NasdaqGS:TRMK

Stock Analysis Report

Executive Summary

Trustmark Corporation operates as the bank holding company for Trustmark National Bank that provides banking and other financial solutions to individuals and corporate institutions in the United States.

Rewards

PE ratio (14.8x) is below the US market (18.4x)

Earnings have grown 4.4% per year over the past 5 years

Pays a reliable dividend of 2.66%

Risk Analysis

Earnings are forecast to decline by an average of -4.5% per year for the next 3 years



Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.8%

TRMK

2.7%

US Banks

1.1%

US Market


1 Year Return

14.7%

TRMK

22.7%

US Banks

17.8%

US Market

Return vs Industry: TRMK underperformed the US Banks industry which returned 22.7% over the past year.

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


Shareholder returns

TRMKIndustryMarket
7 Day1.8%2.7%1.1%
30 Day-1.4%0.9%1.4%
90 Day0.9%10.0%3.9%
1 Year17.9%14.7%26.3%22.7%20.3%17.8%
3 Year5.1%-3.3%31.8%22.6%44.8%35.4%
5 Year74.7%49.4%80.2%60.2%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRMK ($34.65) is trading above our estimate of fair value ($27.68)

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


Price To Earnings Ratio

PE vs Industry: TRMK is poor value based on its PE Ratio (14.8x) compared to the Banks industry average (12.7x).

PE vs Market: TRMK is good value based on its PE Ratio (14.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: TRMK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TRMK is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Trustmark forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRMK's earnings are forecast to decline over the next 3 years (-4.5% per year).

Earnings vs Market: TRMK's earnings are forecast to decline over the next 3 years (-4.5% per year).

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

Revenue vs Market: TRMK's revenue (1.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TRMK's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRMK's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has Trustmark performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRMK has high quality earnings.

Growing Profit Margin: TRMK's current net profit margins (25.5%) are higher than last year (22%).


Past Earnings Growth Analysis

Earnings Trend: TRMK's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: TRMK's earnings growth over the past year (19.1%) exceeds its 5-year average (4.4% per year).

Earnings vs Industry: TRMK earnings growth over the past year (19.1%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: TRMK's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Trustmark'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: TRMK has a low level of unsold assets or inventory.

Debt Coverage by Assets: TRMK's debt is covered by short term assets (assets are 1.6x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: TRMK has an appropriate level of bad loans (0.63%)


Next Steps

Dividend

What is Trustmark's current dividend yield, its reliability and sustainability?

2.66%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: TRMK's dividend (2.66%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TRMK's dividend (2.66%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: TRMK's dividends per share have been stable in the past 10 years.

Growing Dividend: TRMK's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.2%), TRMK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRMK's dividends in 3 years are forecast to be well covered by earnings (43% payout ratio).


Next Steps

Management

What is the CEO of Trustmark's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

Jerry Host (64yo)

8.9yrs

Tenure

US$2,422,580

Compensation

Mr. Gerard R. Host, also known as Jerry, has been the Chief Executive Officer and President of Trustmark Corporation since January 01, 2011. Mr. Host has been the Chief Executive Officer of Trustmark Natio ...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD2.42M) is below average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

8.3yrs

Average Tenure

61yo

Average Age

Experienced Management: TRMK's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

63yo

Average Age

Experienced Board: TRMK's board of directors are considered experienced (8.1 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$653,74923 Aug 19
Breck Tyler
EntityIndividual
Role
Unit President
President of Mortgage Services
Shares19,398
Max PriceUS$33.70
SellUS$1,61306 May 19
Breck Tyler
EntityIndividual
Role
Unit President
President of Mortgage Services
Shares45
Max PriceUS$35.85
SellUS$85,75102 May 19
Breck Tyler
EntityIndividual
Role
Unit President
President of Mortgage Services
Shares2,400
Max PriceUS$35.74
SellUS$35,96029 Apr 19
Charles Woods
EntityIndividual
Shares1,000
Max PriceUS$35.96
SellUS$229,97729 Apr 19
Robert Harvey
EntityIndividual
Role
Other Key Executive
Executive VP & Chief Credit Officer of Trustmark National Bank
Shares6,461
Max PriceUS$35.61
SellUS$66,87204 Mar 19
Harry Walker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,880
Max PriceUS$35.57
SellUS$78,75804 Feb 19
Charles Woods
EntityIndividual
Shares2,500
Max PriceUS$31.50

Ownership Breakdown

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


Management Team

  • Jerry Host (64yo)

    President

    • Tenure: 8.9yrs
    • Compensation: US$2.42m
  • Louis Greer (64yo)

    Treasurer & Principal Financial Officer

    • Tenure: 12.9yrs
    • Compensation: US$841.14k
  • Breck Tyler (60yo)

    President of Mortgage Services

    • Tenure: 7.8yrs
    • Compensation: US$783.44k
  • Joey Rein

    Senior VP & Assistant Secretary

    • Tenure: 0yrs
  • Melanie Morgan

    Senior VP & Director of Corporate Communications & Marketing

    • Tenure: 0yrs
  • Robert Harvey (59yo)

    Executive VP & Chief Credit Officer of Trustmark National Bank

    • Tenure: 0yrs
  • Thomas Owens (54yo)

    Executive VP & Bank Treasurer of Trustmark National Bank

    • Tenure: 0yrs
  • Granville Tate (62yo)

    Secretary

    • Tenure: 4yrs

Board Members

  • Harry Walker (68yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$104.90k
  • Jerry Host (64yo)

    President

    • Tenure: 8.9yrs
    • Compensation: US$2.42m
  • Dolph Baker (62yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$115.10k
  • Mike Summerford (70yo)

    Chairman of the Board

    • Tenure: 2.9yrs
    • Compensation: US$154.26k
  • Harris Morrissette (59yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$103.15k
  • Richard Puckett (64yo)

    Independent Director

    • Tenure: 24.9yrs
    • Compensation: US$113.43k
  • LeRoy Walker (69yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$103.43k
  • Toni Cooley (58yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$115.93k
  • Tracy Conerly (55yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$123.93k
  • William Yates (46yo)

    Director

    • Tenure: 10.6yrs
    • Compensation: US$100.93k

Company Information

Trustmark Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trustmark Corporation
  • Ticker: TRMK
  • Exchange: NasdaqGS
  • Founded: 1889
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.218b
  • Shares outstanding: 64.26m
  • Website: https://www.trustmark.com

Number of Employees


Location

  • Trustmark Corporation
  • 248 East Capitol Street
  • Jackson
  • Mississippi
  • 39201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRMKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1980
TT4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

Trustmark Corporation operates as the bank holding company for Trustmark National Bank that provides banking and other financial solutions to individuals and corporate institutions in the United States. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:47
End of Day Share Price2019/12/10 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.