NasdaqGS:SIVB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has SVB Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

SIVB

1.7%

US Banks

1.3%

US Market


1 Year Return

-30.5%

SIVB

0.3%

US Banks

5.9%

US Market

Return vs Industry: SIVB underperformed the US Banks industry which returned 0.3% over the past year.

Return vs Market: SIVB underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

SIVBIndustryMarket
7 Day1.1%1.7%1.3%
30 Day-11.0%-2.4%-1.9%
90 Day-8.4%1.0%-1.8%
1 Year-30.5%-30.5%3.2%0.3%8.3%5.9%
3 Year73.6%73.6%52.1%41.7%45.6%36.2%
5 Year98.0%98.0%69.8%51.4%66.1%47.9%

Price Volatility Vs. Market

How volatile is SVB Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SVB Financial Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SIVB ($199.44) is trading below our estimate of fair value ($400.45)

Significantly Undervalued: SIVB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SIVB is good value based on its PE Ratio (9.2x) compared to the Banks industry average (12.5x).

PE vs Market: SIVB is good value based on its PE Ratio (9.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: SIVB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SIVB is overvalued based on its PB Ratio (1.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is SVB Financial Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIVB's earnings are forecast to decline over the next 3 years (-4.5% per year).

Earnings vs Market: SIVB's earnings are forecast to decline over the next 3 years (-4.5% per year).

High Growth Earnings: SIVB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SIVB's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SIVB's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

31.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SIVB's earnings have grown significantly by 31.7% per year over the past 5 years.

Accelerating Growth: SIVB's earnings growth over the past year (64.3%) exceeds its 5-year average (31.7% per year).

Earnings vs Industry: SIVB earnings growth over the past year (64.3%) exceeded the Banks industry 31.8%.


Return on Equity

High ROE: SIVB's Return on Equity (20.8%) is considered high.


Return on Assets

ROA vs Industry: SIVB has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SIVB's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is SVB Financial Group'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: SIVB has a low level of unsold assets or inventory.

Debt Coverage by Assets: SIVB's debt is covered by short term assets (assets are 12.047890x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: SIVB has an appropriate level of bad loans (0.33%)


Next Steps

Dividend

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

0.032%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years0.03%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Dividend 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.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Greg Becker (51yo)

8.5yrs

Tenure

US$7,648,576

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 ($USD7.65M) is below average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

2.3yrs

Average Tenure

51yo

Average Age

Experienced Management: SIVB's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

67yo

Average Age

Experienced Board: SIVB's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$199,00729 May 19
John Clendening
EntityIndividual
Shares900
Max PriceUS$221.12
SellUS$414,24515 Feb 19
Christopher Edmonds-Waters
EntityIndividual
Shares1,721
Max PriceUS$240.70
SellUS$148,15330 Nov 18
Philip Cox
EntityIndividual
Role
Chief Operating Officer
Chief Operations Officer
Shares620
Max PriceUS$238.96

Ownership Breakdown


Management Team

  • Greg Becker (51yo)

    President

    • Tenure: 8.5yrs
    • Compensation: US$7.65m
  • Mike Dreyer (55yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: US$2.26m
  • Mike Descheneaux (51yo)

    President of Silicon Valley Bank

    • Tenure: 2.3yrs
    • Compensation: US$3.99m
  • Phil Cox (52yo)

    Chief Operations Officer

    • Tenure: 0.5yrs
    • Compensation: US$1.46m
  • Dan Beck (45yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$2.80m
  • John China (53yo)

    President of SVB Capital

    • Tenure: 0.4yrs
    • Compensation: US$2.56m
  • Michelle Draper (51yo)

    Chief Marketing Officer

    • Tenure: 6.8yrs
  • Michael Zuckert (60yo)

    General Counsel

    • Tenure: 5.6yrs
  • Meghan O'Leary

    Head of Investor Relations

    • Tenure: 0yrs
  • Karen Hon (42yo)

    Interim Chief Accounting Officer & Head of Financial Planning & Analysis

    • Tenure: 0.08yrs

Board Members

  • Jeff Maggioncalda (50yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$248.54k
  • Joel Friedman (71yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$275.29k
  • Kate Mitchell (60yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$267.54k
  • Ken Wilcox (71yo)

    Chairman Emeritus

    • Tenure: 0yrs
    • Compensation: US$5.14m
  • Eric Benhamou (63yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$272.29k
  • Greg Becker (51yo)

    President

    • Tenure: 8.5yrs
    • Compensation: US$7.65m
  • Garen Staglin (74yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$274.54k
  • Roger Dunbar (73yo)

    Independent Chairman of the Board

    • Tenure: 7.5yrs
    • Compensation: US$487.90k
  • Mary Miller (63yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$267.79k
  • John Robinson (72yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$312.04k

Company Information

SVB Financial Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SVB Financial Group
  • Ticker: SIVB
  • Exchange: NasdaqGS
  • Founded: 1983
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$10.279b
  • Shares outstanding: 51.54m
  • Website: https://www.svb.com

Number of Employees


Location

  • SVB Financial Group
  • 3003 Tasman Drive
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIVBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1987
SV4DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1987
SIVB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1987

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:51
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.