NYSE:STL

Stock Analysis Report

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.

Rewards

Trading at 38.2% below its fair value

Earnings are forecast to grow 2.46% per year

Earnings grew by 46.5% over the past year

Pays a reliable dividend of 1.35%

Risk Analysis

No risks detected for STL from our risk checks.


Snowflake Analysis

Undervalued with solid track record 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

0.5%

STL

0.6%

US Banks

-0.3%

US Market


1 Year Return

16.2%

STL

19.0%

US Banks

18.6%

US Market

Return vs Industry: STL matched the US Banks industry which returned 19% over the past year.

Return vs Market: STL matched the US Market which returned 18.6% over the past year.


Shareholder returns

STLIndustryMarket
7 Day0.5%0.6%-0.3%
30 Day0.7%1.8%2.2%
90 Day7.5%15.8%5.6%
1 Year17.8%16.2%22.5%19.0%21.1%18.6%
3 Year-11.5%-14.8%30.1%21.0%45.6%36.2%
5 Year66.2%54.1%77.5%57.8%71.1%52.2%

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?

38.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STL ($20.7) is trading below our estimate of fair value ($33.48)

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


Price To Earnings Ratio

PE vs Industry: STL is good value based on its PE Ratio (10.2x) compared to the Banks industry average (12.7x).

PE vs Market: STL is good value based on its PE Ratio (10.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: STL is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Sterling Bancorp forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STL's forecast earnings growth (2.5% per year) is above the savings rate (1.7%).

Earnings vs Market: STL's earnings (2.5% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: STL's revenue (1.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: STL's revenue (1.3% 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 (9.3%).


Next Steps

Past Performance

How has Sterling Bancorp performed over the past 5 years?

45.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STL has high quality earnings.

Growing Profit Margin: STL's current net profit margins (42.8%) are higher than last year (29%).


Past Earnings Growth Analysis

Earnings Trend: STL's earnings have grown significantly by 45.3% per year over the past 5 years.

Accelerating Growth: STL's earnings growth over the past year (46.5%) exceeds its 5-year average (45.3% per year).

Earnings vs Industry: STL earnings growth over the past year (46.5%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: STL's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: STL has a low level of unsold assets or inventory.

Debt Coverage by Assets: STL's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: STL's level of assets compared to its equity is low.

Allowance for Bad Loans: STL has a low allowance for bad loans.

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

Loan Level: STL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: STL's loans are broadly funded by customer deposits.

Level of Bad Loans: STL has an appropriate level of bad loans (0.92%)


Next Steps

Dividend

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

1.35%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: STL's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: STL's dividend (1.35%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (13.9%), STL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STL's dividends in 3 years are forecast to be thoroughly covered by earnings (12.8% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Jack Kopnisky (63yo)

8.4yrs

Tenure

US$4,284,994

Compensation

Mr. Jack L. Kopnisky serves as the Chief Executive Officer and President of Sterling National Bank. Mr. Kopnisky has been the Chief Executive Officer and President of Sterling Bancorp since July 6, 2011. H ...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD4.28M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

6.5yrs

Average Tenure

59.5yo

Average Age

Experienced Management: STL's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

9.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: STL's board of directors are considered experienced (9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$31,57918 Jun 19
Javier Evan
EntityIndividual
Role
Head of Human Resources
Chief Human Resource Officer
Shares1,533
Max PriceUS$20.61
SellUS$259,65230 Apr 19
Thomas Geisel
EntityIndividual
Role
Unit President
Senior EVP & Corporate Banking President
Shares12,335
Max PriceUS$21.05
SellUS$198,97220 Mar 19
Brian Edwards
EntityIndividual
Shares9,855
Max PriceUS$20.21
SellUS$1,064,80004 Feb 19
James Landy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares55,000
Max PriceUS$19.36

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Richard Jones (70yo)

    Executive VP & Market President

    • Tenure: 15yrs
    • Compensation: US$316.70k
  • Jack Kopnisky (63yo)

    President

    • Tenure: 8.4yrs
    • Compensation: US$4.28m
  • Tom Geisel (58yo)

    Senior EVP & Corporate Banking President

    • Tenure: 4.7yrs
    • Compensation: US$1.14m
  • Jim Peoples (70yo)

    Senior Advisor

    • Tenure: 8.1yrs
    • Compensation: US$1.32m
  • Edward Nebb

    Investor Relation

    • Tenure: 5.9yrs
  • Rodney Whitwell (61yo)

    Senior EVP & Chief Administrative Officer

    • Tenure: 2.4yrs
    • Compensation: US$1.16m
  • Luis Massiani (42yo)

    Senior EVP & CFO

    • Tenure: 7yrs
    • Compensation: US$1.81m
  • Michael Finn (54yo)

    Senior EVP & Chief Risk Officer

    • Tenure: 0yrs
    • Compensation: US$1.17m
  • James Blose (51yo)

    Executive VP

    • Tenure: 4.5yrs
    • Compensation: US$785.90k
  • Javier Evan

    Chief Human Resource Officer

    • Tenure: 0yrs

Board Members

  • Burt Steinberg (74yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$141.48k
  • Ralph Palleschi (73yo)

    Independent Director

    • Tenure: 23.9yrs
    • Compensation: US$116.23k
  • Fernando Ferrer (69yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$117.48k
  • Jim Landy (64yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$126.23k
  • Pat Nazemetz (69yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$115.48k
  • Jack Kopnisky (63yo)

    President

    • Tenure: 8.4yrs
    • Compensation: US$4.28m
  • John Cahill (64yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$127.98k
  • Navy Djonovic (53yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$117.73k
  • Bill Whiston (65yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$120.48k
  • Richard O’Toole (63yo)

    Independent Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: US$195.48k

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$4.051b
  • Shares outstanding: 202.05m
  • 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)6.5% DEP SHS1/40USUSDOct 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 Analysis2019/12/06 23:56
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.