NasdaqGS:RRBI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Red River Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RRBI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RRBI's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

RRBI

6.3%

US Banks

2.8%

US Market


1 Year Return

5.5%

RRBI

-17.0%

US Banks

19.7%

US Market

Return vs Industry: RRBI exceeded the US Banks industry which returned -15.9% over the past year.

Return vs Market: RRBI underperformed the US Market which returned 20.4% over the past year.


Shareholder returns

RRBIIndustryMarket
7 Day2.1%6.3%2.8%
30 Day12.7%19.9%8.0%
90 Day16.9%19.1%6.8%
1 Year5.9%5.5%-14.0%-17.0%22.4%19.7%
3 Yearn/a-3.4%-11.5%47.3%37.5%
5 Yearn/a38.4%21.1%93.6%72.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Red River Bancshares undervalued compared to its fair value and its price relative to the market?

21.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RRBI ($52.27) is trading below our estimate of fair value ($66.55)

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


Price To Earnings Ratio

PE vs Industry: RRBI is poor value based on its PE Ratio (13.8x) compared to the US Banks industry average (11.6x).

PE vs Market: RRBI is good value based on its PE Ratio (13.8x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RRBI is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

How is Red River Bancshares forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRBI's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: RRBI's earnings are forecast to decline over the next 3 years (-2.8% per year).

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

Revenue vs Market: RRBI's revenue (2.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: RRBI's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RRBI's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Red River Bancshares performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRBI has a high level of non-cash earnings.

Growing Profit Margin: RRBI's current net profit margins (33%) are higher than last year (31.7%).


Past Earnings Growth Analysis

Earnings Trend: RRBI's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: RRBI's earnings growth over the past year (14%) is below its 5-year average (16.7% per year).

Earnings vs Industry: RRBI earnings growth over the past year (14%) exceeded the Banks industry -4.3%.


Return on Equity

High ROE: RRBI's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Red River Bancshares'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: RRBI's Assets to Equity ratio (9x) is low.

Allowance for Bad Loans: RRBI has a sufficient allowance for bad loans (369%).

Low Risk Liabilities: 99% of RRBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: RRBI has an appropriate level of Loans to Assets ratio (66%).

Low Risk Deposits: RRBI's Loans to Deposits ratio (74%) is appropriate.

Level of Bad Loans: RRBI has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

What is Red River Bancshares's current dividend yield, its reliability and sustainability?

0.46%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RRBI's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: RRBI's dividend (0.46%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: RRBI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: RRBI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RRBI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RRBI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

22.8yrs

Average board tenure


CEO

Ronald Chatelain (56 yo)

22.83yrs

Tenure

US$668,736

Compensation

Mr. Ronald Blake Chatelain serves as the Chief Executive Officer, President and Director of Red River Bank and Red River Bancshares, Inc. since 1998. Mr. Chatelain serves as a Director at Red River Bancsha...


CEO Compensation Analysis

Compensation vs Market: Ronald's total compensation ($USD668.74K) is below average for companies of similar size in the US market ($USD1.79M).

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


Board Members

NamePositionTenureCompensationOwnership
Ronald Chatelain
President22.83yrsUS$668.74k2.17%
$ 8.1m
Barry Hines
Independent Director22.83yrsUS$17.61k0.28%
$ 1.0m
Robert Nichols
Independent Director13.83yrsUS$20.60k0.57%
$ 2.1m
Willie Obey
Independent Director22.83yrsUS$23.70k0.21%
$ 800.0k
Teddy Price
Independent Director22.83yrsUS$20.60k5.54%
$ 20.6m
John Simpson
Independent Non-Executive Chairman of the Board22.83yrsUS$18.40k5.6%
$ 20.8m
Don Thompson
Independent Director22.83yrsUS$21.50k0.12%
$ 433.1k
Harrie Torbett
Independent Director22.83yrsUS$27.10k1.04%
$ 3.9m
F. Hackmeyer
Independent Director20.83yrsUS$12.97k2.23%
$ 8.3m
Michael Ashbrook
Independent Director7.83yrsUS$16.40k1.33%
$ 4.9m
Kirk Cooper
Independent Director22.83yrsUS$24.50k0.61%
$ 2.3m

22.8yrs

Average Tenure

70yo

Average Age

Experienced Board: RRBI's board of directors are seasoned and experienced ( 22.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RRBI insiders have sold more shares than they have bought 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

Red River Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red River Bancshares, Inc.
  • Ticker: RRBI
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$372.493m
  • Shares outstanding: 7.33m
  • Website: https://www.redriverbank.net

Number of Employees


Location

  • Red River Bancshares, Inc.
  • 1412 Centre Court Drive
  • Suite 101
  • Alexandria
  • Louisiana
  • 71301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RRBINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2019

Biography

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. It provides various deposit pro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 23:43
End of Day Share Price2020/11/25 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.