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Great Western Bancorp

NYSE:GWB
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GWB
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

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 last earnings update was 49 days ago. More info.


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GWB Share Price and Events
7 Day Returns
2.2%
NYSE:GWB
0.1%
US Banks
2%
US Market
1 Year Returns
-20.5%
NYSE:GWB
-7%
US Banks
4.3%
US Market
GWB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Great Western Bancorp (GWB) 2.2% 4.7% 9.5% -20.5% 14.3% -
US Banks 0.1% 0.7% 5.8% -7% 51.5% 40.9%
US Market 2% 4.1% 4.2% 4.3% 43.9% 40.8%
1 Year Return vs Industry and Market
  • GWB underperformed the Banks industry which returned -7% over the past year.
  • GWB underperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
GWB
Industry
5yr Volatility vs Market

GWB Value

 Is Great Western Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Great Western Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Great Western Bancorp.

NYSE:GWB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= $34.41 * 9.7%
$3.35
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. $34.41
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GWB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.592 (1 + (1- 21%) (22.71%))
0.797
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:GWB using Excess Returns Model Model

The calculations below outline how an intrinsic value for Great Western Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:GWB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.7% – 7.5%) * $34.41)
$0.77
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.77 / (7.5% - 2.73%)
$16.20
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $34.41 + $16.20
$50.62
NYSE:GWB Discount to Share Price
Calculation Result
Value per share (USD) From above. $50.62
Current discount Discount to share price of $34.50
= -1 x ($34.50 - $50.62) / $50.62
31.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Great Western Bancorp is available for.
Intrinsic value
32%
Share price is $34.5 vs Future cash flow value of $50.62
Current Discount Checks
For Great Western Bancorp to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Great Western Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Great Western Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GWB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.07
NYSE:GWB Share Price ** NYSE (2019-06-24) in USD $34.5
United States of America Banks Industry PE Ratio Median Figure of 600 Publicly-Listed Banks Companies 12.7x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Great Western Bancorp.

NYSE:GWB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GWB Share Price ÷ EPS (both in USD)

= 34.5 ÷ 3.07

11.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Great Western Bancorp's expected growth come at a high price?
Raw Data
NYSE:GWB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
2%per year
United States of America Banks Industry PEG Ratio Median Figure of 272 Publicly-Listed Banks Companies 1.36x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:GWB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.26x ÷ 2%

5.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Great Western Bancorp is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Great Western Bancorp's assets?
Raw Data
NYSE:GWB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $32.53
NYSE:GWB Share Price * NYSE (2019-06-24) in USD $34.5
United States of America Banks Industry PB Ratio Median Figure of 603 Publicly-Listed Banks Companies 1.19x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.8x
NYSE:GWB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GWB Share Price ÷ Book Value per Share (both in USD)

= 34.5 ÷ 32.53

1.06x

* Primary Listing of Great Western Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Great Western Bancorp is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess Great Western Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Great Western Bancorp has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GWB Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Great Western Bancorp expected to grow at an attractive rate?
  • Great Western Bancorp's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Great Western Bancorp's earnings growth is positive but not above the United States of America market average.
  • Great Western Bancorp's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GWB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GWB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 2%
NYSE:GWB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 4.9%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GWB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GWB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-09-30 509 184 4
2019-09-30 488 181 4
NYSE:GWB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 467 198 178
2018-12-31 467 205 174
2018-09-30 463 182 158
2018-06-30 457 200 153
2018-03-31 445 196 142
2017-12-31 438 198 137
2017-09-30 431 132 145
2017-06-30 430 132 141
2017-03-31 417 113 132
2016-12-31 403 136 128
2016-09-30 388 185 121
2016-06-30 372 203 121

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Great Western Bancorp's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
  • Great Western Bancorp's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GWB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Great Western Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GWB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-09-30 3.29 3.41 3.18 8.00
2019-09-30 3.17 3.20 3.14 8.00
NYSE:GWB Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.07
2018-12-31 2.97
2018-09-30 2.68
2018-06-30 2.60
2018-03-31 2.42
2017-12-31 2.33
2017-09-30 2.46
2017-06-30 2.40
2017-03-31 2.27
2016-12-31 2.22
2016-09-30 2.14
2016-06-30 2.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Great Western Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Great Western Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Great Western Bancorp has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GWB Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Great Western Bancorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 exceeds its 5-year average (25.2% vs 11.5%)
  • Great Western Bancorp's earnings growth has not exceeded the US Banks industry average in the past year (25.2% vs 40.7%).
Earnings and Revenue History
Great Western Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Great Western Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GWB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 466.75 178.45 205.31
2018-12-31 467.12 174.47 207.39
2018-09-30 463.46 157.92 207.89
2018-06-30 456.96 153.30 205.08
2018-03-31 445.28 142.48 202.55
2017-12-31 438.11 137.11 198.18
2017-09-30 430.87 144.79 195.26
2017-06-30 430.11 140.88 194.88
2017-03-31 417.06 132.18 188.68
2016-12-31 402.54 127.70 178.87
2016-09-30 387.76 121.25 171.89
2016-06-30 371.64 121.31 164.08
2016-03-31 366.39 123.78 161.00
2015-12-31 351.57 112.83 161.94
2015-09-30 348.35 109.07 161.31
2015-06-30 344.48 103.13 160.07
2015-03-31 343.26 96.80 159.38
2014-12-31 355.17 103.05 157.98
2014-09-30 359.52 104.95 158.02
2014-06-30 403.48 103.40 160.24
2014-03-31 375.98 105.22 159.94
2013-12-31 368.39 102.05 163.39
2013-09-30 358.73 96.24 166.11
2012-09-30 322.02 73.00 161.81

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Great Western Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Great Western Bancorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • 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.
X
Past performance checks
We assess Great Western Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Great Western Bancorp has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GWB Health

 How is Great Western Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Great Western Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Great Western Bancorp Company Filings, last reported 2 months ago.

NYSE:GWB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,852.39 446.12 308.48
2018-12-31 1,812.01 575.74 290.42
2018-09-30 1,840.55 476.56 246.91
2018-06-30 1,816.74 550.45 298.26
2018-03-31 1,788.70 763.80 374.58
2017-12-31 1,767.87 957.27 298.41
2017-09-30 1,755.00 901.31 333.50
2017-06-30 1,732.98 722.06 327.90
2017-03-31 1,706.86 509.89 335.93
2016-12-31 1,678.64 979.83 270.17
2016-09-30 1,663.39 1,206.11 429.71
2016-06-30 1,640.51 1,275.54 475.79
2016-03-31 1,509.20 681.23 174.40
2015-12-31 1,475.52 768.02 212.71
2015-09-30 1,459.35 910.61 188.47
2015-06-30 1,487.85 873.88 144.27
2015-03-31 1,469.55 784.55 318.24
2014-12-31 1,451.37 895.46 428.19
2014-09-30 1,421.09 847.25 206.24
2014-06-30 1,430.96 731.41 191.81
2014-03-31 1,437.66 532.38 376.78
2013-12-31 1,417.21 707.07 229.50
2013-09-30 1,417.21 707.07 229.50
2012-09-30 1,388.56 681.69 209.96
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Great Western Bancorp has an acceptable proportion of non-loan assets held.
  • Great Western Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at Great Western Bancorp are broadly funded by customer deposits.
  • Great Western Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Great Western Bancorp has a low allowance for bad loans.
  • Great Western Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Great Western Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Great Western Bancorp has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GWB Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.48%
Current annual income from Great Western Bancorp dividends. Estimated to be 3.37% next year.
If you bought $2,000 of Great Western Bancorp shares you are expected to receive $70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Great Western Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Great Western Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GWB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 479 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GWB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-09-30 1.22 9.00
2019-09-30 1.11 8.00
NYSE:GWB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 1.200 3.566
2019-01-24 1.000 2.895
2018-10-25 1.000 2.913
2018-04-26 1.000 2.358
2018-01-25 0.800 1.933
2017-10-26 0.800 1.959
2017-07-27 0.800 2.095
2017-05-01 0.800 2.012
2017-04-27 0.800 1.900
2016-10-27 0.680 1.652
2016-07-28 0.560 1.696
2016-04-28 0.560 1.725
2016-02-05 0.560 2.104
2015-10-29 0.560 1.995
2015-07-27 0.480 1.885
2015-04-28 0.480 2.013
2015-01-28 0.480 2.153
2014-12-12 1.760 8.126
2014-11-20 1.760 7.846

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Great Western Bancorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Great Western Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Great Western Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Great Western Bancorp has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GWB Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ken Karels
COMPENSATION $3,242,776
AGE 61
TENURE AS CEO 4.9 years
CEO Bio

Mr. Kenneth James Karels, also known as Ken, has been the Chief Executive Officer of Great Western Bancorp. Inc. since July 2014. Mr. Ken Karels continues to lead it but shift focus towards long-term strategy, business expansion and acquisition activities, board governance and regulatory relations. He was President of Great Western Bancorp. Inc. from July 2014 to October 01, 2018. He was President of Great Western Bank till October 01, 2018. He served as the President and Chief Executive Officer of GWBI from 2010 to 2014. Mr. Karels served as Chief Executive Officer of Marquette Banking Group before joining Great Western Bank in February 2002, including Regional President and Chief Operating Officer for the Bank's branch distribution channel including agriculture, business and retail lending and deposits functions.. Mr. Karels served as President and Chief Executive Officer at Marquette Bank, Milbank, SD, where he was employed for 25 years. Mr. Karels has 40 years of banking experience and expertise in all areas of bank management and strategic bank acquisitions. He has been Chairperson of Great Western Bancorp, Inc., and Great Western Bank since February 27, 2017. He has been a Director of Great Western Bancorp. Inc. since July 2014. He has been a Director at GWBI since 2010 and at Valley Queen Cheese Factory, Inc. He serves as a Director of Great Western Bank. In addition, Mr. Karels also serves on the board of Avera Health Systems, the board of Valley Queen Cheese and the board of the South Dakota Education Enhancement and Funding Corporation. Mr. Karels also served as a member of the Federal Advisory Council to the Board of Governors of the Federal Reserve Bank from 2016 through 2018.

CEO Compensation
  • Ken's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ken's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Great Western Bancorp management team in years:

1.9
Average Tenure
56
Average Age
  • The average tenure for the Great Western Bancorp management team is less than 2 years, this suggests a new team.
Management Team

Ken Karels

TITLE
Chairman & CEO
COMPENSATION
$3M
AGE
61
TENURE
4.9 yrs

Doug Bass

TITLE
President & COO
COMPENSATION
$675K
AGE
57
TENURE
0.7 yrs

Pete Chapman

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
44
TENURE
4.9 yrs

Michael Gough

TITLE
Executive Vice President
COMPENSATION
$505K
AGE
57
TENURE
1.9 yrs

Karlyn Knieriem

TITLE
Executive VP & Chief Risk Officer
COMPENSATION
$838K
AGE
50
TENURE
1.4 yrs

Scott Erkonen

TITLE
Chief Information Officer

Donald Straka

TITLE
General Counsel & Corporate Secretary
AGE
55

Ann Nachtigal

TITLE
Director of Corporate Communications

Cheryl Olson

TITLE
Head of Marketing

Andy Pederson

TITLE
Head of People & Culture and Learning & Development
Board of Directors Tenure

Average tenure and age of the Great Western Bancorp board of directors in years:

3.8
Average Tenure
61.5
Average Age
  • The tenure for the Great Western Bancorp board of directors is about average.
Board of Directors

Ken Karels

TITLE
Chairman & CEO
COMPENSATION
$3M
AGE
61
TENURE
2.3 yrs

Frances Grieb

TITLE
Director
COMPENSATION
$111K
AGE
58
TENURE
4.9 yrs

Dan Rykhus

TITLE
Director
COMPENSATION
$106K
AGE
53
TENURE
4.9 yrs

Tom Henning

TITLE
Lead Independent Director
COMPENSATION
$122K
AGE
65
TENURE
2.3 yrs

Steve Lacy

TITLE
Director
COMPENSATION
$102K
AGE
64
TENURE
3.8 yrs

Jim Brannen

TITLE
Director
COMPENSATION
$109K
AGE
56
TENURE
3.7 yrs

Jim Spies

TITLE
Director
COMPENSATION
$105K
AGE
71
TENURE
3.8 yrs

Jim Israel

TITLE
Director
COMPENSATION
$102K
AGE
62
TENURE
2.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Great Western Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Great Western Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GWB News

Simply Wall St News

Does Great Western Bancorp, Inc. (NYSE:GWB) Have A Volatile Share Price?

Given that it has a beta of 1.6, we can surmise that the Great Western Bancorp share price has been fairly sensitive to market volatility (over the last 5 years). … If this beta value holds true in the future, Great Western Bancorp shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … What this means for you: Since Great Western Bancorp tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

At US$35.41, Is It Time To Put Great Western Bancorp, Inc. (NYSE:GWB) On Your Watch List?

(NYSE:GWB), operating in the financial services industry based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Great Western Bancorp’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

Here's What We Think About Great Western Bancorp, Inc.'s (NYSE:GWB) CEO Pay

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Ken Karels's Compensation Compare With Similar Sized Companies. … is worth US$1.9b, and total annual CEO compensation is US$3.2m.

Simply Wall St -

Does Great Western Bancorp's (NYSE:GWB) Share Price Gain of 19% Match Its Business Performance?

On the other hand the share price is higher than it was three years ago. … During three years of share price growth, Great Western Bancorp achieved compound earnings per share growth of 14% per year. … This EPS growth is higher than the 6.1% average annual increase in the share price.

Simply Wall St -

Should You Be Concerned About Great Western Bancorp, Inc.’s (NYSE:GWB) Risks?

Great Western Bancorp, Inc. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Great Western Bancorp’s bottom line. … Check out our latest analysis for Great Western Bancorp

Simply Wall St -

Read This Before You Buy Great Western Bancorp, Inc. (NYSE:GWB) Because Of Its P/E Ratio

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Great Western Bancorp has a price to earnings ratio of 12.54, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Makes Great Western Bancorp, Inc. (NYSE:GWB) A Hard Investment?

As a small-cap finance stock with a market capitalisation of US$2.0b, the risk and profitability of Great Western Bancorp, Inc. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like Great Western Bancorp to vulnerabilities. … Low levels of leverage coupled with sufficient liquidity may place Great Western Bancorp in a safe position in the face of adverse headwinds.

Simply Wall St -

Is Great Western Bancorp, Inc. (NYSE:GWB) A Great Dividend Stock?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Let's take a look at Great Western Bancorp in more detail. … Check out our latest analysis for Great Western Bancorp

Simply Wall St -

Is Now An Opportune Moment To Examine Great Western Bancorp, Inc. (NYSE:GWB)?

(NYSE:GWB), operating in the financial services industry based in United States,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Great Western Bancorp’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Before You Buy Great Western Bancorp, Inc. (NYSE:GWB), Consider Its Volatility

(NYSE:GWB), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

GWB Company Info

Description

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, 2018, the company's branch network consisted of 174 branch offices located in 130 communities in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota, as well as operated 163 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.

Details
Name: Great Western Bancorp, Inc.
GWB
Exchange: NYSE
Founded: 1935
$1,964,380,078
56,938,553
Website: http://www.greatwesternbank.com
Address: Great Western Bancorp, Inc.
225 South Main Avenue,
Sioux Falls,
South Dakota, 57104,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GWB Common Stock New York Stock Exchange US USD 16. Oct 2014
DB 2GW Common Stock Deutsche Boerse AG DE EUR 16. Oct 2014
Number of employees
Current staff
Staff numbers
1,596
Great Western Bancorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 00:49
End of day share price update: 2019/06/24 00:00
Last estimates confirmation: 2019/06/19
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.