NasdaqGS:RBCA.A

Stock Analysis Report

Executive Summary

Republic Bancorp, Inc., a financial holding company, provides banking products and services in the United States.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.1%

RBCA.A

-3.4%

US Banks

-4.2%

US Market


1 Year Return

-8.9%

RBCA.A

6.9%

US Banks

14.0%

US Market

Return vs Industry: RBCA.A underperformed the US Banks industry which returned 6.9% over the past year.

Return vs Market: RBCA.A underperformed the US Market which returned 14% over the past year.


Shareholder returns

RBCA.AIndustryMarket
7 Day-2.1%-3.4%-4.2%
30 Day-8.3%-2.8%-1.8%
90 Day-10.5%-4.1%2.6%
1 Year-6.8%-8.9%10.0%6.9%16.3%14.0%
3 Year27.1%18.5%19.6%11.0%43.2%34.0%
5 Year97.6%73.8%66.5%47.6%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RBCA.A ($40.99) is trading above our estimate of fair value ($36.79)

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


Price To Earnings Ratio

PE vs Industry: RBCA.A is good value based on its PE Ratio (9.4x) compared to the Banks industry average (12.4x).

PE vs Market: RBCA.A is good value based on its PE Ratio (9.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: RBCA.A's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RBCA.A is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Republic Bancorp forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBCA.A's earnings are forecast to decline over the next 3 years (-7% per year).

Earnings vs Market: RBCA.A's earnings are forecast to decline over the next 3 years (-7% per year).

High Growth Earnings: RBCA.A's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RBCA.A's revenue is expected to decline over the next 3 years (-7.2% per year).

High Growth Revenue: RBCA.A's revenue is forecast to decline over the next 3 years (-7.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RBCA.A's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Republic Bancorp performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBCA.A has high quality earnings.

Growing Profit Margin: RBCA.A's current net profit margins (32.2%) are higher than last year (30.2%).


Past Earnings Growth Analysis

Earnings Trend: RBCA.A's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: RBCA.A's earnings growth over the past year (17.8%) is below its 5-year average (22.8% per year).

Earnings vs Industry: RBCA.A earnings growth over the past year (17.8%) exceeded the Banks industry 12%.


Return on Equity

High ROE: RBCA.A's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Republic 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

Inventory Level: RBCA.A has a low level of unsold assets or inventory.

Debt Coverage by Assets: RBCA.A's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

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

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

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

Low Risk Deposits: RBCA.A's loans are broadly funded by customer deposits.

Level of Bad Loans: RBCA.A has an appropriate level of bad loans (0.53%)


Next Steps

Dividend

What is Republic Bancorp's current dividend yield, its reliability and sustainability?

2.79%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Republic Bancorp before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.8%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: RBCA.A's dividend (2.79%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: RBCA.A's dividend (2.79%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

Stable Dividend: RBCA.A's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.2%), RBCA.A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RBCA.A's dividends in 3 years are forecast to be well covered by earnings (31.7% payout ratio).


Next Steps

Management

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

14.1yrs

Average management tenure


CEO

Steve Trager (58yo)

22.1yrs

Tenure

US$607,332

Compensation

Mr. Steven E. Trager began serving as Chairman and Chief Executive Officer of Republic Bancorp, Inc. ('Republic') in 2012 and has served as Chairman and Chief Executive Officer of Republic Bank & Trust Com ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD607.33K) is below average for companies of similar size in the US market ($USD2.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Trager
Chairman & CEO22.1yrsUS$607.33k3.78% $32.4m
A. Trager
Vice Chairman & President2.8yrsUS$576.97k1.41% $12.1m
Kevin Sipes
Executive VP19.3yrsUS$613.57k0.34% $3.0m
John Rippy
Assistant Secretary7.1yrsUS$499.73k0.064% $551.8k
William Nelson
President of Republic Processing Group13.1yrsUS$1.09m0.096% $824.8k
Steven DeWeese
Executive VP and MD of Private & Business Banking20.1yrsUS$299.40k0.19% $1.6m
Robert Arnold
Senior VP and MD of Commercial & Corporate Banking14.1yrsUS$280.94k0.051% $439.2k
Juan Montano
Executive VP & Chief Mortgage Banking Officer11.1yrsUS$398.19k0.061% $524.3k
Michael Sadofsky
Senior VP and Chief Marketing Officer of Republic Bank & Trust Company0yrsno datano data
Anthony Powell
Executive VP & Chief Lending Officer19.1yrsno data0.16% $1.4m

14.1yrs

Average Tenure

55yo

Average Age

Experienced Management: RBCA.A's management team is seasoned and experienced (14.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Trager
Chairman & CEO22.1yrsUS$607.33k3.78% $32.4m
A. Trager
Vice Chairman & President2.8yrsUS$576.97k1.41% $12.1m
Mark Vogt
Independent Director3.8yrsUS$16.43k0.035% $302.9k
Craig Greenberg
Independent Director11.8yrsUS$27.18k0.058% $501.2k
R. Stratton
Independent Director24.8yrsUS$34.63k0.092% $787.5k
Susan Tamme
Independent Director16.8yrsUS$23.43k0.045% $387.8k
Michael Rust
Independent Director12.8yrsUS$25.63k0.016% $137.6k
Campbell Brown
Director of Republic Bank and Trust Company0yrsno datano data
Ronald Barnes
Director of Republic Bank and Trust Company0yrsno datano data
Andrew Trager-Kusman
Director0.8yrsno datano data

9.9yrs

Average Tenure

58yo

Average Age

Experienced Board: RBCA.A's board of directors are considered experienced (9.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RBCA.A insiders have only sold shares 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

Republic Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Republic Bancorp, Inc.
  • Ticker: RBCA.A
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$858.454m
  • Shares outstanding: 20.94m
  • Website: https://www.republicbank.com

Number of Employees


Location

  • Republic Bancorp, Inc.
  • 601 West Market Street
  • Louisville
  • Kentucky
  • 40202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBCA.ANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJul 1998

Biography

Republic Bancorp, Inc., a financial holding company, provides banking products and services in the United States. It operates through five segments: Traditional Banking, Warehouse Lending, Mortgage Banking, Tax Refund Solutions, and Republic Credit Solutions. The company accepts demand, savings, time, and brokered and other certificates of deposit; and money market and individual retirement accounts. Its loan products include single family, first lien residential real estate, and adjustable rate mortgage loans; commercial and industrial, commercial real estate, construction and development, and multi-family loans, as well as equipment financing; construction and land development loans; Internet and correspondent lending; home improvement and home equity, and secured and unsecured personal loans; and dealer floor plan, consumer indirect automobile, and aircraft loans. The company also offers credit cards; title insurance and other financial products and services; and memory banking, private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and Internet and mobile banking services. In addition, it provides short-term, revolving credit facilities to mortgage bankers; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; and general purpose reloadable prepaid cards through third party service providers. Further, the company offers consumer credit products; and property and casualty insurance products. As of December 31, 2018, it operated 45 full-service banking centers, including 32 banking centers in Kentucky; 7 banking centers in Florida; 3 banking centers in Indiana; 2 banking centers and 1 loan production office in Tennessee; and 1 banking center in Ohio. Republic Bancorp, Inc. was incorporated in 1982 and is headquartered in Louisville, Kentucky. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:08
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.