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 Analysis

High growth potential with adequate balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-14.7%

LOB

-14.6%

US Banks

-11.2%

US Market


1 Year Return

-6.1%

LOB

-6.1%

US Banks

4.1%

US Market

Return vs Industry: LOB matched the US Banks industry which returned -6.1% over the past year.

Return vs Market: LOB underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

LOBIndustryMarket
7 Day-14.7%-14.6%-11.2%
30 Day-14.6%-14.0%-9.5%
90 Day-16.3%-15.3%-5.4%
1 Year-5.4%-6.1%-3.4%-6.1%6.2%4.1%
3 Year-29.8%-31.1%3.9%-3.5%30.3%21.9%
5 Yearn/a47.6%31.0%55.0%38.0%

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 compared to its fair value and its price relative to the market?

34.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LOB ($15.27) is trading above our estimate of fair value ($12.11)

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 (34.1x) compared to the Banks industry average (11.6x).

PE vs Market: LOB is poor value based on its PE Ratio (34.1x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: LOB is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: LOB is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.1x).


Next Steps

Future Growth

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

51.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOB's forecast earnings growth (51.8% per year) is above the savings rate (1.7%).

Earnings vs Market: LOB's earnings (51.8% per year) are forecast to grow faster than the US market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LOB's revenue (20.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: LOB's revenue (20.1% per year) is forecast to grow faster 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 (8.7%).


Next Steps

Past Performance

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

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOB has high quality earnings.

Growing Profit Margin: LOB's current net profit margins (9.6%) are lower than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: LOB's earnings have grown significantly by 26.2% per year over the past 5 years.

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

Earnings vs Industry: LOB had negative earnings growth (-64.9%) over the past year, making it difficult to compare to the Banks industry average (11.8%).


Return on Equity

High ROE: LOB's Return on Equity (3.4%) 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

Inventory Level: LOB has a low level of unsold assets or inventory.

Debt Coverage by Assets: LOB's debt is not covered by short term assets (assets are -7124.1x debt).


Financial Institutions Analysis

Asset Level: LOB's level of assets compared to its equity is low.

Allowance for Bad Loans: LOB has a low allowance for bad loans.

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

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

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

Level of Bad Loans: LOB has a high level of bad loans (2.88%)


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LOB's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: LOB's dividend (0.79%) is low compared to the top 25% of dividend payers in the US market (4.13%).


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?

5.5yrs

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

Compensation vs Market: Chip's total compensation ($USD986.69K) is below average for companies of similar size in the US market ($USD2.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Mahan
Chairman & CEO0yrsUS$986.69k15.88% $98.4m
Steven Caines
Chief Financial Officer9.1yrsUS$1.20m0.65% $4.1m
Gregory Seward
Executive VP & General Counsel4.3yrsUS$979.36k0.030% $184.3k
Steven Smits
Chief Credit Officer4.9yrsUS$1.24m0.12% $769.9k
Susan Janson
Chief Risk Officer of Live Oak Banking Company1.8yrsUS$1.67m0.0074% $46.1k
William Williams
Vice Chairman & Executive VP8.1yrsno data3.19% $19.8m
Neil Underwood
President & Director10.1yrsUS$11.97m3.24% $20.0m
John Sutherland
Chief Accounting Officer6.1yrsno data0.085% $529.3k
Claire Parker
Vice President of Corporate Communications0yrsno datano data
Micah Davis
Chief Marketing Officer0yrsno datano data

5.5yrs

Average Tenure

50yo

Average Age

Experienced Management: LOB's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Mahan
Chairman & CEO0yrsUS$986.69k15.88% $98.4m
William Williams
Vice Chairman & Executive VP8.1yrsno data3.19% $19.8m
Neil Underwood
President & Director10.1yrsUS$11.97m3.24% $20.0m
Howard Landis
Independent Director12.1yrsUS$117.80k0.48% $3.0m
Diane Glossman
Independent Director5.5yrsUS$107.80k0.080% $493.0k
David Salyers
Director0.3yrsno data0.0052% $32.3k
William Cameron
Independent Director6.3yrsUS$124.47k0.34% $2.1m
Miltom Petty
Independent Director9.5yrsUS$143.80k0.23% $1.4m
Glen Hoffsis
Independent Director12.1yrsUS$114.47k0.23% $1.4m

8.8yrs

Average Tenure

65yo

Average Age

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: 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 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$619.215m
  • Shares outstanding: 40.29m
  • Website: https://www.liveoakbank.com

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 professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, 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. In addition, the company provides settlement, accounting, and securitization services for government guaranteed loans; and wealth and investment management services to high-net-worth individuals and families. Live Oak Bancshares, Inc. was founded in 2008 and is headquartered in Wilmington, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/29 02:10
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.