NasdaqGS:LOB

Stock Analysis Report

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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


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

-5.2%

LOB

-5.3%

US Banks

1.4%

US Market


1 Year Return

141.4%

LOB

-8.4%

US Banks

22.6%

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 22.8% over the past year.


Shareholder returns

LOBIndustryMarket
7 Day-5.2%-5.3%1.4%
30 Day-0.6%9.9%4.9%
90 Day41.1%29.9%14.6%
1 Year142.8%141.4%-5.0%-8.4%25.4%22.6%
3 Year79.6%76.4%-2.1%-10.5%46.8%37.0%
5 Year252.9%243.6%82.1%59.0%132.0%106.1%

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

Valuation

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

52.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LOB ($47.55) is trading above our estimate of fair value ($32.61)

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 (52.2x) compared to the US Banks industry average (12.3x).

PE vs Market: LOB is poor value based on its PE Ratio (52.2x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: LOB is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: LOB is overvalued based on its PB Ratio (3.3x) 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 (21.6% 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 (10.5% 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%).


Next Steps

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 -4.3%.


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 (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: LOB's dividend (0.25%) is low compared to the top 25% of dividend payers in the US market (3.86%).


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?

5.2yrs

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 ($USD716.23K) is below average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Chip's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Mahan
Chairman & CEOno dataUS$716.23k16.35%
$ 316.1m
Neil Underwood
President & Director11yrsUS$832.46k4.26%
$ 82.4m
Steven Caines
Chief Financial Officer10yrsUS$751.89k0.76%
$ 14.7m
Huntley Garriott
President of Live Oak Banking Company2.33yrsUS$5.88m0.62%
$ 11.9m
Susan Janson
Chief Risk Officer of Live Oak Banking Company2.75yrsUS$905.78k0.084%
$ 1.6m
William Williams
Vice Chairman & Executive VP9yrsno data3.17%
$ 61.2m
John Sutherland
Chief Accounting Officer7yrsno data0.17%
$ 3.4m
Gregory Seward
Executive VP & General Counsel5.25yrsUS$979.36k0.17%
$ 3.3m
Claire Parker
Senior Vice President of Corporate Communicationsno datano datano data
Micah Davis
Chief Marketing Officerno datano datano data
Stephanie Mann
Senior Vice President of Corporate Development & Strategy2yrsno datano data
David Lucht
Executive Vice President of Credit5.17yrsUS$2.70mno 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

NamePositionTenureCompensationOwnership
James Mahan
Chairman & CEOno dataUS$716.23k16.35%
$ 316.1m
Neil Underwood
President & Director11yrsUS$832.46k4.26%
$ 82.4m
William Williams
Vice Chairman & Executive VP9yrsno data3.17%
$ 61.2m
Diane Glossman
Independent Director6.42yrsUS$106.66k0.14%
$ 2.7m
William Cameron
Independent Director7.17yrsUS$119.99k0.37%
$ 7.2m
Miltom Petty
Independent Director10.42yrsUS$135.99k0.23%
$ 4.5m
Glen Hoffsis
Independent Director13yrsUS$109.99k0.24%
$ 4.6m
Tonya Bradford
Director0.33yrno datano 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$1.933b
  • 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

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 Analysis2021/01/22 00:07
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
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.