NasdaqGS:SBSI

Stock Analysis Report

Executive Summary

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.

Rewards

PE ratio (16.3x) is below the US market (18.5x)

Earnings are forecast to grow 3.76% per year

Earnings have grown 20.9% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.1%

SBSI

1.0%

US Banks

0.3%

US Market


1 Year Return

11.6%

SBSI

19.1%

US Banks

18.5%

US Market

Return vs Industry: SBSI underperformed the US Banks industry which returned 19.1% over the past year.

Return vs Market: SBSI underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

SBSIIndustryMarket
7 Day2.1%1.0%0.3%
30 Day2.0%1.0%1.5%
90 Day6.4%12.4%5.7%
1 Year15.8%11.6%22.6%19.1%21.1%18.5%
3 Year6.1%-4.4%30.2%21.1%45.9%36.4%
5 Year61.0%35.5%77.5%57.8%71.4%52.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SBSI ($35.83) is trading above our estimate of fair value ($34.19)

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


Price To Earnings Ratio

PE vs Industry: SBSI is poor value based on its PE Ratio (16.3x) compared to the Banks industry average (12.7x).

PE vs Market: SBSI is good value based on its PE Ratio (16.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SBSI is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: SBSI is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBSI's forecast earnings growth (3.8% per year) is above the savings rate (1.7%).

Earnings vs Market: SBSI's earnings (3.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: SBSI's earnings are forecast to grow, but not significantly.

Revenue vs Market: SBSI's revenue (5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SBSI's revenue (5% 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 (9.6%).


Next Steps

Past Performance

How has Southside Bancshares performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBSI has high quality earnings.

Growing Profit Margin: SBSI's current net profit margins (36.2%) are higher than last year (33.5%).


Past Earnings Growth Analysis

Earnings Trend: SBSI's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: SBSI's earnings growth over the past year (11.2%) is below its 5-year average (20.9% per year).

Earnings vs Industry: SBSI earnings growth over the past year (11.2%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: SBSI's Return on Equity (9.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

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

Inventory Level: SBSI has a low level of unsold assets or inventory.

Debt Coverage by Assets: SBSI's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: SBSI has a low allowance for bad loans.

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

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

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

Level of Bad Loans: SBSI has an appropriate level of bad loans (0.82%)


Next Steps

Dividend

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

3.54%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: SBSI's dividend (3.54%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: SBSI's dividend (3.54%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 reasonable payout ratio (55.5%), SBSI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBSI's dividends in 3 years are forecast to be covered by earnings (54.3% payout ratio).


Next Steps

Management

What is the CEO of Southside Bancshares's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Lee Gibson (62yo)

2.9yrs

Tenure

US$1,587,326

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 ($USD1.59M) is below average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

2.5yrs

Average Tenure

62yo

Average Age

Experienced Management: SBSI's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

65.5yo

Average Age

Experienced Board: SBSI's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$4,37818 Nov 19
John Garrett
EntityIndividual
Role
Chairman of the Board
Chairman
Shares125
Max PriceUS$35.02
BuyUS$49,77028 Aug 19
John Sammons
EntityIndividual
Shares1,500
Max PriceUS$33.18
BuyUS$4,40615 Aug 19
John Garrett
EntityIndividual
Role
Chairman of the Board
Chairman
Shares135
Max PriceUS$32.64
BuyUS$33,01006 Jun 19
Tony Morgan
EntityIndividual
Shares1,000
Max PriceUS$33.01
BuyUS$1,40515 May 19
John Garrett
EntityIndividual
Role
Chairman of the Board
Chairman
Shares41
Max PriceUS$34.27
BuyUS$3,01302 May 19
John Garrett
EntityIndividual
Role
Chairman of the Board
Chairman
Shares86
Max PriceUS$35.04
BuyUS$4,39819 Feb 19
John Garrett
EntityIndividual
Role
Chairman of the Board
Chairman
Shares127
Max PriceUS$34.63
BuyUS$31,85412 Dec 18
Tony Morgan
EntityIndividual
Shares1,000
Max PriceUS$31.85

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Lee Gibson (62yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$1.59m
  • Julie Shamburger (56yo)

    Senior EVP & CFO

    • Tenure: 3.7yrs
    • Compensation: US$694.98k
  • Tim Carter (64yo)

    Executive Vice President

    • Tenure: 2.3yrs
    • Compensation: US$753.61k
  • Brian McCabe (58yo)

    Senior EVP & COO

    • Tenure: 2.5yrs
    • Compensation: US$510.76k
  • Tim Alexander (62yo)

    Chief Lending Officer

    • Tenure: 0yrs
    • Compensation: US$994.96k
  • Suni Davis

    Senior VP & Chief Risk Officer

    • Tenure: 0yrs
  • Trey Denman

    Executive Vice President

    • Tenure: 2.1yrs
  • Anne Martinez

    Executive VP & Senior loan Review Officer

    • Tenure: 0yrs
  • Vonna Crowley

    Senior VP & Compliance Officer

    • Tenure: 0yrs
  • Lindsey Bibby

    VP & Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Lee Gibson (62yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$1.59m
  • William Sheehy (78yo)

    Independent Director

    • Tenure: 36.9yrs
    • Compensation: US$81.50k
  • Herbert Buie (88yo)

    Independent Director

    • Tenure: 31.9yrs
    • Compensation: US$81.50k
  • Melvin Lovelady (82yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$124.50k
  • Susan Anderson (66yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$81.50k
  • Bob Garrett (65yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: US$140.56k
  • Don Thedford (69yo)

    Vice Chairman

    • Tenure: 1.6yrs
    • Compensation: US$109.13k
  • Preston Smith (63yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$81.50k
  • Patti Callan (60yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$81.50k
  • Larry Anderson (62yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$81.50k

Company Information

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


Key Information

  • Name: Southside Bancshares, Inc.
  • Ticker: SBSI
  • Exchange: NasdaqGS
  • Founded: 1960
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.172b
  • Shares outstanding: 33.77m
  • Website: https://www.southside.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBSINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1998

Biography

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. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:49
End of Day Share Price2019/12/06 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.