NasdaqCM:LMST

Stock Analysis Report

Executive Summary

Limestone Bancorp, Inc. operates as the bank holding company for Limestone Bank, Inc.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Limestone Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

LMST

1.2%

US Banks

0.6%

US Market


1 Year Return

-4.4%

LMST

0.03%

US Banks

6.2%

US Market

Return vs Industry: LMST underperformed the US Banks industry which returned 0% over the past year.

Return vs Market: LMST underperformed the US Market which returned 6.2% over the past year.


Share holder returns

LMSTIndustryMarket
7 Day0.4%1.2%0.6%
30 Day-2.3%-2.2%-1.8%
90 Day0.3%-0.06%-2.0%
1 Year-4.4%-4.4%2.9%0.03%8.6%6.2%
3 Year83.7%83.7%51.4%40.9%45.7%36.3%
5 Year210.1%210.1%70.7%52.1%68.5%50.0%

Price Volatility Vs. Market

How volatile is Limestone Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Limestone Bancorp undervalued based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: LMST ($15.06) is trading below our estimate of fair value ($24.52)

Significantly Undervalued: LMST is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: LMST is good value based on its PE Ratio (9.9x) compared to the Banks industry average (12.5x).

PE vs Market: LMST is good value based on its PE Ratio (9.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: LMST is good value based on its PEG Ratio (1x)


Price Based on Value of Assets

PB vs Industry: LMST 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 Limestone Bancorp expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: LMST's forecast earnings growth (10.1% per year) is above the savings rate (2.7%).

Earnings vs Market: LMST's earnings (10.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: LMST's revenue (7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LMST's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if LMST's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Limestone Bancorp performed over the past 5 years?

24.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LMST has become profitable over the past 5 years, growing earnings by 24.6% per year.

Accelerating Growth: LMST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LMST had negative earnings growth (-70.6%) over the past year, making it difficult to compare to the Banks industry average (31.8%).


Return on Equity

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


Return on Assets

ROA vs Industry: LMST'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 LMST's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Limestone Bancorp'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: LMST has a low level of unsold assets or inventory.

Debt Coverage by Assets: LMST's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: LMST's level of assets compared to its equity is moderate.

Allowance for Bad Loans: LMST has a sufficient allowance for bad loans.

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

Loan Level: LMST has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LMST's loans are broadly funded by customer deposits.

Level of Bad Loans: LMST has an appropriate level of bad loans (0.37%)


Next Steps

Dividend

What is Limestone Bancorp's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate LMST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LMST's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if LMST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LMST's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LMST is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LMST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Limestone Bancorp's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

John Taylor (59yo)

6.8yrs

Tenure

US$616,030

Compensation

Mr. John T. Taylor has been the President of Limestone Bancorp, Inc.(formerly, Porter Bancorp, Inc.) since July 19, 2012 and has been its Chief Executive Officer since July 31, 2013. He has been the Chairm ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD616.03K) is about average for companies of similar size in the US market ($USD495.85K).

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


Management Age and Tenure

6.9yrs

Average Tenure

52yo

Average Age

Experienced Management: LMST's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

58yo

Average Age

Experienced Board: LMST's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$436,36503 Oct 19
J. Porter
EntityIndividual
Shares28,300
Max PriceUS$15.50
SellUS$436,36503 Oct 19
Jennifer Porter
EntityIndividual
Shares28,300
Max PriceUS$15.50
SellUS$26,35001 Oct 19
Jennifer Porter
EntityIndividual
Shares1,700
Max PriceUS$15.50
SellUS$26,35001 Oct 19
J. Porter
EntityIndividual
Shares1,700
Max PriceUS$15.50
SellUS$15,21012 Aug 19
Joseph Seiler
EntityIndividual
Role
Other Key Executive
Head of Commercial Banking & Executive VP of Limestone Bank
Shares1,000
Max PriceUS$15.21
SellUS$15,20005 Aug 19
Joseph Seiler
EntityIndividual
Role
Other Key Executive
Head of Commercial Banking & Executive VP of Limestone Bank
Shares1,000
Max PriceUS$15.20
BuyUS$3,05829 Jul 19
James Parsons
EntityIndividual
Role
Member of the Board of Directors
Director
Shares200
Max PriceUS$15.29
BuyUS$39,60021 Dec 18
Michael Levy
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$13.20
BuyUS$1,474,70221 Dec 18
Patriot Financial Partners, L.P.
EntityCompany
Shares111,494
Max PriceUS$13.25

Ownership Breakdown


Management Team

  • Phil Barnhouse (48yo)

    Chief Financial Officer

    • Tenure: 7.6yrs
    • Compensation: US$345.26k
  • John Taylor (59yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$616.03k
  • John Davis (56yo)

    Chief Credit Officer & Executive VP of Limestone Bank

    • Tenure: 7.1yrs
    • Compensation: US$340.94k
  • Stephanie Renner (43yo)

    Corporate Secretary

    • Tenure: 0yrs
  • Joseph Seiler (52yo)

    Head of Commercial Banking & Executive VP of Limestone Bank

    • Tenure: 6.2yrs
    • Compensation: US$323.78k

Board Members

  • Bradford Ray (61yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$55.00k
  • William Hogan (57yo)

    Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: US$75.00k
  • Michael Levy (50yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$55.00k
  • John Taylor (59yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$616.03k
  • Edmond Seifried (72yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$50.00k
  • Kevin Kooman (49yo)

    Director

    • Tenure: 0.3yrs
  • James Parsons (62yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$55.00k
  • Celia Catlett (42yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$29.85k

Company Information

Limestone Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Limestone Bancorp, Inc.
  • Ticker: LMST
  • Exchange: NasdaqCM
  • Founded: 1988
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$111.648m
  • Shares outstanding: 7.41m
  • Website: https://www.limestonebank.com

Number of Employees


Location

  • Limestone Bancorp, Inc.
  • 2500 Eastpoint Parkway
  • Louisville
  • Kentucky
  • 40223
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LMSTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 2006

Biography

Limestone Bancorp, Inc. operates as the bank holding company for Limestone Bank, Inc. that provides a range of commercial and personal banking products and services. The company offers deposit products, in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 00:53
End of Day Share Price2019/10/10 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.

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