NYSE:BXS

Stock Analysis Report

Executive Summary

BancorpSouth Bank provides commercial banking and financial services to individuals and small-to-medium size businesses.

Rewards

Trading at 34.3% below its fair value

Earnings are forecast to grow 4.66% per year

Earnings have grown 15.6% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has BancorpSouth Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BXS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

BXS

0.5%

US Banks

1.5%

US Market


1 Year Return

-9.0%

BXS

12.1%

US Banks

20.1%

US Market

Return vs Industry: BXS underperformed the US Banks industry which returned 12.1% over the past year.

Return vs Market: BXS underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

BXSIndustryMarket
7 Day0.2%0.5%1.5%
30 Day-5.4%-1.3%1.4%
90 Day-6.7%1.2%8.7%
1 Year-6.8%-9.0%15.4%12.1%22.7%20.1%
3 Year-1.4%-7.2%25.2%16.2%50.1%40.5%
5 Year44.8%32.0%75.9%55.9%73.1%54.1%

Price Volatility Vs. Market

How volatile is BancorpSouth Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BancorpSouth Bank undervalued compared to its fair value and its price relative to the market?

34.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BXS ($29.15) is trading below our estimate of fair value ($44.37)

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


Price To Earnings Ratio

PE vs Industry: BXS is poor value based on its PE Ratio (12.6x) compared to the Banks industry average (12.6x).

PE vs Market: BXS is good value based on its PE Ratio (12.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BXS is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: BXS is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is BancorpSouth Bank forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXS's forecast earnings growth (4.7% per year) is above the savings rate (1.7%).

Earnings vs Market: BXS's earnings (4.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: BXS's revenue (5.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BXS's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BXS's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has BancorpSouth Bank performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BXS has high quality earnings.

Growing Profit Margin: BXS's current net profit margins (25.2%) are lower than last year (26%).


Past Earnings Growth Analysis

Earnings Trend: BXS's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: BXS's earnings growth over the past year (5.8%) is below its 5-year average (15.6% per year).

Earnings vs Industry: BXS earnings growth over the past year (5.8%) underperformed the Banks industry 12.1%.


Return on Equity

High ROE: BXS's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BancorpSouth Bank'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: BXS has a low level of unsold assets or inventory.

Debt Coverage by Assets: BXS's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: BXS's level of assets compared to its equity is low.

Allowance for Bad Loans: BXS has a sufficient allowance for bad loans.

Low Risk Liabilities: BXS's liabilities are made up of primarily low risk sources of funding.

Loan Level: BXS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BXS's loans are broadly funded by customer deposits.

Level of Bad Loans: BXS has an appropriate level of bad loans (0.79%)


Next Steps

Dividend

What is BancorpSouth Bank's current dividend yield, its reliability and sustainability?

2.54%

Current Dividend Yield


Upcoming Dividend Payment

Purchase BancorpSouth Bank before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: BXS's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BXS's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: BXS's dividend payments have been volatile in the past 10 years.

Growing Dividend: BXS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.8%), BXS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BXS's dividends in 3 years are forecast to be well covered by earnings (33.1% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Dan Rollins (60yo)

7.3yrs

Tenure

US$3,704,937

Compensation

Mr. James D. Rollins, III, also known as Dan, has been Chief Executive Officer of BancorpSouth, Inc. since November 27, 2012. Mr. Rollins has been the Chief Executive Officer of BancorpSouth Bank since Nov ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD3.70M) is about average for companies of similar size in the US market ($USD4.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Rollins
Chairman & CEO7.3yrsUS$3.70m0.29% $8.8m
Chris Bagley
President & COO5.5yrsUS$1.78m0.19% $5.9m
John Copeland
Senior EVP2.8yrsUS$882.05k0.034% $1.0m
Cathy Freeman
Senior EVP0yrsUS$773.05k0.065% $2.0m
Charles Pignuolo
Senior EVP & General Counsel5.3yrsUS$956.53k0.065% $2.0m
Will Fisackerly
Senior VP & Director of Corporate Finance0yrsno datano data
Jeffrey Jaggers
Senior EVP & Chief Information Officer0yrsno datano data
Morgan Files
Head of Corporate Communications0yrsno datano data
Ty Warren
President of North-West Region4.2yrsno datano data
Michael Meyer
Senior EVP5.3yrsno data0.050% $1.5m

5.3yrs

Average Tenure

60yo

Average Age

Experienced Management: BXS's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Rollins
Chairman & CEO7.3yrsUS$3.70m0.29% $8.8m
Aubrey Patterson
Chairman Emeritus5.8yrsUS$33.66kno data
Larry Kirk
Independent Director24.1yrsUS$144.01k0.051% $1.6m
Alan Perry
Independent Director29.1yrsUS$136.00k0.10% $3.1m
Gus Blass
Independent Director16.1yrsUS$151.00k0.13% $4.1m
Warren Hood
Independent Director12.5yrsUS$131.50k0.025% $755.6k
Guy Mitchell
Lead Director2.8yrsUS$158.50k0.062% $1.9m
James Campbell
Independent Director28.1yrsUS$145.51k0.15% $4.6m
Deborah Cannon
Independent Director4.8yrsUS$151.00k0.011% $341.6k
Keith Jackson
Independent Director12.5yrsUS$138.01k0.026% $787.9k

12.5yrs

Average Tenure

68yo

Average Age

Experienced Board: BXS's board of directors are seasoned and experienced ( 12.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BXS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

BancorpSouth Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BancorpSouth Bank
  • Ticker: BXS
  • Exchange: NYSE
  • Founded: 1876
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.047b
  • Shares outstanding: 104.52m
  • Website: https://www.bancorpsouth.com

Number of Employees


Location

  • BancorpSouth Bank
  • One Mississippi Plaza
  • 201 South Spring Street
  • Tupelo
  • Mississippi
  • 38804
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BXSNYSE (New York Stock Exchange)YesNew Common StockUSUSDOct 1985
BXS.PRANYSE (New York Stock Exchange)5.5% NCUM PFD AUSUSDNov 2019

Biography

BancorpSouth Bank provides commercial banking and financial services to individuals and small-to-medium size businesses. It offers various deposit products, including interest and noninterest bearing demand deposits, and saving and other time deposits. The company also provides commercial loans, including term loans, lines of credit, equipment and receivable financing, and agricultural loans; a range of short-to-medium term secured and unsecured commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential subdivisions. In addition, it offers fixed and adjustable rate residential mortgage loans secured by owner-occupied property; residential construction loans; second mortgage loans; and home equity lines of credit, as well as non-residential consumer loans that consist of automobile, recreation vehicle, boat, personal, and deposit account secured loans, as well as issues credit cards. Further, the company operates as an agent for the sale of commercial lines of insurance; and a line of property and casualty, life, health, and employee benefits products and services. Additionally, it provides investment brokerage, and personal trust and estate services. As of April 25, 2018, the company operated through 279 full service branch locations, as well mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee, Texas, and Illinois. The company was formerly known as BancorpSouth, Inc. and changed its name to BancorpSouth Bank in October 2017. BancorpSouth Bank was founded in 1876 and is headquartered in Tupelo, Mississippi. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:59
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.