NasdaqGS:SIVB

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


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

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


Market Performance


7 Day Return

8.5%

SIVB

3.9%

US Banks

-0.4%

US Market


1 Year Return

34.8%

SIVB

-26.3%

US Banks

18.3%

US Market

Return vs Industry: SIVB exceeded the US Banks industry which returned -26.3% over the past year.

Return vs Market: SIVB exceeded the US Market which returned 18.3% over the past year.


Shareholder returns

SIVBIndustryMarket
7 Day8.5%3.9%-0.4%
30 Day29.1%12.0%6.6%
90 Day31.3%5.4%8.6%
1 Year34.8%34.8%-23.6%-26.3%21.0%18.3%
3 Year36.8%36.8%-16.3%-23.3%42.1%32.7%
5 Year142.8%142.8%21.9%6.8%85.6%64.7%

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?

9.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIVB ($296.38) is trading below our estimate of fair value ($327.92)

Significantly Below Fair Value: SIVB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SIVB is poor value based on its PE Ratio (14.4x) compared to the US Banks industry average (10.3x).

PE vs Market: SIVB is good value based on its PE Ratio (14.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

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 (2.1x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is SVB Financial Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-0.8%

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 (-0.8% per year).

Earnings vs Market: SIVB's earnings are forecast to decline over the next 3 years (-0.8% per year).

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

Revenue vs Market: SIVB's revenue (1.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SIVB's revenue (1.5% 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 (11.2%).


Next Steps

Past Performance

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

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIVB has high quality earnings.

Growing Profit Margin: SIVB's current net profit margins (31.7%) are lower than last year (37.1%).


Past Earnings Growth Analysis

Earnings Trend: SIVB's earnings have grown significantly by 27.9% per year over the past 5 years.

Accelerating Growth: SIVB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SIVB had negative earnings growth (-6.5%) over the past year, making it difficult to compare to the Banks industry average (-3.7%).


Return on Equity

High ROE: SIVB's Return on Equity (14.2%) is considered low.


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


Financial Institutions Analysis

Asset Level: SIVB's Assets to Equity ratio (12.2x) is moderate.

Allowance for Bad Loans: SIVB has a sufficient allowance for bad loans (485%).

Low Risk Liabilities: 95% 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 (39%).

Low Risk Deposits: SIVB's Loans to Deposits ratio (45%) is appropriate.

Level of Bad Loans: SIVB has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

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


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

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

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

4.1yrs

Average management tenure


CEO

Greg Becker (52 yo)

9.5yrs

Tenure

US$10,677,545

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 ($USD10.68M) is about average for companies of similar size in the US market ($USD11.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Becker
President9.5yrsUS$10.68m0.15%
$ 23.2m
Daniel Beck
Chief Financial Officer3.33yrsUS$3.41m0.0050%
$ 767.0k
Philip Cox
Chief Operations Officer1.5yrsUS$4.66m0.016%
$ 2.5m
John China
President of SVB Capital1.42yrsUS$4.30m0.052%
$ 8.0m
Michael Descheneaux
President of Silicon Valley Bank3.33yrsUS$5.61m0.041%
$ 6.4m
Karen Hon
Chief Accounting Officer1.08yrsno data0.0070%
$ 1.1m
Meghan O'Leary
Head of Investor Relationsno datano datano data
Michael Zuckert
General Counsel6.58yrsno data0.013%
$ 1.9m
Michelle Draper
Chief Marketing Officer7.75yrsno data0.0080%
$ 1.2m
Christopher Edmonds-Waters
Chief Human Resources Officer12.83yrsno data0.014%
$ 2.1m
Marc Cadieux
Chief Credit Officer7.08yrsUS$1.79m0.034%
$ 5.2m
Laura Izurieta
Chief Risk Officer4.08yrsUS$1.67m0.0094%
$ 1.4m

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: SIVB's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Becker
President9.5yrsUS$10.68m0.15%
$ 23.2m
Jeffrey Maggioncalda
Independent Director8.5yrsUS$218.72k0.014%
$ 2.1m
Joel Friedman
Independent Director16yrsUS$241.72k0.043%
$ 6.6m
Kate Mitchell
Independent Director10.5yrsUS$234.72k0.015%
$ 2.4m
Kenneth Wilcox
Chairman Emeritusno dataUS$5.14mno data
Eric Benhamou
Independent Director15.67yrsUS$238.72k0.0086%
$ 1.3m
Garen Staglin
Independent Director9.17yrsUS$241.72k0.023%
$ 3.5m
Roger Dunbar
Independent Chairman of the Board8.5yrsUS$434.10k0.038%
$ 5.8m
Mary Miller
Independent Director5.42yrsUS$263.72k0.0083%
$ 1.3m
John Clendening
Independent Director3.17yrsUS$218.72k0.0033%
$ 512.4k
John Robinson
Independent Director10.25yrsUS$251.72k0.0058%
$ 895.9k
Kay Matthews
Independent Director1.08yrsUS$146.65kno data

9.2yrs

Average Tenure

64yo

Average Age

Experienced Board: SIVB's board of directors are considered experienced (9.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SIVB insiders have only sold shares 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

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$15.341b
  • Shares outstanding: 51.76m
  • Website: https://www.svb.com

Number of Employees


Location

  • SVB Financial Group
  • 3003 Tasman Drive
  • Santa Clara
  • California
  • 95054-1191
  • 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
SIVB.PNasdaqGS (Nasdaq Global Select)DEP SHS PFD AUSUSDDec 2019
S1IV34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. The company operates through four 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 Analysis2020/10/25 23:46
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
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.