OTCPK:CABF

Stock Analysis Report

Executive Summary

CAB Financial Corporation operates as the holding company for Carolina Alliance Bank that provides personal and business banking products and services to small to medium-sized businesses, professional firms, and individuals.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has CAB Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

CABF

1.4%

US Banks

1.0%

US Market


1 Year Return

36.8%

CABF

0.2%

US Banks

6.7%

US Market


Shareholder returns

CABFIndustryMarket
7 Day1.5%1.4%1.0%
30 Day-4.1%-2.6%-1.8%
90 Day10.9%0.8%-1.8%
1 Year36.8%36.8%3.1%0.2%9.1%6.7%
3 Yearn/a52.0%41.5%46.1%36.6%
5 Yearn/a69.7%51.2%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is CAB Financial undervalued compared to its fair value and its price relative to the market?

28.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CABF ($16.83) is trading above our estimate of fair value ($5.93)

Significantly Undervalued: CABF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CABF is poor value based on its PE Ratio (28.3x) compared to the Banks industry average (12.5x).

PE vs Market: CABF is poor value based on its PE Ratio (28.3x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CABF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CABF is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is CAB Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CABF's forecast earnings growth (17.6% per year) is above the savings rate (2.7%).

Earnings vs Market: CABF's earnings (17.6% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: Insufficient data to determine if CABF's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if CABF's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has CAB Financial performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CABF's earnings have grown by 16% per year over the past 5 years.

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

Earnings vs Industry: CABF had negative earnings growth (-7.8%) over the past year, making it difficult to compare to the Banks industry average (31.8%).


Return on Equity

High ROE: CABF's Return on Equity (5.2%) is considered low.


Return on Assets

ROA vs Industry: CABF's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CABF's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is CAB Financial's financial position?


Financial Position Analysis

Short Term Liabilities: CABF's short term assets ($31.9M) do not cover its short term liabilities ($655.8M)

Long Term Liabilities: CABF's short term assets (31.9M) exceeds its long term liabilities (21.5M)


Debt to Equity History and Analysis

Debt Level: CABF's debt to equity ratio (43.6%) is considered high

Reducing Debt: CABF's debt to equity ratio has increased from 34.9% to 43.6% over the past 5 years.

Debt Coverage: CABF's debt is well covered by operating cash flow (24.9%).

Interest Coverage: Insufficient data to determine if CABF's interest payments on its debt are well covered by EBIT.


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

What is CAB Financial's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend 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 CABF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

John Kimberly (53yo)

1.3yrs

Tenure

0

Mr. John Davis Kimberly serves as President, Chief Executive Officer and Director at Carolina Alliance Bank. Mr. Kimberly served as Chief Executive Officer and President at Forest Commercial Bank. His care ...


Management Age and Tenure

3.1yrs

Average Tenure

58yo

Average Age

Experienced Management: CABF's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

65yo

Average Age

Experienced Board: CABF's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • R. Simpson (59yo)

    CFO & Director

    • Tenure: 2.3yrs
  • Pam Gilliam

    Senior VP - Loan Operations & Senior Loan Compliance Officer

    • Tenure: 3.5yrs
  • J. Mason (58yo)

    Executive VP - Commercial Lending & Commercial Team Leader

    • Tenure: 0yrs
  • Janice Addington

    Senior Vice President of Human Resources & Marketing

    • Tenure: 3.1yrs
  • John Kimberly (53yo)

    President

    • Tenure: 1.3yrs
  • Jack Buice

    Executive VP & Commercial Banking Officer

    • Tenure: 0yrs
  • Laura Austill

    Senior VP - Accounting Department & Controller

    • Tenure: 0yrs
  • Tim Camp

    Executive VP - Commercial Lending & Commercial Banking Executive

    • Tenure: 3.5yrs
  • Gail Crocker

    Senior VP - Loan Operations & Credit Policy Officer

    • Tenure: 0yrs
  • Judy Price

    Senior VP - Deposit Operations & Senior Operations & Compliance Officer

    • Tenure: 0yrs

Board Members

  • R. Simpson (59yo)

    CFO & Director

    • Tenure: 2.3yrs
  • John Poole (65yo)

    Director

    • Tenure: 12.3yrs
  • Andrew Babb

    Member of Advisory Board - South Carolina

    • Tenure: 0yrs
  • Norman Chapman (57yo)

    Member of Advisory Board - South Carolina

    • Tenure: 0yrs
  • Sam Maw (84yo)

    Director

    • Tenure: 2.3yrs
  • Lou Bissette (75yo)

    Vice Chairman of the Board

    • Tenure: 2.3yrs
  • Alex Evins (59yo)

    Director

    • Tenure: 2.3yrs
  • Terry Cash (71yo)

    Chairman of the Board

    • Tenure: 2.3yrs
  • John Kimberly (53yo)

    President

    • Tenure: 1.3yrs
  • Charles Atchison (88yo)

    Member of Advisory Board - South Carolina

    • Tenure: 0yrs

Company Information

CAB Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CAB Financial Corporation
  • Ticker: CABF
  • Exchange: OTCPK
  • Founded: 2007
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$124.722m
  • Shares outstanding: 7.41m
  • Website: https://www.carolinaalliancebank.com

Location

  • CAB Financial Corporation
  • 200 South Church Street
  • Spartanburg
  • South Carolina
  • 29306
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CABFOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDOct 2017

Biography

CAB Financial Corporation operates as the holding company for Carolina Alliance Bank that provides personal and business banking products and services to small to medium-sized businesses, professional firm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/04/02 01:06
End of Day Share Price2019/03/29 00:00
Earnings2018/12/31
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.