NasdaqGS:LTXB

Stock Analysis Report

LegacyTexas Financial Group

Executive Summary

As of November 1, 2019, LegacyTexas Financial Group, Inc.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has LegacyTexas Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LTXB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.2%

LTXB

-1.2%

US Banks

-1.1%

US Market


1 Year Return

6.5%

LTXB

10.3%

US Banks

17.9%

US Market

Return vs Industry: LTXB underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: LTXB underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

LTXBIndustryMarket
7 Day-5.2%-1.2%-1.1%
30 Day0.4%-0.3%1.4%
90 Day3.8%-0.9%6.9%
1 Year8.4%6.5%13.5%10.3%20.3%17.9%
3 Year37.0%30.2%24.0%15.1%47.8%38.3%
5 Year71.5%56.1%73.8%54.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is LegacyTexas Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LegacyTexas Financial Group undervalued compared to its fair value and its price relative to the market?

12.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LTXB ($42.54) is trading above our estimate of fair value ($28.14)

Significantly Below Fair Value: LTXB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LTXB is poor value based on its PE Ratio (12.9x) compared to the Banks industry average (12.8x).

PE vs Market: LTXB is good value based on its PE Ratio (12.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: LTXB is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: LTXB is overvalued based on its PB Ratio (1.7x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is LegacyTexas Financial Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTXB's forecast earnings growth (7.4% per year) is above the savings rate (2.7%).

Earnings vs Market: LTXB's earnings (7.4% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: LTXB's earnings are forecast to grow, but not significantly.

Revenue vs Market: LTXB's revenue (7.6% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: LTXB's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has LegacyTexas Financial Group performed over the past 5 years?

25.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTXB has high quality earnings.

Growing Profit Margin: LTXB's current net profit margins (43.6%) are higher than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: LTXB's earnings have grown significantly by 25.9% per year over the past 5 years.

Accelerating Growth: LTXB's earnings growth over the past year (40.5%) exceeds its 5-year average (25.9% per year).

Earnings vs Industry: LTXB earnings growth over the past year (40.5%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: LTXB's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LegacyTexas Financial Group'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: LTXB has a low level of unsold assets or inventory.

Debt Coverage by Assets: LTXB's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: LTXB has a sufficient allowance for bad loans.

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

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

Low Risk Deposits: LTXB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: LTXB has an appropriate level of bad loans (0.39%)


Next Steps

Dividend

What is LegacyTexas Financial Group's current dividend yield, its reliability and sustainability?

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: LTXB's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: LTXB's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: LTXB's dividend payments have been volatile in the past 10 years.

Growing Dividend: LTXB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.5%), LTXB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average management tenure


CEO

Kevin Hanigan (62yo)

7.6yrs

Tenure

US$2,752,281

Compensation

Mr. Kevin J. Hanigan has been a Director, Chief Executive Officer and President at LegacyTexas Financial Group Inc. (formerly, ViewPoint Financial Group, Inc) since April 2, 2012. Mr. Hanigan has been the  ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD2.75M) is about average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Hanigan
President7.6yrsUS$2.75m0.43% $8.7m
John Davenport
4.8yrsUS$1.06m0.20% $4.0m
Scott Almy
Executive VP4.8yrsUS$1.04m0.11% $2.3m
Charles Eikenberg
Executive Vice President of Community Banking7.6yrsUS$1.01m0.087% $1.8m
Thomas Swiley
Executive VP & Chief Lending Officer7.3yrsUS$1.02m0.17% $3.4m
Mark Williamson
Chief Credit Officer & Executive VP9.8yrsUS$581.43kno data

7.5yrs

Average Tenure

63yo

Average Age

Experienced Management: LTXB's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Hanigan
President7.6yrsUS$2.75m0.43% $8.7m
Anthony LeVecchio
Chairman of the Board5.5yrsUS$212.42k0.12% $2.5m
Karen O'Shea
Independent Director13.8yrsUS$142.17k0.12% $2.4m
R. Wilkinson
Independent Director4.8yrsUS$127.54k0.13% $2.6m
George Fisk
Vice Chairman of the Board4.8yrsUS$145.37k0.41% $8.3m
Arcilia Acosta
Independent Director4.8yrsUS$134.00k0.062% $1.3m
James McCall
Independent Director8.3yrsUS$124.32k0.071% $1.4m
Bruce Hunt
Independent Director7.6yrsUS$125.82k0.12% $2.5m

6.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: LTXB's board of directors are considered experienced (6.5 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

LegacyTexas Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LegacyTexas Financial Group, Inc.
  • Ticker: LTXB
  • Exchange: NasdaqGS
  • Founded: 1952
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.032b
  • Shares outstanding: 47.77m
  • Website: https://www.legacytexasfinancialgroup.com

Number of Employees


Location

  • LegacyTexas Financial Group, Inc.
  • 5851 Legacy Circle
  • Suite 1200
  • Plano
  • Texas
  • 75024
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTXBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2006
60LDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2006

Biography

LegacyTexas Financial Group, Inc. operates as the holding company for LegacyTexas Bank that provides various banking products and services in the United States. Its deposit products include interest-bearing and non-interest-bearing demand, savings, money market, certificates of deposit, and individual retirement accounts. The company’s lending products comprise commercial and consumer real estate loans; secured and unsecured commercial and industrial loans; permanent loans secured by first and second mortgages on one- to four-family residences; construction and lands; and secured and unsecured consumer loans, including new and used automobile loans, recreational vehicle loans, and loans secured by savings deposits. It also provides insurance and title services. As of December 31, 2018, the company had 3 administrative offices, 42 full-service branches, and 1 commercial loan production office located in Houston, Texas, as well as a Warehouse Purchase Program office located in Littleton, Colorado. The company was formerly known as ViewPoint Financial Group, Inc. and changed its name to LegacyTexas Financial Group, Inc. in January 2015. LegacyTexas Financial Group, Inc. was founded in 1952 and is headquartered in Plano, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/02 00:02
End of Day Share Price2019/10/31 00:00
Earnings2019/09/30
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.