Live Oak Bancshares
Market Cap
US$2.5b
Last Updated
2021/08/03 23:40 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
Earnings are forecast to decline by an average of 5.1% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet with solid track record.
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 +/- 6% a week.
Volatility Over Time: LOB's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-5.2%
LOB
1.2%
US Banks
0.9%
US Market
1 Year Return
235.4%
LOB
61.5%
US Banks
34.7%
US Market
Return vs Industry: LOB exceeded the US Banks industry which returned 58.2% over the past year.
Return vs Market: LOB exceeded the US Market which returned 34.4% over the past year.
Shareholder returns
| LOB | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.2% | 1.2% | 0.9% |
| 30 Day | -2.2% | -2.6% | 0.2% |
| 90 Day | -13.6% | -5.6% | 4.7% |
| 1 Year | 236.4%235.4% | 66.0%61.5% | 36.8%34.7% |
| 3 Year | 100.7%97.4% | 18.3%8.1% | 62.5%52.4% |
| 5 Year | 340.1%328.9% | 91.4%67.4% | 123.1%98.4% |
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
1 week ago | Simply Wall St
Bullish: Analysts Just Made A Huge Upgrade To Their Live Oak Bancshares, Inc. (NASDAQ:LOB) Forecasts3 weeks ago | Simply Wall St
If You Had Bought Live Oak Bancshares (NASDAQ:LOB) Stock A Year Ago, You Could Pocket A 342% Gain Today1 month ago | Simply Wall St
Should You Take Comfort From Insider Transactions At Live Oak Bancshares, Inc. (NASDAQ:LOB)?Valuation
Is Live Oak Bancshares undervalued compared to its fair value and its price relative to the market?
14.65x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LOB ($58.12) is trading above our estimate of fair value ($52.33)
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 (14.6x) compared to the US Banks industry average (10.7x).
PE vs Market: LOB is good value based on its PE Ratio (14.6x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: LOB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: LOB is overvalued based on its PB Ratio (3.8x) compared to the US Banks industry average (1.1x).
Future Growth
How is Live Oak Bancshares forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-5.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LOB's earnings are forecast to decline over the next 3 years (-5.1% per year).
Earnings vs Market: LOB's earnings are forecast to decline over the next 3 years (-5.1% per year).
High Growth Earnings: LOB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: LOB's revenue (6.7% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: LOB's revenue (6.7% 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 (16.4%).
Past Performance
How has Live Oak Bancshares performed over the past 5 years?
18.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LOB has high quality earnings.
Growing Profit Margin: LOB's current net profit margins (43.2%) are higher than last year (3.6%).
Past Earnings Growth Analysis
Earnings Trend: LOB's earnings have grown by 18.2% per year over the past 5 years.
Accelerating Growth: LOB's earnings growth over the past year (2310.6%) exceeds its 5-year average (18.2% per year).
Earnings vs Industry: LOB earnings growth over the past year (2310.6%) exceeded the Banks industry 35.1%.
Return on Equity
High ROE: Whilst LOB's Return on Equity (25.31%) is high, this metric is skewed due to their high level of debt.
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 (12.5x) is moderate.
Allowance for Bad Loans: LOB has a low allowance for bad loans (66%).
Low Risk Liabilities: 86% 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 (65%).
Low Risk Deposits: LOB's Loans to Deposits ratio (83%) is appropriate.
Level of Bad Loans: LOB has an appropriate level of bad loans (1.6%).
Dividend
What is Live Oak Bancshares's current dividend yield, its reliability and sustainability?
0.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LOB's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: LOB's dividend (0.21%) is low compared to the top 25% of dividend payers in the US market (3.57%).
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.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.2yrs
Average management tenure
CEO
Chip Mahan (69 yo)
no data
Tenure
US$821,768
Compensation
Mr. James S. Mahan III, also known as Chip, serves as Managing Partner at CenterHarbor Canapi Ventures Investment Advisor LLC (formerly known as Canapi Ventures). He serves as a Director of Finxact LLC. He...
CEO Compensation Analysis
Compensation vs Market: Chip's total compensation ($USD821.77K) is below average for companies of similar size in the US market ($USD5.32M).
Compensation vs Earnings: Chip's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: LOB's management team is seasoned and experienced (6.2 years average tenure).
Board Members
Experienced Board: LOB's board of directors are considered experienced (8.7 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 6.4%.
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$2.505b
- Shares outstanding: 43.11m
- Website: https://www.liveoakbank.com
Number of Employees
Location
- Live Oak Bancshares, Inc.
- 1741 Tiburon Drive
- Wilmington
- North Carolina
- 28403
- United States
Listings
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 | 2021/08/03 23:40 |
| End of Day Share Price | 2021/08/03 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.