NYSE:GWB

Stock Analysis Report

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.


Snowflake Analysis

Undervalued with excellent 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.9%

GWB

9.4%

US Banks

9.9%

US Market


1 Year Return

-35.0%

GWB

-25.1%

US Banks

-11.9%

US Market

Return vs Industry: GWB underperformed the US Banks industry which returned -24.8% over the past year.

Return vs Market: GWB underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

GWBIndustryMarket
7 Day5.9%9.4%9.9%
30 Day-23.6%-26.0%-15.0%
90 Day-40.9%-38.6%-21.5%
1 Year-32.5%-35.0%-22.9%-25.1%-10.0%-11.9%
3 Year-47.4%-51.6%-17.2%-23.3%12.3%5.1%
5 Year3.2%-8.5%11.6%-1.1%32.5%18.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GWB ($20.54) is trading below our estimate of fair value ($48.86)

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


Price To Earnings Ratio

PE vs Industry: GWB is good value based on its PE Ratio (7.1x) compared to the Banks industry average (8.9x).

PE vs Market: GWB is good value based on its PE Ratio (7.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

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

-6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWB's earnings are forecast to decline over the next 3 years (-6% per year).

Earnings vs Market: GWB's earnings are forecast to decline over the next 3 years (-6% per year).

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

Revenue vs Market: GWB's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GWB's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GWB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWB has high quality earnings.

Growing Profit Margin: GWB's current net profit margins (37.7%) are higher than last year (37.4%).


Past Earnings Growth Analysis

Earnings Trend: GWB's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: GWB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GWB had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the Banks industry average (11.2%).


Return on Equity

High ROE: GWB's Return on Equity (8.6%) is considered low.


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

Inventory Level: GWB has a low level of unsold assets or inventory.

Debt Coverage by Assets: GWB's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: GWB's level of assets compared to its equity is low.

Allowance for Bad Loans: GWB has a low allowance for bad loans.

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

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

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

Level of Bad Loans: GWB has an appropriate level of bad loans (1.62%)


Next Steps

Dividend

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

5.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GWB's dividend (5.84%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: GWB's dividend (5.84%) is in the top 25% of dividend payers in the US market (5.45%)


Stability and Growth of Payments

Stable Dividend: GWB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GWB's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.6%), GWB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mark Borrecco (47yo)

no data

Tenure

Mr. Mark Charles Borrecco has been Executive Director, President and Chief Executive Officer at Great Western Bank since March 9, 2020. He serves as President, Chief Executive Officer and Director of Great ...


Leadership Team

NamePositionTenureCompensationOwnership
Peter Chapman
Executive VP & CFO5.67yrsUS$930.84k0.046% $531.8k
Douglas Bass
Executive VP & COO1.42yrsUS$1.15m0.047% $545.3k
Michael Gough
Executive Officer2.67yrsUS$430.73k0.013% $145.8k
Karlyn Knieriem
Executive VP & Chief Risk Officer2.17yrsUS$436.57k0.0018% $20.5k
Timothy Kintner
Executive Vice President2yrsUS$395.94k0.0051% $58.9k
Mark Borrecco
Executive Directorno datano datano data
Scott Erkonen
Chief Information Officerno datano data0.0032% $37.4k
Donald Straka
General Counsel & Corporate Secretaryno datano data0.0075% $86.9k
Ann Nachtigal
Director of Corporate Communicationsno datano datano data
Cheryl Olson
Head of Marketingno datano datano data

2.2yrs

Average Tenure

56yo

Average Age

Experienced Management: GWB's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Borrecco
Executive Directorno datano datano data
James Brannen
Independent Director4.42yrsUS$107.50kno data
Stephen Lacy
Independent Director4.58yrsUS$102.00k0.0035% $40.1k
James Israel
Independent Director3.42yrsUS$102.00kno data
Thomas Henning
Lead Independent Director3yrsUS$122.00k0.015% $175.0k
Daniel Rykhus
Independent Director5.67yrsUS$106.00kno data
Kenneth Karels
Chairperson3yrsUS$2.50m0.15% $1.7m
Frances Grieb
Independent Director5.67yrsUS$109.50k0.0036% $41.1k
James Spies
Independent Director4.58yrsUS$105.00kno data

4.5yrs

Average Tenure

62yo

Average Age

Experienced Board: GWB's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GWB 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$1.154b
  • Shares outstanding: 56.20m
  • 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. The company offers noninterest-bearing demand accounts, interest-bearing demand accounts, interest-bearing non-transaction accounts, time deposits, and corporate credit cards. It also provides commercial real estate (CRE) loans, including owner-occupied and non-owner-occupied CRE loans, multifamily residential real estate loans, and construction and development loans; commercial non-real estate loans, such as working capital and other shorter-term lines of credit, and fixed-rate loans; short-term working capital funding, long-term land-related lending, and other tailored services to agri-businesses; and residential mortgage, home equity, auto, and other loans, as well as home equity and general lines of credit. In addition, the company offers wealth management solutions comprising financial planning, private banking, investment management, and trust services; cash management, online business deposit, and wire transfer services; crop insurance; and online, telephone, and mobile banking services. It primarily serves hospitality/tourism, agri-business, freight and transport, and healthcare sectors. As of September 30, 2019, the company's branch network consisted of 175 branch offices located in 130 communities in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota, as well as operated 165 ATMs and 11 company-owned ATMs at off-site locations. Great Western Bancorp, Inc. was founded in 1935 and is headquartered in Sioux Falls, South Dakota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 04:32
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.