NYSE:STL

Stock Analysis Report

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Market Cap

US$4.2b

Last Updated

2021/07/23 01:34 UTC

Data Sources

Company Financials +

Executive Summary

Sterling Bancorp operates as the bank holding company for Sterling National Bank that provides various banking products and services to commercial, consumer, and municipal clients in the United States. More Details


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Sterling Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: STL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.5%

STL

-2.8%

US Banks

0.4%

US Market


1 Year Return

83.2%

STL

54.2%

US Banks

36.9%

US Market

Return vs Industry: STL exceeded the US Banks industry which returned 58.4% over the past year.

Return vs Market: STL exceeded the US Market which returned 35.1% over the past year.


Shareholder returns

STLIndustryMarket
7 Day-4.5%-2.8%0.4%
30 Day-14.1%-2.4%1.6%
90 Day-13.6%-3.2%2.7%
1 Year86.5%83.2%58.5%54.2%39.1%36.9%
3 Year-1.1%-5.8%17.4%7.3%61.0%51.0%
5 Year36.0%26.3%92.7%68.5%122.5%97.8%

Long-Term Price Volatility Vs. Market

How volatile is Sterling Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sterling 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: STL ($21.44) is trading below our estimate of fair value ($47.96)

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


Price To Earnings Ratio

PE vs Industry: STL is poor value based on its PE Ratio (11.8x) compared to the US Banks industry average (11.4x).

PE vs Market: STL is good value based on its PE Ratio (11.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: STL is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: STL is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.1x).


Future Growth

How is Sterling 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: STL's forecast earnings growth (6% per year) is above the savings rate (2%).

Earnings vs Market: STL's earnings (6% per year) are forecast to grow slower than the US market (15.1% per year).

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

Revenue vs Market: STL's revenue (4% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: STL's revenue (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 STL's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Sterling Bancorp performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STL has high quality earnings.

Growing Profit Margin: STL's current net profit margins (37.8%) are higher than last year (35.6%).


Past Earnings Growth Analysis

Earnings Trend: STL's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: STL's earnings growth over the past year (22.5%) exceeds its 5-year average (18.6% per year).

Earnings vs Industry: STL earnings growth over the past year (22.5%) underperformed the Banks industry 24.4%.


Return on Equity

High ROE: STL's Return on Equity (7.6%) is considered low.


Financial Health

How is Sterling 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


Financial Institutions Analysis

Asset Level: STL's Assets to Equity ratio (6.2x) is low.

Allowance for Bad Loans: STL has a sufficient allowance for bad loans (192%).

Low Risk Liabilities: 95% of STL's liabilities are made up of primarily low risk sources of funding.

Loan Level: STL has an appropriate level of Loans to Assets ratio (70%).

Low Risk Deposits: STL's Loans to Deposits ratio (88%) is appropriate.

Level of Bad Loans: STL has an appropriate level of bad loans (0.8%).


Dividend

What is Sterling Bancorp current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STL's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: STL's dividend (1.31%) is low compared to the top 25% of dividend payers in the US market (3.52%).


Stability and Growth of Payments

Stable Dividend: STL's dividends per share have been stable in the past 10 years.

Growing Dividend: STL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.4%), STL'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?

5.0yrs

Average management tenure


CEO

Jack Kopnisky (65 yo)

10yrs

Tenure

US$5,500,396

Compensation

Mr. Jack L. Kopnisky serves as the Chief Executive Officer of Sterling National Bank and served as its President until January 27, 2020. Mr. Kopnisky has been the Chief Executive Officer and President of S...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD5.50M) is about average for companies of similar size in the US market ($USD5.29M).

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


Leadership Team

Experienced Management: STL's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: STL's board of directors are considered experienced (9.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STL insiders have only sold shares 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

Sterling Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sterling Bancorp
  • Ticker: STL
  • Exchange: NYSE
  • Founded: 1888
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$4.169b
  • Shares outstanding: 194.46m
  • Website: https://www.sterlingbancorp.com

Number of Employees


Location

  • Sterling Bancorp
  • Two Blue Hill Plaza
  • Second Floor
  • Pearl River
  • New York
  • 10965
  • United States

Listings


Biography

Sterling Bancorp operates as the bank holding company for Sterling National Bank that provides various banking products and services to commercial, consumer, and municipal clients in the United States. The...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 01:34
End of Day Share Price2021/07/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.