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SI

Silvergate Capital NYSE:SI Stock Report

Last Price

US$78.91

Market Cap

US$2.5b

7D

0.8%

1Y

-31.7%

Updated

28 Sep, 2022

Data

Company Financials +
SI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance5/6
Financial Health6/6
Dividends0/6

SI Stock Overview

Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States.

Silvergate Capital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Silvergate Capital
Historical stock prices
Current Share PriceUS$78.91
52 Week HighUS$239.26
52 Week LowUS$50.65
Beta3.07
1 Month Change-13.27%
3 Month Change47.41%
1 Year Change-31.72%
3 Year Changen/a
5 Year Changen/a
Change since IPO530.27%

Recent News & Updates

Sep 12

Silvergate: A Crypto Stock Trade That's Outperforming

Summary Silvergate provides financial services to companies dealing in digital currencies. It has followed crypto movements to the upside but is not dependent on BTC climbing in price for the stock to appreciate. Technical strength off the July low has signaled the likelihood that a major bottom is in place and price is going much higher. Produced with Avi Gilburt and Ryan Wilday This article will delve into a high-quality technical setup that's developing in Silvergate Capital Corp. (NYSE:SI). Silvergate Capital provides solutions for lending, payments, and funding to a growing array of companies in the digital currency space. They also offer financial services such as commercial banking and commercial business lending. So, while Silvergate has risen and fallen in sympathy with the crypto market as it's deep in the digital currency service space, its destiny is not entirely tied to movements in Bitcoin. That said, regarding Bitcoin, though the path forecasted in the various "Moonpath" articles published over the past several months has clearly been incorrect, our expectations are still quite bullish over the next 1-3 years. We still see BTC going substantially higher and rewarding investors with longer time horizons. Though not exciting in and of itself, SI is down roughly 38% year-to-date as of writing this article, whereas BTC is down approximately 58%. From the 2022 low, which was struck in July, SI is up over 82% as compared to BTC, which is up about 10% from its June low. Please see the charts below as visual aid for the technical analysis: SI Daily Chart (Jason Appel (Crypto Waves)) First, starting with the daily chart. Our larger degree perspective is that SI has rallied impulsively off the 2020 low. The November high can count as a wave (5), thereby completing a full 5 waves up as shown in blue. However, inside of an impulse, waves (1), (3), and (5) should all be 5 wave moves, and while the rally from the May 2021 low into November exceeded the February high, it did not do so as a clear 5 waves. As such, we are open to the possibility that the recent low has completed a wave (4) of the initial (expected) 5 waves up from the 2020 low; or that the recent low constitutes Primary wave 2 of a much bigger degree 5 up in formation. Given a clearly corrective move from the high (whether that's counted from February or November 2021) into the July 2022 low, and now an impulsive rally from that low, expectations are for substantially higher levels to come in both cases: whether as wave (5) in black or wave (1) of circle 3 in blue. SI micro chart (Jason Appel (Crypto Waves)) Next, let us observe the micro chart (above) showing a detailed display of the wave structure since the July 2022 low. In this case, we have a clear 5 wave structure with appropriate proportions in length among the waves and each of the motive subwaves, i, iii, and v are all smaller degree fractal impulses. In our Fibonacci Pinball methodology, after an initial 5 waves up, in this case wave i, expectations are for a corrective pullback that only retraces a portion of the initial advance. Following the initiation move and first pullback, i.e., the i-ii, an impulse then follows with a 5 wave move which should ideally exceed the 1.382 extension of the initial wave i. That is our wave iii, and in this case, SI nearly reached the 2.0 extension of wave i for the wave iii. Following the completion of wave iii, price is expected to retrace a small portion of the wave iii advance and should ideally maintain well above the wave i high. SI did exactly that, pulling back into support for wave iv in late July. From there, the completion of the impulse depends on price forming another micro 5 wave rally, exceeding the wave iii high and ideally, doing so just by a few Fibonacci extensions before topping. As you can see, SI very nicely followed this structure for all 5 waves composing the wave 1. The significance of the 5 wave move is that, in Elliott Wave, we have observed that these impulse movements tend to imply that following a partial correction, price will continue in the direction of the trend. Lastly, let us examine the one-hour chart: SI 1hr chart (Jason Appel (Crypto Waves)) SI has a clear 3 wave move down from the August high into this week's low, right into the standard retrace support region, noted by the blue box on the chart. Furthermore, the rally from this week's low has surpassed the initial resistance, suggesting that a potential bottom has been struck in wave 2. Should price head south and form a lower low, please note that standard expectations for continuation higher dictate that the .618 retrace should ideally hold. That is at the $67.83 level. As such, we consider support to range all the way down to roughly $67 in the event that this week's low is breached. Should $67 break, while it does not constitute an invalidation of the larger setup presented, it would cast greater doubt on the prospect of upside follow through.

Shareholder Returns

SIUS BanksUS Market
7D0.8%-4.5%-2.0%
1Y-31.7%-23.8%-20.3%

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

Return vs Market: SI underperformed the US Market which returned -22.1% over the past year.

Price Volatility

Is SI's price volatile compared to industry and market?
SI volatility
SI Average Weekly Movement12.2%
Banks Industry Average Movement3.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: SI is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: SI's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
1988364Alan Lanehttps://www.silvergate.com

Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States. The company accepts deposit products, including interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit accounts. Its loan products comprise one-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, mortgage warehouse loans, and reverse mortgage loans, as well as consumer loans and other loans secured by personal property.

Silvergate Capital Fundamentals Summary

How do Silvergate Capital's earnings and revenue compare to its market cap?
SI fundamental statistics
Market CapUS$2.50b
Earnings (TTM)US$102.48m
Revenue (TTM)US$243.15m

24.4x

P/E Ratio

1.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SI income statement (TTM)
RevenueUS$243.15m
Cost of RevenueUS$0
Gross ProfitUS$243.15m
Other ExpensesUS$140.66m
EarningsUS$102.48m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.24
Gross Margin100.00%
Net Profit Margin42.15%
Debt/Equity Ratio57.3%

How did SI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SI?

Other financial metrics that can be useful for relative valuation.

SI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does SI's PE Ratio compare to its peers?

SI PE Ratio vs Peers
The above table shows the PE ratio for SI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.5x
PPBI Pacific Premier Bancorp
9.8x4.5%US$3.0b
FBP First BanCorp
8.3x-0.4%US$2.5b
LOB Live Oak Bancshares
7.4x-18.0%US$1.5b
FBK FB Financial
12.4x16.1%US$1.8b
SI Silvergate Capital
24.4x37.2%US$2.5b

Price-To-Earnings vs Peers: SI is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (9.5x).


Price to Earnings Ratio vs Industry

How does SI's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: SI is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the US Banks industry average (9.5x)


Price to Earnings Ratio vs Fair Ratio

What is SI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.4x
Fair PE Ratio21.9x

Price-To-Earnings vs Fair Ratio: SI is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (21.9x).


Share Price vs Fair Value

What is the Fair Price of SI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SI ($78.91) is trading below our estimate of fair value ($194.91)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Silvergate Capital forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


37.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SI's forecast earnings growth (37.2% per year) is above the savings rate (1.9%).

Earnings vs Market: SI's earnings (37.2% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: SI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SI's revenue (32.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SI's revenue (32.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SI's Return on Equity is forecast to be low in 3 years time (17.1%).


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Past Performance

How has Silvergate Capital performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


45.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SI has high quality earnings.

Growing Profit Margin: SI's current net profit margins (42.1%) are higher than last year (40.5%).


Past Earnings Growth Analysis

Earnings Trend: SI's earnings have grown significantly by 45.9% per year over the past 5 years.

Accelerating Growth: SI's earnings growth over the past year (105.7%) exceeds its 5-year average (45.9% per year).

Earnings vs Industry: SI earnings growth over the past year (105.7%) exceeded the Banks industry 8.7%.


Return on Equity

High ROE: SI's Return on Equity (7.8%) is considered low.


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Financial Health

How is Silvergate Capital's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: SI's Assets to Equity ratio (11.2x) is moderate.

Allowance for Bad Loans: SI has a sufficient allowance for bad loans (119%).

Low Risk Liabilities: 93% of SI's liabilities are made up of primarily low risk sources of funding.

Loan Level: SI has an appropriate level of Loans to Assets ratio (4%).

Low Risk Deposits: SI's Loans to Deposits ratio (4%) is appropriate.

Level of Bad Loans: SI has an appropriate level of bad loans (0.6%).


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Dividend

What is Silvergate Capital current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Silvergate Capital Dividend Yield vs Market
How does Silvergate Capital dividend yield compare to the market?
SegmentDividend Yield
Company (Silvergate Capital)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Banks)3.4%
Analyst forecast in 3 Years (Silvergate Capital)0%

Notable Dividend: Unable to evaluate SI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SI's dividend payments have been increasing.


Current Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


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Management

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

3.8yrs

Average management tenure


CEO

Alan Lane (60 yo)

13.75yrs

Tenure

US$1,884,426

Compensation

Mr. Alan J. Lane serves as President, CEO & Director of Silvergate Bank. He serves as Director and Chief Executive Officer of Silvergate Capital Corporation and serves as its President and has been with th...


CEO Compensation Analysis

Alan Lane's Compensation vs Silvergate Capital Earnings
How has Alan Lane's remuneration changed compared to Silvergate Capital's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$102m

Mar 31 2022n/an/a

US$88m

Dec 31 2021US$2mUS$520k

US$76m

Sep 30 2021n/an/a

US$66m

Jun 30 2021n/an/a

US$50m

Mar 31 2021n/an/a

US$34m

Dec 31 2020US$952kUS$492k

US$26m

Sep 30 2020n/an/a

US$21m

Jun 30 2020n/an/a

US$20m

Mar 31 2020n/an/a

US$20m

Dec 31 2019US$1mUS$450k

US$25m

Sep 30 2019n/an/a

US$29m

Jun 30 2019n/an/a

US$29m

Mar 31 2019n/an/a

US$28m

Dec 31 2018US$717kUS$412k

US$22m

Sep 30 2018n/an/a

US$16m

Jun 30 2018n/an/a

US$12m

Mar 31 2018n/an/a

US$10m

Dec 31 2017US$592kUS$387k

US$8m

Dec 31 2016US$538kUS$337k

US$7m

Compensation vs Market: Alan's total compensation ($USD1.88M) is below average for companies of similar size in the US market ($USD6.87M).

Compensation vs Earnings: Alan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SI's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: SI's board of directors are considered experienced (8.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:SI Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
22 Apr 22SellUS$199,076Kathleen FraherIndividual1,500US$135.00
22 Feb 22SellUS$340,013Karen BrassfieldIndividual3,000US$113.34
04 Feb 22BuyUS$56,100Michael LempresIndividual500US$112.20
08 Nov 21SellUS$1,096,900Son-Jai PaikIndividual5,000US$219.38
08 Nov 21SellUS$5,496,934Dennis FrankIndividual25,000US$221.36
05 Nov 21SellUS$660,000Benjamin ReynoldsIndividual3,000US$220.00
03 Nov 21SellUS$2,167,950Paul ColucciIndividual10,601US$205.45
03 Nov 21SellUS$6,022,877Derek EiseleIndividual30,000US$202.37
01 Nov 21SellUS$856,873Scott ReedIndividual5,000US$174.23
25 Oct 21SellUS$1,129,134Scott ReedIndividual7,522US$150.11
21 Oct 21SellUS$3,764,432Thomas DircksIndividual25,000US$151.80
21 Oct 21SellUS$3,741,233Charter Digital LlcCompany25,000US$151.30
21 Oct 21SellUS$824,806Scott ReedIndividual5,498US$150.02

Ownership Breakdown

What is the ownership structure of SI?
Owner TypeNumber of SharesOwnership Percentage
Private Companies40,9000.1%
Individual Insiders694,3592.2%
General Public5,055,58416.0%
Institutions25,866,43881.7%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.4%.


Top Shareholders

Top 25 shareholders own 59.49% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.2%
The Vanguard Group, Inc.
2,911,669$229.8m2.26%no data
7.18%
BlackRock, Inc.
2,271,469$179.2m2.06%no data
5.02%
State Street Global Advisors, Inc.
1,588,808$125.4m10.21%0.01%
4.08%
Marshall Wace LLP
1,291,579$101.9m-1.41%0.26%
3.74%
Senvest Management, LLC
1,184,061$93.4m135.82%2.83%
2.76%
Morgan Stanley, Investment Banking and Brokerage Investments
872,540$68.9m10.96%0.01%
2.61%
Zevenbergen Capital Investments LLC
826,685$65.2m2.81%2.32%
2.51%
EJF Capital LLC
793,366$62.6m-4.16%9.61%
2.23%
Invesco Ltd.
705,492$55.7m17.01%0.02%
1.86%
Bridgewater Associates, LP
587,746$46.4m885.75%0.27%
1.81%
Stephens Investment Management Group, LLC
572,535$45.2m0.64%0.8%
1.68%
Geode Capital Management, LLC
531,303$41.9m7.27%0.01%
1.66%
Capital Research and Management Company
526,951$41.6m-23.34%no data
1.57%
Alyeska Investment Group, L.P.
495,685$39.1m20.8%0.43%
1.4%
ARK Investment Management LLC
443,211$35.0m-7.37%0.22%
1.24%
Toroso Investments, LLC
393,272$31.0m7.34%0.95%
1.23%
Artisan Partners Limited Partnership
390,364$30.8m-14.72%0.03%
1.15%
Allspring Global Investments, LLC
364,368$28.8m-50.71%0.04%
1.05%
Emerald Advisers, LLC
332,054$26.2m-12.2%0.67%
0.95%
No Street GP LP
300,000$23.7m140%3.45%
0.95%
TimesSquare Capital Management, LLC
299,913$23.7m40%0.28%
0.93%
Northern Trust Global Investments
295,935$23.4m6.16%no data
0.91%
Driehaus Capital Management LLC
288,067$22.7m0%0.23%
0.9%
Stifel Asset Management Corp.
286,324$22.6m-13.12%0.03%
0.88%
FMR LLC
278,084$21.9m-47.21%no data

Company Information

Silvergate Capital Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Silvergate Capital Corporation
  • Ticker: SI
  • Exchange: NYSE
  • Founded: 1988
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$2.498b
  • Shares outstanding: 31.66m
  • Website: https://www.silvergate.com

Number of Employees


Location

  • Silvergate Capital Corporation
  • 4250 Executive Square
  • Suite 300
  • La Jolla
  • California
  • 92037
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SINYSE (New York Stock Exchange)YesClass A Common StockUSUSDNov 2019
0XZDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2019
SI *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNNov 2019
0A96LSE (London Stock Exchange)YesClass A Common StockGBUSDNov 2019
SI.PRANYSE (New York Stock Exchange)5.375% DEP PFD AUSUSDJul 2021
SIBASE (Buenos Aires Stock Exchange)CEDEAR EACH 10 REP 1 COMARARSJul 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.