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 and good value.


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

2.2%

GWB

3.7%

US Banks

1.8%

US Market


1 Year Return

-13.2%

GWB

1.9%

US Banks

7.3%

US Market

Return vs Industry: GWB underperformed the US Banks industry which returned 1.9% over the past year.

Return vs Market: GWB underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

GWBIndustryMarket
7 Day2.2%3.7%1.8%
30 Day3.5%0.2%-0.7%
90 Day3.5%2.5%0.06%
1 Year-10.3%-13.2%4.9%1.9%9.7%7.3%
3 Year10.5%2.7%51.7%41.2%46.3%36.9%
5 Year95.5%75.4%69.7%51.2%64.5%46.5%

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?

23.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GWB ($33.96) is trading below our estimate of fair value ($44.26)

Significantly Undervalued: GWB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GWB is good value based on its PE Ratio (12.3x) compared to the Banks industry average (12.6x).

PE vs Market: GWB is good value based on its PE Ratio (12.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: GWB is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: GWB is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Great Western Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWB's forecast earnings growth (6.5% per year) is above the savings rate (2.7%).

Earnings vs Market: GWB's earnings (6.5% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: GWB's earnings are forecast to grow, but not significantly.

Revenue vs Market: GWB's revenue (5.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GWB's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GWB's Return on Equity is forecast to be low in 3 years time (9%).


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

Earnings Trend: GWB's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: GWB's earnings growth over the past year (4%) is below its 5-year average (11.5% per year).

Earnings vs Industry: GWB earnings growth over the past year (4%) underperformed the Banks industry 30.5%.


Return on Equity

High ROE: GWB's Return on Equity (8.5%) is considered low.


Return on Assets

ROA vs Industry: GWB has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate GWB's Return on Capital Employed to determine if it has improved over the past 3 years.


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 (1.19%)


Next Steps

Dividend

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

3.53%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.5%markettop25%3.7%industryaverage3.0%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GWB's dividend (3.53%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GWB's dividend (3.53%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: Whilst dividend payments have been stable, GWB has been paying a dividend for less than 10 years.

Growing Dividend: GWB has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38%), GWB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GWB's dividends in 3 years are forecast to be well covered by earnings (40.1% payout ratio).


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?

2.3yrs

Average management tenure


CEO

Ken Karels (62yo)

5.3yrs

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

Compensation vs. Market: Ken's total compensation ($USD3.24M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

57yo

Average Age

Experienced Management: GWB's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: GWB's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$57,84426 Aug 19
Thomas Henning
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,000
Max PriceUS$28.92

Ownership Breakdown


Management Team

  • Donald Straka (56yo)

    General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Michael Gough (58yo)

    Senior Vice President – Credit

    • Tenure: 2.3yrs
    • Compensation: US$505.20k
  • Ken Karels (62yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$3.24m
  • Doug Bass (58yo)

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: US$675.42k
  • Pete Chapman (45yo)

    Executive VP & CFO

    • Tenure: 5.3yrs
    • Compensation: US$1.13m
  • Cheryl Olson

    Head of Marketing

    • Tenure: 0yrs
  • Andy Pederson

    Head of People & Culture and Learning & Development

    • Tenure: 0yrs
  • Scott Erkonen

    Chief Information Officer

    • Tenure: 0yrs
  • Karlyn Knieriem (51yo)

    Executive VP & Chief Risk Officer

    • Tenure: 1.8yrs
    • Compensation: US$837.87k
  • Ann Nachtigal

    Director of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Jim Brannen (57yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$109.00k
  • Steve Lacy (65yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$102.00k
  • Jim Israel (63yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$102.00k
  • Tom Henning (66yo)

    Lead Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$122.00k
  • Dan Rykhus (54yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$106.00k
  • Ken Karels (62yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$3.24m
  • Frances Grieb (59yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$111.00k
  • Jim Spies (72yo)

    Director

    • Tenure: 4.2yrs
    • 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$1.934b
  • 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 Analysis2019/10/18 00:12
End of Day Share Price2019/10/17 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.