NasdaqGS:STBA

Stock Analysis Report

Executive Summary

S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that provides retail and commercial banking products and services.

Rewards

Trading at 31.5% below its fair value

Earnings are forecast to grow 14.15% per year

Earnings have grown 12.7% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has S&T Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STBA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

STBA

1.2%

US Banks

0.8%

US Market


1 Year Return

-6.0%

STBA

22.1%

US Banks

17.8%

US Market

Return vs Industry: STBA underperformed the US Banks industry which returned 22.1% over the past year.

Return vs Market: STBA underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

STBAIndustryMarket
7 Day1.6%1.2%0.8%
30 Day-0.8%0.9%1.8%
90 Day1.7%9.2%4.1%
1 Year-3.3%-6.0%25.7%22.1%20.4%17.8%
3 Year9.3%1.6%31.9%22.7%45.9%36.4%
5 Year47.7%30.1%75.8%56.2%68.1%49.6%

Price Volatility Vs. Market

How volatile is S&T Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is S&T Bancorp undervalued compared to its fair value and its price relative to the market?

31.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STBA ($37.88) is trading below our estimate of fair value ($55.28)

Significantly Below Fair Value: STBA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STBA is good value based on its PE Ratio (12.7x) compared to the Banks industry average (12.7x).

PE vs Market: STBA is good value based on its PE Ratio (12.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: STBA is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: STBA is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is S&T Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STBA's forecast earnings growth (14.2% per year) is above the savings rate (1.7%).

Earnings vs Market: STBA's earnings (14.2% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: STBA's revenue (12% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: STBA's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STBA's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has S&T Bancorp performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STBA has high quality earnings.

Growing Profit Margin: STBA's current net profit margins (37.6%) are higher than last year (33%).


Past Earnings Growth Analysis

Earnings Trend: STBA's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: STBA's earnings growth over the past year (17.2%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: STBA earnings growth over the past year (17.2%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: STBA's Return on Equity (10.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is S&T 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

Inventory Level: STBA has a low level of unsold assets or inventory.

Debt Coverage by Assets: STBA's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: STBA has an appropriate level of bad loans (0.81%)


Next Steps

Dividend

What is S&T Bancorp's current dividend yield, its reliability and sustainability?

2.96%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: STBA's dividend (2.96%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: STBA's dividend (2.96%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: STBA's dividend payments have been volatile in the past 10 years.

Growing Dividend: STBA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), STBA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STBA's dividends in 3 years are forecast to be well covered by earnings (35.4% payout ratio).


Next Steps

Management

What is the CEO of S&T Bancorp's salary, the management and board of directors tenure and is there insider trading?

7.9yrs

Average management tenure


CEO

Todd Brice (57yo)

11.7yrs

Tenure

US$1,262,779

Compensation

Mr. Todd D. Brice has been the Chief Executive Officer of S&T BanCorp Inc. and its subsidiary S&T Bank since April 21, 2008. Mr. Brice served as the Chief Operating Officer of S&T BanCorp. Inc. and S&T Ban ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD1.26M) is below average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.9yrs

Average Tenure

57yo

Average Age

Experienced Management: STBA's management team is seasoned and experienced (7.9 years average tenure).


Board Age and Tenure

14.8yrs

Average Tenure

62yo

Average Age

Experienced Board: STBA's board of directors are seasoned and experienced ( 14.8 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

SellUS$65,89023 Jul 19
David Ruddock
EntityIndividual
Role
Chief Operating Officer
Senior EVP & COO
Shares1,768
Max PriceUS$37.36
BuyUS$75,95311 Jun 19
Todd Brice
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,035.87
Max PriceUS$37.31
BuyUS$110,25011 Jun 19
Robert Kane
EntityIndividual
Shares3,000
Max PriceUS$36.75
BuyUS$17,35011 Jun 19
Jerry Hostetter
EntityIndividual
Shares473
Max PriceUS$36.69
BuyUS$60,26912 Mar 19
James Gibson
EntityIndividual
Shares1,547
Max PriceUS$38.96
BuyUS$466,69108 Mar 19
James Gibson
EntityIndividual
Shares12,000
Max PriceUS$38.92

Ownership Breakdown

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


Management Team

  • David Ruddock (57yo)

    Senior EVP & COO

    • Tenure: 6.7yrs
    • Compensation: US$565.55k
  • Todd Brice (57yo)

    CEO & Director

    • Tenure: 11.7yrs
    • Compensation: US$1.26m
  • Rich Fiscus (63yo)

    Executive VP Retail Banking Division Manager

    • Tenure: 7.9yrs
  • Mark Kochvar (58yo)

    Senior EVP & CFO

    • Tenure: 9.8yrs
    • Compensation: US$587.79k
  • Dave Antolik (52yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$665.04k
  • Rob Jorgenson (54yo)

    Executive VP & Marketing Division Manager

    • Tenure: 14.8yrs
  • Steve Drahnak (48yo)

    Market President of Pennsylvania Region

    • Tenure: 7.9yrs
  • Jim Mill

    Chief Information Officer & Executive VP

    • Tenure: 4.4yrs
  • George Basara (60yo)

    Executive VP

    • Tenure: 4.9yrs
  • Krista Martini

    Vice President of Marketing

    • Tenure: 0yrs

Board Members

  • Jim Miller (73yo)

    Director

    • Tenure: 26.9yrs
    • Compensation: US$94.24k
  • Todd Brice (57yo)

    CEO & Director

    • Tenure: 11.7yrs
    • Compensation: US$1.26m
  • Jeffrey Grube (65yo)

    Independent Director

    • Tenure: 22.9yrs
    • Compensation: US$99.44k
  • Frank Jones (74yo)

    Independent Director

    • Tenure: 22.9yrs
    • Compensation: US$82.04k
  • Michael Donnelly (61yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$81.74k
  • Dave Antolik (52yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$665.04k
  • Olson Toretti (62yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: US$179.34k
  • Richard Brok

    VP & Wealth Management Adviser

    • Tenure: 0yrs
  • Frank Palermo (66yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$110.74k
  • Steven Weingarten (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$95.44k

Company Information

S&T Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: S&T Bancorp, Inc.
  • Ticker: STBA
  • Exchange: NasdaqGS
  • Founded: 1902
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.496b
  • Shares outstanding: 39.54m
  • Website: https://www.stbancorp.com

Number of Employees


Location

  • S&T Bancorp, Inc.
  • 800 Philadelphia Street
  • Indiana
  • Pennsylvania
  • 15701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STBANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1992

Biography

S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that provides retail and commercial banking products and services. The company accepts time and demand deposits; and offers commercial an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:40
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
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.