Discounted Cash Flow Calculation for OTCPK:SBKK using Excess Returns Model Model
The calculations below outline how an intrinsic value for Suncrest Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Suncrest Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
Suncrest Bank's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Suncrest Bank is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Suncrest Bank's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Ciaran McMullan serves as the Chief Executive Officer and President of Suncrest Bank. Mr. McMullan served as the Chief Executive Officer of Americas (Commercial) at National Australia Bank Limited. He served as General Manager of Finance and Technology at National Australia Bank Limited since November 24, 2004. He ran the Melbourne office of consultancy firm Cap Gemini Ernst & Young. He served as an Executive General Manager of Communication, Co-Ordination and Risk Management for the CommSee project at Commonwealth Bank of Australia (CBA). He held senior roles in the banking sector in both Europe and Australia, before moving to the US, where he served as Chairman of the Great Western Bancorporation and Managing Director with Cappello Capital Corporation in California. He serves as a Director of Suncrest Bank. Mr. McMullan is a graduate of both Stirling University and Sheffield Hallam University in the UK and has attended the Harvard Business School’s Executive Education Program in Agribusiness.
Insufficient data for Ciaran to compare compensation growth.
Insufficient data for Ciaran to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Suncrest Bank management team is about average.
Chief Financial Officer
Executive VP & COO
Human Resources Manager
Senior Vice President of Operations & Operations Administrator
Deputy Chief Credit Officer
Chief Credit Officer & Executive VP
Local Head of Suncrest Agribusiness Group
President of Porterville Branch
Market President for Yuba-Sutter Community
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Suncrest Bank board of directors is about average.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
Suncrest Bank provides various banking products and services to small and middle-market businesses and individuals in California. The company offers business banking products and services, which include checking and savings accounts, money market accounts, and certificates of deposit; commercial real estate loans, working capital lines of credit, equipment financing, construction, small business administration, and commercial loans, as well as investment real estate loans; cash management services; merchant services; and certificate of deposit registry services. It also offers personal banking products and services, including checking, savings, money market, and individual retirement accounts; certificates of deposit; debit and credit cards. In addition, the company provides agricultural real estate loans, production finance, equipment finance, and development loans; and SBA loans, small business guaranteed loans, USDA B and I loans, and farmer mac loans, as well as online and mobile banking, remote deposit capture, and other services. It operates five full service branches in Visalia, Porterville, Kingsburg, Fresno, and Yuba City in California. The company was founded in 2008 and is based in Visalia, California.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.