NasdaqGM:VBTX

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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

Flawless balance sheet with solid track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.7%

VBTX

3.9%

US Banks

2.5%

US Market


1 Year Return

-21.9%

VBTX

-20.0%

US Banks

16.3%

US Market

Return vs Industry: VBTX matched the US Banks industry which returned -22.3% over the past year.

Return vs Market: VBTX underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

VBTXIndustryMarket
7 Day9.7%3.9%2.5%
30 Day13.6%9.5%5.6%
90 Day10.3%7.2%16.4%
1 Year-19.4%-21.9%-17.2%-20.0%18.8%16.3%
3 Year-25.1%-28.4%-9.1%-16.4%45.1%35.7%
5 Year19.6%14.3%13.9%0.02%75.8%56.8%

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

Valuation

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

11.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VBTX ($18.35) is trading above our estimate of fair value ($17.99)

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 (11.1x) compared to the US Banks industry average (9.7x).

PE vs Market: VBTX is good value based on its PE Ratio (11.1x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: VBTX is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: VBTX's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VBTX's forecast earnings growth (14.3% per year) is above the savings rate (2.2%).

Earnings vs Market: VBTX's earnings (14.3% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: VBTX's revenue (3.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: VBTX's revenue (3.1% 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 (7.7%).


Next Steps

Past Performance

How has Veritex Holdings performed over the past 5 years?

51.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VBTX has high quality earnings.

Growing Profit Margin: VBTX's current net profit margins (33.8%) are higher than last year (25.3%).


Past Earnings Growth Analysis

Earnings Trend: VBTX's earnings have grown significantly by 51.4% per year over the past 5 years.

Accelerating Growth: VBTX's earnings growth over the past year (58.9%) exceeds its 5-year average (51.4% per year).

Earnings vs Industry: VBTX earnings growth over the past year (58.9%) exceeded the Banks industry -2.8%.


Return on Equity

High ROE: VBTX's Return on Equity (7.3%) 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 (7.4x) is low.

Allowance for Bad Loans: VBTX has a sufficient allowance for bad loans (253%).

Low Risk Liabilities: 83% 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 (105%) is appropriate.

Level of Bad Loans: VBTX has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

3.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VBTX's dividend (3.71%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: VBTX's dividend (3.71%) is low compared to the top 25% of dividend payers in the US market (4.45%).


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 (35.7%), 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 (36% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Charles Holland (60 yo)

11.58yrs

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 ($USD3.91M) is about average for companies of similar size in the US market ($USD3.05M).

Compensation vs Earnings: Charles's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Holland
Chairman11.58yrsUS$3.91m0.32%
$ 2.9m
Terry Earley
Senior Executive VP & CFO1.58yrsUS$2.47m0.094%
$ 855.6k
Jeffrey Kesler
Senior Executive Vice Presidentno dataUS$1.74m0.10%
$ 917.0k
Michael Riebe
Senior Executive Vice Presidentno dataUS$1.57m0.042%
$ 386.8k
Jonathan Heine
Senior Executive Vice President1.25yrsUS$1.43mno data
Susan Caudle
Executive Assistant & Shareholder Relationsno datano datano data
LaVonda Renfro
Senior Executive Vice President10.58yrsUS$373.25k0.052%
$ 476.8k
Angela Harper
Senior Executive Vice President11.58yrsno data0.071%
$ 645.4k
Michael Bryan
Senior Executive Vice President3.58yrsno data0.028%
$ 257.5k
Jack Dunn
President of Veritex Mortgageno datano datano data

7.1yrs

Average Tenure

59yo

Average Age

Experienced Management: VBTX's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Holland
Chairman11.58yrsUS$3.91m0.32%
$ 2.9m
Ned Fleming
Independent Director3.25yrsUS$127.89k0.024%
$ 218.6k
Manuel Mehos
Independent Director1.58yrsUS$126.64k1.04%
$ 9.5m
Gregory Morrison
Independent Director3.25yrsUS$120.39k0.026%
$ 236.8k
Steven Lerner
Independent Director1.58yrsUS$129.14k0.054%
$ 495.8k
Patrick Bolin
Independent Director9.42yrsUS$122.89k0.029%
$ 262.6k
William Ellis
Independent Director1.58yrsUS$120.39k0.40%
$ 3.7m
John Sughrue
Independent Director11.58yrsUS$129.14k0.11%
$ 1.0m
Blake Bozman
Director0.25yrUS$82.20k0.16%
$ 1.4m
Mark Griege
Lead Independent Directorno dataUS$146.64k0.22%
$ 2.0m
Gordon Huddleston
Director0.25yrUS$83.45k0.041%
$ 377.8k
April Box
Director0.25yrUS$77.20k0.016%
$ 142.9k

1.6yrs

Average Tenure

60yo

Average Age

Experienced Board: VBTX's board of directors are not considered experienced ( 1.6 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 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$911.029m
  • Shares outstanding: 49.65m
  • Website: https://www.veritexbank.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VBTXNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2014
47YDB (Deutsche Boerse AG)YesCommon StockDEEUROct 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 23:51
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
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.