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

5.1%

NasdaqGS:SIVB

2.4%

US Banks

2.9%

US Market


1 Year Return

-40.0%

NasdaqGS:SIVB

-14.8%

US Banks

0.2%

US Market

SIVB underperformed the Banks industry which returned -14.8% over the past year.

SIVB underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

SIVBIndustryMarket
7 Day5.1%2.4%2.9%
30 Day-10.6%-6.3%-2.3%
90 Day-13.0%-2.1%3.1%
1 Year-40.0%-40.0%-12.4%-14.8%2.4%0.2%
3 Year82.5%82.5%41.7%32.0%41.7%32.4%
5 Year76.4%76.4%52.2%35.7%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

SVB Financial Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

SVB Financial Group is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is SVB Financial Group expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

-3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SVB Financial Group's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

SVB Financial Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

SVB Financial Group's revenue growth is positive but not above the United States of America market average.

SVB Financial Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

SVB Financial Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

SVB Financial Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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 (64.3% vs 31.7%)

SVB Financial Group's earnings growth has exceeded the US Banks industry average in the past year (64.3% vs 33.2%).


Return on Equity

SVB Financial Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

SVB Financial Group used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

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.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

SVB Financial Group has an acceptable proportion of non-loan assets held.

SVB Financial Group has a sufficient allowance for bad loans.

SVB Financial Group's liabilities are made up of primarily low risk sources of funding.

SVB Financial Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at SVB Financial Group are broadly funded by customer deposits.

SVB Financial Group has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

0.035%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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.

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

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.


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?

2.2yrs

Average management tenure


CEO

Greg Becker (51yo)

8.3yrs

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

Greg's remuneration is lower than average for companies of similar size in United States of America.

Greg's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.2yrs

Average Tenure

52yo

Average Age

The tenure for the SVB Financial Group management team is about average.


Board Age and Tenure

9.1yrs

Average Tenure

67yo

Average Age

The tenure for the SVB Financial Group board of directors is about average.


Insider Trading

More shares have been bought than sold by SVB Financial Group individual insiders 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

  • Kamran Husain (53yo)

    Chief Accounting Officer

    • Tenure: 0.0yrs
  • Greg Becker (51yo)

    President

    • Tenure: 8.3yrs
    • Compensation: US$7.65m
  • Mike Dreyer (55yo)

    Consultant

    • Tenure: 0.0yrs
    • Compensation: US$2.26m
  • Mike Descheneaux (51yo)

    President of Silicon Valley Bank

    • Tenure: 2.2yrs
    • Compensation: US$3.99m
  • Phil Cox (52yo)

    Chief Operations Officer

    • Tenure: 0.3yrs
    • Compensation: US$1.46m
  • Dan Beck (45yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: US$2.80m
  • John China (53yo)

    President of SVB Capital

    • Tenure: 0.3yrs
    • Compensation: US$2.56m
  • Michelle Draper (51yo)

    Chief Marketing Officer

    • Tenure: 6.6yrs
  • Michael Zuckert (60yo)

    General Counsel

    • Tenure: 5.4yrs
  • Meghan O'Leary

    Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Jeff Maggioncalda (50yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$248.54k
  • Joel Friedman (71yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$275.29k
  • Kate Mitchell (60yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: US$267.54k
  • Ken Wilcox (71yo)

    Chairman Emeritus

    • Tenure: 0.0yrs
    • Compensation: US$5.14m
  • Eric Benhamou (63yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$272.29k
  • Greg Becker (51yo)

    President

    • Tenure: 8.3yrs
    • Compensation: US$7.65m
  • Garen Staglin (74yo)

    Independent Director

    • Tenure: 8.0yrs
    • Compensation: US$274.54k
  • Roger Dunbar (73yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$487.90k
  • Mary Miller (63yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$267.79k
  • John Robinson (72yo)

    Director

    • Tenure: 9.1yrs
    • 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$10.073b
  • 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 Analysis2019/08/22 23:55
End of Day Share Price2019/08/22 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.