NYSE:STL

Stock Analysis Report

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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, undervalued and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

STL

-0.9%

US Banks

-1.1%

US Market


1 Year Return

-37.5%

STL

-30.2%

US Banks

15.0%

US Market

Return vs Industry: STL underperformed the US Banks industry which returned -28.3% over the past year.

Return vs Market: STL underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

STLIndustryMarket
7 Day1.0%-0.9%-1.1%
30 Day18.2%5.1%2.9%
90 Day8.4%-1.0%5.7%
1 Year-36.3%-37.5%-27.6%-30.2%17.6%15.0%
3 Year-46.9%-49.3%-19.5%-26.2%38.9%29.7%
5 Year-15.0%-20.9%14.3%0.2%78.4%58.4%

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?

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STL ($13.07) is trading below our estimate of fair value ($24.34)

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 (10.3x) compared to the US Banks industry average (10.2x).

PE vs Market: STL is good value based on its PE Ratio (10.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: STL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: STL 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 Sterling Bancorp forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STL's forecast earnings growth (20.9% per year) is above the savings rate (2.2%).

Earnings vs Market: STL's earnings (20.9% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: STL's revenue (2.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: STL's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STL's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Sterling Bancorp performed over the past 5 years?

30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STL has high quality earnings.

Growing Profit Margin: STL's current net profit margins (32.2%) are lower than last year (42.8%).


Past Earnings Growth Analysis

Earnings Trend: STL's earnings have grown significantly by 30.8% per year over the past 5 years.

Accelerating Growth: STL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STL had negative earnings growth (-41.9%) over the past year, making it difficult to compare to the Banks industry average (-4%).


Return on Equity

High ROE: STL's Return on Equity (5.6%) is considered low.


Next Steps

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 (6.7x) is low.

Allowance for Bad Loans: STL has a sufficient allowance for bad loans (180%).

Low Risk Liabilities: 93% 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 (72%).

Low Risk Deposits: STL's Loans to Deposits ratio (91%) is appropriate.

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


Next Steps

Dividend

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

2.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STL's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: STL's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (4.63%).


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 (22.1%), STL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STL's dividends in 3 years are forecast to be thoroughly covered by earnings (14.8% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Jack Kopnisky (64 yo)

9.25yrs

Tenure

US$7,157,396

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 ($USD7.16M) is about average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Jack's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jack Kopnisky
President9.25yrsUS$7.16m0.27%
$ 6.7m
Luis Massiani
Senior EVP & CFO7.83yrsUS$3.45m0.081%
$ 2.0m
Rodney Whitwell
Senior EVP & Chief Administrative Officer3.25yrsUS$2.26m0.035%
$ 851.7k
Thomas Geisel
Senior EVP & Corporate Banking President5.5yrsUS$2.41m0.014%
$ 340.9k
Michael Finn
Senior EVP & Chief Risk Officerno dataUS$2.32m0.041%
$ 1.0m
Emlen Harmon
Senior VP & Director of Investor Relationsno datano datano data
James Blose
Executive VP5.33yrsUS$785.90k0.024%
$ 576.2k
Javier Evans
Executive VP & Chief Human Resource Officerno datano data0.014%
$ 331.4k
Richard Jones
Executive VP & Market President15.83yrsUS$316.70kno data
James Peoples
Senior Advisor8.92yrsUS$1.32m0%
$ 0
Wayne Miller
Executive Vice President and Chief Credit Officerno datano datano data
Brian Edwards
Senior Executive VP & Consumer Banking Presidentno datano data0.051%
$ 1.2m

7.8yrs

Average Tenure

59yo

Average Age

Experienced Management: STL's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jack Kopnisky
President9.25yrsUS$7.16m0.27%
$ 6.7m
Burt Steinberg
Independent Director 20.75yrsUS$141.48k0.14%
$ 3.4m
Robert Giambrone
Independent Director5.75yrsUS$122.23k0.0089%
$ 216.0k
Ralph Palleschi
Independent Director24.75yrsUS$117.98k0.042%
$ 1.0m
Fernando Ferrer
Independent Director18.75yrsUS$116.73k0.016%
$ 400.7k
James Landy
Non-Independent Director20.75yrsUS$122.98k0.20%
$ 4.8m
Patricia Nazemetz
Independent Director7.75yrsUS$123.06k0.0085%
$ 207.9k
Maureen Mitchell
Independent Director2.42yrsUS$118.73k0.0025%
$ 60.0k
John Cahill
Independent Director9.75yrsUS$127.73k0.013%
$ 326.3k
Navy Djonovic
Independent Director10yrsUS$120.98k0.010%
$ 250.9k
William Whiston
Independent Director7.75yrsUS$125.48k0.013%
$ 310.9k
Richard O'Toole
Independent Chairman of the Board3.42yrsUS$190.15k0.027%
$ 665.3k

9.5yrs

Average Tenure

66yo

Average Age

Experienced Board: STL's board of directors are considered experienced (9.5 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$2.440b
  • Shares outstanding: 194.46m
  • Website: https://www.sterlingbancorp.com

Number of Employees


Location

  • Sterling Bancorp
  • 400 Rella Boulevard
  • Montebello
  • New York
  • 10901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1999
PVDADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1999
STL.PRANYSE (New York Stock Exchange)6.50% CUM PFD AUSUSDOct 2017
SLBC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM USD0.01BRBRLMay 2019

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 Analysis2020/10/28 23:41
End of Day Share Price2020/10/28 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.