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Veritex Holdings

Nasdaq:VBTX
Snowflake Description

High growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VBTX
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

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 last earnings update was 47 days ago. More info.


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VBTX Share Price and Events
7 Day Returns
-2.2%
NasdaqGM:VBTX
0.3%
US Banks
1.4%
US Market
1 Year Returns
-17.9%
NasdaqGM:VBTX
-6.8%
US Banks
4.9%
US Market
VBTX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Veritex Holdings (VBTX) -2.2% -2.9% 4.5% -17.9% 59.4% -
US Banks 0.3% -0.2% 3.6% -6.8% 55.8% 40%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • VBTX underperformed the Banks industry which returned -6.8% over the past year.
  • VBTX underperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
VBTX
Industry
5yr Volatility vs Market

Value

 Is Veritex Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Veritex Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Veritex Holdings.

NasdaqGM:VBTX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity
= $24.25 * 10.9%
$2.65
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. $24.25
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:VBTX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.59 (1 + (1- 21%) (25.04%))
0.803
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.803 * 5.96%)
7.52%

Discounted Cash Flow Calculation for NasdaqGM:VBTX using Excess Returns Model Model

The calculations below outline how an intrinsic value for Veritex Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGM:VBTX Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.9% – 7.52%) * $24.25)
$0.82
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.82 / (7.52% - 2.73%)
$17.18
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $24.25 + $17.18
$41.43
NasdaqGM:VBTX Discount to Share Price
Calculation Result
Value per share (USD) From above. $41.43
Current discount Discount to share price of $25.48
= -1 x ($25.48 - $41.43) / $41.43
38.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Veritex Holdings is available for.
Intrinsic value
38%
Share price is $25.48 vs Future cash flow value of $41.43
Current Discount Checks
For Veritex Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Veritex Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Veritex Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Veritex Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Veritex Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:VBTX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.15
NasdaqGM:VBTX Share Price ** NasdaqGM (2019-06-25) in USD $25.48
United States of America Banks Industry PE Ratio Median Figure of 600 Publicly-Listed Banks Companies 12.59x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Veritex Holdings.

NasdaqGM:VBTX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:VBTX Share Price ÷ EPS (both in USD)

= 25.48 ÷ 1.15

22.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Veritex Holdings is overvalued based on earnings compared to the US Banks industry average.
  • Veritex Holdings is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Veritex Holdings's expected growth come at a high price?
Raw Data
NasdaqGM:VBTX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.22x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
50.1%per year
United States of America Banks Industry PEG Ratio Median Figure of 271 Publicly-Listed Banks Companies 1.33x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGM:VBTX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.22x ÷ 50.1%

0.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Veritex Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Veritex Holdings's assets?
Raw Data
NasdaqGM:VBTX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $22.01
NasdaqGM:VBTX Share Price * NasdaqGM (2019-06-25) in USD $25.48
United States of America Banks Industry PB Ratio Median Figure of 603 Publicly-Listed Banks Companies 1.18x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NasdaqGM:VBTX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:VBTX Share Price ÷ Book Value per Share (both in USD)

= 25.48 ÷ 22.01

1.16x

* Primary Listing of Veritex Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Veritex Holdings is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess Veritex Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Veritex Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Veritex Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
50.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Veritex Holdings expected to grow at an attractive rate?
  • Veritex Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Veritex Holdings's earnings growth is expected to exceed the United States of America market average.
  • Veritex Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:VBTX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:VBTX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 50.1%
NasdaqGM:VBTX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 21.3%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.8%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:VBTX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:VBTX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 352 147 6
2019-12-31 331 110 6
NasdaqGM:VBTX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 165 55 36
2018-12-31 119 50 39
2018-09-30 114 49 33
2018-06-30 106 44 29
2018-03-31 90 25 22
2017-12-31 71 27 15
2017-09-30 57 19 15
2017-06-30 49 16 13
2017-03-31 47 23 13
2016-12-31 45 11 13
2016-09-30 43 10 12
2016-06-30 41 14 11

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Veritex Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Veritex Holdings's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:VBTX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Veritex Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:VBTX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.69 2.73 2.63 6.00
2019-12-31 1.99 2.10 1.89 6.00
NasdaqGM:VBTX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.15
2018-12-31 1.63
2018-09-30 1.37
2018-06-30 1.27
2018-03-31 1.09
2017-12-31 0.82
2017-09-30 0.97
2017-06-30 1.01
2017-03-31 1.07
2016-12-31 1.16
2016-09-30 1.11
2016-06-30 1.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Veritex Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Veritex Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Veritex Holdings has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Veritex Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Veritex Holdings's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Veritex Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Veritex Holdings's 1-year earnings growth exceeds its 5-year average (62.3% vs 43.6%)
  • Veritex Holdings's earnings growth has exceeded the US Banks industry average in the past year (62.3% vs 40.7%).
Earnings and Revenue History
Veritex Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Veritex Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:VBTX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 164.67 36.36 68.44
2018-12-31 119.49 39.34 54.05
2018-09-30 114.06 32.77 52.87
2018-06-30 105.79 28.98 49.06
2018-03-31 90.28 22.40 42.31
2017-12-31 70.97 15.11 33.66
2017-09-30 57.36 15.04 28.19
2017-06-30 49.17 13.28 25.20
2017-03-31 47.09 12.84 24.26
2016-12-31 45.41 12.55 23.35
2016-09-30 43.11 11.90 22.34
2016-06-30 40.60 11.04 21.21
2016-03-31 37.00 9.70 19.90
2015-12-31 34.30 8.69 19.04
2015-09-30 31.85 7.83 18.38
2015-06-30 29.10 6.65 17.67
2015-03-31 27.92 5.99 17.30
2014-12-31 26.41 5.13 16.71
2014-09-30 24.97 4.43 16.33
2014-06-30 23.55 4.05 15.27
2014-03-31 22.56 3.69 14.77
2013-12-31 21.55 3.35 14.50
2012-12-31 17.79 1.38 14.44

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Veritex Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Veritex Holdings used its assets less efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Veritex Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Veritex Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Veritex Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Veritex Holdings's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Veritex Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Veritex Holdings Company Filings, last reported 2 months ago.

NasdaqGM:VBTX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,193.71 328.48 342.57
2018-12-31 530.64 44.71 19.65
2018-09-30 517.21 89.75 261.79
2018-06-30 508.44 124.78 146.74
2018-03-31 497.43 64.82 195.19
2017-12-31 488.93 102.85 84.74
2017-09-30 445.93 54.89 151.38
2017-06-30 247.60 46.27 173.15
2017-03-31 242.73 46.31 285.74
2016-12-31 239.09 46.34 208.39
2016-09-30 142.42 46.42 178.59
2016-06-30 138.85 46.45 127.24
2016-03-31 135.24 46.49 92.38
2015-12-31 132.05 36.47 43.45
2015-09-30 137.51 26.55 123.51
2015-06-30 117.09 35.08 63.27
2015-03-31 115.13 23.07 85.54
2014-12-31 113.31 48.07 69.89
2014-09-30 75.60 23.07 67.73
2014-06-30 74.24 23.07 66.55
2014-03-31 72.71 23.07 72.16
2013-12-31 66.24 23.07 61.32
2012-12-31 61.86 13.09 40.24
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Veritex Holdings has an acceptable proportion of non-loan assets held.
  • Veritex Holdings's liabilities are made up of primarily low risk sources of funding.
  • Loans at Veritex Holdings are broadly funded by customer deposits.
  • Veritex Holdings's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Veritex Holdings has a low allowance for bad loans.
  • Veritex Holdings has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Veritex Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Veritex Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.96%
Current annual income from Veritex Holdings dividends. Estimated to be 2.08% next year.
If you bought $2,000 of Veritex Holdings shares you are expected to receive $39 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Veritex Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Veritex Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:VBTX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 479 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:VBTX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.55 5.00
2019-12-31 0.51 5.00
NasdaqGM:VBTX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-28 0.500 1.918

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Veritex Holdings has stable dividend payments.
  • Veritex Holdings only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Veritex Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (9.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Veritex Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Veritex Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Veritex Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Charles Holland
COMPENSATION $1,023,102
AGE 58
TENURE AS CEO 10.4 years
CEO Bio

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 and President at Veritex Community Bank (formerly Veritex Community Bank, National Association) since 2010. He founded Vertiex Holdings in October 2009.From 2003 to 2009, he served as the Chief Executive Officer for the Texas Region of Colonial Bank. He served as an Executive Vice President and Head of Commercial Lending for Fidelity Bank of Dallas from 1995 to 1998. He began his career in 1982 as a Credit Analyst and Commercial Lender at First City Bank. In 1984, he joined Capital Bank as a Vice President of Commercial Lending. From 1985 to 1998, he was an Organizer and Executive Vice President of EastPark National Bank, a de novo bank that opened in 1986. Fidelity Bank purchased EastPark in 1995 and he became Executive Vice President and Head of Commercial Lending. From 1998 to 2000, he served as Senior Vice President and Head of Business Banking for Compass Bank. From July 2000 to 2002, he served as the President of First Mercantile Bank, which was later acquired by Colonial Bank. He served as the Chief Executive Officer of the Texas Region for Colonial Bank since Mach 2003. He has been a Director of Veritex Holdings, Inc. and Veritex Community Bank since 2009. He served as an Outside Director of SRS Real Estate Partners since December 2009. He served as the President of the Texas Golf Association and has been one of 15 Members of the Executive Committee of the United States Golf Association since 2013. He has served as the Chairman of the College Golf Fellowship since 2002. He is an Active Member and Chairman of The Business Advisory Committee of Watermark Community Church. Mr. Holland received his Bachelor of Business Administration from Southern Methodist University in 1982.

CEO Compensation
  • Charles's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Charles's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Veritex Holdings management team in years:

9.4
Average Tenure
57
Average Age
  • The average tenure for the Veritex Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Charles Holland

TITLE
Chairman
COMPENSATION
$1M
AGE
58
TENURE
10.4 yrs

LaVonda Renfro

TITLE
Executive Vice President
COMPENSATION
$373K
AGE
57
TENURE
9.4 yrs

Jeff Kesler

TITLE
Executive Vice President
COMPENSATION
$550K
AGE
40

Clay Riebe

TITLE
Executive Vice President
COMPENSATION
$493K
AGE
57

Terry Earley

TITLE
Executive VP & CFO
AGE
59
TENURE
0.4 yrs

Susan Caudle

TITLE
Executive Assistant & Shareholder Relations

Angela Harper

TITLE
Executive Vice President
AGE
49
TENURE
10.4 yrs

Michael Bryan

TITLE
Executive Vice President
AGE
61
TENURE
2.4 yrs

Jack Dunn

TITLE
President of Veritex Mortgage
Board of Directors Tenure

Average tenure and age of the Veritex Holdings board of directors in years:

2.1
Average Tenure
58
Average Age
  • The average tenure for the Veritex Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Sughrue

TITLE
Director
COMPENSATION
$82K
AGE
57
TENURE
10.4 yrs

Charles Holland

TITLE
Chairman
COMPENSATION
$1M
AGE
58
TENURE
10.4 yrs

Steve Lerner

TITLE
Director
AGE
64
TENURE
0.4 yrs

Ned Fleming

TITLE
Director
COMPENSATION
$87K
AGE
58
TENURE
2.1 yrs

Mark Griege

TITLE
Director
COMPENSATION
$85K
AGE
59
TENURE
10.4 yrs

Pat Bolin

TITLE
Director
COMPENSATION
$83K
AGE
67
TENURE
8.3 yrs

Greg Morrison

TITLE
Director
COMPENSATION
$83K
AGE
58
TENURE
2.1 yrs

Manny Mehos

TITLE
Director
AGE
64
TENURE
0.4 yrs

Don Ellis

TITLE
Director
AGE
55
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Veritex Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. May 19 Buy Anasazi Capital, LP Company 13. May 19 13. May 19 14,771 $25.82 $381,338
13. May 19 Buy Patrick Bolin Individual 13. May 19 13. May 19 4,000 $25.74 $102,960
26. Apr 19 Buy Anasazi Capital, LP Company 26. Apr 19 26. Apr 19 10,000 $26.68 $266,784
25. Apr 19 Buy Terry Earley Individual 25. Apr 19 25. Apr 19 6,800 $25.88 $176,013
25. Apr 19 Buy Gordon Huddleston Individual 25. Apr 19 25. Apr 19 1,000 $25.82 $25,824
01. Apr 19 Buy John Sughrue Individual 14. Mar 19 14. Mar 19 601 $26.06 $15,657
15. Mar 19 Buy Mark Griege Individual 13. Mar 19 13. Mar 19 25,000 $26.00 $650,000
04. Feb 19 Buy Ned Fleming Individual 31. Jan 19 31. Jan 19 1,500 $25.83 $38,740
04. Feb 19 Buy Gordon Huddleston Individual 31. Jan 19 31. Jan 19 1,000 $26.04 $26,036
X
Management checks
We assess Veritex Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Veritex Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Now An Opportune Moment To Examine Veritex Holdings, Inc. (NASDAQ:VBTX)?

This is because Veritex Holdings’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy VBTX.

Simply Wall St -

Here's Why We Think Veritex Holdings (NASDAQ:VBTX) Is Well Worth Watching

So if you're like me, you might be more interested in profitable, growing companies, like Veritex Holdings (NASDAQ:VBTX). … It's a pleasure to note that insiders spent US$1.0m buying Veritex Holdings shares, over the last year, without reporting any share sales whatsoever. … So if you like the sound of Veritex Holdings, you'll probably love this free list of growing companies that insiders are buying.

Simply Wall St -

Why Veritex Holdings, Inc.'s (NASDAQ:VBTX) High P/E Ratio Isn't Necessarily A Bad Thing

We'll look at Veritex Holdings, Inc.'s (NASDAQ:VBTX) P/E ratio and reflect on what it tells us about the company's share price. … Veritex Holdings has a price to earnings ratio of 23.33, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Who Has Been Selling Veritex Holdings, Inc. (NASDAQ:VBTX) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … So we know that an insider sold shares at around the present share price of US$25.91. … We generally don't like to see insider selling, but the lower the sale price, the more it concerns us.

Simply Wall St -

Have You Considered These Key Risks For Veritex Holdings, Inc. (NASDAQ:VBTX)?

As a small-cap bank with a market capitalisation of US$1.4b, Veritex Holdings, Inc.’s (NASDAQ:VBTX) profit and value are directly affected by economic growth. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Veritex Holdings’s bottom line. … See our latest analysis for Veritex Holdings

Simply Wall St -

Understated Factors To Consider Before Investing In Veritex Holdings, Inc. (NASDAQ:VBTX)

Veritex Holdings, Inc.’s (NASDAQ:VBTX) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$1.3b. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like Veritex Holdings to vulnerabilities. … High liquidity and low leverage could position Veritex Holdings favourably at the face of macro headwinds.

Simply Wall St -

What Kind Of Shareholder Appears On The Veritex Holdings, Inc.'s (NASDAQ:VBTX) Shareholder Register?

The big shareholder groups in Veritex Holdings, Inc. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned.

Simply Wall St -

How Veritex Holdings, Inc. (NASDAQ:VBTX) Can Impact Your Portfolio Volatility

(NASDAQ:VBTX), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Is Now The Time To Look At Buying Veritex Holdings, Inc. (NASDAQ:VBTX)?

saw a significant share price rise of over 20% in the past couple of months on the NASDAQGM. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Veritex Holdings’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

Read This Before Buying Veritex Holdings, Inc. (NASDAQ:VBTX) For Its Dividend

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Let's take a look at Veritex Holdings in more detail. … View our latest analysis for Veritex Holdings

Simply Wall St -

Company Info

Description

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.

Details
Name: Veritex Holdings, Inc.
VBTX
Exchange: NasdaqGM
Founded: 2009
$1,382,673,015
54,265,032
Website: http://www.veritexbank.com
Address: Veritex Holdings, Inc.
8214 Westchester Drive,
Suite 800,
Dallas,
Texas, 75225,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM VBTX Common Stock Nasdaq Global Market US USD 10. Oct 2014
Number of employees
Current staff
Staff numbers
329
Veritex Holdings employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 00:58
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.