Pacific Premier Bancorp (NasdaqGS:PPBI) - Share price, News & Analysis

Q: What is the Fair Price of PPBI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PPBI ($29.33) is trading below our estimate of [[fair value]] ($72.26)

PPBI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

PPBI Stock Overview

Rewards

Trading at 59.4% below our estimate of its fair value

Earnings are forecast to grow 4.22% per year

Earnings grew by 227.9% over the past year

Risk Analysis

Unstable dividend track record

Pacific Premier Bancorp Competitors

Ameris Bancorp

NasdaqGS:ABCB

US$2.9b

First BanCorp

NYSE:FBP

US$2.6b

Silvergate Capital

NYSE:SI

US$2.0b

Central Bancompany

OTCPK:CBCY.B

US$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for Pacific Premier Bancorp
Historical stock prices
Current Share Price	US$29.33
52 Week High	US$45.25
52 Week Low	US$27.92
Beta	1.19
1 Month Change	-10.53%
3 Month Change	-19.53%
1 Year Change	-31.79%
3 Year Change	-5.02%
5 Year Change	-20.52%
Change since IPO	-56.55%

Recent News & Updates

Apr 29

Pacific Premier Bancorp's (NASDAQ:PPBI) Dividend Will Be US$0.33

The board of Pacific Premier Bancorp, Inc. ( NASDAQ:PPBI ) has announced that it will pay a dividend of US$0.33 per...

Shareholder Returns

	PPBI	US Banks	US Market
7D	3.2%	3.7%	6.6%
1Y	-31.8%	-17.7%	-18.4%

Return vs Industry: PPBI underperformed the US Banks industry which returned -17.7% over the past year.

Return vs Market: PPBI underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is PPBI's price volatile compared to industry and market?
PPBI volatility
PPBI Average Weekly Movement	4.9%
Banks Industry Average Movement	3.8%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: PPBI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PPBI's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1983	1,520	Steve Gardner	https://www.ppbi.com

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides banking services to businesses, professionals, real estate investors, and non-profit organizations. The company accepts deposit products, such as checking, money market, and savings accounts; and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, small business administration (SBA), and SBA paycheck protection program loans; revolving lines or credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and savings account secured loans and auto loans.

Pacific Premier Bancorp Fundamentals Summary

How do Pacific Premier Bancorp's earnings and revenue compare to its market cap?
PPBI fundamental statistics
Market Cap	US$2.79b
Earnings (TTM)	US$334.59m
Revenue (TTM)	US$844.64m

8.3x

P/E Ratio

1.0x

P/B Ratio

Is PPBI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPBI income statement (TTM)
Revenue	US$844.64m
Cost of Revenue	US$0
Gross Profit	US$844.64m
Other Expenses	US$510.06m
Earnings	US$334.59m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.52
Gross Margin	100.00%
Net Profit Margin	39.61%
Debt/Equity Ratio	33.6%

How did PPBI perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

37%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PPBI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PPBI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PPBI. This is calculated by dividing PPBI's market cap by their current preferred multiple.
What is PPBI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.79b

PPBI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	2x

Price to Earnings Ratio vs Peers

How does PPBI's PE Ratio compare to its peers?

PPBI PE Ratio vs Peers

The above table shows the PE ratio for PPBI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.8x
ABCB Ameris Bancorp	8.6x	5.4%	US$2.9b
FBP First BanCorp	8.8x	1.8%	US$2.6b
SI Silvergate Capital	22.9x	41.9%	US$2.0b
CBCY.B Central Bancompany	10.9x	n/a	US$2.7b
PPBI Pacific Premier Bancorp	8.3x	4.2%	US$2.8b

Forward PE

Price-To-Earnings vs Peers: PPBI is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (12.8x).

Price to Earnings Ratio vs Industry

How does PPBI's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: PPBI is good value based on its Price-To-Earnings Ratio (8.3x) compared to the US Banks industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is PPBI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PPBI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.3x
Fair PE Ratio	12.6x

Price-To-Earnings vs Fair Ratio: PPBI is good value based on its Price-To-Earnings Ratio (8.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).

Share Price vs Fair Value

What is the Fair Price of PPBI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PPBI ($29.33) is trading below our estimate of fair value ($72.26)

Significantly Below Fair Value: PPBI is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: PPBI is poor value based on its PEG Ratio (2x)

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Future Growth

How is Pacific Premier Bancorp forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPBI's forecast earnings growth (4.2% per year) is above the savings rate (1.9%).

Earnings vs Market: PPBI's earnings (4.2% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: PPBI's revenue (6.2% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: PPBI's revenue (6.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PPBI's Return on Equity is forecast to be low in 3 years time (10.3%).

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Past Performance

How has Pacific Premier Bancorp performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

33.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PPBI has high quality earnings.

Growing Profit Margin: PPBI's current net profit margins (39.6%) are higher than last year (18.9%).

Past Earnings Growth Analysis

Earnings Trend: PPBI's earnings have grown significantly by 33.7% per year over the past 5 years.

Accelerating Growth: PPBI's earnings growth over the past year (227.9%) exceeds its 5-year average (33.7% per year).

Earnings vs Industry: PPBI earnings growth over the past year (227.9%) exceeded the Banks industry 20.7%.

Return on Equity

High ROE: PPBI's Return on Equity (12.1%) is considered low.

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Financial Health

How is Pacific Premier Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: PPBI's Assets to Equity ratio (7.8x) is low.

Allowance for Bad Loans: PPBI has a sufficient allowance for bad loans (357%).

Low Risk Liabilities: 94% of PPBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: PPBI has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: PPBI's Loans to Deposits ratio (82%) is appropriate.

Level of Bad Loans: PPBI has an appropriate level of bad loans (0.4%).

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Dividend

What is Pacific Premier Bancorp current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PPBI's dividend (4.5%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: PPBI's dividend (4.5%) is in the top 25% of dividend payers in the US market (4.24%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PPBI has been paying a dividend for less than 10 years.

Growing Dividend: PPBI's dividend payments have increased, but the company has only paid a dividend for 3 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.9%), PPBI'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 or that it will be covered by earnings.

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Management

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

9.3yrs

Average management tenure

CEO

Steve Gardner (60 yo)

21.83yrs

Tenure

US$7,054,109

Compensation

Mr. Steven R. Gardner, also known as Steve, serves as Chairman since May 2016, President, Chief Executive Officer and Director since 2000 of Pacific Premier Bancorp, Inc. (NASDAQ: PPBI). He serves as Chair...

CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD7.05M) is about average for companies of similar size in the US market ($USD6.88M).

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

Leadership Team

Experienced Management: PPBI's management team is seasoned and experienced (9.3 years average tenure).

Board Members

Experienced Board: PPBI's board of directors are considered experienced (3.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31