NasdaqGS:LOB

Stock Analysis Report

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.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Live Oak Bancshares is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-1.0%

NasdaqGS:LOB

-2.6%

US Banks

-1.0%

US Market


1 Year Return

-38.9%

NasdaqGS:LOB

-14.2%

US Banks

-0.4%

US Market

LOB underperformed the Banks industry which returned -16.1% over the past year.

LOB underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

LOBIndustryMarket
7 Day-1.0%-2.6%-1.0%
30 Day9.4%-5.5%-3.3%
90 Day10.9%-3.5%0.4%
1 Year-38.5%-38.9%-11.8%-14.2%1.8%-0.4%
3 Year35.4%33.4%42.2%32.4%39.4%30.4%
5 Yearn/a53.3%36.7%54.2%37.1%

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

Valuation

Is Live Oak Bancshares undervalued based on future cash flows and its price relative to the stock market?

22.68x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Live Oak Bancshares's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Live Oak Bancshares's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Live Oak Bancshares is overvalued based on earnings compared to the US Banks industry average.

Live Oak Bancshares is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Live Oak Bancshares is good value based on expected growth next year.


Price Based on Value of Assets

Live Oak Bancshares is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Live Oak Bancshares expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Live Oak Bancshares's revenue is expected to grow significantly at over 20% yearly.

Live Oak Bancshares's earnings are expected to grow significantly at over 20% yearly.

Live Oak Bancshares's revenue growth is expected to exceed the United States of America market average.

Live Oak Bancshares's earnings growth is expected to exceed the United States of America market average.

Live Oak Bancshares's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Live Oak Bancshares will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Live Oak Bancshares performed over the past 5 years?

40.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Live Oak Bancshares has delivered over 20% year on year earnings growth in the past 5 years.

Live Oak Bancshares's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Live Oak Bancshares's 1-year earnings growth is negative, it can't be compared to the US Banks industry average.


Return on Equity

Live Oak Bancshares has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Live Oak Bancshares used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Live Oak Bancshares improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Live Oak Bancshares has an acceptable proportion of non-loan assets held.

Live Oak Bancshares has a low allowance for bad loans.

Live Oak Bancshares's liabilities are made up of primarily low risk sources of funding.

Live Oak Bancshares's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Live Oak Bancshares are broadly funded by customer deposits.

Live Oak Bancshares has a high level of bad loans (greater than 2%).


Next Steps

Dividend

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

0.66%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Live Oak Bancshares's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Live Oak Bancshares's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).

Live Oak Bancshares is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Live Oak Bancshares is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Live Oak Bancshares's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Live Oak Bancshares's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Live Oak Bancshares's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Chip Mahan (67yo)

US$986,694

Compensation

Mr. James S. Mahan III, also known as Chip, serves as Managing Partner at Canapi Ventures. He founded Live Oak Bancshares, Inc., in 2007 and serves as its Chairman of the Board and Chief Executive Officer. ...


CEO Compensation Analysis

Chip's remuneration is lower than average for companies of similar size in United States of America.

Chip's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.5yrs

Average Tenure

51yo

Average Age

The tenure for the Live Oak Bancshares management team is about average.


Board Age and Tenure

9.0yrs

Average Tenure

66yo

Average Age

The tenure for the Live Oak Bancshares board of directors is about average.


Insider Trading

More shares have been bought than sold by Live Oak Bancshares individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$15,76410 Jun 19
Susan Janson
EntityIndividual
Role
Chief Risk Officer of Live Oak Banking Company
Shares1,000
Max PriceUS$15.76
BuyUS$36,97512 Feb 19
William Cameron
EntityIndividual
Role
Member of the Board of Directors
Shares2,500
Max PriceUS$14.79
BuyUS$99,45030 Jan 19
Neil Underwood
EntityIndividual
Role
President & Director
Member of the Board of Directors
Shares7,165
Max PriceUS$13.88
BuyUS$27,74030 Jan 19
Diane Glossman
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceUS$13.87
BuyUS$276,40030 Jan 19
Huntley Garriott
EntityIndividual
Shares20,000
Max PriceUS$13.82
BuyUS$31,12014 Dec 18
Gregory Seward
EntityIndividual
Role
General Counsel
Shares2,000
Max PriceUS$16.04
BuyUS$61,19814 Dec 18
Glen Hoffsis
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceUS$15.30
BuyUS$75,62814 Dec 18
Huntley Garriott
EntityIndividual
Shares5,000
Max PriceUS$15.13
BuyUS$297,14713 Dec 18
William Williams
EntityIndividual
Role
Vice Chairman & Executive VP
Vice Chairman
Shares20,000
Max PriceUS$15.45
BuyUS$249,98013 Dec 18
Neil Underwood
EntityIndividual
Role
President & Director
Member of the Board of Directors
Shares15,546
Max PriceUS$16.08
BuyUS$439,82013 Dec 18
Huntley Garriott
EntityIndividual
Shares30,000
Max PriceUS$15.09
BuyUS$5,378,02013 Dec 18
James Mahan
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares334,454
Max PriceUS$16.08
BuyUS$40,48313 Dec 18
William Cameron
EntityIndividual
Role
Member of the Board of Directors
Shares2,800
Max PriceUS$14.49
BuyUS$40,91312 Dec 18
Miltom Petty
EntityIndividual
Role
Member of the Board of Directors
Shares3,000
Max PriceUS$13.64
BuyUS$28,26512 Dec 18
Howard Landis
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceUS$14.13
BuyUS$47,81606 Nov 18
William Cameron
EntityIndividual
Role
Member of the Board of Directors
Shares2,500
Max PriceUS$19.13
BuyUS$18,81705 Nov 18
Susan Janson
EntityIndividual
Role
Chief Risk Officer of Live Oak Banking Company
Shares1,000
Max PriceUS$18.82
BuyUS$46,05902 Nov 18
William Cameron
EntityIndividual
Role
Member of the Board of Directors
Shares2,500
Max PriceUS$18.42

Ownership Breakdown


Management Team

  • Steve Smits (52yo)

    Chief Credit Officer

    • Tenure: 4.5yrs
    • Compensation: $1.24m
  • Chip Mahan (67yo)

    Chairman & CEO

    • Compensation: $986.69k
  • David Lucht (61yo)

    Senior VP & Risk Officer of Live Oak Banking Company

    • Tenure: 3.8yrs
    • Compensation: $2.70m
  • Susan Janson

    Chief Risk Officer of Live Oak Banking Company

    • Tenure: 1.3yrs
    • Compensation: $1.67m
  • Lee Williams (67yo)

    Vice Chairman & Executive VP

    • Tenure: 6.6yrs
  • Neil Underwood (50yo)

    President & Director

    • Compensation: $11.97m
  • Steven Caines (40yo)

    Chief Financial Officer

    • Tenure: 8.6yrs
    • Compensation: $1.20m
  • Wes Sutherland (48yo)

    Chief Accounting Officer

    • Tenure: 5.6yrs
  • Greg Seward (43yo)

    General Counsel

    • Tenure: 3.8yrs
    • Compensation: $979.36k
  • Micah Davis

    Chief Marketing Officer


Board Members

  • Chip Mahan (67yo)

    Chairman & CEO

    • Compensation: $986.69k
  • Kel Landis (62yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: $117.80k
  • Diane Glossman (63yo)

    Director

    • Tenure: 5.0yrs
    • Compensation: $107.80k
  • Neil Underwood (50yo)

    President & Director

    • Tenure: 9.6yrs
    • Compensation: $11.97m
  • Bill Cameron (65yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: $124.47k
  • Milt Petty (67yo)

    Director

    • Tenure: 9.0yrs
    • Compensation: $143.80k
  • Lee Williams (67yo)

    Vice Chairman & Executive VP

    • Tenure: 7.6yrs
  • Glen Hoffsis (78yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: $114.47k

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$728.233m
  • Shares outstanding: 40.23m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOBNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 00:37
End of Day Share Price2019/08/16 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.