SVB Financial Group (NasdaqGS:SIVB) - Share price, News & Analysis

SIVB fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

SIVB Stock Overview

SVB Financial Group, a diversified financial services company, offers various banking and financial products and services.

Rewards

Trading at 65.1% below our estimate of its fair value

Earnings are forecast to grow 21.9% per year

Earnings have grown 26.6% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year

SVB Financial Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SVB Financial Group
Historical stock prices
Current Share Price	US$415.52
52 Week High	US$763.22
52 Week Low	US$384.83
Beta	1.81
1 Month Change	-8.22%
3 Month Change	-29.14%
1 Year Change	-26.42%
3 Year Change	85.01%
5 Year Change	136.37%
Change since IPO	18,456.39%

Shareholder Returns

	SIVB	US Banks	US Market
7D	3.9%	1.2%	4.0%
1Y	-26.4%	-19.3%	-20.5%

Return vs Industry: SIVB underperformed the US Banks industry which returned -19.3% over the past year.

Return vs Market: SIVB underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is SIVB's price volatile compared to industry and market?
SIVB volatility
SIVB Average Weekly Movement	7.9%
Banks Industry Average Movement	3.8%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.5%
10% least volatile stocks in US Market	3.1%

Stable Share Price: SIVB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SIVB's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1983	7,149	Greg Becker	https://www.svb.com

SVB Financial Group, a diversified financial services company, offers various banking and financial products and services. It operates through four segments: Global Commercial Bank, SVB Private Bank, SVB Capital, and SVB Securities. The Global Commercial Bank segment provides commercial banking products and services, including credit, treasury management, foreign exchange, trade finance, and other financial products and services.

SVB Financial Group Fundamentals Summary

How do SVB Financial Group's earnings and revenue compare to its market cap?
SIVB fundamental statistics
Market Cap	US$23.60b
Earnings (TTM)	US$1.71b
Revenue (TTM)	US$5.97b

14.3x

P/E Ratio

2.0x

P/B Ratio

Is SIVB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SIVB income statement (TTM)
Revenue	US$5.97b
Cost of Revenue	US$0
Gross Profit	US$5.97b
Other Expenses	US$4.26b
Earnings	US$1.71b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)	29.06
Gross Margin	100.00%
Net Profit Margin	28.66%
Debt/Equity Ratio	18.1%

How did SIVB perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SIVB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SIVB?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SIVB. This is calculated by dividing SIVB's market cap by their current preferred multiple.
What is SIVB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$23.60b

SIVB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does SIVB's PE Ratio compare to its peers?

SIVB PE Ratio vs Peers

The above table shows the PE ratio for SIVB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.2x

Forward PE

Price-To-Earnings vs Peers: SIVB is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the peer average (13.2x).

Price to Earnings Ratio vs Industry

How does SIVB's PE Ratio compare vs other companies in the U.S. Banks Industry?

Price-To-Earnings vs Industry: SIVB is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the US Banks industry average (9.5x)

Price to Earnings Ratio vs Fair Ratio

What is SIVB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SIVB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.3x
Fair PE Ratio	18.7x

Price-To-Earnings vs Fair Ratio: SIVB is good value based on its Price-To-Earnings Ratio (14.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).

Share Price vs Fair Value

What is the Fair Price of SIVB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SIVB ($415.52) is trading below our estimate of fair value ($1190.97)

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

Price to Earnings Growth Ratio

PEG Ratio: SIVB is good value based on its PEG Ratio (0.7x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIVB's forecast earnings growth (21.9% per year) is above the savings rate (1.9%).

Earnings vs Market: SIVB's earnings (21.9% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: SIVB's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SIVB's revenue (17.8% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: SIVB's revenue (17.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SIVB's Return on Equity is forecast to be low in 3 years time (17.6%).

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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

26.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SIVB has high quality earnings.

Growing Profit Margin: SIVB's current net profit margins (28.7%) are lower than last year (34.7%).

Past Earnings Growth Analysis

Earnings Trend: SIVB's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: SIVB's earnings growth over the past year (7.5%) is below its 5-year average (26.6% per year).

Earnings vs Industry: SIVB earnings growth over the past year (7.5%) underperformed the Banks industry 20.7%.

Return on Equity

High ROE: SIVB's Return on Equity (12.5%) is considered low.

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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: SIVB's Assets to Equity ratio (13.5x) is moderate.

Allowance for Bad Loans: SIVB has a sufficient allowance for bad loans (585%).

Low Risk Liabilities: 97% of SIVB's liabilities are made up of primarily low risk sources of funding.

Loan Level: SIVB has an appropriate level of Loans to Assets ratio (31%).

Low Risk Deposits: SIVB's Loans to Deposits ratio (34%) is appropriate.

Level of Bad Loans: SIVB has an appropriate level of bad loans (0.1%).

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SIVB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SIVB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SIVB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SIVB's dividend payments have been increasing.

Current Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SIVB's dividend in 3 years as they are not forecast to pay a notable one for the US market.

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Management

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

5.0yrs

Average management tenure

CEO

Greg Becker (53 yo)

11.83yrs

Tenure

US$9,922,132

Compensation

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...

CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD9.92M) is about average for companies of similar size in the US market ($USD13.59M).

Compensation vs Earnings: Greg's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: SIVB's management team is seasoned and experienced (5 years average tenure).

Board Members

Experienced Board: SIVB's board of directors are seasoned and experienced ( 10.2 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31