NasdaqGM:SLCT

Stock Analysis Report

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Executive Summary

Select Bancorp, Inc. operates as the bank holding company for Select Bank & Trust Company that provides banking services to individuals and small to medium-sized businesses. More Details


Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Select Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SLCT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SLCT's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.0%

SLCT

6.0%

US Banks

2.8%

US Market


1 Year Return

-21.9%

SLCT

-17.4%

US Banks

20.9%

US Market

Return vs Industry: SLCT underperformed the US Banks industry which returned -17.3% over the past year.

Return vs Market: SLCT underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

SLCTIndustryMarket
7 Day-1.0%6.0%2.8%
30 Day20.6%23.6%11.1%
90 Day23.6%17.6%6.5%
1 Year-21.9%-21.9%-14.3%-17.4%23.6%20.9%
3 Year-22.4%-22.4%-3.9%-11.9%47.3%37.6%
5 Year21.8%21.8%35.9%18.9%94.3%72.9%

Long-Term Price Volatility Vs. Market

How volatile is Select Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Select Bancorp undervalued compared to its fair value and its price relative to the market?

23.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SLCT ($9.32) is trading above our estimate of fair value ($3.45)

Significantly Below Fair Value: SLCT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SLCT is poor value based on its PE Ratio (23.2x) compared to the US Banks industry average (11.4x).

PE vs Market: SLCT is poor value based on its PE Ratio (23.2x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: SLCT is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SLCT is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

How is Select Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLCT's forecast earnings growth (16% per year) is above the savings rate (2.2%).

Earnings vs Market: SLCT's earnings (16% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: SLCT's earnings are forecast to grow, but not significantly.

Revenue vs Market: SLCT's revenue (8.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SLCT's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLCT's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has Select Bancorp performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLCT has high quality earnings.

Growing Profit Margin: SLCT's current net profit margins (15.1%) are lower than last year (27.5%).


Past Earnings Growth Analysis

Earnings Trend: SLCT's earnings have grown by 15.7% per year over the past 5 years.

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

Earnings vs Industry: SLCT had negative earnings growth (-49.5%) over the past year, making it difficult to compare to the Banks industry average (-4.3%).


Return on Equity

High ROE: SLCT's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Select Bancorp'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: SLCT's Assets to Equity ratio (8.3x) is low.

Allowance for Bad Loans: SLCT has a low allowance for bad loans (99%).

Low Risk Liabilities: 94% of SLCT's liabilities are made up of primarily low risk sources of funding.

Loan Level: SLCT has an appropriate level of Loans to Assets ratio (72%).

Low Risk Deposits: SLCT's Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: SLCT has an appropriate level of bad loans (1.1%).


Next Steps

Dividend

What is Select Bancorp current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SLCT'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 SLCT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SLCT'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 SLCT'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?

6.1yrs

Average management tenure


CEO

Bill Hedgepeth (58 yo)

13.58yrs

Tenure

US$621,645

Compensation

Mr. William L. Hedgepeth, II, also known as Bill, has been the Chief Executive Officer and President of Select Bancorp, Inc. (a/k/a, New Century BanCorp Inc) and Select Bancorp and Select Bank & Trust Comp...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD621.65K) is below average for companies of similar size in the US market ($USD1.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Hedgepeth
President13.58yrsUS$621.65k0.31%
$ 511.6k
Mark Jeffries
Executive VP & CFO6.08yrsUS$315.29k0.014%
$ 23.3k
Lynn Johnson
Executive VP & COO3.33yrsUS$346.18k0.00056%
$ 928.3
David Tobin
Executive VP & Chief Credit Officer8.75yrsUS$319.71k0%
$ 0
W. Betts
Executive VP & Chief Banking Officer3.83yrsUS$330.22k0.037%
$ 61.7k
Brenda Bonner
VP & Corporate Secretaryno datano datano data

6.1yrs

Average Tenure

63yo

Average Age

Experienced Management: SLCT's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Hedgepeth
President13.58yrsUS$621.65k0.31%
$ 511.6k
Ronald Jackson
Independent Director8.83yrsUS$29.70k0.23%
$ 388.4k
Gerald Hayes
Independent Director17.83yrsUS$32.40k0.66%
$ 1.1m
John Shaw
Director Emeritus13.5yrsUS$270.59kno data
W. Tippett
Independent Director12.83yrsUS$40.20k0.23%
$ 388.7k
John McCauley
Independent Director17.83yrsUS$32.80k0.19%
$ 320.1k
J. Ciccone
Independent Chairman of the Board12.58yrsUS$47.80k0.65%
$ 1.1m
Kevin Stallings
Independent Director6.33yrsUS$35.00k6.01%
$ 10.0m
V. Overton
Independent Director6.33yrsUS$33.10k0.85%
$ 1.4m
Alicia Hawk
Independent Director6.83yrsUS$41.00k0.16%
$ 270.1k
Sharon Raynor
Independent Director11.83yrsUS$32.90k1.47%
$ 2.4m
Carlie McLamb
Independent Director10.33yrsUS$37.80k0.41%
$ 673.9k

12.2yrs

Average Tenure

67.5yo

Average Age

Experienced Board: SLCT's board of directors are seasoned and experienced ( 12.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Select Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Select Bancorp, Inc.
  • Ticker: SLCT
  • Exchange: NasdaqGM
  • Founded: 2000
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$165.771m
  • Shares outstanding: 17.79m
  • Website: https://www.selectbank.com

Number of Employees


Location

  • Select Bancorp, Inc.
  • 700 West Cumberland Street
  • Dunn
  • North Carolina
  • 28334
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLCTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2000

Biography

Select Bancorp, Inc. operates as the bank holding company for Select Bank & Trust Company that provides banking services to individuals and small to medium-sized businesses. The company accepts deposit pro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 00:00
End of Day Share Price2020/11/27 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.