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SBSI

Southside BancsharesNasdaqGS:SBSI Stock Report

Last Price

US$42.29

Market Cap

US$1.4b

7D

-4.4%

1Y

28.3%

Updated

20 Jan, 2022

Data

Company Financials +
SBSI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

SBSI Stock Overview

Southside Bancshares, Inc. operates as the bank holding company for Southside Bank that provides a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations.

Southside Bancshares Competitors

Cullen/Frost Bankers

NYSE:CFR

US$8.7b

First Financial Bankshares

NasdaqGS:FFIN

US$7.1b

Prosperity Bancshares

NYSE:PB

US$7.1b

ServisFirst Bancshares

NYSE:SFBS

US$4.5b

Price History & Performance

Summary of all time highs, changes and price drops for Southside Bancshares
Historical stock prices
Current Share PriceUS$42.29
52 Week HighUS$45.36
52 Week LowUS$30.98
Beta0.58
1 Month Change3.27%
3 Month Change8.49%
1 Year Change28.35%
3 Year Change23.08%
5 Year Change15.90%
Change since IPO730.61%

Recent News & Updates

Jan 04

Southside Bancshares: A Quality Bank, But A Bit Too Expensive Right Now

Southside Bancshares has invested half of its assets in cash and securities. The loan book represents just $3.6B of the $7.1B balance sheet. The total amount of loans past due is very low, and that explains why Southside has been reclaiming some of last year's loan loss provisions. That's currently boosting the share price, and when it can no longer do so, the EPS will likely drop below $3. A well-managed bank and I would be interested in going long, but not at the current share price.

Oct 18

Southside Bancshares: The Lackluster Growth Leaves Me Uninspired

The future stock performance is likely to be dependent on loan growth prospects, which have recently ebbed and flowed due to lumpy payoffs. Third quarter results could prove better than consensus as additional lending hires were recently added. The current valuation is likely to remain fairly stable and EPS prospects for 2022 likely trend lower year-over-year, absent a stronger margin or average earning asset growth.

Shareholder Returns

SBSIUS BanksUS Market
7D-4.4%-5.8%-4.6%
1Y28.3%28.1%7.7%

Return vs Industry: SBSI matched the US Banks industry which returned 29.3% over the past year.

Return vs Market: SBSI exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is SBSI's price volatile compared to industry and market?
SBSI volatility
SBSI Average Weekly Movement3.6%
Banks Industry Average Movement3.8%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: SBSI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SBSI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1960832Lee Gibsonhttps://www.southside.com

Southside Bancshares, Inc. operates as the bank holding company for Southside Bank that provides a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations. Its deposit products include savings, money market, and interest and noninterest bearing checking accounts, as well as certificates of deposit. The company’s loan portfolio comprises consumer loans that include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans, and other consumer related loans; commercial loans, such as short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, commercial real estate loans, and municipal loans; and construction loans for 1-4 family residential and commercial real estate.

Southside Bancshares Fundamentals Summary

How do Southside Bancshares's earnings and revenue compare to its market cap?
SBSI fundamental statistics
Market CapUS$1.39b
Earnings (TTM)US$114.29m
Revenue (TTM)US$256.18m

11.9x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SBSI income statement (TTM)
RevenueUS$256.18m
Cost of RevenueUS$0
Gross ProfitUS$256.18m
ExpensesUS$141.89m
EarningsUS$114.29m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 28, 2022

Earnings per share (EPS)3.54
Gross Margin100.00%
Net Profit Margin44.61%
Debt/Equity Ratio95.7%

How did SBSI perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

37%

Payout Ratio

Valuation

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

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBSI ($43.16) is trading below our estimate of fair value ($61.73)

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


Price To Earnings Ratio

PE vs Industry: SBSI is poor value based on its PE Ratio (12.2x) compared to the US Banks industry average (11.2x).

PE vs Market: SBSI is good value based on its PE Ratio (12.2x) compared to the US market (17x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SBSI is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.2x).


Future Growth

How is Southside Bancshares forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SBSI's revenue (2.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: SBSI's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBSI's Return on Equity is forecast to be low in 3 years time (11.6%).


Past Performance

How has Southside Bancshares performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBSI has high quality earnings.

Growing Profit Margin: SBSI's current net profit margins (44.6%) are higher than last year (34.5%).


Past Earnings Growth Analysis

Earnings Trend: SBSI's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: SBSI's earnings growth over the past year (63.5%) exceeds its 5-year average (15.4% per year).

Earnings vs Industry: SBSI earnings growth over the past year (63.5%) exceeded the Banks industry 43.7%.


Return on Equity

High ROE: SBSI's Return on Equity (13%) is considered low.


Financial Health

How is Southside 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: SBSI's Assets to Equity ratio (8.1x) is low.

Allowance for Bad Loans: SBSI has a sufficient allowance for bad loans (307%).

Low Risk Liabilities: 85% of SBSI's liabilities are made up of primarily low risk sources of funding.

Loan Level: SBSI has an appropriate level of Loans to Assets ratio (51%).

Low Risk Deposits: SBSI's Loans to Deposits ratio (68%) is appropriate.

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


Dividend

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

3.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBSI's dividend (3.2%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: SBSI's dividend (3.2%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.2%), SBSI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBSI's dividends in 3 years are forecast to be well covered by earnings (46.7% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Lee Gibson (64 yo)

6.08yrs

Tenure

US$2,654,466

Compensation

Mr. Lee R. Gibson, III, CPA, has been the President of Southside Bancshares, Inc. since December 14, 2015 and has been its Chief Executive Officer since January 01, 2017. Mr. Gibson has been the President...


CEO Compensation Analysis

Compensation vs Market: Lee's total compensation ($USD2.65M) is about average for companies of similar size in the US market ($USD3.70M).

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


Leadership Team

Experienced Management: SBSI's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: SBSI's board of directors are seasoned and experienced ( 11.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SBSI 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

Southside Bancshares, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Southside Bancshares, Inc.
  • Ticker: SBSI
  • Exchange: NasdaqGS
  • Founded: 1960
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$1.393b
  • Shares outstanding: 32.28m
  • Website: https://www.southside.com

Number of Employees


Location

  • Southside Bancshares, Inc.
  • 1201 South Beckham Avenue
  • Tyler
  • Texas
  • 75701
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 23:24
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.