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SVB Financial Group

Nasdaq:SIVB
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SIVB
Nasdaq
$12B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. The last earnings update was 11 days ago. More info.


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SIVB Share Price and Events
7 Day Returns
-1%
NasdaqGS:SIVB
-3.2%
US Banks
-0.7%
US Market
1 Year Returns
-28.7%
NasdaqGS:SIVB
-10.8%
US Banks
3%
US Market
SIVB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SVB Financial Group (SIVB) -1% -5.5% -7.7% -28.7% 124% 115%
US Banks -3.2% -3.4% -2.3% -10.8% 41.5% 46.8%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • SIVB underperformed the Banks industry which returned -10.8% over the past year.
  • SIVB underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
SIVB
Industry
5yr Volatility vs Market

Value

 Is SVB Financial Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SVB Financial Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SVB Financial Group.

NasdaqGS:SIVB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 19 analysts.
= Stable Book Value * Return on Equity
= $127.72 * 18.6%
$23.79
Book Value of Equity per Share Weighted future Book Value estimates from 17 analysts. $127.72
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SIVB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.62 (1 + (1- 21%) (8.38%))
0.773
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:SIVB using Excess Returns Model Model

The calculations below outline how an intrinsic value for SVB Financial Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:SIVB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (18.6% – 7.5%) * $127.72)
$14.21
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $14.21 / (7.5% - 2.73%)
$298.03
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $127.72 + $298.03
$425.76
NasdaqGS:SIVB Discount to Share Price
Calculation Result
Value per share (USD) From above. $425.76
Current discount Discount to share price of $229.77
= -1 x ($229.77 - $425.76) / $425.76
46%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SVB Financial Group is available for.
Intrinsic value
46%
Share price is $229.77 vs Future cash flow value of $425.76
Current Discount Checks
For SVB Financial Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SVB Financial Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SVB Financial Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SVB Financial Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SVB Financial Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SIVB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $20.14
NasdaqGS:SIVB Share Price ** NasdaqGS (2019-05-17) in USD $229.77
United States of America Banks Industry PE Ratio Median Figure of 593 Publicly-Listed Banks Companies 12.77x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SVB Financial Group.

NasdaqGS:SIVB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SIVB Share Price ÷ EPS (both in USD)

= 229.77 ÷ 20.14

11.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SVB Financial Group is good value based on earnings compared to the US Banks industry average.
  • SVB Financial Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does SVB Financial Group's expected growth come at a high price?
Raw Data
NasdaqGS:SIVB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
5.9%per year
United States of America Banks Industry PEG Ratio Median Figure of 269 Publicly-Listed Banks Companies 1.39x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:SIVB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.41x ÷ 5.9%

1.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SVB Financial Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on SVB Financial Group's assets?
Raw Data
NasdaqGS:SIVB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $102.11
NasdaqGS:SIVB Share Price * NasdaqGS (2019-05-17) in USD $229.77
United States of America Banks Industry PB Ratio Median Figure of 598 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:SIVB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SIVB Share Price ÷ Book Value per Share (both in USD)

= 229.77 ÷ 102.11

2.25x

* Primary Listing of SVB Financial Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SVB Financial Group is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess SVB Financial Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. SVB Financial Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is SVB Financial Group expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SVB Financial Group expected to grow at an attractive rate?
  • SVB Financial Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • SVB Financial Group's earnings growth is positive but not above the United States of America market average.
  • SVB Financial Group's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SIVB Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SIVB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 5.9%
NasdaqGS:SIVB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 9.2%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SIVB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SIVB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 3,820 1,296 2
2020-12-31 3,489 1,158 11
2019-12-31 3,231 1,097 11
NasdaqGS:SIVB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,768 926 1,068
2018-12-31 2,551 934 974
2018-09-30 2,387 763 825
2018-06-30 2,210 531 699
2018-03-31 2,036 883 584
2017-12-31 1,885 647 491
2017-09-30 1,755 686 473
2017-06-30 1,659 693 435
2017-03-31 1,563 494 405
2016-12-31 1,500 472 383
2016-09-30 1,459 358 371
2016-06-30 1,375 270 341

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SVB Financial Group's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
  • SVB Financial Group's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SIVB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from SVB Financial Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SIVB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 23.76 23.76 23.76 1.00
2020-12-31 22.16 23.98 20.50 19.00
2019-12-31 20.89 22.53 19.83 19.00
NasdaqGS:SIVB Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 20.14
2018-12-31 18.35
2018-09-30 15.57
2018-06-30 13.22
2018-03-31 11.08
2017-12-31 9.33
2017-09-30 9.02
2017-06-30 8.33
2017-03-31 7.77
2016-12-31 7.37
2016-09-30 7.16
2016-06-30 6.61

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SVB Financial Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SVB Financial Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SVB Financial Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has SVB Financial Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SVB Financial Group's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SVB Financial Group has delivered over 20% year on year earnings growth in the past 5 years.
  • SVB Financial Group's 1-year earnings growth exceeds its 5-year average (82.8% vs 29.2%)
  • SVB Financial Group's earnings growth has exceeded the US Banks industry average in the past year (82.8% vs 40.7%).
Earnings and Revenue History
SVB Financial Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SVB Financial Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SIVB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,768.40 1,067.61 1,147.56
2018-12-31 2,551.10 973.84 1,057.87
2018-09-30 2,387.31 824.79 1,024.07
2018-06-30 2,210.42 698.59 974.00
2018-03-31 2,035.79 583.98 919.05
2017-12-31 1,885.30 490.51 890.47
2017-09-30 1,755.22 472.76 861.43
2017-06-30 1,659.29 435.22 827.59
2017-03-31 1,563.23 404.99 785.58
2016-12-31 1,500.40 382.69 754.81
2016-09-30 1,459.06 370.73 733.45
2016-06-30 1,375.49 341.38 698.54
2016-03-31 1,359.67 334.56 695.73
2015-12-31 1,383.54 343.90 682.81
2015-09-30 1,391.22 314.38 663.41
2015-06-30 1,345.60 296.63 660.10
2015-03-31 1,219.29 261.44 636.45
2014-12-31 1,369.35 263.87 623.64
2014-09-30 1,404.45 264.64 607.73
2014-06-30 1,544.44 268.28 592.91
2014-03-31 1,576.96 265.91 569.35
2013-12-31 1,306.86 214.52 547.19
2013-09-30 1,182.05 207.52 520.81
2013-06-30 974.73 182.19 500.30
2013-03-31 949.34 181.20 492.80
2012-12-31 909.08 175.10 487.42
2012-09-30 841.73 160.26 478.27
2012-06-30 855.24 155.54 468.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SVB Financial Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SVB Financial Group used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if SVB Financial Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess SVB Financial Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SVB Financial Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is SVB Financial Group's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of SVB Financial Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SVB Financial Group Company Filings, last reported 1 month ago.

NasdaqGS:SIVB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,483.82 1,007.95 2,634.63
2018-12-31 5,264.84 1,425.93 3,373.81
2018-09-30 5,070.05 3,418.79 1,954.27
2018-06-30 4,804.84 1,210.42 2,315.81
2018-03-31 4,559.72 1,915.57 2,490.43
2017-12-31 4,319.42 1,837.80 2,757.99
2017-09-30 4,197.30 855.37 2,204.13
2017-06-30 4,040.04 837.83 2,279.49
2017-03-31 3,903.46 856.38 1,585.84
2016-12-31 3,777.04 1,372.81 2,385.82
2016-09-30 3,723.32 847.23 1,425.80
2016-06-30 3,633.79 1,354.74 1,505.57
2016-03-31 3,511.04 849.26 1,576.63
2015-12-31 3,333.23 1,602.34 1,400.24
2015-09-30 3,314.23 835.63 1,207.16
2015-06-30 3,189.47 838.27 1,387.96
2015-03-31 4,277.23 929.58 1,258.20
2014-12-31 4,051.73 490.25 1,785.67
2014-09-30 3,940.02 478.54 1,108.87
2014-06-30 3,938.02 472.54 1,057.81
2014-03-31 3,366.98 471.47 972.77
2013-12-31 3,079.33 474.31 1,534.52
2013-09-30 2,923.64 479.76 863.50
2013-06-30 2,672.10 472.78 775.19
2013-03-31 2,662.06 476.86 982.02
2012-12-31 2,605.23 637.31 995.08
2012-09-30 2,555.35 979.21 862.16
2012-06-30 2,444.33 479.53 855.27
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • SVB Financial Group has an acceptable proportion of non-loan assets held.
  • SVB Financial Group's liabilities are made up of primarily low risk sources of funding.
  • Loans at SVB Financial Group are broadly funded by customer deposits.
  • SVB Financial Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • SVB Financial Group has a sufficient allowance for bad loans.
  • SVB Financial Group has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess SVB Financial Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SVB Financial Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is SVB Financial Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from SVB Financial Group dividends. Estimated to be 0.03% next year.
If you bought $2,000 of SVB Financial Group shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate SVB Financial Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate SVB Financial Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SIVB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 473 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SIVB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 2.00
2020-12-31 0.15 4.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as SVB Financial Group has not reported any payouts.
  • Unable to verify if SVB Financial Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of SVB Financial Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as SVB Financial Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of SVB Financial Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess SVB Financial Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SVB Financial Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SVB Financial Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of SVB Financial Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Greg Becker
COMPENSATION $7,648,576
AGE 50
TENURE AS CEO 8.1 years
CEO Bio

Mr. Gregory W. Becker, also known as Greg, has been the President at Silicon Valley Bank, Inc. ( formerly known as Silicon Valley Bank) since March 2008 and the President of SVB Financial Group since April 2011. Mr. Becker has been the Chief Executive Officer of SVB Financial Group and Silicon Valley Bank, Inc. since April 21, 2011. He served as the Managing Director at SVB Capital and SVB Capital Partners II, L.P. He served as the Managing Director and Investment Manager of SVB Capital Partners Fund, L.P. He served as the Managing Director at SVB Strategic Investors Fund I, L.P. He served as the Chief Operating Officer of Commercial Banking of SVB Financial Group formerly known as Silicon Valley Bancshares from 2003 to 2008 and also served as its Chief Banking Officer and Head of commercial banking since January 2002. In these roles, Mr. Becker was responsible for leading the commercial bank's sales and operational efforts in the various offices. He has devoted his career to financial services for the technology industry, having spent the last eleven years at Silicon Valley Bank in a variety of leadership roles. He joined Silicon Valley Bank, Inc. in 1993 as a Vice President of northern California Technology Division. He took on the role of Chief Operating Officer to coordinate both sales and operational efforts for Silicon Valley Bank, Inc., including Silicon Valley Bank's Global Financial Services group. In May 1995, He joined the National division to develop client relationships in Colorado and in May 1996, he was appointed Senior Vice President and Manager. Mr. Becker served in various increasingly responsible positions with Commercial Bank from May 1990 to April 1993. He served as the Chief Banking Officer of Silicon Valley Bank where he was responsible for leading the Commercial Bank sales force in Silicon Valley Bank's five regions and 26 offices nationwide. He served as Division Manager of Silicon Valley Bank's Venture Capital group where he was responsible for building relationships with and investing in, venture capital and private equity firms across the U.S. Mr. Becker served as President of the Board of Trustees for the Silicon Valley and Monterey Bay Area Chapter of the Leukemia & Lymphoma Society from 2004 to 2011. He is a Board Member of the Silicon Valley Leadership Group and is the Director & Executive Committee for the Bay Area Council. He serves as Director of SVB Financial Group and Silicon Valley Bank, Inc. He serves as the Executive Council of TechNet since 2016. He is the Advisory Council Member of Alliance for Southern California Innovation since 2017. He serves as the Member of U.S. Department Digital Economy Board of Advisors from 2016 to 2017. He serves on the Board of Advisors of Pacific Community Ventures and San Jose Chapter of the Leukemia & Lymphoma Society. Mr. Becker serves as a Director at Federal Reserve Bank of San Francisco since 2019. Mr. Becker holds a Bachelor's degree in Finance from Indiana University.

CEO Compensation
  • Greg's compensation has increased by more than 20% in the past year.
  • Greg's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the SVB Financial Group management team in years:

3.5
Average Tenure
51
Average Age
  • The tenure for the SVB Financial Group management team is about average.
Management Team

Greg Becker

TITLE
President
COMPENSATION
$8M
AGE
50
TENURE
8.1 yrs

Dan Beck

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
44
TENURE
1.9 yrs

Mike Descheneaux

TITLE
President of Silicon Valley Bank
COMPENSATION
$4M
AGE
50
TENURE
1.9 yrs

John China

TITLE
President of SVB Capital
COMPENSATION
$3M
AGE
52

Mike Dreyer

TITLE
Consultant
COMPENSATION
$2M
AGE
54

Phil Cox

TITLE
Chief Operations Officer
COMPENSATION
$1M
AGE
51
TENURE
0.1 yrs

Kamran Husain

TITLE
Chief Accounting Officer
AGE
52

Meghan O'Leary

TITLE
Head of Investor Relations

Michael Zuckert

TITLE
General Counsel
AGE
59
TENURE
5.2 yrs

Michelle Draper

TITLE
Chief Marketing Officer
AGE
50
TENURE
6.3 yrs
Board of Directors Tenure

Average tenure and age of the SVB Financial Group board of directors in years:

8.1
Average Tenure
66
Average Age
  • The tenure for the SVB Financial Group board of directors is about average.
Board of Directors

Roger Dunbar

TITLE
Chairman of the Board
COMPENSATION
$488K
AGE
72
TENURE
7.1 yrs

Greg Becker

TITLE
President
COMPENSATION
$8M
AGE
50
TENURE
8.1 yrs

Ken Wilcox

TITLE
Chairman Emeritus
COMPENSATION
$5M
AGE
70

Joel Friedman

TITLE
Independent Director
COMPENSATION
$275K
AGE
70
TENURE
14.6 yrs

Eric Benhamou

TITLE
Independent Director
COMPENSATION
$272K
AGE
62
TENURE
14.3 yrs

John Robinson

TITLE
Director
COMPENSATION
$312K
AGE
71
TENURE
8.8 yrs

Garen Staglin

TITLE
Independent Director
COMPENSATION
$275K
AGE
73
TENURE
7.8 yrs

Kate Mitchell

TITLE
Director
COMPENSATION
$268K
AGE
59
TENURE
9.1 yrs

Jeff Maggioncalda

TITLE
Director
COMPENSATION
$249K
AGE
49
TENURE
7.1 yrs

Mary Miller

TITLE
Director
COMPENSATION
$268K
AGE
62
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Feb 19 Sell Christopher Edmonds-Waters Individual 14. Feb 19 14. Feb 19 -1,721 $240.70 $-414,245
30. Nov 18 Sell Philip Cox Individual 28. Nov 18 28. Nov 18 -620 $238.96 $-148,153
01. Jun 18 Sell John Robinson Individual 30. May 18 30. May 18 -1,000 $317.53 $-317,530
01. Jun 18 Sell Kate Mitchell Individual 30. May 18 30. May 18 -737 $314.78 $-231,992
X
Management checks
We assess SVB Financial Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SVB Financial Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Adding SVB Financial Group (NASDAQ:SIVB) To Your Watchlist Today?

I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … I note that SVB Financial Group's revenue from operations was lower than its revenue in the last twelve months, so that could distort my analysis of its margins. … While we note SVB Financial Group's EBIT margins were flat over the last year, revenue grew by a solid 35% to US$2.6b.

Simply Wall St -

Does SVB Financial Group's (NASDAQ:SIVB) CEO Salary Compare Well With Others?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Greg Becker's Compensation Compare With Similar Sized Companies. … Our data indicates that SVB Financial Group is worth US$13b, and total annual CEO compensation is US$7.6m.

Simply Wall St -

How Many Insiders Sold SVB Financial Group (NASDAQ:SIVB) Shares?

So before you buy or sell SVB Financial Group (NASDAQ:SIVB), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At SVB Financial Group. … Over the last year we saw more insider selling of SVB Financial Group shares, than buying

Simply Wall St -

Want To Invest In SVB Financial Group (NASDAQ:SIVB) Today? Read This First

SVB Financial Group (NASDAQ:SIVB) is considered a high growth stock. … Check out our latest analysis for SVB Financial Group? … Analysts are predicting good growth prospects for SVB Financial Group over the next couple of years

Simply Wall St -

Is SVB Financial Group's 152% Share Price Increase Well Justified?

To wit, the SVB Financial Group (NASDAQ:SIVB) share price has flown 152% in the last three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … SVB Financial Group was able to grow its EPS at 40% per year over three years, sending the share price higher.

Simply Wall St -

What Should You Know About SVB Financial Group's (NASDAQ:SIVB) Growth?

Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … The most recent earnings release SVB Financial Group's (NASDAQ:SIVB) announced in December 2018a

Simply Wall St -

What Should We Expect From SVB Financial Group's (NASDAQ:SIVB) Earnings Over The Next Year?

Help shape the future of investing tools and you could win a $250 gift card! … As SVB Financial Group (NASDAQ:SIVB) announced its earnings release on 31 December 2018, … with earnings expected to grow by 12% in the upcoming year

Simply Wall St -

SVB Financial Group (NASDAQ:SIVB) Is Undervalued By 3.15%

Given that these companies adhere to a different set of rules relative to other companies, their cash flows should also be valued differently. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.

Simply Wall St -

Real Risks You Need To Know Before Investing In SVB Financial Group (NASDAQ:SIVB)

Large banks such as SVB Financial Group (NASDAQ:SIVB), with a market capitalisation of US$11b, have benefited from improving credit quality as a result of post-GFC recovery, leading to a strong growth environment. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk SVB Financial Group takes on. … It is relevant to understand a bank’s level of risky assets on its accounts as it affects the attractiveness of its stock as an investment.

Simply Wall St -

Is SVB Financial Group's (NASDAQ:SIVB) CEO Paid Enough Relative To Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … At the time of writing our data says that SVB Financial Group has a market cap of US$10b, and is paying total annual CEO compensation of US$6.1m. … We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m

Simply Wall St -

Company Info

Description

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. The company operates through three segments: Global Commercial Bank, SVB Private Bank, and SVB Capital. The Global Commercial Bank segment offers deposit products, such as business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts, as well as merchant, remote capture, lockbox, electronic deposit capture, and fraud control services; credit products and services comprising term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credit, capital call lines of credit, and credit cards; and payment and cash management products and services, including wire transfer and automated clearing house payment, bill pay, debit and credit cards, account analysis, and disbursement, as well as online and mobile banking services. This segment also provides foreign exchange services; export, import, and standby letter of credit; investment services and solutions; investment advisory services; vineyard development loans; and equity valuation services, as well as invests in debt funds. The SVB Private Bank segment offers private banking services, such as mortgages, home equity and capital call lines of credit, restricted stock purchase loans, and other secured and unsecured lending products. The SVB Capital segment provides venture capital investment services that manage funds on behalf of third party limited partner investors. The company also offers asset and private wealth management, and private equity investment services. It operates through 27 offices in the United States; and offices in Hong Kong; Beijing and Shanghai, China; Frankfurt, Germany; Bengaluru, India; Herzliya Pituach, Israel; and London, England. SVB Financial Group was founded in 1983 and is headquartered in Santa Clara, California.

Details
Name: SVB Financial Group
SIVB
Exchange: NasdaqGS
Founded: 1983
$12,022,050,065
52,322,105
Website: http://www.svb.com
Address: SVB Financial Group
3003 Tasman Drive,
Santa Clara,
California, 95054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SIVB Common Stock Nasdaq Global Select US USD 23. Oct 1987
DB SV4 Common Stock Deutsche Boerse AG DE EUR 23. Oct 1987
Number of employees
Current staff
Staff numbers
3,250
SVB Financial Group employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:59
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.