Cadence Bancorporation
Market Cap
US$2.1b
Last Updated
2020/02/17 01:01 UTC
Data Sources
Company Financials +
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 Analysis
Undervalued with excellent 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
1.7%
CADE
0.5%
US Banks
1.5%
US Market
1 Year Return
-18.3%
CADE
12.1%
US Banks
20.1%
US Market
Return vs Industry: CADE underperformed the US Banks industry which returned 12.1% over the past year.
Return vs Market: CADE underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| CADE | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 0.5% | 1.5% |
| 30 Day | -8.0% | -1.3% | 1.4% |
| 90 Day | 1.5% | 1.2% | 8.7% |
| 1 Year | -14.1%-18.3% | 15.4%12.1% | 22.7%20.1% |
| 3 Year | n/a | 25.2%16.2% | 50.1%40.5% |
| 5 Year | n/a | 75.9%55.9% | 73.1%54.1% |
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
14 hours ago | Simply Wall St
Are You An Income Investor? Don't Miss Out On Cadence Bancorporation (NYSE:CADE)2 weeks ago | Simply Wall St
Independent Director Marc J. Shapiro Just Bought Shares In Cadence Bancorporation (NYSE:CADE)3 weeks ago | Simply Wall St
Do You Know What Cadence Bancorporation's (NYSE:CADE) P/E Ratio Means?Valuation
Is Cadence Bancorporation undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CADE ($16.55) is trading below our estimate of fair value ($35.26)
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 (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: CADE is poor value based on its PEG Ratio (1.2x)
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 8 analysts?
9.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CADE's forecast earnings growth (9% per year) is above the savings rate (1.7%).
Earnings vs Market: CADE's earnings (9% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: CADE's earnings are forecast to grow, but not significantly.
Revenue vs Market: CADE's revenue (7.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CADE's revenue (7.4% 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 (9.5%).
Next Steps
Past Performance
How has Cadence Bancorporation performed over the past 5 years?
34.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CADE has high quality earnings.
Growing Profit Margin: CADE's current net profit margins (30.1%) are lower than last year (35.4%).
Past Earnings Growth Analysis
Earnings Trend: CADE's earnings have grown significantly by 34% per year over the past 5 years.
Accelerating Growth: CADE's earnings growth over the past year (21.6%) is below its 5-year average (34% per year).
Earnings vs Industry: CADE earnings growth over the past year (21.6%) exceeded the Banks industry 12.1%.
Return on Equity
High ROE: CADE's Return on Equity (8.2%) 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 low 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 (0.96%)
Next Steps
Dividend
What is Cadence Bancorporation's current dividend yield, its reliability and sustainability?
4.23%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CADE's dividend (4.23%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: CADE's dividend (4.23%) is in the top 25% of dividend payers in the US market (3.69%)
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 (44.7%), 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 (43% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.1yrs
Average management tenure
CEO
Paul Murphy (59yo)
10.1yrs
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 above average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 10.1yrs | US$5.09m | 0.31% $6.6m | |
| President | 9.1yrs | US$3.38m | 0.077% $1.6m | |
| Executive VP & CFO | 7.1yrs | US$2.53m | 0.019% $408.8k | |
| Executive VP | 9.1yrs | US$626.21k | 0.015% $319.5k | |
| Executive Vice President | 4.1yrs | US$2.74m | 0.022% $464.8k | |
| Executive Vice President | 4.1yrs | no data | 0.0094% $198.5k | |
| Executive Vice President | 0yrs | no data | 0.032% $669.2k | |
| Executive Vice President | 0yrs | no data | 0.021% $437.3k |
8.1yrs
Average Tenure
56yo
Average Age
Experienced Management: CADE's management team is seasoned and experienced (8.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 10.1yrs | US$5.09m | 0.31% $6.6m | |
| Lead Director | 0yrs | US$115.00k | 0.53% $11.1m | |
| Independent Director | 1.8yrs | US$50.00k | 0.30% $6.2m | |
| Independent Director | 3.1yrs | no data | 0.64% $13.5m | |
| Vice Chairman | 1.1yrs | no data | 0.35% $7.3m | |
| Director | 0yrs | no data | 0.37% $7.9m | |
| Independent Director | 3.1yrs | US$100.00k | 0.090% $1.9m | |
| Advisory Director | 3.1yrs | no data | 0.058% $1.2m | |
| Independent Director | 0.9yrs | no data | 0.0021% $43.5k | |
| Independent Director | 1.1yrs | no data | 0.010% $211.6k |
2.4yrs
Average Tenure
64yo
Average Age
Experienced Board: CADE's board of directors are not considered experienced ( 2.4 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: CADE insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 54.3%.
Top Shareholders
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$2.112b
- Shares outstanding: 127.60m
- Website: https://www.cadencebank.com
Number of Employees
Location
- Cadence Bancorporation
- 2800 Post Oak Boulevard
- Suite 3800
- Houston
- Texas
- 77056
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CADE | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Apr 2017 |
| 729 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Apr 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, 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 01:01 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.