Live Oak Bancshares
Market Cap
US$2.0b
Last Updated
2021/01/19 23:42 UTC
Data Sources
Company Financials +
Executive Summary
Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Live Oak Bancshares's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LOB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: LOB's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-5.1%
LOB
-0.4%
US Banks
-0.4%
US Market
1 Year Return
158.8%
LOB
-7.3%
US Banks
19.5%
US Market
Return vs Industry: LOB exceeded the US Banks industry which returned -7.2% over the past year.
Return vs Market: LOB exceeded the US Market which returned 19.6% over the past year.
Shareholder returns
| LOB | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.1% | -0.4% | -0.4% |
| 30 Day | -2.9% | 13.4% | 2.3% |
| 90 Day | 51.5% | 38.1% | 12.7% |
| 1 Year | 160.3%158.8% | -3.8%-7.3% | 22.3%19.5% |
| 3 Year | 98.3%94.8% | 0.9%-7.7% | 44.4%34.8% |
| 5 Year | 277.5%267.5% | 93.5%69.0% | 128.7%103.3% |
Long-Term Price Volatility Vs. Market
How volatile is Live Oak Bancshares's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall St
What Type Of Shareholders Make Up Live Oak Bancshares, Inc.'s (NASDAQ:LOB) Share Registry?1 month ago | Simply Wall St
Did Business Growth Power Live Oak Bancshares' (NASDAQ:LOB) Share Price Gain of 184%?2 months ago | Simply Wall St
Insider Buying: The Live Oak Bancshares, Inc. (NASDAQ:LOB) Chairman & CEO Just Bought 2.4% More SharesValuation
Is Live Oak Bancshares undervalued compared to its fair value and its price relative to the market?
52.86x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LOB ($49.17) is trading above our estimate of fair value ($32.6)
Significantly Below Fair Value: LOB is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LOB is poor value based on its PE Ratio (54x) compared to the US Banks industry average (12.3x).
PE vs Market: LOB is poor value based on its PE Ratio (54x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: LOB is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: LOB is overvalued based on its PB Ratio (3.4x) compared to the US Banks industry average (1x).
Next Steps
Future Growth
How is Live Oak Bancshares forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
31.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LOB's forecast earnings growth (31.7% per year) is above the savings rate (2%).
Earnings vs Market: LOB's earnings (31.7% per year) are forecast to grow faster than the US market (21.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LOB's revenue (13.5% per year) is forecast to grow faster than the US market (10.3% per year).
High Growth Revenue: LOB's revenue (13.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LOB's Return on Equity is forecast to be low in 3 years time (14.3%).
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Past Performance
How has Live Oak Bancshares performed over the past 5 years?
6.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LOB has a high level of non-cash earnings.
Growing Profit Margin: LOB's current net profit margins (16.1%) are higher than last year (12.4%).
Past Earnings Growth Analysis
Earnings Trend: LOB's earnings have grown by 6.9% per year over the past 5 years.
Accelerating Growth: LOB's earnings growth over the past year (69.9%) exceeds its 5-year average (6.9% per year).
Earnings vs Industry: LOB earnings growth over the past year (69.9%) exceeded the Banks industry -4.4%.
Return on Equity
High ROE: LOB's Return on Equity (6.3%) is considered low.
Next Steps
Financial Health
How is Live Oak Bancshares'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: LOB's Assets to Equity ratio (13.9x) is moderate.
Allowance for Bad Loans: LOB has a low allowance for bad loans (45%).
Low Risk Liabilities: 76% of LOB's liabilities are made up of primarily low risk sources of funding.
Loan Level: LOB has an appropriate level of Loans to Assets ratio (62%).
Low Risk Deposits: LOB's Loans to Deposits ratio (88%) is appropriate.
Level of Bad Loans: LOB has an appropriate level of bad loans (2%).
Next Steps
Dividend
What is Live Oak Bancshares's current dividend yield, its reliability and sustainability?
0.25%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LOB's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: LOB's dividend (0.24%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: LOB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: LOB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: LOB is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LOB's dividend in 3 years as they are not forecast to pay a notable one for the US market.
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Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
Chip Mahan (68 yo)
no data
Tenure
US$716,226
Compensation
Mr. James S. Mahan III, also known as Chip, serves as Managing Partner at CenterHarbor Canapi Ventures Investment Advisor LLC (formerly known as Canapi Ventures). He founded Live Oak Bancshares, Inc., in 2...
CEO Compensation Analysis
Compensation vs Market: Chip's total compensation ($USD716.23K) is below average for companies of similar size in the US market ($USD3.88M).
Compensation vs Earnings: Chip's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | no data | US$716.23k | 16.35% $ 319.8m | |
| President & Director | 11yrs | US$832.46k | 4.26% $ 83.3m | |
| Chief Financial Officer | 10yrs | US$751.89k | 0.76% $ 14.9m | |
| President of Live Oak Banking Company | 2.33yrs | US$5.88m | 0.62% $ 12.1m | |
| Chief Risk Officer of Live Oak Banking Company | 2.75yrs | US$905.78k | 0.084% $ 1.6m | |
| Vice Chairman & Executive VP | 9yrs | no data | 3.17% $ 62.0m | |
| Chief Accounting Officer | 7yrs | no data | 0.17% $ 3.4m | |
| Executive VP & General Counsel | 5.25yrs | US$979.36k | 0.17% $ 3.3m | |
| Senior Vice President of Corporate Communications | no data | no data | no data | |
| Chief Marketing Officer | no data | no data | no data | |
| Senior Vice President of Corporate Development & Strategy | 2yrs | no data | no data | |
| Executive Vice President of Credit | 5.17yrs | US$2.70m | no data |
5.2yrs
Average Tenure
51yo
Average Age
Experienced Management: LOB's management team is seasoned and experienced (5.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | no data | US$716.23k | 16.35% $ 319.8m | |
| President & Director | 11yrs | US$832.46k | 4.26% $ 83.3m | |
| Vice Chairman & Executive VP | 9yrs | no data | 3.17% $ 62.0m | |
| Independent Director | 6.42yrs | US$106.66k | 0.14% $ 2.8m | |
| Independent Director | 7.17yrs | US$119.99k | 0.37% $ 7.3m | |
| Independent Director | 10.42yrs | US$135.99k | 0.23% $ 4.5m | |
| Independent Director | 13yrs | US$109.99k | 0.24% $ 4.7m | |
| Director | 0.33yr | no data | no data |
9.0yrs
Average Tenure
68yo
Average Age
Experienced Board: LOB's board of directors are considered experienced (9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LOB 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
Live Oak Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Live Oak Bancshares, Inc.
- Ticker: LOB
- Exchange: NasdaqGS
- Founded: 2008
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$1.955b
- Shares outstanding: 40.64m
- Website: https://www.liveoakbank.com
Number of Employees
Location
- Live Oak Bancshares, Inc.
- 1741 Tiburon Drive
- Wilmington
- North Carolina
- 28403
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LOB | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Jul 2015 |
Biography
Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professional...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 23:42 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.