NYSE:GWB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Great Western Bancorp

Executive Summary

Great Western Bancorp, Inc. operates as the bank holding company for Great Western Bank that provides business and agri-business banking, retail banking, and wealth management services in the United States. More Details

Rewards

Trading at 20.6% below our estimate of its fair value

Earnings are forecast to grow 134.13% per year

Risk Analysis

No risks detected for GWB from our risk checks.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GWB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: GWB's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

-5.9%

GWB

-5.3%

US Banks

1.4%

US Market


1 Year Return

-31.3%

GWB

-8.4%

US Banks

22.6%

US Market

Return vs Industry: GWB underperformed the US Banks industry which returned -7.2% over the past year.

Return vs Market: GWB underperformed the US Market which returned 22.8% over the past year.


Shareholder returns

GWBIndustryMarket
7 Day-5.9%-5.3%1.4%
30 Day22.5%9.9%4.9%
90 Day51.0%29.9%14.6%
1 Year-29.6%-31.3%-5.0%-8.4%25.4%22.6%
3 Year-44.5%-48.8%-2.1%-10.5%46.8%37.0%
5 Year3.2%-8.6%82.1%59.0%132.0%106.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GWB ($22.9) is trading below our estimate of fair value ($28.82)

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


Price To Earnings Ratio

PE vs Industry: GWB is unprofitable, so we can't compare its PE Ratio to the US Banks industry average.

PE vs Market: GWB is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GWB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GWB's PB Ratio (1.1x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

134.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: GWB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GWB's is expected to become profitable in the next 3 years.

Revenue vs Market: GWB's revenue (21.2% per year) is forecast to grow faster than the US market (10.5% per year).

High Growth Revenue: GWB's revenue (21.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GWB's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Great Western Bancorp performed over the past 5 years?

-47.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWB is currently unprofitable.

Growing Profit Margin: GWB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GWB is unprofitable, and losses have increased over the past 5 years at a rate of 47.3% per year.

Accelerating Growth: Unable to compare GWB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GWB is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (-4.3%).


Return on Equity

High ROE: GWB has a negative Return on Equity (-58.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is Great Western 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: GWB's Assets to Equity ratio (10.8x) is moderate.

Allowance for Bad Loans: GWB has a low allowance for bad loans (46%).

Low Risk Liabilities: 96% of GWB's liabilities are made up of primarily low risk sources of funding.

Loan Level: GWB has an appropriate level of Loans to Assets ratio (79%).

Low Risk Deposits: GWB's Loans to Deposits ratio (90%) is appropriate.

Level of Bad Loans: GWB has a high level of bad loans (3.2%).


Next Steps

Dividend

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

0.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GWB's dividend (0.17%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: GWB's dividend (0.17%) is low compared to the top 25% of dividend payers in the US market (3.86%).


Stability and Growth of Payments

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

Growing Dividend: GWB 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: GWB is not paying a notable dividend for the US market.


Future Payout to Shareholders

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

1.9yrs

Average management tenure


CEO

Mark Borrecco (49 yo)

0.83

Tenure

US$1,384,945

Compensation

Mr. Mark Charles Borrecco has been Executive Director, President and Chief Executive Officer at Great Western Bank and Great Western Bancorp, Inc. since March 9, 2020. Mr. Borrecco served as Co-President a...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.38M) is below average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Borrecco
Executive Director0.83yrUS$1.38m0.0049%
$ 61.8k
Peter Chapman
Executive VP & CFO6.5yrsUS$1.35m0.066%
$ 834.0k
Karlyn Knieriem
Executive VP & Chief Risk Officer3yrsUS$513.85k0.0046%
$ 58.7k
Stephen Yose
Executive VP & Chief Credit Officer0.67yrUS$719.43kno data
Scott Erkonen
Chief Information Officerno datano data0.0051%
$ 64.7k
Seth Artz
Head of Investor Relationsno datano datano data
Donald Straka
General Counsel & Corporate Secretaryno datano data0.014%
$ 179.7k
Cheryl Olson
Head of Marketingno datano datano data
Andrew Pederson
Head of People & Culture and Learning & Developmentno datano data0.011%
$ 136.9k

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: GWB's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Borrecco
Executive Director0.83yrUS$1.38m0.0049%
$ 61.8k
James Brannen
Independent Chairman of the Board0.75yrUS$137.25k0.0091%
$ 114.5k
Stephen Lacy
Independent Director5.42yrsUS$119.00k0.0035%
$ 44.7k
James Israel
Independent Director4.25yrsUS$116.00kno data
Thomas Henning
Independent Director5.42yrsUS$142.25k0.015%
$ 195.1k
Daniel Rykhus
Independent Director6.5yrsUS$126.00kno data
Frances Grieb
Independent Director6.5yrsUS$129.00k0.0091%
$ 114.5k
James Spies
Independent Director5.42yrsUS$124.00kno data

5.4yrs

Average Tenure

62yo

Average Age

Experienced Board: GWB'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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Great Western Bancorp, Inc.
  • Ticker: GWB
  • Exchange: NYSE
  • Founded: 1935
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.262b
  • Shares outstanding: 55.10m
  • Website: https://www.greatwesternbank.com

Number of Employees


Location

  • Great Western Bancorp, Inc.
  • 225 South Main Avenue
  • Sioux Falls
  • South Dakota
  • 57104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWBNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2014
2GWDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014

Biography

Great Western Bancorp, Inc. operates as the bank holding company for Great Western Bank that provides business and agri-business banking, retail banking, and wealth management services in the United States...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 00:55
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.