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.


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

2.6%

LOB

2.7%

US Banks

0.5%

US Market


1 Year Return

-19.0%

LOB

2.9%

US Banks

6.8%

US Market

Return vs Industry: LOB underperformed the US Banks industry which returned 2.9% over the past year.

Return vs Market: LOB underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

LOBIndustryMarket
7 Day2.6%2.7%0.5%
30 Day-5.6%1.1%-0.8%
90 Day11.4%2.7%-0.9%
1 Year-18.4%-19.0%5.8%2.9%9.2%6.8%
3 Year27.1%25.1%52.0%41.5%45.6%36.2%
5 Yearn/a69.2%50.7%63.2%45.4%

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?

22.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LOB ($18.02) is trading above our estimate of fair value ($9.18)

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 (22.6x) compared to the Banks industry average (12.5x).

PE vs Market: LOB is poor value based on its PE Ratio (22.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: LOB is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: LOB is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


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?

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOB's forecast earnings growth (28.3% per year) is above the savings rate (2.7%).

Earnings vs Market: LOB's earnings (28.3% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: LOB's revenue (20.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: LOB's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LOB's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: LOB's earnings have grown significantly by 40.5% 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 (-71.2%) over the past year, making it difficult to compare to the Banks industry average (29.7%).


Return on Equity

High ROE: LOB's Return on Equity (6.2%) is considered low.


Return on Assets

ROA vs Industry: LOB's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate LOB's Return on Capital Employed to determine if it has improved over the past 3 years.


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 covered by short term assets (assets are 785.037910x 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 (2.93%)


Next Steps

Dividend

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

0.66%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LOB's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LOB's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

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

5.2yrs

Average management tenure


CEO

Chip Mahan (67yo)

0yrs

Tenure

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 ($USD986.69K) is about average for companies of similar size in the US market ($USD2.70M).

Compensation vs Earnings: 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

5.2yrs

Average Tenure

50yo

Average Age

Experienced Management: LOB's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

65yo

Average Age

Experienced Board: LOB's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$15,76410 Jun 19
Susan Janson
EntityIndividual
Role
Other Key Executive
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
Director
Shares2,500
Max PriceUS$14.79
BuyUS$99,45030 Jan 19
Neil Underwood
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares7,165
Max PriceUS$13.88
BuyUS$27,74030 Jan 19
Diane Glossman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
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
Chief Legal Officer
General Counsel
Shares2,000
Max PriceUS$16.04
BuyUS$61,19814 Dec 18
Glen Hoffsis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
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
Vice Chairman & Executive VP
Shares20,000
Max PriceUS$15.45
BuyUS$249,98013 Dec 18
Neil Underwood
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares15,546
Max PriceUS$16.08
BuyUS$5,378,02013 Dec 18
James Mahan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares334,454
Max PriceUS$16.08
BuyUS$439,82013 Dec 18
Huntley Garriott
EntityIndividual
Shares30,000
Max PriceUS$15.09
BuyUS$40,48313 Dec 18
William Cameron
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,800
Max PriceUS$14.49
BuyUS$40,91312 Dec 18
Miltom Petty
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$13.64
BuyUS$28,26512 Dec 18
Howard Landis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$14.13
BuyUS$47,81606 Nov 18
William Cameron
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$19.13
BuyUS$18,81705 Nov 18
Susan Janson
EntityIndividual
Role
Other Key Executive
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
Director
Shares2,500
Max PriceUS$18.42

Ownership Breakdown


Management Team

  • Chip Mahan (67yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$986.69k
  • Neil Underwood (50yo)

    President & Director

    • Tenure: 9.8yrs
    • Compensation: US$11.97m
  • Susan Janson

    Chief Risk Officer of Live Oak Banking Company

    • Tenure: 1.5yrs
    • Compensation: US$1.67m
  • Lee Williams (67yo)

    Vice Chairman & Executive VP

    • Tenure: 7.8yrs
  • Steven Caines (40yo)

    Chief Financial Officer

    • Tenure: 8.8yrs
    • Compensation: US$1.20m
  • Micah Davis

    Chief Marketing Officer

    • Tenure: 0yrs
  • Wes Sutherland (48yo)

    Chief Accounting Officer

    • Tenure: 5.8yrs
  • Steve Smits (52yo)

    Chief Credit Officer

    • Tenure: 4.7yrs
    • Compensation: US$1.24m
  • Greg Seward (43yo)

    General Counsel

    • Tenure: 4yrs
    • Compensation: US$979.36k
  • Claire Parker

    Vice President of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Chip Mahan (67yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$986.69k
  • Kel Landis (62yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$117.80k
  • Diane Glossman (63yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$107.80k
  • Neil Underwood (50yo)

    President & Director

    • Tenure: 9.8yrs
    • Compensation: US$11.97m
  • David Salyers (60yo)

    Director

    • Tenure: 0yrs
  • Bill Cameron (65yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$124.47k
  • Milt Petty (67yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$143.80k
  • Lee Williams (67yo)

    Vice Chairman & Executive VP

    • Tenure: 7.8yrs
  • Glen Hoffsis (78yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$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$725.015m
  • Shares outstanding: 40.23m
  • 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 Analysis2019/10/21 00:24
End of Day Share Price2019/10/18 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.