NYSE:CADE

Stock Analysis Report

Cadence Bancorporation

Executive Summary

Cadence Bancorporation, a financial holding company, through its subsidiary, Cadence Bank, National Association, provides commercial banking products and services to middle-market commercial businesses, high net worth individuals, business owners, and retail customers in the United States.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Cadence Bancorporation's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

CADE

-0.4%

US Banks

0.9%

US Market


1 Year Return

-20.4%

CADE

9.2%

US Banks

15.5%

US Market

Return vs Industry: CADE underperformed the US Banks industry which returned 9.2% over the past year.

Return vs Market: CADE underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

CADEIndustryMarket
7 Day-0.2%-0.4%0.9%
30 Day-7.3%6.7%4.7%
90 Day4.4%17.4%6.6%
1 Year-17.4%-20.4%12.4%9.2%18.1%15.5%
3 Yearn/a39.2%29.5%48.0%38.5%
5 Yearn/a71.5%52.5%62.1%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cadence Bancorporation undervalued compared to its fair value and its price relative to the market?

43.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CADE ($16.44) is trading below our estimate of fair value ($28.99)

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


Price To Earnings Ratio

PE vs Industry: CADE is good value based on its PE Ratio (10.6x) compared to the Banks industry average (12.6x).

PE vs Market: CADE is good value based on its PE Ratio (10.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CADE is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: CADE is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CADE's forecast earnings growth (11.8% per year) is above the savings rate (2.7%).

Earnings vs Market: CADE's earnings (11.8% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: CADE's revenue (2.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CADE's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CADE's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Cadence Bancorporation performed over the past 5 years?

31.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CADE has high quality earnings.

Growing Profit Margin: CADE's current net profit margins (29.4%) are lower than last year (31.5%).


Past Earnings Growth Analysis

Earnings Trend: CADE's earnings have grown significantly by 31.5% per year over the past 5 years.

Accelerating Growth: CADE's earnings growth over the past year (22.8%) is below its 5-year average (31.5% per year).

Earnings vs Industry: CADE earnings growth over the past year (22.8%) underperformed the Banks industry 27.5%.


Return on Equity

High ROE: CADE's Return on Equity (7.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cadence Bancorporation'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: CADE has a low level of unsold assets or inventory.

Debt Coverage by Assets: CADE's debt is covered by short term assets (assets are 3.7x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Cadence Bancorporation's current dividend yield, its reliability and sustainability?

4.26%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Cadence Bancorporation before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: CADE's dividend (4.26%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CADE's dividend (4.26%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CADE has been paying a dividend for less than 10 years.

Growing Dividend: CADE'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 (43.6%), CADE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CADE's dividends in 3 years are forecast to be well covered by earnings (37.2% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Paul Murphy (59yo)

9.8yrs

Tenure

US$5,093,572

Compensation

Mr. Paul B. Murphy Jr., has been the Chairman and Chief Executive Officer of Cadence Bancorporation (formerly, Cadence Financial Corp.) since 2010 and he serves as its Director since 2010. Mr. Murphy serve ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD5.09M) is about average for companies of similar size in the US market ($USD3.92M).

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


Management Age and Tenure

7.8yrs

Average Tenure

56yo

Average Age

Experienced Management: CADE's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

64yo

Average Age

Experienced Board: CADE's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CADE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$314,80005 Nov 19
Joseph Evans
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares20,000
Max PriceUS$15.74
BuyUS$101,92029 Oct 19
Samuel Tortorici
EntityIndividual
Role
President
President
Shares6,500
Max PriceUS$15.68
BuyUS$158,80029 Oct 19
Paul Murphy
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceUS$15.88
BuyUS$15,76217 Sep 19
Kathy Waller
EntityIndividual
Shares877.61
Max PriceUS$17.96
BuyUS$15,76217 Sep 19
Precious Owodunni
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares877.61
Max PriceUS$17.96
BuyUS$31,52717 Sep 19
Scott Stuart
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,755.41
Max PriceUS$17.96
BuyUS$17,77517 Sep 19
Virginia Hepner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares989.69
Max PriceUS$17.96
BuyUS$322,20217 Sep 19
J. Fredericks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares17,939.98
Max PriceUS$17.96
BuyUS$35,00017 Sep 19
William Harrison
EntityIndividual
Role
Lead Director
Lead Director
Shares1,948.78
Max PriceUS$17.96
BuyUS$48,75012 Aug 19
J. Fredericks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,131
Max PriceUS$15.57
BuyUS$22,53008 Aug 19
Rudolph Holmes
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares1,500
Max PriceUS$15.02
BuyUS$15,27707 Aug 19
Valerie Toalson
EntityIndividual
Role
Chief Financial Officer
Shares1,000
Max PriceUS$15.29
BuyUS$15,72006 Aug 19
Valerie Toalson
EntityIndividual
Role
Chief Financial Officer
Shares1,000
Max PriceUS$15.72
BuyUS$996,52906 Aug 19
William Harrison
EntityIndividual
Role
Lead Director
Lead Director
Shares64,168
Max PriceUS$15.53
BuyUS$157,40005 Aug 19
Rudolph Holmes
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares10,000
Max PriceUS$15.74
BuyUS$250,80030 Jul 19
Samuel Tortorici
EntityIndividual
Role
President
President
Shares15,000
Max PriceUS$16.72
BuyUS$9,88029 Jul 19
Paul Murphy
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares579
Max PriceUS$17.07
BuyUS$49,98924 Jul 19
J. Fredericks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,105
Max PriceUS$16.10
BuyUS$35,55719 Jun 19
William Harrison
EntityIndividual
Role
Lead Director
Lead Director
Shares1,792.12
Max PriceUS$19.84
BuyUS$31,52219 Jun 19
Scott Stuart
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,588.78
Max PriceUS$19.84
BuyUS$15,76119 Jun 19
Virginia Hepner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares794.36
Max PriceUS$19.84
BuyUS$35,00019 Jun 19
J. Fredericks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,764.05
Max PriceUS$19.84
SellUS$1319 Jun 19
J. Fredericks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares0.66
Max PriceUS$20.08
BuyUS$15,62519 Jun 19
Precious Owodunni
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares787.52
Max PriceUS$19.84
BuyUS$15,62519 Jun 19
Kathy Waller
EntityIndividual
Shares787.52
Max PriceUS$19.84
SellUS$479,25016 May 19
David Black
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares22,500
Max PriceUS$21.30
SellUS$202,83013 May 19
J. Wiley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,000
Max PriceUS$22.55
SellUS$1,135,15206 May 19
Joseph Evans
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares49,724
Max PriceUS$22.91
BuyUS$15,62519 Mar 19
Virginia Hepner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares781.42
Max PriceUS$20.00
BuyUS$60,00019 Mar 19
J. Fredericks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000.66
Max PriceUS$20.00
BuyUS$31,25019 Mar 19
Scott Stuart
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,562.84
Max PriceUS$20.00
BuyUS$63,75019 Mar 19
William Harrison
EntityIndividual
Role
Lead Director
Lead Director
Shares3,188.2
Max PriceUS$20.00
BuyUS$99,97919 Mar 19
Valerie Toalson
EntityIndividual
Role
Chief Financial Officer
Shares4,984
Max PriceUS$20.06
BuyUS$996,43818 Mar 19
Paul Murphy
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares50,000
Max PriceUS$19.94
BuyUS$995,00018 Mar 19
Samuel Tortorici
EntityIndividual
Role
President
President
Shares50,000
Max PriceUS$19.90
BuyUS$1,19818 Mar 19
Precious Owodunni
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares60
Max PriceUS$19.97

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 40.8%.


Management Team

  • Sam Tortorici (53yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$3.38m
  • Jerry Powell (70yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$626.21k
  • Paul Murphy (59yo)

    Chairman & CEO

    • Tenure: 9.8yrs
    • Compensation: US$5.09m
  • Sheila Ray (61yo)

    Executive Vice President

    • Tenure: 0yrs
  • Valerie Toalson (53yo)

    • Tenure: 6.8yrs
    • Compensation: US$2.53m
  • Randy Schultz (60yo)

    Executive Vice President

    • Tenure: 3.8yrs
  • Hank Holmes (48yo)

    Executive Vice President

    • Tenure: 3.8yrs
    • Compensation: US$2.74m
  • David Black (43yo)

    Executive Vice President

    • Tenure: 0yrs

Board Members

  • Bill Harrison (75yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$115.00k
  • Marc J. Shapiro (71yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$50.00k
  • Paul Murphy (59yo)

    Chairman & CEO

    • Tenure: 9.8yrs
    • Compensation: US$5.09m
  • Scott Stuart (60yo)

    Independent Director

    • Tenure: 2.8yrs
  • Joe Evans (70yo)

    Vice Chairman

    • Tenure: 0.8yrs
  • Tom Wiley (67yo)

    Director

    • Tenure: 0yrs
  • Dick Fredericks (73yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$100.00k
  • Stan Levy (55yo)

    Advisory Director

    • Tenure: 2.8yrs
  • Precious Owodunni (44yo)

    Independent Director

    • Tenure: 0.7yrs
  • Virginia Hepner (61yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Cadence Bancorporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cadence Bancorporation
  • Ticker: CADE
  • Exchange: NYSE
  • Founded: 1885
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.105b
  • Shares outstanding: 128.02m
  • Website: https://www.cadencebank.com

Number of Employees


Location

  • Cadence Bancorporation
  • 2800 Post Oak Boulevard
  • Suite 3800
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CADENYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2017
729DB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2017

Biography

Cadence Bancorporation, a financial holding company, through its subsidiary, Cadence Bank, National Association, provides commercial banking products and services to middle-market commercial businesses, hi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 00:55
End of Day Share Price2019/11/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.