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Cadence Bancorporation

NYSE:CADE
Snowflake Description

Very undervalued with flawless balance sheet.

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

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. The last earnings update was 14 days ago. More info.


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CADE Share Price and Events
7 Day Returns
-3.2%
NYSE:CADE
1.6%
US Banks
0.2%
US Market
1 Year Returns
-33%
NYSE:CADE
-9.3%
US Banks
2.9%
US Market
CADE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cadence Bancorporation (CADE) -3.2% -4.4% 0.3% -33% - -
US Banks 1.6% -1.8% -1.4% -9.3% 38.6% 47.3%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • CADE underperformed the Banks industry which returned -9.3% over the past year.
  • CADE underperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
CADE
Industry
5yr Volatility vs Market

CADE Value

 Is Cadence Bancorporation 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 Cadence Bancorporation 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 Cadence Bancorporation.

NYSE:CADE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= $20.10 * 12.7%
$2.56
Book Value of Equity per Share Weighted future Book Value estimates from 9 analysts. $20.10
Discount Rate (Cost of Equity) See below 7.8%
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 NYSE:CADE
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 0.63
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.625 (1 + (1- 21%) (31.68%))
0.854
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.854 * 5.96%)
7.82%

Discounted Cash Flow Calculation for NYSE:CADE using Excess Returns Model Model

The calculations below outline how an intrinsic value for Cadence Bancorporation 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.

NYSE:CADE Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.7% – 7.82%) * $20.10)
$0.99
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.99 / (7.82% - 2.73%)
$19.37
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $20.10 + $19.37
$39.47
NYSE:CADE Discount to Share Price
Calculation Result
Value per share (USD) From above. $39.47
Current discount Discount to share price of $20.13
= -1 x ($20.13 - $39.47) / $39.47
49%

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

Current Discount
Amount off the current price Cadence Bancorporation is available for.
Intrinsic value
49%
Share price is $20.13 vs Future cash flow value of $39.47
Current Discount Checks
For Cadence Bancorporation to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cadence Bancorporation's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cadence Bancorporation's share price is below the future cash flow value, and 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 Cadence Bancorporation's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cadence Bancorporation's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CADE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.94
NYSE:CADE Share Price ** NYSE (2019-05-23) in USD $20.13
United States of America Banks Industry PE Ratio Median Figure of 595 Publicly-Listed Banks Companies 12.86x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

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

** Primary Listing of Cadence Bancorporation.

NYSE:CADE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CADE Share Price ÷ EPS (both in USD)

= 20.13 ÷ 1.94

10.35x

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

  • Cadence Bancorporation is good value based on earnings compared to the US Banks industry average.
  • Cadence Bancorporation is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Cadence Bancorporation's expected growth come at a high price?
Raw Data
NYSE:CADE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
15.3%per year
United States of America Banks Industry PEG Ratio Median Figure of 270 Publicly-Listed Banks Companies 1.36x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:CADE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.35x ÷ 15.3%

0.68x

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

  • Cadence Bancorporation is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Cadence Bancorporation's assets?
Raw Data
NYSE:CADE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $17.88
NYSE:CADE Share Price * NYSE (2019-05-23) in USD $20.13
United States of America Banks Industry PB Ratio Median Figure of 600 Publicly-Listed Banks Companies 1.21x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NYSE:CADE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CADE Share Price ÷ Book Value per Share (both in USD)

= 20.13 ÷ 17.88

1.13x

* Primary Listing of Cadence Bancorporation.

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

  • Cadence Bancorporation is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess Cadence Bancorporation'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. Cadence Bancorporation has a total score of 6/6, 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.

CADE Future Performance

 How is Cadence Bancorporation expected to perform in the next 1 to 3 years based on estimates from 9 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
15.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cadence Bancorporation expected to grow at an attractive rate?
  • Cadence Bancorporation's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Cadence Bancorporation's earnings growth is expected to exceed the United States of America market average.
  • Cadence Bancorporation's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CADE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CADE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 15.3%
NYSE:CADE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 8.8%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
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 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
NYSE:CADE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CADE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 888 343 2
2020-12-31 833 317 9
2019-12-31 801 284 9
NYSE:CADE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 546 33 185
2018-12-31 470 191 166
2018-09-30 472 145 149
2018-06-30 455 202 134
2018-03-31 435 155 115
2017-12-31 416 145 102
2017-09-30 398 196 117
2017-06-30 355 140 91
2017-03-31 335 150 77
2016-12-31 318 118 66
2016-09-30 278 97 40

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cadence Bancorporation's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
  • Cadence Bancorporation's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (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
NYSE:CADE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Cadence Bancorporation Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CADE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.65 2.65 2.65 1.00
2020-12-31 2.46 2.55 2.34 9.00
2019-12-31 2.21 2.34 2.02 9.00
NYSE:CADE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.94
2018-12-31 1.99
2018-09-30 1.78
2018-06-30 1.60
2018-03-31 1.38
2017-12-31 1.26
2017-09-30 1.48
2017-06-30 1.18
2017-03-31 1.02
2016-12-31 0.88
2016-09-30 0.54

*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.
  • Cadence Bancorporation is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cadence Bancorporation'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.
Cadence Bancorporation has a total score of 3/6, 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.

CADE Past Performance

  How has Cadence Bancorporation 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 Cadence Bancorporation'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.
  • Cadence Bancorporation has delivered over 20% year on year earnings growth in the past 5 years.
  • Cadence Bancorporation's 1-year earnings growth exceeds its 5-year average (61% vs 21.5%)
  • Cadence Bancorporation's earnings growth has exceeded the US Banks industry average in the past year (61% vs 40.1%).
Earnings and Revenue History
Cadence Bancorporation'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 Cadence Bancorporation Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CADE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 545.91 185.27 207.83
2018-12-31 469.68 166.06 187.91
2018-09-30 471.99 148.51 178.78
2018-06-30 455.11 134.01 177.68
2018-03-31 434.99 115.06 174.07
2017-12-31 416.36 102.35 170.09
2017-09-30 398.39 116.65 162.57
2017-06-30 355.42 90.68 158.14
2017-03-31 334.63 76.55 155.78
2016-12-31 318.49 65.77 154.42
2016-09-30 277.86 40.23 155.46
2016-03-31 287.38 40.29 157.74
2015-12-31 291.70 39.26 160.34
2015-09-30 312.88 46.49 163.00
2015-03-31 323.87 46.50 167.62
2014-12-31 316.04 41.19 166.69
2014-09-30 314.14 71.63 170.25
2014-06-30 312.24 102.07 172.45
2014-03-31 302.69 100.55 171.06
2013-12-31 301.06 100.90 169.74

*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.
  • Cadence Bancorporation has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cadence Bancorporation used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Cadence Bancorporation 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 Cadence Bancorporation'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.
Cadence Bancorporation has a total score of 4/6, 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.

CADE Health

 How is Cadence Bancorporation'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 Cadence Bancorporation'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 Cadence Bancorporation Company Filings, last reported 1 month ago.

NYSE:CADE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,302.82 821.07 513.86
2018-12-31 1,438.27 504.12 698.92
2018-09-30 1,414.83 707.83 258.45
2018-06-30 1,389.96 515.30 551.10
2018-03-31 1,357.10 509.97 352.30
2017-12-31 1,359.06 496.09 663.87
2017-09-30 1,340.85 591.97 533.13
2017-06-30 1,304.05 518.10 230.90
2017-03-31 1,105.98 704.84 261.95
2016-12-31 1,080.50 352.07 214.99
2016-09-30 1,111.78 339.63 457.08
2016-03-31 1,054.21 707.52 445.95
2015-12-31 1,054.21 707.52 445.95
2015-09-30
2015-03-31 1,029.53 346.71 415.79
2014-12-31 1,014.34 292.45 434.73
2014-09-30 1,014.34 295.86 434.36
2014-06-30 1,024.70 293.25 504.04
2014-03-31 1,003.51 47.95 264.55
2013-12-31 1,003.51 47.95 264.55
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.
  • Cadence Bancorporation has an acceptable proportion of non-loan assets held.
  • Cadence Bancorporation's liabilities are made up of primarily low risk sources of funding.
  • Loans at Cadence Bancorporation are broadly funded by customer deposits.
  • Cadence Bancorporation's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Cadence Bancorporation has a sufficient allowance for bad loans.
  • Cadence Bancorporation has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Cadence Bancorporation'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. Cadence Bancorporation has a total score of 6/6, 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.

CADE Dividends

 What is Cadence Bancorporation'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
3.48%
Current annual income from Cadence Bancorporation dividends. Estimated to be 3.61% next year.
If you bought $2,000 of Cadence Bancorporation shares you are expected to receive $70 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?
  • Cadence Bancorporation's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Cadence Bancorporation's dividend is below the markets top 25% of dividend payers in United States of America (3.7%).
Upcoming dividend payment

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

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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
NYSE:CADE 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 9 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 477 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
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.

NYSE:CADE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.86 2.00
2020-12-31 0.74 10.00
2019-12-31 0.69 10.00
NYSE:CADE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-30 0.700 3.235
2019-04-29 0.700 3.097
2019-03-01 0.700 3.532
2019-01-28 0.700 3.564
2018-11-14 0.600 3.221
2018-10-22 0.600 2.784
2018-08-13 0.600 2.261
2018-07-23 0.600 2.149
2018-05-15 0.500 1.696
2018-04-25 0.500 1.690
2018-03-19 0.500 1.812

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

  • It is too early to tell whether Cadence Bancorporation has stable dividend payments.
  • Cadence Bancorporation only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Cadence Bancorporation's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Cadence Bancorporation'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 Cadence Bancorporation afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cadence Bancorporation has a total score of 3/6, see the detailed checks below.


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

CADE Management

 What is the CEO of Cadence Bancorporation'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
Paul Murphy
COMPENSATION $5,093,572
AGE 58
TENURE AS CEO 9.3 years
CEO Bio

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 served as the Chief Executive Officer and President of Cadence Bancorp, LLC. He has been a Director of GP Natural Resource Partners LLC, the general partner of Natural Resource Partners L.P. since March 2, 2018. He serves as Director of Houston Branch at Federal Reserve Bank of Dallas. He has served at Cadence and its predecessors since January 2010. He served as the Chief Executive Officer of Amegy Bank of Texas, from 2000 to December 2009. Mr. Murphy served as Chief Executive Officer and President at Amegy Corporation since January 2000 and from 1996 to August 7, 2003 respectively. Prior to that, he spent 20 years at Amegy Bank of Texas. He co-founded Amegy Bank, National Association in 1990 and served as its Chief Executive Officer from 1996 to December 4, 2009. Mr. Murphy served as the President of Amegy Bank, National Association from 1996 to August 7, 2003. He began his banking career in 1981 at Allied Bank of Texas. Mr. Murphy served as Executive Vice President of Zions Bancorporation since December 9, 2005. He served as Chief Executive Officer of Community Bancorp LLC. He served as the Chairman of Cadence Bank N.A. since its acquisition in 2011 and serves as its Director. Mr. Murphy serves as Chairman at Linscomb & Williams Inc. He served as Chairman at Superior Bank since April 2011. He also served as the Chairman of Superior Bank FSB (Series 1998-4) and serves as its Director. He served as a Director of Greater Houston Partnership, Inc. He serves as Director of the Mississippi State University Foundation. Mr. Murphy serves as a Board Member of the Houston Endowment, Inc. He has been an Independent Director of Hines Real Estate Investment Trust, Inc. since April 1, 2008. He has been a Director of Oceaneering International, Inc. since August 24, 2012 and he is active in the World President Organization. He served as a Member of Advisory Board at Sternhill Partners. Mr. Murphy served as a Director of Amegy Corporation since 1996, Amegy Bank of Texas until December 2009 and Amegy Bank, National Association since 1994. Mr. Murphy is an advocate of the community and he has served on numerous nonprofit boards. He is on the board of National Resource Partners. Mr. Murphy received his bachelor degree in finance and banking from Mississippi State University and his M.B.A. from the University of Texas at Austin.

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

Average tenure and age of the Cadence Bancorporation management team in years:

6.3
Average Tenure
55
Average Age
  • The average tenure for the Cadence Bancorporation management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Paul Murphy

TITLE
Chairman & CEO
COMPENSATION
$5M
AGE
58
TENURE
9.3 yrs

Sam Tortorici

TITLE
President
COMPENSATION
$3M
AGE
52
TENURE
8.3 yrs

Valerie Toalson

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
52
TENURE
6.3 yrs

Jerry Powell

TITLE
Executive VP
COMPENSATION
$626K
AGE
69
TENURE
8.3 yrs

Hank Holmes

TITLE
Executive Vice President
COMPENSATION
$3M
AGE
47
TENURE
3.3 yrs

Randy Schultz

TITLE
Executive Vice President
AGE
59
TENURE
3.3 yrs

David Black

TITLE
Executive Vice President
AGE
42
TENURE
0.3 yrs

Sheila Ray

TITLE
Executive Vice President
AGE
60
Board of Directors Tenure

Average tenure and age of the Cadence Bancorporation board of directors in years:

1
Average Tenure
63
Average Age
  • The average tenure for the Cadence Bancorporation board of directors is less than 3 years, this suggests a new board.
Board of Directors

Paul Murphy

TITLE
Chairman & CEO
COMPENSATION
$5M
AGE
58
TENURE
9.3 yrs

Joe Evans

TITLE
Vice Chairman
AGE
69
TENURE
0.3 yrs

Bill Harrison

TITLE
Lead Director
COMPENSATION
$115K
AGE
74

Dick Fredericks

TITLE
Director
COMPENSATION
$100K
AGE
72
TENURE
2.3 yrs

Stan Levy

TITLE
Advisory Director
AGE
54
TENURE
2.3 yrs

Scott Stuart

TITLE
Director
AGE
59
TENURE
2.3 yrs

Marc Shapiro

TITLE
Director
COMPENSATION
$50K
AGE
70
TENURE
1 yrs

Tom Wiley

TITLE
Director
AGE
66
TENURE
0.3 yrs

Virginia Hepner

TITLE
Director
AGE
60
TENURE
0.3 yrs

Precious Owodunni

TITLE
Director
AGE
43
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Cadence Bancorporation insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
16. May 19 Sell David Black Individual 14. May 19 14. May 19 -22,500 $21.30 $-479,250
13. May 19 Sell J. Wiley Individual 09. May 19 10. May 19 -9,000 $22.55 $-202,830
06. May 19 Sell Joseph Evans Individual 03. May 19 03. May 19 -49,724 $22.91 $-1,135,152
19. Mar 19 Buy Scott Stuart Individual 15. Mar 19 15. Mar 19 1,563 $20.00 $31,250
19. Mar 19 Buy Valerie Toalson Individual 18. Mar 19 18. Mar 19 4,984 $20.06 $99,979
19. Mar 19 Buy Virginia Hepner Individual 15. Mar 19 15. Mar 19 781 $20.00 $15,625
19. Mar 19 Buy J. Fredericks Individual 03. Mar 19 03. Mar 19 3,001 $20.00 $60,000
19. Mar 19 Buy William Harrison Individual 15. Mar 19 15. Mar 19 3,188 $20.00 $63,750
18. Mar 19 Buy Samuel Tortorici Individual 15. Mar 19 15. Mar 19 50,000 $19.90 $995,000
18. Mar 19 Buy Paul Murphy Individual 15. Mar 19 15. Mar 19 50,000 $19.94 $996,438
18. Mar 19 Buy Precious Owodunni Individual 15. Mar 19 15. Mar 19 60 $19.97 $1,198
13. Nov 18 Buy J. Fredericks Individual 24. Oct 18 24. Oct 18 10,041 $21.73 $218,174
26. Oct 18 Buy Jerry Powell Individual 24. Oct 18 24. Oct 18 4,000 $20.49 $81,948
26. Oct 18 Buy William Harrison Individual 24. Oct 18 24. Oct 18 23,000 $21.72 $499,447
17. Sep 18 Sell Samuel Tortorici Individual 14. Sep 18 14. Sep 18 -100,943 $27.41 $-2,766,848
17. Sep 18 Sell Paul Murphy Individual 14. Sep 18 14. Sep 18 -275,000 $27.41 $-7,537,750
17. Sep 18 Sell Valerie Toalson Individual 14. Sep 18 14. Sep 18 -25,160 $27.41 $-689,636
17. Sep 18 Sell Rudolph Holmes Individual 14. Sep 18 14. Sep 18 -10,828 $27.41 $-296,795
31. Jul 18 Sell Cadence Bancorp, LLC Company 26. Jul 18 26. Jul 18 -12,500,000 $28.40 $-355,000,000
30. May 18 Sell Cadence Bancorp, LLC Company 25. May 18 25. May 18 -20,700,000 $28.00 $-579,600,000
X
Management checks
We assess Cadence Bancorporation'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. Cadence Bancorporation 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.

CADE News

Simply Wall St News

At US$20.57, Is It Time To Put Cadence Bancorporation (NYSE:CADE) On Your Watch List?

Cadence Bancorporation (NYSE:CADE), operating in the financial services industry based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. … However, given that Cadence Bancorporation’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

If You Had Bought Cadence Bancorporation (NYSE:CADE) Stock A Year Ago, You'd Be Sitting On A 25% Loss, Today

Cadence Bancorporation (NYSE:CADE) shareholders should be happy to see the share price up 14% in the last quarter. … But in truth the last year hasn't been good for the share price. … Even though the Cadence Bancorporation share price is down over the year, its EPS actually improved.

Simply Wall St -

Real Risks To Know Before Investing In Cadence Bancorporation (NYSE:CADE)

As a small-cap bank with a market capitalisation of US$3.7b, Cadence Bancorporation’s (NYSE:CADE) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Cadence Bancorporation’s bottom line. … Looking through a risk-lens is a useful way to assess the attractiveness of Cadence Bancorporation's a stock investment.

Simply Wall St -

Cadence Bancorporation (NYSE:CADE): What We Can Expect From This Growth Stock

Looking at Cadence Bancorporation's (NYSE:CADE) earnings update in December 2018, … the consensus outlook from analysts appear highly confident, … as a 62% rise in profits is expected in the upcoming year,

Simply Wall St -

Have Insiders Been Selling Cadence Bancorporation (NYSE:CADE) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Cadence Bancorporation (NYSE:CADE). … The Last 12 Months Of Insider Transactions At Cadence Bancorporation. … In the last twelve months, the biggest single sale by an insider was when Chairman & CEO Paul Murphy sold US$7.5m worth of shares at a price of US$27.41 per share.

Simply Wall St -

Should Cadence Bancorporation (NYSE:CADE) Be Part Of Your Portfolio?

Cadence Bancorporation (NYSE:CADE) has begun paying dividends recently. … Does Cadence Bancorporation tick all the boxes of a great dividend stock? … 5 questions I ask before picking a dividend stock

Simply Wall St -

Interested In Cadence Bancorporation (NYSE:CADE)’s Upcoming US$0.17 Dividend? You Have 4 Days Left

To qualify for the dividend check of US$0.17 per share, investors must have owned the shares prior to 28 February 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Below, I will explain how holding Cadence Bancorporation can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Is it paying an annual yield above 75% of dividend payers?

Simply Wall St -

Understated Factors To Consider Before Investing In Cadence Bancorporation (NYSE:CADE)

Cadence Bancorporation’s (NYSE:CADE) 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$2.2b. … The Basel III reforms are aimed at banking regulations to improve financial institutions’ ability to absorb shocks caused by economic stress which could expose banks like Cadence Bancorporation to vulnerabilities. … Today we will be measuring Cadence Bancorporation’s financial risk position by looking at three leverage and liquidity metrics.

Simply Wall St -

How Many Insiders Sold Cadence Bancorporation (NYSE:CADE) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Cadence Bancorporation (NYSE:CADE). … Cadence Bancorporation Insider Transactions Over The Last Year. … All up, insiders sold more shares in Cadence Bancorporation than they bought, over the last year

Simply Wall St -

Is Cadence Bancorporation (NYSE:CADE) Over-Exposed To Risk?

Cadence Bancorporation (NYSE:CADE) is a small-cap bank with a market capitalisation of US$1.6b. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Cadence Bancorporation’s bottom line. … Check out our latest analysis for Cadence Bancorporation

Simply Wall St -

CADE Company Info

Description

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. The company operates through Banking and Financial Services segments. It offers checking, savings, money market, and other deposit accounts. The company also provides commercial and industrial, and commercial and residential real estate loans; other consumer loans, such as home equity, auto, boat, and personal installment loans; and shared national credits. In addition, it offers wealth management and other fiduciary, and private banking services under the Linscomb & Williams and Cadence Trust brands. Further, the company provides life, disability, and long-term care insurance products, as well as buy-sell agreements to retail and commercial customers under the Cadence Investment Services brand through financial consultants and advisors, and third party partners, as well as directly. Additionally, it offers correspondent banking products and services comprising treasury and liquidity management, Fed funds accommodation, wholesale mortgage, and commercial real estate participation services for financial institutions; and payroll and human resources services, payroll cards, and employee health insurance products. The company also provides debit and credit cards; treasury management and merchant services; employee and payroll benefit solutions; and automated clearing house, lock-box, remote deposit capture, foreign exchange, and other treasury services, as well as online, mobile, and telephone banking services. As of December 31, 2018, it operated 66 branch offices in Texas, Alabama, Florida, Mississippi, and Tennessee; and 32 branches throughout Georgia. The company also serves through ATMs and ITMs. Cadence Bancorporation was founded in 1885 and is headquartered in Houston, Texas.

Details
Name: Cadence Bancorporation
CADE
Exchange: NYSE
Founded: 1885
$2,591,543,708
128,740,373
Website: http://www.cadencebank.com
Address: Cadence Bancorporation
2800 Post Oak Boulevard,
Suite 3800,
Houston,
Texas, 77056,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CADE Class A Common Stock New York Stock Exchange US USD 13. Apr 2017
DB 729 Class A Common Stock Deutsche Boerse AG DE EUR 13. Apr 2017
Number of employees
Current staff
Staff numbers
1,822
Cadence Bancorporation employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 00:49
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/06
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.