Great Western Bancorp
Market Cap
US$1.2b
Last Updated
2020/03/29 04:32 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -6% per year for the next 3 years
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
| GWB | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.9% | 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 Year | 3.2%-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
2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Great Western Bancorp, Inc.'s (NYSE:GWB) P/E Ratio2 weeks ago | Simply Wall St
Insider Buying: The Great Western Bancorp, Inc. (NYSE:GWB) Lead Independent Director Just Bought US$52k Worth Of Shares1 month ago | Simply Wall St
If You Had Bought Great Western Bancorp (NYSE:GWB) Shares Five Years Ago You'd Have Made 30%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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive VP & CFO | 5.67yrs | US$930.84k | 0.046% $531.8k | |
| Executive VP & COO | 1.42yrs | US$1.15m | 0.047% $545.3k | |
| Executive Officer | 2.67yrs | US$430.73k | 0.013% $145.8k | |
| Executive VP & Chief Risk Officer | 2.17yrs | US$436.57k | 0.0018% $20.5k | |
| Executive Vice President | 2yrs | US$395.94k | 0.0051% $58.9k | |
| Executive Director | no data | no data | no data | |
| Chief Information Officer | no data | no data | 0.0032% $37.4k | |
| General Counsel & Corporate Secretary | no data | no data | 0.0075% $86.9k | |
| Director of Corporate Communications | no data | no data | no data | |
| Head of Marketing | no data | no data | no data |
2.2yrs
Average Tenure
56yo
Average Age
Experienced Management: GWB's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Director | no data | no data | no data | |
| Independent Director | 4.42yrs | US$107.50k | no data | |
| Independent Director | 4.58yrs | US$102.00k | 0.0035% $40.1k | |
| Independent Director | 3.42yrs | US$102.00k | no data | |
| Lead Independent Director | 3yrs | US$122.00k | 0.015% $175.0k | |
| Independent Director | 5.67yrs | US$106.00k | no data | |
| Chairperson | 3yrs | US$2.50m | 0.15% $1.7m | |
| Independent Director | 5.67yrs | US$109.50k | 0.0036% $41.1k | |
| Independent Director | 4.58yrs | US$105.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GWB | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 2014 |
| 2GW | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/29 04:32 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
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.