NasdaqGS:SASR

Stock Analysis Report

Executive Summary

Sandy Spring Bancorp, Inc. operates as the bank holding company for Sandy Spring Bank that provides commercial banking services to individuals and businesses in central Maryland, Northern Virginia, and Washington D.C.

Rewards

PE ratio (11.7x) is below the US market (18.9x)

Earnings are forecast to grow 20.61% per year

Earnings grew by 35.9% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

CenterState Bank

NasdaqGS:CSFL

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.9%

SASR

-1.6%

US Banks

0.8%

US Market


1 Year Return

13.0%

SASR

15.3%

US Banks

25.1%

US Market

Return vs Industry: SASR underperformed the US Banks industry which returned 15.6% over the past year.

Return vs Market: SASR underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SASRIndustryMarket
7 Day-1.9%-1.6%0.8%
30 Day-4.9%-2.6%3.1%
90 Day5.2%5.4%10.9%
1 Year17.0%13.0%18.6%15.3%27.7%25.1%
3 Year-2.5%-10.8%31.4%22.1%51.3%41.6%
5 Year71.2%46.4%85.5%64.7%77.2%57.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SASR ($36.97) is trading above our estimate of fair value ($28.93)

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


Price To Earnings Ratio

PE vs Industry: SASR is good value based on its PE Ratio (11.7x) compared to the Banks industry average (12.8x).

PE vs Market: SASR is good value based on its PE Ratio (11.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

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

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SASR's forecast earnings growth (20.6% per year) is above the savings rate (1.7%).

Earnings vs Market: SASR's earnings (20.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SASR's revenue (13.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: SASR's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SASR's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has Sandy Spring Bancorp performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SASR has high quality earnings.

Growing Profit Margin: SASR's current net profit margins (34.9%) are higher than last year (28.9%).


Past Earnings Growth Analysis

Earnings Trend: SASR's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: SASR's earnings growth over the past year (35.9%) exceeds its 5-year average (24.2% per year).

Earnings vs Industry: SASR earnings growth over the past year (35.9%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: SASR's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sandy Spring 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: SASR has a low level of unsold assets or inventory.

Debt Coverage by Assets: SASR's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: SASR has an appropriate level of bad loans (0.61%)


Next Steps

Dividend

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

3.31%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: SASR's dividend (3.25%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SASR's dividend (3.25%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: SASR's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.6%), SASR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SASR's dividends in 3 years are forecast to be well covered by earnings (34.5% payout ratio).


Next Steps

Management

What is the CEO of Sandy Spring Bancorp's salary, the management and board of directors tenure and is there insider trading?

9.0yrs

Average management tenure


CEO

Dan Schrider (55yo)

11yrs

Tenure

US$1,754,015

Compensation

Mr. Daniel J. Schrider, also known as Dan, has been the President and Chief Executive Officer at Sandy Spring Bancorp Inc. and Sandy Spring Bank, Inc. since March 26, 2008 and January 1, 2009 respectively  ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD1.75M) is below average for companies of similar size in the US market ($USD3.86M).

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


Management Age and Tenure

9.0yrs

Average Tenure

56yo

Average Age

Experienced Management: SASR's management team is seasoned and experienced (9 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SASR's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$29,97230 Apr 19
Joe Reeder
EntityIndividual
Shares867
Max PriceUS$34.57
BuyUS$12,32312 Mar 19
Mark Michael
EntityIndividual
Shares370
Max PriceUS$33.30

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.1%.


Management Team

  • Lou Caceres (56yo)

    Executive VP of Wealth Management

    • Compensation: US$824.88k
  • Dan Schrider (55yo)

    President

    • Tenure: 11yrs
    • Compensation: US$1.75m
  • Phil Mantua (61yo)

    Executive VP & CFO

    • Tenure: 15.3yrs
    • Compensation: US$827.02k
  • Jay O'Brien (55yo)

    Executive VP & Chief Banking Officer

    • Tenure: 12.5yrs
    • Compensation: US$945.14k
  • Aaron Kaslow

    Executive VP

    • Tenure: 0.5yrs
  • Mark DuHamel (61yo)

    Treasurer & Division Executive

    • Tenure: 0.08yrs
  • John Sadowski (56yo)

    Chief Information Officer & EVP - Sandy Spring Bank

    • Tenure: 10.8yrs
  • Todd Ellis

    President of Sandy Spring Insurance

    • Tenure: 7.2yrs
  • Janet Replogle

    Vice President & Ass't Corporate Secretary

    • Kevin Slane (59yo)

      Executive VP & Chief Risk Officer

      • Tenure: 1.5yrs
      • Compensation: US$986.38k

    Board Members

    • Jim Maiwurm (70yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$73.25k
    • Robert Orndorff (63yo)

      Independent Chairman of the Board

      • Tenure: 10yrs
      • Compensation: US$112.13k
    • Craig Ruppert (66yo)

      Independent Director

      • Tenure: 18yrs
      • Compensation: US$71.33k
    • Dan Schrider (55yo)

      President

      • Tenure: 11yrs
      • Compensation: US$1.75m
    • Ralph Boyd (62yo)

      Independent Director

      • Tenure: 7.4yrs
      • Compensation: US$76.93k
    • Mark Friis (64yo)

      Independent Director

      • Tenure: 14.3yrs
      • Compensation: US$71.53k
    • Pamela Little (65yo)

      Independent Director

      • Tenure: 14.3yrs
      • Compensation: US$79.33k
    • Bob Henel (71yo)

      Independent Director

      • Tenure: 8.6yrs
      • Compensation: US$78.33k
    • Mona Stephenson (57yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$72.25k
    • Gary Nakamoto (55yo)

      Independent Director

      • Tenure: 8.3yrs
      • Compensation: US$68.63k

    Company Information

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


    Key Information

    • Name: Sandy Spring Bancorp, Inc.
    • Ticker: SASR
    • Exchange: NasdaqGS
    • Founded: 1868
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: US$1.292b
    • Shares outstanding: 35.63m
    • Website: https://www.sandyspringbank.com

    Number of Employees


    Location

    • Sandy Spring Bancorp, Inc.
    • 17801 Georgia Avenue
    • Olney
    • Maryland
    • 20832
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    SASRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1995

    Biography

    Sandy Spring Bancorp, Inc. operates as the bank holding company for Sandy Spring Bank that provides commercial banking services to individuals and businesses in central Maryland, Northern Virginia, and Washington D.C. The company operates in three segments: Community Banking, Insurance, and Investment Management. The Community Banking segment provides financial products and services, including various loan and deposit products to individuals and businesses. This segment accepts deposits, such as demand, money market savings, regular savings, and time deposits. Its loan products include residential real estate loans; commercial real estate loans, commercial construction loans, and other commercial loans; and consumer loans comprising home equity loans and lines, installment loans, and personal lines of credit. The Insurance segment provides general insurance agency services and annuities. The Investment Management segment provides comprehensive investment management and financial planning to individuals, families, small businesses, and associations, including cash flow analysis, investment review, tax and retirement planning, insurance analysis, and estate planning. The company also provides mortgage banking, equipment leasing, personal trust, and wealth management services. As of December 31, 2018, it operated 55 community offices and 6 financial centers. Sandy Spring Bancorp, Inc. was founded in 1868 and is headquartered in Olney, Maryland. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/21 23:56
    End of Day Share Price2020/01/21 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.