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LOB

Live Oak BancsharesNasdaqGS:LOB Stock Report

Market Cap

US$2.6b

7D

3.5%

1Y

152.1%

Updated

26 Sep, 2021

Data

Company Financials +
LOB fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends0/6

LOB Overview

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.

Live Oak Bancshares Competitors

Huntington Bancshares

NasdaqGS:HBAN

US$22.4b

ServisFirst Bancshares

NYSE:SFBS

US$4.2b

First BanCorp

NYSE:FBP

US$2.7b

Triumph Bancorp

NasdaqGS:TBK

US$2.2b

Price History & Performance

Summary of all time highs, changes and price drops for Live Oak Bancshares
Historical stock prices
Current Share PriceUS$60.01
52 Week HighUS$24.24
52 Week LowUS$72.64
Beta1.39
1 Month Change-3.23%
3 Month Change3.18%
1 Year Change152.14%
3 Year Change123.92%
5 Year Change316.16%
Change since IPO214.68%

Recent News & Updates

Shareholder Returns

LOBUS BanksUS Market
7D3.5%3.4%0.1%
1Y152.1%80.0%35.3%

Return vs Industry: LOB exceeded the US Banks industry which returned 80% over the past year.

Return vs Market: LOB exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is LOB's price volatile compared to industry and market?
LOB volatility
LOB Beta1.39
Industry Beta1.37
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
2008701Chip Mahanhttps://www.liveoakbank.com

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. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also offers commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans.

Live Oak Bancshares Fundamentals Summary

How do Live Oak Bancshares's earnings and revenue compare to its market cap?
LOB fundamental statistics
Market CapUS$2.60b
Earnings (TTM)US$166.38m
Revenue (TTM)US$385.08m

15.6x

P/E Ratio

4.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LOB income statement (TTM)
RevenueUS$385.08m
Cost of RevenueUS$0
Gross ProfitUS$385.08m
ExpensesUS$218.70m
EarningsUS$166.38m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.84
Gross Margin100.00%
Net Profit Margin43.21%
Debt/Equity Ratio153.4%

How did LOB perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

3%

Payout Ratio

Valuation

Is Live Oak Bancshares undervalued compared to its fair value and its price relative to the market?

15.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LOB ($60.01) is trading above our estimate of fair value ($51.88)

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 (15.6x) compared to the US Banks industry average (11x).

PE vs Market: LOB is good value based on its PE Ratio (15.6x) 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 (4x) 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 4 analysts?

-5.3%

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 (-5.3% per year).

Earnings vs Market: LOB's earnings are forecast to decline over the next 3 years (-5.3% per year).

High Growth Earnings: LOB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LOB's revenue (7.1% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: LOB's revenue (7.1% 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 a high level of non-cash 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 36%.


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 (63%).

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 (1.7%).


Dividend

What is Live Oak Bancshares's current dividend yield, its reliability and sustainability?

0.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LOB's dividend (0.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: LOB's dividend (0.2%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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?

5.9yrs

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 ($USD821.77K) is below average for companies of similar size in the US market ($USD5.28M).

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 (5.9 years average tenure).


Board Members

Experienced Board: LOB's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LOB insiders have sold more shares than they have bought 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 6.8%.


Top Shareholders

Company Information

Live Oak Bancshares, Inc.'s 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$2.599b
  • Shares outstanding: 43.31m
  • Website: https://www.liveoakbank.com

Number of Employees


Location

  • Live Oak Bancshares, Inc.
  • 1741 Tiburon Drive
  • Wilmington
  • North Carolina
  • 28403
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:13
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.