NasdaqGS:SPFI

Stock Analysis Report

South Plains Financial

Executive Summary

South Plains Financial, Inc. operates as a bank holding company for City Bank Texas and Lockney Holding Company.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

SPFI

2.7%

US Banks

0.4%

US Market


1 Year Return

n/a

SPFI

2.7%

US Banks

6.9%

US Market

Return vs Industry: Insufficient data to determine how SPFI performed against the US Banks industry.

Return vs Market: Insufficient data to determine how SPFI performed against the US Market.


Shareholder returns

SPFIIndustryMarket
7 Day1.3%2.7%0.4%
30 Day1.8%0.2%-1.2%
90 Day-5.3%2.9%-0.4%
1 Yearn/a5.7%2.7%9.3%6.9%
3 Yearn/a52.1%41.6%45.8%36.4%
5 Yearn/a69.2%50.7%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is South Plains Financial undervalued compared to its fair value and its price relative to the market?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SPFI ($16.49) is trading below our estimate of fair value ($26.61)

Significantly Undervalued: SPFI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SPFI is good value based on its PE Ratio (11.6x) compared to the Banks industry average (12.6x).

PE vs Market: SPFI is good value based on its PE Ratio (11.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate SPFI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPFI is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is South Plains Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.9%

Forecasted Banks industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SPFI's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if SPFI's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if SPFI's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if SPFI's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SPFI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has South Plains Financial performed over the past 5 years?

-18.2%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if SPFI's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare SPFI's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: SPFI had negative earnings growth (-18.2%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: SPFI's Return on Equity (7.4%) is considered low.


Return on Assets

ROA vs Industry: SPFI's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is South Plains Financial'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: SPFI has a low level of unsold assets or inventory.

Debt Coverage by Assets: SPFI's debt is covered by short term assets (assets are 2.596390x debt).


Financial Institutions Analysis

Asset Level: SPFI's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: SPFI has an appropriate level of bad loans (0.41%)


Next Steps

Dividend

What is South Plains Financial's current dividend yield, its reliability and sustainability?

0.70%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Current Payout to Shareholders

Dividend Coverage: SPFI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SPFI'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 South Plains Financial's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Curtis Griffith (66yo)

0yrs

Tenure

US$510,977

Compensation

Mr. Curtis C. Griffith has been the Chairman of South Plains Finl Inc. since 1993 and served as its President. He has been with the South Plains Finl Inc. since its inception and has worked with the Bank a ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Curtis's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Curtis's compensation with company performance.


Management Age and Tenure

4.8yrs

Average Tenure

51yo

Average Age

Experienced Management: SPFI's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

59yo

Average Age

Experienced Board: SPFI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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$99,75016 May 19
Kyle Wargo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,700
Max PriceUS$17.50
BuyUS$4,55016 May 19
Noe Valles
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares260
Max PriceUS$17.50
BuyUS$9,62516 May 19
Mikella Newsom
EntityIndividual
Role
Senior Key Executive
Chief Risk Officer & Secretary
Shares550
Max PriceUS$17.50
BuyUS$96,25016 May 19
Cory Newsom
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares5,500
Max PriceUS$17.50
BuyUS$43,75016 May 19
Allison Navitskas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$17.50
BuyUS$43,75016 May 19
Cynthia Keith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$17.50
BuyUS$87,50015 May 19
Curtis Griffith
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceUS$17.50
BuyUS$17,50015 May 19
Kelly Deterding
EntityIndividual
Role
Unit President
President of Windmark Insurance & Senior VP of Insurance Development of City Bank
Shares1,000
Max PriceUS$17.50
BuyUS$87,50015 May 19
Steven Crockett
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares5,000
Max PriceUS$17.50
SellUS$11,900,00015 May 19
Richard Campbell
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares680,000
Max PriceUS$17.50
BuyUS$48,12515 May 19
Kevin Bass
EntityIndividual
Shares2,750
Max PriceUS$17.50

Ownership Breakdown


Management Team

  • Curtis Griffith (66yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$510.98k
  • Cory Newsom (51yo)

    President & Director

    • Tenure: 11.8yrs
    • Compensation: US$933.19k
  • Mikella Newsom (45yo)

    Chief Risk Officer & Secretary

    • Tenure: 0yrs
  • Steve Crockett (47yo)

    CFO & Treasurer

    • Tenure: 4.8yrs
  • Kelly Deterding (61yo)

    President of Windmark Insurance & Senior VP of Insurance Development of City Bank

    • Tenure: 16.8yrs
    • Compensation: US$642.35k

Board Members

  • Curtis Griffith (66yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$510.98k
  • Danny Campbell (61yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$52.91k
  • Cory Newsom (51yo)

    President & Director

    • Tenure: 11.8yrs
    • Compensation: US$933.19k
  • Noe Valles (52yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$52.91k
  • Kyle Wargo (59yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$52.91k
  • Cindi Keith (62yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$53.17k
  • Allison Navitskas (43yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

South Plains Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: South Plains Financial, Inc.
  • Ticker: SPFI
  • Exchange: NasdaqGS
  • Founded: 1941
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$296.542m
  • Shares outstanding: 17.98m
  • Website: https://www.city.bank

Number of Employees


Location

  • South Plains Financial, Inc.
  • 5219 City Bank Parkway
  • Lubbock
  • Texas
  • 79407
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPFINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2019

Biography

South Plains Financial, Inc. operates as a bank holding company for City Bank Texas and Lockney Holding Company. It offers banking services to individuals and business customers in Texas. The company was f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:48
End of Day Share Price2019/10/18 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.