Veritex Holdings
Market Cap
US$1.4b
Last Updated
2021/02/27 00:49 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet second-rate dividend payer.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: VBTX's weekly volatility has decreased from 10% to 5% over the past year.
Market Performance
7 Day Return
0.07%
VBTX
-0.2%
US Banks
-4.6%
US Market
1 Year Return
20.8%
VBTX
19.8%
US Banks
38.5%
US Market
Return vs Industry: VBTX exceeded the US Banks industry which returned 12.4% over the past year.
Return vs Market: VBTX underperformed the US Market which returned 34.1% over the past year.
Shareholder returns
| VBTX | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.07% | -0.2% | -4.6% |
| 30 Day | 13.3% | 15.4% | 0.6% |
| 90 Day | 29.4% | 22.3% | 1.9% |
| 1 Year | 25.1%20.8% | 24.2%19.8% | 41.5%38.5% |
| 3 Year | 10.0%3.6% | 11.6%2.0% | 56.7%46.7% |
| 5 Year | 123.6%110.4% | 91.3%67.0% | 123.5%98.6% |
Long-Term 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
3 weeks ago | Simply Wall St
Insider Buying: The Veritex Holdings, Inc. (NASDAQ:VBTX) Independent Director Just Bought 3.8% More Shares3 weeks ago | Simply Wall St
How Much Of Veritex Holdings, Inc. (NASDAQ:VBTX) Do Institutions Own?1 month ago | Simply Wall St
Are Insiders Buying Veritex Holdings, Inc. (NASDAQ:VBTX) Stock?Valuation
Is Veritex Holdings undervalued compared to its fair value and its price relative to the market?
19.63x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: VBTX ($30.03) is trading above our estimate of fair value ($28.98)
Significantly Below Fair Value: VBTX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: VBTX is poor value based on its PE Ratio (20.3x) compared to the US Banks industry average (12.4x).
PE vs Market: VBTX is good value based on its PE Ratio (20.3x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: VBTX is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: VBTX is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1x).
Next Steps
Future Growth
How is Veritex Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
15.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VBTX's forecast earnings growth (15.4% per year) is above the savings rate (2%).
Earnings vs Market: VBTX's earnings (15.4% per year) are forecast to grow slower than the US market (20.4% per year).
High Growth Earnings: VBTX's earnings are forecast to grow, but not significantly.
Revenue vs Market: VBTX's revenue (11.1% per year) is forecast to grow faster than the US market (10.5% per year).
High Growth Revenue: VBTX's revenue (11.1% 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 (8%).
Next Steps
Past Performance
How has Veritex Holdings performed over the past 5 years?
46.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VBTX has high quality earnings.
Growing Profit Margin: VBTX's current net profit margins (29.9%) are lower than last year (30.9%).
Past Earnings Growth Analysis
Earnings Trend: VBTX's earnings have grown significantly by 46.4% per year over the past 5 years.
Accelerating Growth: VBTX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: VBTX had negative earnings growth (-18.5%) over the past year, making it difficult to compare to the Banks industry average (0.5%).
Return on Equity
High ROE: VBTX's Return on Equity (6.1%) 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
Financial Institutions Analysis
Asset Level: VBTX's Assets to Equity ratio (7.3x) is low.
Allowance for Bad Loans: VBTX has a sufficient allowance for bad loans (134%).
Low Risk Liabilities: 85% of VBTX's liabilities are made up of primarily low risk sources of funding.
Loan Level: VBTX has an appropriate level of Loans to Assets ratio (76%).
Low Risk Deposits: VBTX's Loans to Deposits ratio (103%) is appropriate.
Level of Bad Loans: VBTX has an appropriate level of bad loans (1.3%).
Next Steps
Dividend
What is Veritex Holdings's current dividend yield, its reliability and sustainability?
2.34%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VBTX's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: VBTX's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.75%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, VBTX has been paying a dividend for less than 10 years.
Growing Dividend: VBTX's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.5%), 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 (33.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.6yrs
Average management tenure
CEO
Charles Holland (60 yo)
12.08yrs
Tenure
US$3,909,111
Compensation
Mr. Charles Malcolm Holland, III, has been the Chairman, President and Chief Executive Officer at Veritex Holdings, Inc. since 2009. Mr. Holland has been the Chairman of the Board, Chief Executive Officer ...
CEO Compensation Analysis
Compensation vs Market: Charles's total compensation ($USD3.91M) is about average for companies of similar size in the US market ($USD3.68M).
Compensation vs Earnings: Charles's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 12.08yrs | US$3.91m | 0.33% $ 4.8m | |
| Senior Executive VP & CFO | 2.08yrs | US$2.47m | 0.12% $ 1.7m | |
| Senior Executive Vice President | no data | US$1.74m | 0.11% $ 1.6m | |
| Senior Executive Vice President | no data | US$1.57m | 0.050% $ 715.1k | |
| Senior Executive Vice President | 1.75yrs | US$1.43m | 0.00057% $ 8.2k | |
| Executive Assistant & Shareholder Relations | no data | no data | no data | |
| Senior Executive Vice President | 11.08yrs | US$373.25k | 0.054% $ 780.0k | |
| Senior Executive Vice President | 12.08yrs | no data | 0.067% $ 959.7k | |
| Senior Executive Vice President | 4.08yrs | no data | 0.033% $ 476.2k | |
| President of Veritex Mortgage | no data | no data | no data |
7.6yrs
Average Tenure
59yo
Average Age
Experienced Management: VBTX's management team is seasoned and experienced (7.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 12.08yrs | US$3.91m | 0.33% $ 4.8m | |
| Independent Director | 3.75yrs | US$127.89k | 0.033% $ 474.9k | |
| Independent Director | 2.08yrs | US$126.64k | 1% $ 14.4m | |
| Independent Director | 3.75yrs | US$120.39k | 0.030% $ 432.0k | |
| Independent Director | 2.08yrs | US$129.14k | 0.057% $ 822.9k | |
| Independent Director | 9.92yrs | US$122.89k | 0.034% $ 482.8k | |
| Independent Director | 2.08yrs | US$120.39k | 0.40% $ 5.7m | |
| Independent Director | 12.08yrs | US$129.14k | 0.14% $ 2.0m | |
| Director | 0.75yr | US$82.20k | 0.16% $ 2.4m | |
| Lead Independent Director | no data | US$146.64k | 0.24% $ 3.4m | |
| Director | 0.75yr | US$83.45k | 0.045% $ 652.3k | |
| Director | 0.75yr | US$77.20k | 0.018% $ 263.9k |
2.1yrs
Average Tenure
60yo
Average Age
Experienced Board: VBTX's board of directors are not considered experienced ( 2.1 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 sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
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$1.435b
- Shares outstanding: 49.34m
- 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 Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/27 00:49 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.