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VBTX

Veritex HoldingsNasdaqGM:VBTX Stock Report

Market Cap

US$2.0b

7D

-0.9%

1Y

98.2%

Updated

16 Oct, 2021

Data

Company Financials +
VBTX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends3/6

VBTX Overview

Veritex Holdings, Inc. operates as the bank holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals.

Veritex Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Veritex Holdings
Historical stock prices
Current Share PriceUS$40.14
52 Week HighUS$18.08
52 Week LowUS$41.22
Beta1.65
1 Month Change14.07%
3 Month Change23.13%
1 Year Change98.22%
3 Year Change57.41%
5 Year Change125.76%
Change since IPO169.58%

Recent News & Updates

Aug 19

Veritex Holdings: A Solid Bank For A Long-Term Buy And Hold Portfolio

Credit continues to perform well, supporting the thesis of a limited provision expense going forward. Core operating and profitability metrics should continue to improve. Tangible book value per share growth should continue to exceed the national average.

Jul 05
I Ran A Stock Scan For Earnings Growth And Veritex Holdings (NASDAQ:VBTX) Passed With Ease

I Ran A Stock Scan For Earnings Growth And Veritex Holdings (NASDAQ:VBTX) Passed With Ease

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

VBTXUS BanksUS Market
7D-0.9%0.2%2.0%
1Y98.2%74.9%27.6%

Return vs Industry: VBTX exceeded the US Banks industry which returned 74.7% over the past year.

Return vs Market: VBTX exceeded the US Market which returned 27.6% over the past year.

Price Volatility

Is VBTX's price volatile compared to industry and market?
VBTX volatility
VBTX Beta1.65
Industry Beta1.33
Market Beta1

Stable Share Price: VBTX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VBTX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009640Charles Hollandhttps://www.veritexbank.com

Veritex Holdings, Inc. operates as the bank holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company accepts deposit products include demand, savings, money market, and time accounts. Its loan products include commercial, mortgage warehouse, commercial real estate, construction and land, 1-4 family residential, paycheck protection program, farmland and agricultural, multi-family residential, and consumer loans; and purchased receivables financing.

Veritex Holdings Fundamentals Summary

How do Veritex Holdings's earnings and revenue compare to its market cap?
VBTX fundamental statistics
Market CapUS$1.98b
Earnings (TTM)US$106.96m
Revenue (TTM)US$299.79m

18.5x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VBTX income statement (TTM)
RevenueUS$299.79m
Cost of RevenueUS$0
Gross ProfitUS$299.79m
ExpensesUS$192.83m
EarningsUS$106.96m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)2.17
Gross Margin100.00%
Net Profit Margin35.68%
Debt/Equity Ratio82.0%

How did VBTX perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

33%

Payout Ratio

Valuation

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

31.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VBTX ($40.14) is trading below our estimate of fair value ($58.62)

Significantly Below Fair Value: VBTX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VBTX is poor value based on its PE Ratio (18.5x) compared to the US Banks industry average (11.3x).

PE vs Market: VBTX is poor value based on its PE Ratio (18.5x) compared to the US market (18.2x).


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 (1.6x) compared to the US Banks industry average (1.1x).


Future Growth

How is Veritex Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VBTX's forecast earnings growth (14.7% per year) is above the savings rate (2%).

Earnings vs Market: VBTX's earnings (14.7% per year) are forecast to grow slower than the US market (15.1% per year).

High Growth Earnings: VBTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: VBTX's revenue (13% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: VBTX's revenue (13% 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 (11.3%).


Past Performance

How has Veritex Holdings performed over the past 5 years?

43.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VBTX has high quality earnings.

Growing Profit Margin: VBTX's current net profit margins (35.7%) are higher than last year (33.8%).


Past Earnings Growth Analysis

Earnings Trend: VBTX's earnings have grown significantly by 43.8% per year over the past 5 years.

Accelerating Growth: VBTX's earnings growth over the past year (26.4%) is below its 5-year average (43.8% per year).

Earnings vs Industry: VBTX earnings growth over the past year (26.4%) underperformed the Banks industry 36%.


Return on Equity

High ROE: VBTX's Return on Equity (8.4%) is considered low.


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 (129%).

Low Risk Liabilities: 86% 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 (75%).

Low Risk Deposits: VBTX's Loans to Deposits ratio (101%) is appropriate.

Level of Bad Loans: VBTX has an appropriate level of bad loans (1.1%).


Dividend

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

1.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VBTX's dividend (1.99%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: VBTX's dividend (1.99%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.9%), 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 (27% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Charles Holland (61 yo)

12.75yrs

Tenure

US$3,489,504

Compensation

Mr. Charles Malcolm Holland, III, has been the Chairman, President and Chief Executive Officer at Veritex Holdings, Inc. since 2009. Mr. Holland is the Founder of Veritex Holdings, Inc. He has been a Direc...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD3.49M) is about average for companies of similar size in the US market ($USD3.56M).

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


Leadership Team

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


Board Members

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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Veritex Holdings, Inc.'s 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$1.979b
  • Shares outstanding: 49.30m
  • Website: https://www.veritexbank.com

Number of Employees


Location

  • Veritex Holdings, Inc.
  • 8214 Westchester Drive
  • Suite 800
  • Dallas
  • Texas
  • 75225
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 22:31
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.