market


1 Year Return

6.4%

CSTR

0.3%

US Banks

5.9%

US Market

Return vs Industry: CSTR exceeded the US Banks industry which returned 0.3% over the past year.

Return vs Market: CSTR underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

CSTRIndustryMarket
7 Day-0.4%1.7%1.3%
30 Day1.8%-2.4%-1.9%
90 Day9.0%1.0%-1.8%
1 Year7.7%6.4%3.2%0.3%8.3%5.9%
3 Year-7.0%-8.3%52.1%41.7%45.6%36.2%
5 Yearn/a69.8%51.4%66.1%47.9%

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?

19.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CSTR ($16.19) is trading above our estimate of fair value ($14.39)

Significantly Undervalued: CSTR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CSTR is poor value based on its PE Ratio (19.5x) compared to the Banks industry average (12.5x).

PE vs Market: CSTR is poor value based on its PE Ratio (19.5x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: CSTR is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: CSTR is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Capstar Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSTR's forecast earnings growth (9% per year) is above the savings rate (2.7%).

Earnings vs Market: CSTR's earnings (9% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: CSTR's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CSTR's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CSTR's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

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

14.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CSTR's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: CSTR's earnings growth over the past year (20.2%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: CSTR earnings growth over the past year (20.2%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: CSTR's Return on Equity (5.1%) is considered low.


Return on Assets

ROA vs Industry: CSTR's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CSTR's Return on Capital Employed to determine if it has improved over the past 3 years.


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

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 24.641460x 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%)


Next Steps

Dividend

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

1.23%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CSTR's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CSTR's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Too early to tell whether CSTR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CSTR's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), 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 (15.6% payout ratio).


Next Steps

Management

What is the CEO of Capstar Financial Holdings's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Tim Schools (49yo)

0.3yrs

Tenure

0

Mr. Timothy K. Schools, also known as Tim, is the Chief Executive Officer at CapStar Financial Holdings, Inc. since July 31, 2019 and President since May 13, 2019. Mr. Schools served as the Chief Executive ...


Management Age and Tenure

1.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CSTR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

11.8yrs

Average Tenure

65yo

Average Age

Experienced Board: CSTR's board of directors are seasoned and experienced ( 11.8 years average tenure).


Insider Trading

Insider Buying: CSTR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$1,500,00912 Sep 19
Thomas Flynn
EntityIndividual
Role
Member of the Board of Directors
Director
Shares97,340
Max PriceUS$15.41
BuyUS$499,99312 Sep 19
Toby Wilt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares32,446
Max PriceUS$15.41
BuyUS$50,00512 Sep 19
Stephen Smith
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,245
Max PriceUS$15.41
BuyUS$99,99512 Sep 19
Jeffrey Cunningham
EntityIndividual
Shares6,489
Max PriceUS$15.41
BuyUS$99,99512 Sep 19
Lester Bentz
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,489
Max PriceUS$15.41
BuyUS$499,99312 Sep 19
Dennis Bottorff
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares32,446
Max PriceUS$15.41
BuyUS$499,99312 Sep 19
Timothy Schools
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares32,446
Max PriceUS$15.41
BuyUS$99,99512 Sep 19
Dale Polley
EntityIndividual
Role
Vice Chairman
Vice Chair of the Board of Directors
Shares6,489
Max PriceUS$15.41
BuyUS$50,00512 Sep 19
Myra Jenne
EntityIndividual
Shares3,245
Max PriceUS$15.41
BuyUS$47,58006 Aug 19
Christopher Tietz
EntityIndividual
Role
Senior Key Executive
Chief Credit Officer
Shares3,000
Max PriceUS$15.86
BuyUS$59,94013 Feb 19
Thomas Flynn
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,700
Max PriceUS$16.21
BuyUS$1,89607 Dec 18
Louis Green
EntityIndividual
Role
Member of the Board of Directors
Director
Shares120
Max PriceUS$15.80
BuyUS$29,92030 Oct 18
Christopher Tietz
EntityIndividual
Role
Senior Key Executive
Chief Credit Officer
Shares2,000
Max PriceUS$14.96

Ownership Breakdown


Management Team

  • Tim Schools (49yo)

    President & CEO

    • Tenure: 0.3yrs
  • Chris Tietz (56yo)

    Chief Credit Officer

    • Tenure: 3.6yrs
    • Compensation: US$654.58k
  • Claire Tucker (65yo)

    Former Founding President & CEO Emerita

    • Tenure: 11.8yrs
    • Compensation: US$772.23k
  • Mark Mattson

    Executive VP & Healthcare Group Manager

    • Tenure: 0yrs
  • Rob Anderson (53yo)

    Secretary

    • Tenure: 3.8yrs
    • Compensation: US$634.72k
  • Derek Wiseman

    Senior VP & Human Resources Director

    • Tenure: 0yrs
  • Daniel Fox

    IR Contact

    • Tenure: 0yrs

Board Members

  • Julie Frist (48yo)

    Vice Chair of the Board

    • Tenure: 3.8yrs
    • Compensation: US$71.00k
  • Denny Bottorff (74yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$91.50k
  • Dale Polley (69yo)

    Vice Chair of the Board of Directors

    • Tenure: 2.5yrs
    • Compensation: US$75.50k
  • Toby Wilt (74yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$55.00k
  • Steve Smith (64yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$52.50k
  • Lester Bentz (67yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$58.50k
  • Claire Tucker (65yo)

    Former Founding President & CEO Emerita

    • Tenure: 11.8yrs
    • Compensation: US$772.23k
  • Jay Turner (48yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$62.00k
  • Tom Flynn (46yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$55.00k
  • Louis Green (65yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$47.50k

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$290.100m
  • Shares outstanding: 17.92m
  • 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 Analysis2019/10/15 00:40
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.