Veritex Holdings
Market Cap
US$724.1m
Last Updated
2020/03/31 03:29 UTC
Data Sources
Company Financials +
Executive Summary
Veritex Holdings, Inc. operates as the holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals.
Snowflake Analysis
Very undervalued with excellent balance sheet.
Similar Companies
Share Price & News
How has Veritex Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VBTX's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.0%
VBTX
6.0%
US Banks
7.2%
US Market
1 Year Return
-42.1%
VBTX
-26.4%
US Banks
-10.4%
US Market
Return vs Industry: VBTX underperformed the US Banks industry which returned -26.9% over the past year.
Return vs Market: VBTX underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| VBTX | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.0% | 6.0% | 7.2% |
| 30 Day | -40.4% | -24.0% | -12.6% |
| 90 Day | -50.8% | -38.0% | -19.4% |
| 1 Year | -40.9%-42.1% | -24.1%-26.4% | -8.5%-10.4% |
| 3 Year | -46.7%-48.0% | -15.8%-21.9% | 15.8%8.3% |
| 5 Year | 5.1%2.4% | 13.2%0.2% | 35.8%21.0% |
Price Volatility Vs. Market
How volatile is Veritex Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Does Veritex Holdings, Inc. (NASDAQ:VBTX) Have A Volatile Share Price?2 weeks ago | Simply Wall St
How Does Veritex Holdings's (NASDAQ:VBTX) P/E Compare To Its Industry, After The Share Price Drop?3 weeks ago | Simply Wall St
Veritex Holdings, Inc. (NASDAQ:VBTX) Insiders Increased Their HoldingsValuation
Is Veritex Holdings undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VBTX ($14.2) is trading below our estimate of fair value ($34.26)
Significantly Below Fair Value: VBTX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VBTX is good value based on its PE Ratio (8.3x) compared to the Banks industry average (8.8x).
PE vs Market: VBTX is good value based on its PE Ratio (8.3x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: VBTX is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: VBTX is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is Veritex Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
8.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VBTX's forecast earnings growth (8.6% per year) is above the savings rate (1.7%).
Earnings vs Market: VBTX's earnings (8.6% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: VBTX's earnings are forecast to grow, but not significantly.
Revenue vs Market: VBTX's revenue (0.7% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: VBTX's revenue (0.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VBTX's Return on Equity is forecast to be low in 3 years time (9.1%).
Next Steps
Past Performance
How has Veritex Holdings performed over the past 5 years?
51.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VBTX has a large one-off loss of $39.0M impacting its December 31 2019 financial results.
Growing Profit Margin: VBTX's current net profit margins (30.9%) are lower than last year (32.9%).
Past Earnings Growth Analysis
Earnings Trend: VBTX's earnings have grown significantly by 51.8% per year over the past 5 years.
Accelerating Growth: VBTX's earnings growth over the past year (130.6%) exceeds its 5-year average (51.8% per year).
Earnings vs Industry: VBTX earnings growth over the past year (130.6%) exceeded the Banks industry 11%.
Return on Equity
High ROE: VBTX's Return on Equity (7.6%) is considered low.
Next Steps
Financial Health
How is Veritex 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: VBTX has a low level of unsold assets or inventory.
Debt Coverage by Assets: VBTX's debt is not covered by short term assets (assets are 0.3x debt).
Financial Institutions Analysis
Asset Level: VBTX's level of assets compared to its equity is low.
Allowance for Bad Loans: VBTX has a low allowance for bad loans.
Low Risk Liabilities: VBTX's liabilities are made up of primarily low risk sources of funding.
Loan Level: VBTX has an acceptable proportion of non-loan assets held.
Low Risk Deposits: VBTX's loans are broadly funded by customer deposits.
Level of Bad Loans: VBTX has an appropriate level of bad loans (0.56%)
Next Steps
Dividend
What is Veritex Holdings's current dividend yield, its reliability and sustainability?
4.74%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VBTX's dividend (4.79%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: VBTX's dividend (4.79%) is low compared to the top 25% of dividend payers in the US market (5.49%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether VBTX's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if VBTX's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.3%), VBTX's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VBTX's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.2yrs
Average management tenure
CEO
Charles Holland (59yo)
11.17s
Tenure
US$1,023,102
Compensation
Mr. Charles Malcolm Holland, III, has been the Chairman, President and Chief Executive Officer at Veritex Holdings, Inc. since 2009. Mr. Holland has been the Chairman of the Board, Chief Executive Officer ...
CEO Compensation Analysis
Compensation vs Market: Charles's total compensation ($USD1.02M) is below average for companies of similar size in the US market ($USD3.18M).
Compensation vs Earnings: Charles's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 11.17yrs | US$1.02m | 0.37% $2.7m | |
| Executive Vice President | 10.17yrs | US$373.25k | 0.051% $372.5k | |
| Executive Vice President | no data | US$550.24k | 0.12% $859.9k | |
| Executive Vice President | no data | US$493.00k | 0.042% $302.3k | |
| Executive VP & CFO | 1.17yrs | no data | 0.092% $668.5k | |
| Executive Assistant & Shareholder Relations | no data | no data | no data | |
| Executive Vice President | 11.17yrs | no data | 0.070% $504.2k | |
| Executive Vice President | 3.17yrs | no data | 0.028% $201.2k | |
| President of Veritex Mortgage | no data | no data | no data |
10.2yrs
Average Tenure
58yo
Average Age
Experienced Management: VBTX's management team is seasoned and experienced (10.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 11.17yrs | US$1.02m | 0.37% $2.7m | |
| Independent Director | 2.83yrs | US$87.20k | 0.019% $136.0k | |
| Independent Director | 1.17yrs | no data | 1.02% $7.4m | |
| Independent Director | 2.83yrs | US$83.45k | 0.020% $143.4k | |
| Independent Director | 1.17yrs | no data | 0.051% $368.9k | |
| Independent Director | 9yrs | US$83.45k | 0.31% $2.3m | |
| Independent Director | 1.17yrs | no data | 0.94% $6.8m | |
| Independent Director | 11.17yrs | US$82.20k | 0.11% $761.0k | |
| Independent Director | 11.17yrs | US$84.70k | 0.21% $1.6m |
2.8yrs
Average Tenure
59yo
Average Age
Experienced Board: VBTX's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VBTX insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 119.9%.
Top Shareholders
Company Information
Veritex Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Veritex Holdings, Inc.
- Ticker: VBTX
- Exchange: NasdaqGM
- Founded: 2009
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$724.128m
- Shares outstanding: 50.50m
- Website: https://www.veritexbank.com
Number of Employees
Location
- Veritex Holdings, Inc.
- 8214 Westchester Drive
- Suite 800
- Dallas
- Texas
- 75225
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VBTX | NasdaqGM (Nasdaq Global Market) | Yes | Common Stock | US | USD | Oct 2014 |
| 47Y | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 2014 |
Biography
Veritex Holdings, Inc. operates as the holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company’s deposit products include checking, demand, savings, money market, and time deposit accounts, as well as commercial deposit and financial institution money market accounts. Its loan portfolio consists of commercial real estate and general commercial loans, residential real estate loans, construction and land loans, farmland loans, and consumer loans. The company also provides a range of online banking solutions, such as access to account balances, online transfers, online bill payment and electronic delivery of customer statements, and ATMs, as well as banking through telephone, mail, and personal appointment. In addition, it offers debit cards, night depository services, direct deposits, cashier's checks, and letters of credit; treasury management services, including balance reporting, transfers between accounts, wire transfer initiation, automated clearinghouse origination, and stop payments; and cash management deposit products consisting of lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts. As of December 31, 2018, the company had 20 branches and 1 mortgage office located in the Dallas-Fort Worth metroplex, as well as 1 branch in the Houston metropolitan area. Veritex Holdings, Inc. was founded in 2009 and is headquartered in Dallas, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 03:29 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.