NasdaqGS:UMPQ

Stock Analysis Report

Executive Summary

Umpqua Holdings Corporation operates as the holding company of Umpqua Bank that provides commercial and retail banking, and retail brokerage services.

Rewards

PE ratio (11.3x) is below the US market (18.9x)

Earnings have grown 15.3% per year over the past 5 years

Pays a high and reliable dividend of 4.67%

Risk Analysis

Earnings are forecast to decline by an average of -0.3% per year for the next 3 years



Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.4%

UMPQ

-1.0%

US Banks

-0.09%

US Market


1 Year Return

4.0%

UMPQ

14.7%

US Banks

23.9%

US Market

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

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


Shareholder returns

UMPQIndustryMarket
7 Day-1.4%-1.0%-0.09%
30 Day0.6%-3.0%3.1%
90 Day12.0%4.5%10.4%
1 Year9.4%4.0%18.0%14.7%26.6%23.9%
3 Year10.3%-2.9%28.6%19.4%50.9%41.2%
5 Year42.7%16.4%86.7%65.8%78.1%58.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UMPQ ($18) is trading above our estimate of fair value ($17.13)

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


Price To Earnings Ratio

PE vs Industry: UMPQ is good value based on its PE Ratio (11.3x) compared to the Banks industry average (12.8x).

PE vs Market: UMPQ is good value based on its PE Ratio (11.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UMPQ is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Umpqua Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UMPQ's earnings are forecast to decline over the next 3 years (-0.3% per year).

Earnings vs Market: UMPQ's earnings are forecast to decline over the next 3 years (-0.3% per year).

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

Revenue vs Market: UMPQ's revenue (1.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: UMPQ's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UMPQ's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has Umpqua Holdings performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UMPQ has high quality earnings.

Growing Profit Margin: UMPQ's current net profit margins (29.7%) are higher than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: UMPQ's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: UMPQ's earnings growth over the past year (12.7%) is below its 5-year average (15.3% per year).

Earnings vs Industry: UMPQ earnings growth over the past year (12.7%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: UMPQ's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Umpqua Holdings'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: UMPQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: UMPQ's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: UMPQ has an appropriate level of bad loans (0.31%)


Next Steps

Dividend

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

4.65%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: UMPQ's dividend (4.67%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: UMPQ's dividend (4.67%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

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

Growing Dividend: UMPQ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.8%), UMPQ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UMPQ's dividends in 3 years are forecast to be covered by earnings (57.3% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Cort O’Haver (56yo)

3yrs

Tenure

US$3,551,514

Compensation

Mr. Cort Lane O’Haver has been the President of Umpqua Bank since April 25, 2016 and as its Chief Executive Officer since January 1, 2017. Mr. O’Haver has been Chief Executive Officer and President of Umpq ...


CEO Compensation Analysis

Compensation vs Market: Cort's total compensation ($USD3.55M) is about average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

4.0yrs

Average Tenure

49yo

Average Age

Experienced Management: UMPQ's management team is considered experienced (4 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: UMPQ's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: UMPQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$200,23213 Nov 19
Susan Stevens
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,000
Max PriceUS$16.69
SellUS$81,19105 Sep 19
Torran Nixon
EntityIndividual
Role
Other Key Executive
Senior Executive VP & Chief Banking Officer for Umpqua Bank
Shares5,303
Max PriceUS$15.32
SellUS$167,70024 Jul 19
Luis Machuca
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$16.77

Ownership Breakdown

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


Management Team

  • Ron Farnsworth (48yo)

    Executive VP & CFO

    • Tenure: 12.7yrs
    • Compensation: US$1.54m
  • David Shotwell (60yo)

    Executive VP & Chief Risk Officer

    • Tenure: 4.5yrs
    • Compensation: US$1.10m
  • Cort O’Haver (56yo)

    President

    • Tenure: 3yrs
    • Compensation: US$3.55m
  • Rilla Delorier (52yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.42m
  • Eve Callahan (45yo)

    Executive VP & Chief Communications Officer of Umpqua Bank

    • Tenure: 9yrs
  • Andrew Ognall (47yo)

    Executive VP

    • Tenure: 5.8yrs
    • Compensation: US$787.92k
  • Tory Nixon (57yo)

    Senior Executive VP & Chief Banking Officer for Umpqua Bank

    • Tenure: 4yrs
    • Compensation: US$1.66m
  • Sheri Burns (49yo)

    EVP & Chief People Officer

    • Tenure: 2yrs
  • Drew Anderson

    Senior VP & Director of Investor Relations

    • Tenure: 0.8yrs
  • Lisa White (36yo)

    Principal Accounting Officer


    Board Members

    • Jim Greene (65yo)

      Director

      • Tenure: 7.5yrs
      • Compensation: US$140.04k
    • Ray Davis (69yo)

      Chairman Emeritus

      • Tenure: 2yrs
      • Compensation: US$2.51m
    • Luis Machuca (61yo)

      Independent Director

      • Tenure: 10yrs
      • Compensation: US$140.04k
    • Bryan Timm (55yo)

      Independent Vice Chairman of the Board

      • Tenure: 7.8yrs
      • Compensation: US$145.03k
    • Peggy Fowler (67yo)

      Chairman & Lead Independent Director

      • Tenure: 3yrs
      • Compensation: US$185.02k
    • John Schultz (55yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$130.05k
    • Stephen Gambee (55yo)

      Independent Director

      • Tenure: 14.5yrs
      • Compensation: US$130.05k
    • Hilliard Terry (49yo)

      Independent Director

      • Tenure: 10yrs
      • Compensation: US$140.06k
    • Cort O’Haver (56yo)

      President

      • Tenure: 3yrs
      • Compensation: US$3.55m
    • Susan Stevens (68yo)

      Independent Director

      • Tenure: 7.3yrs
      • Compensation: US$140.04k

    Company Information

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


    Key Information

    • Name: Umpqua Holdings Corporation
    • Ticker: UMPQ
    • Exchange: NasdaqGS
    • Founded: 1953
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: US$3.975b
    • Shares outstanding: 220.23m
    • Website: https://www.umpquabank.com

    Number of Employees


    Location

    • Umpqua Holdings Corporation
    • One SW Columbia Street
    • Suite 1200
    • Portland
    • Oregon
    • 97258
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    UMPQNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1997
    UMQDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1997

    Biography

    Umpqua Holdings Corporation operates as the holding company of Umpqua Bank that provides commercial and retail banking, and retail brokerage services. It operates through four segments: Wholesale Bank, Wealth Management, Retail Bank, and Home Lending. The company offers deposit products, including non-interest bearing checking, interest bearing checking and savings, and money market accounts, as well as certificates of deposit. It also provides loans for corporate and commercial customers, such as accounts receivable and inventory financing, multi-family and equipment loans, commercial equipment leases, international trade, real estate construction loans, permanent financing products, and small business administration program financing, as well as capital markets and treasury management services. In addition, the company offers loan products for small businesses; commercial and industrial loans; residential real estate loans for the construction, purchase, and refinancing of residential owner-occupied and rental properties; and consumer loans comprising secured and unsecured personal loans, home equity and personal lines of credit, and motor vehicle loans. Further, it provides financial planning, trust, and investment services; treasury and cash management services; retail brokerage and investment advisory services; and digital, mobile, telephone, text, and online banking services. The company serves middle market corporate, commercial, and business banking customers; individual investors; and high net worth individuals. As of December 31, 2018, it operated commercial banking centers in 299 locations in Oregon, Washington, California, Idaho, and Nevada. The company was founded in 1953 and is headquartered in Portland, Oregon. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 23:58
    End of Day Share Price2020/01/23 00:00
    Earnings2019/12/31
    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.