CUBI

Customers BancorpNYSE:CUBI Stock Report

Market Cap

US$1.3b

7D

3.3%

1Y

210.7%

Updated

18 Sep, 2021

Data

Company Financials +
CUBI fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends0/6

CUBI Overview

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses.

Customers Bancorp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Customers Bancorp
Historical stock prices
Current Share PriceUS$38.96
52 Week HighUS$10.41
52 Week LowUS$43.86
Beta1.6
1 Month Change4.03%
3 Month Change3.62%
1 Year Change210.69%
3 Year Change59.54%
5 Year Change51.83%
Change since IPO257.13%

Recent News & Updates

Aug 09

Customers Bancorp: I Continue To Remain Bullish Even With Shares At All-Time Highs

Core loan growth is poised to accelerate in the second half of the year through multiple commercial lending categories. Profitability metrics are trending more positive and earnings momentum is likely to drive a higher valuation in the near future. The margin looks likely to hold steady near current levels, aiding overall earnings growth.

Jul 06

Customers Bancorp: Earnings Outlook Is Rosy Thanks To The Management's Efforts

The management’s plans to expand in new markets, shift the loan mix, and reduce the deposit cost will likely drive earnings this year. The company has a large amount of Paycheck Protection Program fees remaining to be booked. The year-end target price suggests a high upside from the current market price.

Shareholder Returns

CUBIUS BanksUS Market
7D3.3%0.9%-0.6%
1Y210.7%63.3%33.8%

Return vs Industry: CUBI exceeded the US Banks industry which returned 63.3% over the past year.

Return vs Market: CUBI exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is CUBI's price volatile compared to industry and market?
CUBI volatility
CUBI Beta1.6
Industry Beta1.37
Market Beta1

Stable Share Price: CUBI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CUBI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997825Jay Sidhuhttps://www.customersbank.com

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses. It operates in two segments, Customers Bank Business Banking and BankMobile. The company accepts various deposit products, such as checking, savings, money market deposit, time deposit, non-interest-bearing demand accounts, individual retirement accounts, and other deposit accounts, as well as non-retail time deposits.

Valuation

Is Customers Bancorp undervalued compared to its fair value and its price relative to the market?

45.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CUBI ($38.96) is trading below our estimate of fair value ($71.8)

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


Price To Earnings Ratio

PE vs Industry: CUBI is good value based on its PE Ratio (5.7x) compared to the US Banks industry average (10.8x).

PE vs Market: CUBI is good value based on its PE Ratio (5.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CUBI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CUBI is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.1x).


Future Growth

How is Customers Bancorp forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CUBI's earnings are forecast to decline over the next 3 years (-16.8% per year).

Earnings vs Market: CUBI's earnings are forecast to decline over the next 3 years (-16.8% per year).

High Growth Earnings: CUBI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CUBI's revenue is expected to decline over the next 3 years (-9.7% per year).

High Growth Revenue: CUBI's revenue is forecast to decline over the next 3 years (-9.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CUBI's Return on Equity is forecast to be low in 3 years time (14.2%).


Past Performance

How has Customers Bancorp performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUBI has high quality earnings.

Growing Profit Margin: CUBI's current net profit margins (36.6%) are higher than last year (22.2%).


Past Earnings Growth Analysis

Earnings Trend: CUBI's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: CUBI's earnings growth over the past year (201.1%) exceeds its 5-year average (19% per year).

Earnings vs Industry: CUBI earnings growth over the past year (201.1%) exceeded the Banks industry 36%.


Return on Equity

High ROE: CUBI's Return on Equity (18.8%) is considered low.


Financial Health

How is Customers Bancorp'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: CUBI's Assets to Equity ratio (15.7x) is moderate.

Allowance for Bad Loans: CUBI has a sufficient allowance for bad loans (270%).

Low Risk Liabilities: 75% of CUBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: CUBI has an appropriate level of Loans to Assets ratio (86%).

Low Risk Deposits: CUBI's Loans to Deposits ratio (121%) is appropriate.

Level of Bad Loans: CUBI has an appropriate level of bad loans (0.3%).


Dividend

What is Customers Bancorp current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CUBI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CUBI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CUBI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CUBI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CUBI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jay Sidhu (69 yo)

11.42yrs

Tenure

US$2,332,252

Compensation

Mr. Jay S. Sidhu is Chairman and Chief Executive Officer of Customers Bancorp, Inc. and Executive Chairman of Customers Bank. From 1989 to 2006, Mr. Sidhu was the Chairman and CEO of Sovereign Bancorp,...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD2.33M) is below average for companies of similar size in the US market ($USD3.69M).

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


Leadership Team

Experienced Management: CUBI's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: CUBI's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

Company Information

Customers Bancorp, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Customers Bancorp, Inc.
  • Ticker: CUBI
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.261b
  • Shares outstanding: 32.37m
  • Website: https://www.customersbank.com

Number of Employees


Location

  • Customers Bancorp, Inc.
  • 701 Reading Avenue
  • West Reading
  • Pennsylvania
  • 19611
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:10
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.