NasdaqGS:STXB

Stock Analysis Report

Spirit of Texas Bancshares

Executive Summary

Spirit of Texas Bancshares, Inc. operates as the holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services to small and medium-sized businesses and individuals.

Rewards

PE ratio (17x) is below the US market (18.9x)

Earnings are forecast to grow 30.52% per year

Earnings grew by 118.7% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year



Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Spirit of Texas Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.8%

STXB

-0.1%

US Banks

1.7%

US Market


1 Year Return

4.2%

STXB

15.5%

US Banks

23.6%

US Market

Return vs Industry: STXB underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: STXB underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

STXBIndustryMarket
7 Day-0.8%-0.1%1.7%
30 Day-0.7%-1.6%3.5%
90 Day3.8%7.4%11.7%
1 Year4.2%4.2%18.9%15.5%26.2%23.6%
3 Yearn/a34.6%25.1%53.2%43.3%
5 Yearn/a86.0%65.1%75.5%56.1%

Price Volatility Vs. Market

How volatile is Spirit of Texas Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spirit of Texas Bancshares undervalued compared to its fair value and its price relative to the market?

16.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STXB ($22.68) is trading above our estimate of fair value ($16.96)

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


Price To Earnings Ratio

PE vs Industry: STXB is poor value based on its PE Ratio (17x) compared to the Banks industry average (12.8x).

PE vs Market: STXB is good value based on its PE Ratio (17x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: STXB is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Spirit of Texas Bancshares forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

30.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STXB's forecast earnings growth (30.5% per year) is above the savings rate (1.7%).

Earnings vs Market: STXB's earnings (30.5% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: STXB's revenue (19.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: STXB's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STXB's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Spirit of Texas Bancshares performed over the past 5 years?

40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STXB has high quality earnings.

Growing Profit Margin: STXB's current net profit margins (22%) are higher than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: STXB's earnings have grown significantly by 40.8% per year over the past 5 years.

Accelerating Growth: STXB's earnings growth over the past year (118.7%) exceeds its 5-year average (40.8% per year).

Earnings vs Industry: STXB earnings growth over the past year (118.7%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: STXB's Return on Equity (5.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spirit of Texas Bancshares'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: STXB has a low level of unsold assets or inventory.

Debt Coverage by Assets: STXB's debt is covered by short term assets (assets are 2.2x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: STXB has a low allowance for bad loans.

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

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

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

Level of Bad Loans: STXB has an appropriate level of bad loans (0.61%)


Next Steps

Dividend

What is Spirit of Texas Bancshares's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STXB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STXB'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 STXB'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 Spirit of Texas Bancshares's salary, the management and board of directors tenure and is there insider trading?

11.0yrs

Average management tenure


CEO

Dean Bass (68yo)

12yrs

Tenure

US$816,084

Compensation

Mr. Dean O. Bass is the Chairman and Chief Executive Officer at Spirit of Texas Bancshares, Inc. since 2008. He was employed by Royal Oaks Bank, SSB, serving as its President and CEO. From 1996 to 2000 he  ...


CEO Compensation Analysis

Compensation vs Market: Dean's total compensation ($USD816.08K) is below average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

11.0yrs

Average Tenure

63yo

Average Age

Experienced Management: STXB's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

10.0yrs

Average Tenure

65yo

Average Age

Experienced Board: STXB's board of directors are seasoned and experienced ( 10 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

BuyUS$107,50023 Dec 19
Leo Metcalf
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$21.50
BuyUS$645,00023 Dec 19
Robert Beall
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$21.50
BuyUS$2,00928 Aug 19
Akash Patel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares98
Max PriceUS$20.50
BuyUS$107,50001 Aug 19
Steven Morris
EntityIndividual
Shares5,000
Max PriceUS$21.50
BuyUS$86,00001 Aug 19
Nelda Blair
EntityIndividual
Shares4,000
Max PriceUS$21.50
BuyUS$133,19004 Jun 19
Robert Beall
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$22.25
BuyUS$20,18415 Mar 19
Leo Metcalf
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares941
Max PriceUS$21.45
BuyUS$21,60006 Mar 19
Steven Morris
EntityIndividual
Shares1,000
Max PriceUS$21.60
BuyUS$21,65025 Feb 19
Steven Morris
EntityIndividual
Shares1,000
Max PriceUS$21.65

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 57.2%.


Management Team

  • David McGuire (55yo)

    President & Director

    • Compensation: US$809.92k
  • Dean Bass (68yo)

    Chairman of the Board & CEO

    • Tenure: 12yrs
    • Compensation: US$816.08k
  • Jerry Golemon (63yo)

    Executive VP & COO

    • Tenure: 3yrs
    • Compensation: US$414.99k
  • Allison Johnson

    Interim CFO & Chief Accounting Officer


    Board Members

    • Robert Beall (61yo)

      Independent Director

      • Tenure: 7yrs
      • Compensation: US$63.14k
    • Tom Sooy (72yo)

      Independent Director

      • Tenure: 10yrs
      • Compensation: US$90.14k
    • David McGuire (55yo)

      President & Director

      • Compensation: US$809.92k
    • Dean Bass (68yo)

      Chairman of the Board & CEO

      • Tenure: 12yrs
      • Compensation: US$816.08k
    • H. Patel (75yo)

      Independent Director

      • Tenure: 3.3yrs
      • Compensation: US$60.54k
    • Steve Morris (67yo)

      Independent Director

      • Tenure: 12yrs
      • Compensation: US$89.84k
    • Akash Patel (36yo)

      Independent Director

      • Tenure: 11yrs
      • Compensation: US$64.14k
    • Thomas Jones (63yo)

      Independent Director

      • Tenure: 2.5yrs
      • Compensation: US$61.34k
    • Tommy Metcalf (71yo)

      Independent Director

      • Tenure: 10yrs
      • Compensation: US$85.84k
    • Kendall Nix (57yo)

      Director

      • Tenure: 1.2yrs

    Company Information

    Spirit of Texas Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Spirit of Texas Bancshares, Inc.
    • Ticker: STXB
    • Exchange: NasdaqGS
    • Founded: 2008
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: US$413.166m
    • Shares outstanding: 18.25m
    • Website: https://www.sotb.com

    Number of Employees


    Location

    • Spirit of Texas Bancshares, Inc.
    • 1836 Spirit of Texas Way
    • Conroe
    • Texas
    • 77301
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    STXBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2018

    Biography

    Spirit of Texas Bancshares, Inc. operates as the holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services to small and medium-sized businesses and individuals. It offers checking accounts, money market accounts, savings accounts, certificates of deposit, and IRA accounts. The company also provides commercial and industrial loans; 1-4 single family residential real estate loans; construction, land, and development loans; commercial real estate loans, such as owner-occupied commercial real estate loans, other commercial real estate loans, and multifamily loans and farmland; consumer loans and leases; and municipal and other loans. In addition, it offers debit and credit cards, safe deposit boxes, wire transfer and treasury management services, and online banking services; and invests in U.S. Treasury bills and notes, as well as in securities of federally sponsored agencies, such as Federal Home Loan Bank bonds. The company operates through a network of 23 full-service branches located in the Houston, Dallas/Fort Worth, and Bryan/College Station metropolitan areas, as well as North Central Texas. Spirit of Texas Bancshares, Inc. was founded in 2008 and is headquartered in Conroe, Texas. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 00:49
    End of Day Share Price2020/01/17 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.