NasdaqGS:RNST

Stock Analysis Report

Executive Summary

Renasant Corporation operates as a bank holding company for Renasant Bank, which provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RNST's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.2%

RNST

-7.0%

US Banks

-2.6%

US Market


1 Year Return

-32.8%

RNST

-32.9%

US Banks

-13.3%

US Market

Return vs Industry: RNST underperformed the US Banks industry which returned -34.8% over the past year.

Return vs Market: RNST underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

RNSTIndustryMarket
7 Day5.2%-7.0%-2.6%
30 Day-15.0%-24.6%-15.2%
90 Day-34.1%-41.9%-22.2%
1 Year-30.9%-32.8%-30.8%-32.9%-11.5%-13.3%
3 Year-39.9%-43.8%-21.4%-27.3%13.2%5.7%
5 Year-15.0%-23.6%2.7%-9.2%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNST ($21.99) is trading below our estimate of fair value ($39.14)

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


Price To Earnings Ratio

PE vs Industry: RNST is good value based on its PE Ratio (7.6x) compared to the Banks industry average (8.5x).

PE vs Market: RNST is good value based on its PE Ratio (7.6x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RNST is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Renasant forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNST's earnings are forecast to decline over the next 3 years (-9.8% per year).

Earnings vs Market: RNST's earnings are forecast to decline over the next 3 years (-9.8% per year).

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

Revenue vs Market: RNST's revenue (1.5% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: RNST's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNST's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has Renasant performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNST has high quality earnings.

Growing Profit Margin: RNST's current net profit margins (28.4%) are higher than last year (27.5%).


Past Earnings Growth Analysis

Earnings Trend: RNST's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: RNST's earnings growth over the past year (14.1%) is below its 5-year average (22.5% per year).

Earnings vs Industry: RNST earnings growth over the past year (14.1%) exceeded the Banks industry 10.9%.


Return on Equity

High ROE: RNST's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Renasant'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: RNST's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: RNST has an appropriate level of bad loans (0.37%)


Next Steps

Dividend

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

3.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RNST's dividend (4%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: RNST's dividend (4%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.1%), RNST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RNST's dividends in 3 years are forecast to be well covered by earnings (37.2% payout ratio).


Next Steps

Management

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

10.8yrs

Average management tenure


CEO

Mitch Waycaster (60yo)

1.92s

Tenure

US$2,341,563

Compensation

Mr. C. Mitchell Waycaster, also known as Mitch, serves as President of Renasant Corp. and Renasant Bank and its Chief Executive Officer since May 1, 2018. He served as an Senior Executive Vice President at ...


CEO Compensation Analysis

Compensation vs Market: Mitch's total compensation ($USD2.34M) is below average for companies of similar size in the US market ($USD4.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward McGraw
Executive Chairman of the Board14.83yrsUS$2.33m0.44% $5.6m
C. Waycaster
President1.92yrsUS$2.34m0.26% $3.4m
Kevin Chapman
Executive VP8.5yrsUS$1.57m0.18% $2.3m
J. Cochran
Executive Vice President13yrsUS$1.26m0.16% $2.0m
Bartow Morgan
Executive Vice President1.58yrsUS$1.28m1.22% $15.7m
Stephen Corban
Executive Vice President & Senior Legal Advisor16.75yrsUS$222.73k0.12% $1.5m
Mark Jeanfreau
Executive VP0.25yrno data0.039% $509.4k
John Oxford
Senior VP and Director of Marketing & Public Relationsno datano datano data
Stuart Johnson
Executive Vice President24yrsUS$387.97kno data
James Gray
Executive Vice President24yrsUS$425.17k0.11% $1.4m

10.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: RNST's management team is seasoned and experienced (10.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward McGraw
Executive Chairman of the Board14.83yrsUS$2.33m0.44% $5.6m
C. Waycaster
President1.92yrsUS$2.34m0.26% $3.4m
R. Hart
Executive VP & Director12.75yrsUS$1.12m0.13% $1.7m
John Foy
Independent Director16.25yrsUS$121.57k0.068% $873.8k
John Creekmore
Vice Chairman & Lead Director3.08yrsUS$136.52k0.033% $427.4k
Marshall Dickerson
Independent Director24.25yrsUS$125.21k0.020% $257.9k
Michael Shmerling
Independent Director12.75yrsUS$111.05k0.29% $3.7m
Richard Heyer
Independent Director18.25yrsUS$110.45k0.055% $705.9k
Albert Dale
Independent Director12.75yrsUS$130.38k0.050% $644.6k
Neal Holland
Independent Director15.25yrsUS$128.11k0.40% $5.2m

13.8yrs

Average Tenure

66yo

Average Age

Experienced Board: RNST's board of directors are seasoned and experienced ( 13.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RNST insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.6%.


Top Shareholders

Company Information

Renasant Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Renasant Corporation
  • Ticker: RNST
  • Exchange: NasdaqGS
  • Founded: 1904
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.290b
  • Shares outstanding: 56.18m
  • Website: https://investors.renasant.com

Number of Employees


Location

  • Renasant Corporation
  • 209 Troy Street
  • Tupelo
  • Mississippi
  • 38804
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNSTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1992
RN6DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1992

Biography

Renasant Corporation operates as a bank holding company for Renasant Bank, which provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, and equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate–1-4 family mortgage; real estate–commercial mortgage; real estate–construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and business and personal, and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and cash management services. The Insurance segment provides insurance agency services, including commercial and personal insurance products through third-party insurance carriers. The Wealth Management segment offers range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, self-directed individual retirement accounts, and custodial accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; and administers qualified retirement plans, profit sharing and other employee benefit plans, personal trusts, and estates. As of December 31, 2018, the company had 199 banking, insurance, and financial service offices located in Mississippi, Tennessee, Alabama, Florida, and Georgia; 152 full-service branches and 12 limited-service branches; and 151 ATMs at on-premise locations and 24 ATMs located at off-premise sites. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 04:38
End of Day Share Price2020/04/06 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.