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 46.6% below its fair value

Earnings are forecast to grow 2.15% per year

Earnings grew by 46.5% over the past year

Pays a reliable dividend of 1.35%

Risk Analysis

Significant insider selling over the past 3 months



Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Western Alliance Bancorporation

NYSE:WAL

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

-1.6%

US Banks

0.8%

US Market


1 Year Return

12.6%

STL

15.3%

US Banks

25.1%

US Market

Return vs Industry: STL underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: STL underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

STLIndustryMarket
7 Day0.5%-1.6%0.8%
30 Day-2.5%-2.6%3.1%
90 Day4.3%5.4%10.9%
1 Year14.1%12.6%18.6%15.3%27.7%25.1%
3 Year-12.0%-15.3%31.4%22.1%51.3%41.6%
5 Year68.0%55.9%85.5%64.7%77.2%57.6%

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?

45.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STL ($20.72) is trading below our estimate of fair value ($38.78)

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 (10.3x) compared to the Banks industry average (12.8x).

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 poor value based on its PEG Ratio (4.8x)


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 9 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STL's forecast earnings growth (2.1% per year) is above the savings rate (1.7%).

Earnings vs Market: STL's earnings (2.1% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: STL's revenue (0.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: STL's revenue (0.3% 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 (10.8%).


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?

1.36%

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 (1.4%).

High Dividend: STL's dividend (1.35%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (12.6% 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)

8.5yrs

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 ($USD4.28M) is about average for companies of similar size in the US market ($USD4.99M).

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

9.1yrs

Average Tenure

64.5yo

Average Age

Experienced Board: STL's board of directors are considered experienced (9.1 years average tenure).


Insider Trading

Insider Buying: STL insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$98,60617 Dec 19
Brian Edwards
EntityIndividual
Shares4,660
Max PriceUS$21.16
BuyUS$10,24511 Dec 19
Mona Kanaan
EntityIndividual
Shares500
Max PriceUS$20.49
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: 15.1yrs
    • Compensation: US$316.70k
  • Jack Kopnisky (63yo)

    President

    • Tenure: 8.5yrs
    • Compensation: US$4.28m
  • Tom Geisel (58yo)

    Senior EVP & Corporate Banking President

    • Tenure: 4.8yrs
    • Compensation: US$1.14m
  • Jim Peoples (70yo)

    Senior Advisor

    • Tenure: 8.2yrs
    • Compensation: US$1.32m
  • Edward Nebb

    Investor Relation

    • Tenure: 6yrs
  • Rodney Whitwell (61yo)

    Senior EVP & Chief Administrative Officer

    • Tenure: 2.5yrs
    • Compensation: US$1.16m
  • Luis Massiani (42yo)

    Senior EVP & CFO

    • Tenure: 7.1yrs
    • Compensation: US$1.81m
  • Michael Finn (54yo)

    Senior EVP & Chief Risk Officer

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

    Executive VP

    • Tenure: 4.6yrs
    • Compensation: US$785.90k
  • Javier Evan

    Chief Human Resource Officer


    Board Members

    • Burt Steinberg (74yo)

      Independent Director

      • Tenure: 20yrs
      • Compensation: US$141.48k
    • Ralph Palleschi (73yo)

      Independent Director

      • Tenure: 24yrs
      • Compensation: US$116.23k
    • Fernando Ferrer (69yo)

      Independent Director

      • Tenure: 18yrs
      • Compensation: US$117.48k
    • Jim Landy (64yo)

      Independent Director

      • Tenure: 20yrs
      • Compensation: US$126.23k
    • Pat Nazemetz (69yo)

      Independent Director

      • Tenure: 7yrs
      • Compensation: US$115.48k
    • Jack Kopnisky (63yo)

      President

      • Tenure: 8.5yrs
      • Compensation: US$4.28m
    • John Cahill (64yo)

      Independent Director

      • Tenure: 9yrs
      • Compensation: US$127.98k
    • Navy Djonovic (53yo)

      Independent Director

      • Tenure: 9.3yrs
      • Compensation: US$117.73k
    • Bill Whiston (65yo)

      Independent Director

      • Tenure: 7yrs
      • Compensation: US$120.48k
    • Richard O’Toole (63yo)

      Independent Chairman of the Board

      • Tenure: 2.7yrs
      • 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$4.160b
    • 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 accepts deposit products, including checking, savings, money market, time, and interest and non-interest bearing demand deposits, as well as certificates of deposit and mortgage escrow funds. It originates various loans that comprise residential and commercial mortgage loans; commercial and industrial, asset-based, payroll finance, warehouse, factored receivables, equipment finance, public sector, and commercial real estate and multi-family loans; consumer loans, such as homeowner loans, home equity lines of credit, new and used automobile loans, and personal unsecured loans; and acquisition, development, and construction loans. In addition, the company engages in the third-party provider to sell mutual funds and annuities; and provision of annuity and wealth management products. As of December 31, 2018, it operated 106 full-service retail and commercial financial centers, which comprise 24 offices are located in Nassau County, 22 in Suffolk County, 14 in Queens County, 12 in Westchester County, 11 in Kings County, 8 in Rockland County, 6 in Orange County, 3 in New York City, and 2 in Bronx County, as well as 1 office each in Sullivan, Ulster, and Putnam Counties in New York; and 1 office in Bergen County, New Jersey. The company was founded in 1888 and is based in Montebello, New York. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/22 00:33
    End of Day Share Price2020/01/21 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.