OTCPK:KTYB

Stock Analysis Report

Executive Summary

Kentucky Bancshares, Inc. operates as a bank holding company for Kentucky Bank that provides commercial and consumer banking products and services.

Rewards

Trading at 17.7% below its fair value

Earnings have grown 15% per year over the past 5 years

Pays a reliable dividend of 3.1%

Risk Analysis

No risks detected for KTYB from our risk checks.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Kentucky Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KTYB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

KTYB

-1.2%

US Banks

-1.1%

US Market


1 Year Return

-2.3%

KTYB

9.8%

US Banks

17.8%

US Market

Return vs Industry: KTYB underperformed the US Banks industry which returned 9.8% over the past year.

Return vs Market: KTYB underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

KTYBIndustryMarket
7 Day-3.3%-1.2%-1.1%
30 Day-0.5%0.4%1.5%
90 Day-0.2%-0.8%6.6%
1 Year1.9%-2.3%13.0%9.8%20.2%17.8%
3 Year42.3%30.0%23.4%14.5%47.5%38.1%
5 Year100.1%70.0%72.2%52.7%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Kentucky Bancshares undervalued compared to its fair value and its price relative to the market?

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KTYB ($23.2) is trading below our estimate of fair value ($28.18)

Significantly Below Fair Value: KTYB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KTYB is good value based on its PE Ratio (10.5x) compared to the Banks industry average (12.6x).

PE vs Market: KTYB is good value based on its PE Ratio (10.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

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

2.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kentucky Bancshares has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Kentucky Bancshares is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Kentucky Bancshares's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has Kentucky Bancshares performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTYB has high quality earnings.

Growing Profit Margin: KTYB's current net profit margins (26.6%) are higher than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: KTYB's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: KTYB's earnings growth over the past year (5.8%) is below its 5-year average (15% per year).

Earnings vs Industry: KTYB earnings growth over the past year (5.8%) underperformed the Banks industry 12%.


Return on Equity

High ROE: KTYB's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kentucky Bancshares'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: KTYB has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

Allowance for Bad Loans: KTYB has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: KTYB has an appropriate level of bad loans (0.52%)


Next Steps

Dividend

What is Kentucky Bancshares's current dividend yield, its reliability and sustainability?

3.10%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: KTYB's dividend (3.1%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KTYB's dividend (3.1%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.8%), KTYB'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?

12.1yrs

Average management tenure


CEO

Louis Prichard (65yo)

16.1yrs

Tenure

US$543,271

Compensation

Mr. Louis Prichard has been the Chief Executive Officer and President at Kentucky Bancshares Inc. (formerly, 'Bourbon Bancshares Inc.') and its subsidiary Kentucky Bank since 2004 and 2003 respectively. Mr ...


CEO Compensation Analysis

Compensation vs Market: Louis's total compensation ($USD543.27K) is about average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
B. Caudill
Chairman of the Board0.2yrsUS$61.16k4.12% $5.6m
Louis Prichard
President16.1yrsUS$543.27k0.53% $722.8k
Gregory Dawson
Senior VP31.1yrsUS$229.46k0.28% $386.4k
James Braden
Executive VP & COO0yrsUS$272.68k0.11% $148.2k
Norman Fryman
Executive VP & Chief Credit Officer10.1yrsUS$324.58k0.049% $66.3k
Brenda Bragonier
Senior VP & Director of Marketing21.1yrsUS$100.37k0.29% $396.0k
Carol Caskey
Senior VP & Director of Human Resources9.1yrsno data0.087% $119.2k
James Elliott
Senior VP & Director of Wealth Management7.1yrsno data0.12% $170.1k
Christopher Gorley
Senior VP & Director of Operations7.1yrsno data0.059% $80.5k
Shane Foley
Executive VP & Director of Retail Banking0yrsno data0.048% $65.9k

12.1yrs

Average Tenure

61.5yo

Average Age

Experienced Management: KTYB's management team is seasoned and experienced (12.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
B. Caudill
Chairman of the Board0.2yrsUS$61.16k4.12% $5.6m
Louis Prichard
President16.1yrsUS$543.27k0.53% $722.8k
Robert Thompson
Independent Director29.1yrsUS$39.91k0.24% $325.8k
Henry Hinkle
Independent Director31.1yrsUS$24.11k0.16% $216.3k
John McClain
Independent Director17.1yrsUS$28.61k0.092% $125.7k
Woodford Van Meter
Independent Director16.1yrsUS$34.61k1.22% $1.7m
Edwin Saunier
Independent Director13.1yrsUS$36.01k0.13% $182.0k
Shannon Arvin
Director0.2yrsno data0.0073% $9.9k
Jack Omohundro
Independent Director4.1yrsUS$32.41k0.062% $84.1k
Dowell Hoskins-Squier
Director0.7yrsno datano data

14.6yrs

Average Tenure

67yo

Average Age

Experienced Board: KTYB's board of directors are seasoned and experienced ( 14.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Kentucky Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kentucky Bancshares, Inc.
  • Ticker: KTYB
  • Exchange: OTCPK
  • Founded: 1851
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$136.345m
  • Shares outstanding: 5.88m
  • Website: https://www.kybank.com

Number of Employees


Location

  • Kentucky Bancshares, Inc.
  • 339 Main Street
  • Paris
  • Kentucky
  • 40361
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KTYBOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 1995

Biography

Kentucky Bancshares, Inc. operates as a bank holding company for Kentucky Bank that provides commercial and consumer banking products and services. It accepts various deposit products, including checking, savings, and money market accounts; and certificates of deposit, safe deposits, interest and noninterest bearing deposits, and time deposits. The company also offers commercial, agricultural, and real estate loans to small-to-medium-sized industrial, service, and agricultural businesses; and residential mortgages, installments, and other loans to individual and other non-commercial customers. In addition, it provides credit cards and other consumer-oriented financial services; brokerage services, annuities, life and long term care insurance, personal trust, and agency services; and Internet banking services, such as bill payment. The company has operations in Bourbon, Clark, Elliott, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, Woodford, and other counties in Kentucky. Kentucky Bancshares, Inc. was founded in 1851 and is headquartered in Paris, Kentucky. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 00:49
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.