NYSE:FBC

Stock Analysis Report

Executive Summary

Flagstar Bancorp, Inc. operates as a savings and loan holding company for Flagstar Bank, FSB that provides commercial and consumer banking services to individuals and businesses in the United States.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Flagstar Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FBC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

FBC

-13.0%

US Mortgage

-2.6%

US Market


1 Year Return

-43.3%

FBC

-36.4%

US Mortgage

-13.3%

US Market

Return vs Industry: FBC underperformed the US Mortgage industry which returned -36.4% over the past year.

Return vs Market: FBC underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

FBCIndustryMarket
7 Day-1.9%-13.0%-2.6%
30 Day-41.0%-36.1%-15.2%
90 Day-49.6%-41.2%-22.2%
1 Year-43.0%-43.3%-34.9%-36.4%-11.5%-13.3%
3 Year-31.4%-31.9%-28.7%-33.7%13.2%5.7%
5 Year31.2%30.4%-11.1%-20.9%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Flagstar Bancorp 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: FBC ($19.39) is trading below our estimate of fair value ($55.24)

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


Price To Earnings Ratio

PE vs Industry: FBC is good value based on its PE Ratio (5x) compared to the Mortgage industry average (10.3x).

PE vs Market: FBC is good value based on its PE Ratio (5x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FBC is good value based on its PB Ratio (0.6x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is Flagstar Bancorp forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBC's earnings are forecast to decline over the next 3 years (-1.3% per year).

Earnings vs Market: FBC's earnings are forecast to decline over the next 3 years (-1.3% per year).

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

Revenue vs Market: FBC's revenue is expected to decline over the next 3 years (-32.3% per year).

High Growth Revenue: FBC's revenue is forecast to decline over the next 3 years (-32.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FBC's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Flagstar Bancorp performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBC has a high level of non-cash earnings.

Growing Profit Margin: FBC's current net profit margins (19.3%) are lower than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: FBC has become profitable over the past 5 years, growing earnings by 25.6% per year.

Accelerating Growth: FBC's earnings growth over the past year (16.6%) is below its 5-year average (25.6% per year).

Earnings vs Industry: FBC earnings growth over the past year (16.6%) exceeded the Mortgage industry 10.9%.


Return on Equity

High ROE: FBC's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is Flagstar 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: FBC's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: FBC has an appropriate level of bad loans (0.26%)


Next Steps

Dividend

What is Flagstar Bancorp's current dividend yield, its reliability and sustainability?

1.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBC's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: FBC's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: FBC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: FBC is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: FBC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FBC'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?

5.4yrs

Average management tenure


CEO

Sandro DiNello (64yo)

6.92s

Tenure

US$16,425,199

Compensation

Mr. Alessandro P. DiNello, also known as Sandro, has been the Chief Executive Officer and President of Flagstar Bancorp Inc. since May 15, 2013. Mr. DiNello has been Chief Executive Officer and President o ...


CEO Compensation Analysis

Compensation vs Market: Sandro's total compensation ($USD16.43M) is above average for companies of similar size in the US market ($USD3.25M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alessandro DiNello
President6.92yrsUS$16.43m0.51% $5.6m
James Ciroli
Executive VP & CFO5.67yrsUS$1.42m0.049% $543.0k
Stephen Figliuolo
Executive VP & Chief Risk Officer5.58yrsUS$1.18m0.048% $529.5k
Kristy Fercho
Executive VP & President of Mortgage of Bank2.58yrsUS$1.14m0.0082% $90.3k
Lee Smith
Executive VP & COO of Flagstar Bank6.67yrsUS$8.62m0.28% $3.1m
Bryan Marx
Senior VP & Chief Accounting Officer5.25yrsno data0.016% $177.3k
Kenneth Schellenberg
Vice President of Investor Relationsno datano datano data
Patrick McGuirk
Executive VP & General Counsel4.75yrsUS$491.56k0.027% $298.4k
Karen Sabatowski
Chief Compliance Officer and Executive Vice Presidentno datano datano data
Palmer Heenan
Executive Vice President and Manager of Secondary Marketing4.75yrsno datano data

5.4yrs

Average Tenure

53yo

Average Age

Experienced Management: FBC's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alessandro DiNello
President6.92yrsUS$16.43m0.51% $5.6m
John Lewis
Non-Executive Chairman7.17yrsUS$399.99k0.18% $2.0m
David Treadwell
Director10.92yrsUS$244.24k0.056% $620.2k
David Matlin
Director11.25yrsno datano data
Jay Hansen
Independent Director14.5yrsUS$239.49k0.058% $637.3k
James Ovenden
Independent Director10.25yrsUS$230.74k0.071% $775.3k
Bruce Nyberg
Independent Director5.08yrsUS$212.99k0.039% $423.5k
Peter Schoels
Director7.17yrsno datano data
Jennifer Whip
Independent Director3.25yrsUS$232.99k0.023% $253.9k

7.2yrs

Average Tenure

58yo

Average Age

Experienced Board: FBC's board of directors are considered experienced (7.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Flagstar Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Flagstar Bancorp, Inc.
  • Ticker: FBC
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$1.099b
  • Shares outstanding: 56.66m
  • Website: https://www.flagstar.com

Number of Employees


Location

  • Flagstar Bancorp, Inc.
  • 5151 Corporate Drive
  • Troy
  • Michigan
  • 48098
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBCNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1997
FL2PDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1997

Biography

Flagstar Bancorp, Inc. operates as a savings and loan holding company for Flagstar Bank, FSB that provides commercial and consumer banking services to individuals and businesses in the United States. Its Community Banking segment offers various products, such as checking accounts, savings accounts, money market accounts, certificates of deposit, consumer and commercial loans, commercial real estate loans, equipment finance and leasing, home builder finance loans, and warehouse lines of credit. It also provides other financial services, including consumer and corporate card services, customized treasury management solutions, merchant services, and capital markets services, such as loan syndications, as well as wealth management products and services. This segment serves consumer, business, and mortgage lending customers through its branch banking, business and commercial banking, government banking, warehouse lending, and loans held-for-investment (LHFI) portfolio groups. The company’s Mortgage Originations segment originates, acquires, and sells one-to-four family residential mortgage loans through mortgage branches, call centers, the Internet, and third party counterparties. Its Mortgage Servicing segment offers services and subservices mortgage loans; and the servicing of residential mortgages for its LHFI portfolio, as well as noninterest-bearing escrow services. As of December 31, 2018, the company provided banking services through 160 full service banking branches; and home loans through a wholesale network of brokers and correspondents in 50 states, as well as 75 retail locations in 24 states. Flagstar Bancorp, Inc. was founded in 1987 and is headquartered in Troy, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 06:13
End of Day Share Price2020/04/06 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.