| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 4/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$42.29 |
| 52 Week High | US$45.36 |
| 52 Week Low | US$30.98 |
| Beta | 0.58 |
| 1 Month Change | 3.27% |
| 3 Month Change | 8.49% |
| 1 Year Change | 28.35% |
| 3 Year Change | 23.08% |
| 5 Year Change | 15.90% |
| Change since IPO | 730.61% |
Recent News & Updates
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.
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
| SBSI | US Banks | US Market | |
|---|---|---|---|
| 7D | -4.4% | -5.8% | -4.6% |
| 1Y | 28.3% | 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
| SBSI volatility | |
|---|---|
| SBSI Average Weekly Movement | 3.6% |
| Banks Industry Average Movement | 3.8% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1960 | 832 | Lee Gibson | https://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
| SBSI fundamental statistics | |
|---|---|
| Market Cap | US$1.39b |
| Earnings (TTM) | US$114.29m |
| Revenue (TTM) | US$256.18m |
11.9x
P/E Ratio1.6x
P/B RatioIs SBSI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SBSI income statement (TTM) | |
|---|---|
| Revenue | US$256.18m |
| Cost of Revenue | US$0 |
| Gross Profit | US$256.18m |
| Expenses | US$141.89m |
| Earnings | US$114.29m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 28, 2022
| Earnings per share (EPS) | 3.54 |
| Gross Margin | 100.00% |
| Net Profit Margin | 44.61% |
| Debt/Equity Ratio | 95.7% |
How did SBSI perform over the long term?
See historical performance and comparisonDividends
3.3%
Current Dividend Yield37%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/20 23:24 |
| End of Day Share Price | 2022/01/20 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.