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

Fundamentals

Excellent balance sheet, good value and pays a dividend.


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


Market Performance


7 Day Return

1.5%

NYSE:GWB

-1.8%

US Banks

0.2%

US Market


1 Year Return

-31.8%

NYSE:GWB

-15.3%

US Banks

-0.7%

US Market

GWB underperformed the Banks industry which returned -13.6% over the past year.

GWB underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

GWBIndustryMarket
7 Day1.5%-1.8%0.2%
30 Day-7.9%-6.4%-2.7%
90 Day-7.4%-4.0%1.6%
1 Year-29.5%-31.8%-12.9%-15.3%1.6%-0.7%
3 Year-0.7%-7.7%41.3%31.7%40.0%30.9%
5 Yearn/a50.8%34.5%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

30%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Great Western Bancorp's share price is below the future cash flow value, and at a moderate discount (> 20%).

Great Western Bancorp's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Great Western Bancorp is good value based on earnings compared to the US Banks industry average.

Great Western Bancorp is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Great Western Bancorp is poor value based on expected growth next year.


Price Based on Value of Assets

Great Western Bancorp is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Great Western Bancorp's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Great Western Bancorp's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).

Great Western Bancorp's revenue growth is positive but not above the United States of America market average.

Great Western Bancorp's earnings growth is positive but not above the United States of America market average.

Great Western Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Great Western Bancorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Great Western Bancorp's year on year earnings growth rate has been positive over the past 5 years.

Great Western Bancorp's 1-year earnings growth is less than its 5-year average (4% vs 11.5%)

Great Western Bancorp's earnings growth has not exceeded the US Banks industry average in the past year (4% vs 33.2%).


Return on Equity

Great Western Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Great Western Bancorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Great Western Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Great Western Bancorp has an acceptable proportion of non-loan assets held.

Great Western Bancorp has a low allowance for bad loans.

Great Western Bancorp's liabilities are made up of primarily low risk sources of funding.

Great Western Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Great Western Bancorp are broadly funded by customer deposits.

Great Western Bancorp has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

3.93%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Great Western Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Great Western Bancorp's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

Whilst dividend payments have been stable, Great Western Bancorp has been paying a dividend for less than 10 years.

Great Western Bancorp has only been paying a dividend for 5 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of Great Western Bancorp's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Ken Karels (62yo)

5.1yrs

Tenure

US$3,242,776

Compensation

Mr. Kenneth James Karels, also known as Ken, has been the Chief Executive Officer of Great Western Bancorp. Inc. since July 2014 and has been its President since August 05, 2019. Mr. Ken Karels continues t ...


CEO Compensation Analysis

Ken's remuneration is about average for companies of similar size in United States of America.

Ken's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

57yo

Average Age

The tenure for the Great Western Bancorp management team is about average.


Board Age and Tenure

3.9yrs

Average Tenure

62.5yo

Average Age

The tenure for the Great Western Bancorp board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Donald Straka (56yo)

    General Counsel & Corporate Secretary

    • Tenure: 0.0yrs
  • Michael Gough (58yo)

    Executive VP & Interim Chief Credit Officer

    • Tenure: 2.1yrs
    • Compensation: US$505.20k
  • Ken Karels (62yo)

    Chairman

    • Tenure: 5.1yrs
    • Compensation: US$3.24m
  • Doug Bass (58yo)

    Executive Officer

    • Tenure: 0.0yrs
    • Compensation: US$675.42k
  • Pete Chapman (45yo)

    Executive VP & CFO

    • Tenure: 5.1yrs
    • Compensation: US$1.13m
  • Cheryl Olson

    Head of Marketing

    • Tenure: 0.0yrs
  • Andy Pederson

    Head of People & Culture and Learning & Development

    • Tenure: 0.0yrs
  • Scott Erkonen

    Chief Information Officer

    • Tenure: 0.0yrs
  • Karlyn Knieriem (51yo)

    Executive VP & Chief Risk Officer

    • Tenure: 1.6yrs
    • Compensation: US$837.87k
  • Ann Nachtigal

    Director of Corporate Communications

    • Tenure: 0.0yrs

Board Members

  • Jim Brannen (57yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$109.00k
  • Steve Lacy (65yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: US$102.00k
  • Jim Israel (63yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$102.00k
  • Tom Henning (66yo)

    Lead Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$122.00k
  • Dan Rykhus (54yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$106.00k
  • Ken Karels (62yo)

    Chairman

    • Tenure: 5.1yrs
    • Compensation: US$3.24m
  • Frances Grieb (59yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$111.00k
  • Jim Spies (72yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: US$105.00k

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$1.709b
  • Shares outstanding: 56.94m
  • 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 Analysis2019/08/21 00:53
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.