NasdaqGS:RBB

Stock Analysis Report

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Executive Summary

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American communities. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has RBB Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RBB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RBB's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-4.7%

RBB

-2.7%

US Banks

0.6%

US Market


1 Year Return

-24.3%

RBB

-16.6%

US Banks

22.7%

US Market

Return vs Industry: RBB underperformed the US Banks industry which returned -19.6% over the past year.

Return vs Market: RBB underperformed the US Market which returned 21% over the past year.


Shareholder returns

RBBIndustryMarket
7 Day-4.7%-2.7%0.6%
30 Day18.6%20.9%13.1%
90 Day16.8%17.0%4.5%
1 Year-22.6%-24.3%-13.6%-16.6%25.5%22.7%
3 Year-38.6%-41.9%-6.0%-13.8%49.0%39.1%
5 Yearn/a38.8%21.5%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is RBB Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RBB Bancorp undervalued compared to its fair value and its price relative to the market?

33.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RBB ($15.15) is trading below our estimate of fair value ($22.71)

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


Price To Earnings Ratio

PE vs Industry: RBB is good value based on its PE Ratio (9.3x) compared to the US Banks industry average (11.3x).

PE vs Market: RBB is good value based on its PE Ratio (9.3x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: RBB is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: RBB is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

How is RBB Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBB's forecast earnings growth (14.9% per year) is above the savings rate (2.2%).

Earnings vs Market: RBB's earnings (14.9% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: RBB's revenue (11.6% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: RBB's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RBB's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has RBB Bancorp performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBB has high quality earnings.

Growing Profit Margin: RBB's current net profit margins (30.9%) are lower than last year (33.5%).


Past Earnings Growth Analysis

Earnings Trend: RBB's earnings have grown significantly by 20.4% per year over the past 5 years.

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

Earnings vs Industry: RBB had negative earnings growth (-14.8%) over the past year, making it difficult to compare to the Banks industry average (-4.1%).


Return on Equity

High ROE: RBB's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is RBB Bancorp'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: RBB's Assets to Equity ratio (8x) is low.

Allowance for Bad Loans: RBB has a sufficient allowance for bad loans (148%).

Low Risk Liabilities: 89% of RBB's liabilities are made up of primarily low risk sources of funding.

Loan Level: RBB has an appropriate level of Loans to Assets ratio (81%).

Low Risk Deposits: RBB's Loans to Deposits ratio (104%) is appropriate.

Level of Bad Loans: RBB has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

3.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RBB's dividend (3.17%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: RBB's dividend (3.17%) is low compared to the top 25% of dividend payers in the US market (4.18%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.2%), RBB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RBB's dividends in 3 years are forecast to be well covered by earnings (19.7% payout ratio).


Next Steps

Management

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

10.4yrs

Average management tenure


CEO

Alan Thian (67 yo)

12.83yrs

Tenure

US$2,338,418

Compensation

Mr. Yee Phong Thian, also known as Alan, has been the Chairman, Chief Executive Officer and President of RBB Bancorp and Royal Business Bank since 2008. Mr. Thian served as an Executive Vice President and ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD2.34M) is above average for companies of similar size in the US market ($USD1.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yee Thian
Chairman12.83yrsUS$2.34m2.47%
$ 7.4m
David Morris
Executive VP & CFO10.42yrsUS$537.03k0.070%
$ 208.7k
Peter M. Chang
Secretary & Independent Director12.83yrsUS$93.54k7.22%
$ 21.6m
Pei-Chin Huang
Secretaryno dataUS$79.38kno data
Erik Grier
First VP & Chief Information Officerno datano datano data
Sophy Chu
Senior VP & Compliance Officerno datano datano data
Alberto Alverado
Senior Advisor & Legal Counselno datano datano data
Michele Rocha
Senior VP & HR Directorno datano datano data
I-Ming Liu
Executive VP & Chief Risk Officerno datano data0.36%
$ 1.1m
Simon C. Pang
Executive VP & Chief Strategy Officerno dataUS$343.13k0.13%
$ 397.9k
Jeffrey Yeh
Executive VP & Chief Credit Officer6.83yrsno data0.27%
$ 800.8k
Jun No
Senior VP & BSA Officerno datano datano data

10.4yrs

Average Tenure

64yo

Average Age

Experienced Management: RBB's management team is seasoned and experienced (10.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yee Thian
Chairman12.83yrsUS$2.34m2.47%
$ 7.4m
Peter M. Chang
Secretary & Independent Director12.83yrsUS$93.54k7.22%
$ 21.6m
Ko-Yen Lin
Independent Director12.83yrsUS$95.93k0.54%
$ 1.6m
Fui Ming Thian
Director10.83yrsUS$99.25k0.40%
$ 1.2m
Chie-Min Koo
Independent Director12.83yrsUS$98.74k0.090%
$ 269.7k
Chuang-I Lin
Independent Director10.83yrsUS$97.00k0.42%
$ 1.3m
Wendell Chen
Independent Director10yrsUS$96.65k3.45%
$ 10.3m
Alfonso Lau
Independent Director2.08yrsUS$41.30k0.89%
$ 2.7m
Raymond Yu
Independent Vice Chairman2.08yrsUS$41.10k1.3%
$ 3.9m
Feng Lin
Independent Director9.83yrsUS$95.12k5%
$ 14.9m
Paul Lin
Independent Director8.83yrsUS$96.53k3.81%
$ 11.4m
James W. Kao
Independent Director5.5yrsUS$93.10k2.1%
$ 6.3m

10.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: RBB's board of directors are seasoned and experienced ( 10.4 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

RBB Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RBB Bancorp
  • Ticker: RBB
  • Exchange: NasdaqGS
  • Founded: 2008
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$298.744m
  • Shares outstanding: 19.72m
  • Website: https://www.royalbusinessbankusa.com

Number of Employees


Location

  • RBB Bancorp
  • 1055 Wilshire Boulevard
  • 12th Floor
  • Los Angeles
  • California
  • 90017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBBNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJul 2017

Biography

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American communities. Its deposit products include checking, savi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:11
End of Day Share Price2020/12/01 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.