NasdaqGS:SFBS

Stock Analysis Report

ServisFirst Bancshares

Executive Summary

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides banking services to individual and corporate customers in the United States.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SFBS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.8%

SFBS

9.6%

US Banks

10.5%

US Market


1 Year Return

-18.1%

SFBS

-24.8%

US Banks

-11.5%

US Market

Return vs Industry: SFBS exceeded the US Banks industry which returned -24.8% over the past year.

Return vs Market: SFBS underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

SFBSIndustryMarket
7 Day2.8%9.6%10.5%
30 Day-23.2%-27.0%-15.4%
90 Day-26.7%-38.5%-21.4%
1 Year-17.0%-18.1%-22.5%-24.8%-9.6%-11.5%
3 Year-21.3%-24.0%-16.8%-22.9%12.6%5.4%
5 Year76.3%68.0%12.2%-0.5%32.8%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFBS ($27.65) is trading below our estimate of fair value ($60.72)

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


Price To Earnings Ratio

PE vs Industry: SFBS is poor value based on its PE Ratio (9.9x) compared to the Banks industry average (8.9x).

PE vs Market: SFBS is good value based on its PE Ratio (9.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SFBS is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: SFBS is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFBS's forecast earnings growth (2.6% per year) is above the savings rate (1.7%).

Earnings vs Market: SFBS's earnings (2.6% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: SFBS's revenue (10.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SFBS's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFBS's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has ServisFirst Bancshares performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFBS has high quality earnings.

Growing Profit Margin: SFBS's current net profit margins (51.8%) are lower than last year (52.7%).


Past Earnings Growth Analysis

Earnings Trend: SFBS's earnings have grown significantly by 21.8% per year over the past 5 years.

Accelerating Growth: SFBS's earnings growth over the past year (9%) is below its 5-year average (21.8% per year).

Earnings vs Industry: SFBS earnings growth over the past year (9%) underperformed the Banks industry 11.2%.


Return on Equity

High ROE: SFBS's Return on Equity (17.7%) is considered low.


Next Steps

Financial Health

How is ServisFirst 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: SFBS has a low level of unsold assets or inventory.

Debt Coverage by Assets: SFBS's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: SFBS's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: SFBS has an appropriate level of bad loans (0.5%)


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateMar 31 2020Dividend Pay DateApr 10 202010 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SFBS's dividend (2.53%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: SFBS's dividend (2.53%) is low compared to the top 25% of dividend payers in the US market (5.45%).


Stability and Growth of Payments

Stable Dividend: SFBS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SFBS's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.4%), SFBS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFBS's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

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

9.2yrs

Average management tenure


CEO

Tom Broughton (64yo)

13.17s

Tenure

US$1,197,563

Compensation

Mr. Thomas Ashford Broughton III, also known as Tom, has been the Chief Executive Officer and the President of ServisFirst Bancshares, Inc. ("Company") since 2007 and serves as its Chairman since January 1 ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD1.20M) is below average for companies of similar size in the US market ($USD4.54M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Broughton
Chairman13.17yrsUS$1.20m2.05% $30.4m
William Foshee
Executive VP13.17yrsUS$455.84k0.65% $9.7m
Clarence Pouncey
Executive VP & COO13.17yrsUS$503.97k1.33% $19.8m
Rodney Rushing
Executive VP & Executive of Correspondent Banking9.17yrsUS$491.69k0.76% $11.2m
Henry Abbott
Senior VP & Chief Credit Officer1.92yrsUS$262.26k0.0091% $135.3k
Davis Mange
Vice President Investor Relations Accounting Manager6.17yrsno datano data
G. Barker
Executive VP and Montgomery President & CEO13.08yrsUS$654.98kno data
Kenneth Barber
Executive VP and Montgomery President & CEO5.08yrsno datano data
Buford Morris
Regional Chief Executive Officer of Dothan5.08yrsno data0.21% $3.2m

9.2yrs

Average Tenure

63yo

Average Age

Experienced Management: SFBS's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Broughton
Chairman13.17yrsUS$1.20m2.05% $30.4m
Hatton C. Smith
Independent Director13.17yrsUS$58.97k0.81% $12.1m
Irma Tuder
Independent Director1.42yrsUS$62.97k0.13% $1.9m
James Filler
Lead Independent Director1.17yrsUS$63.97k2.55% $37.9m
Michael Fuller
Independent Director13.17yrsUS$64.97k2.41% $35.9m
Joseph Cashio
Independent Director13.17yrsUS$61.72k1.31% $19.5m
Christopher Mettler
Independent Director0.42yrUS$339.18k0.037% $555.5k

1.4yrs

Average Tenure

64yo

Average Age

Experienced Board: SFBS's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SFBS 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

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


Key Information

  • Name: ServisFirst Bancshares, Inc.
  • Ticker: SFBS
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.485b
  • Shares outstanding: 53.71m
  • Website: https://www.servisfirstbank.com

Number of Employees


Location

  • ServisFirst Bancshares, Inc.
  • 2500 Woodcrest Place
  • Birmingham
  • Alabama
  • 35209
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFBSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2014

Biography

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides banking services to individual and corporate customers in the United States. It offers demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company also provides commercial lending products, such as seasonal loans, bridge loans, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. In addition, it offers other banking products and services comprising telephone and mobile banking, direct deposit, Internet banking, traveler’s checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit card systems, as well as Visa credit cards; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. Further, the company, through its subsidiary, SF Intermediate Holding Company, Inc., operates as a real estate investment trust for the United States income tax purposes; and holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. It operates 20 full-service banking offices located in Jefferson, Shelby, Madison, Montgomery, Mobile, Baldwin, and Houston Counties in Alabama; Escambia and Hillsborough Counties in Florida; Cobb and Douglas Counties in Georgia; Charleston County in South Carolina; and Davidson County in Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 03:35
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.