OTCPK:SFIG.A

Stock Analysis Report

Executive Summary

STAR Financial Group, Inc. operates as the bank holding company for STAR Financial Bank that provides various banking and financial services to individual and corporate customers in Central and Northeast Indiana.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SFIG.A

-1.2%

US Banks

-1.1%

US Market


1 Year Return

6.8%

SFIG.A

10.3%

US Banks

17.9%

US Market

Return vs Industry: SFIG.A underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: SFIG.A underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

SFIG.AIndustryMarket
7 Day0%-1.2%-1.1%
30 Day1.5%-0.3%1.4%
90 Day3.4%-0.9%6.9%
1 Year6.8%6.8%13.5%10.3%20.3%17.9%
3 Year26.4%26.4%24.0%15.1%47.8%38.3%
5 Yearn/a73.8%54.1%71.9%53.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFIG.A ($67) is trading below our estimate of fair value ($71.06)

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


Price To Earnings Ratio

PE vs Industry: SFIG.A is good value based on its PE Ratio (11.5x) compared to the Banks industry average (12.6x).

PE vs Market: SFIG.A is good value based on its PE Ratio (11.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SFIG.A is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is STAR Financial Group 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 STAR Financial Group 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 STAR Financial Group 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 STAR Financial Group's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has STAR Financial Group performed over the past 5 years?

44.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SFIG.A has high quality earnings.

Growing Profit Margin: SFIG.A's current net profit margins (22.7%) are higher than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SFIG.A's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare SFIG.A's past year earnings growth to its 5-year average.

Earnings vs Industry: SFIG.A earnings growth over the past year (44.9%) exceeded the Banks industry 12.2%.


Return on Equity

High ROE: SFIG.A's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is STAR Financial Group'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: SFIG.A has a low level of unsold assets or inventory.

Debt Coverage by Assets: SFIG.A's debt is covered by short term assets (assets are 1.8x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: SFIG.A has an appropriate level of bad loans (0.85%)


Next Steps

Dividend

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

1.58%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SFIG.A's dividend (1.58%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SFIG.A's dividend (1.58%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: SFIG.A's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.1%), SFIG.A'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?


CEO

Tom Marcuccilli 0

0

Mr. Thomas M. Marcuccilli, also known as Tom, serves as the Chairman of the Board and President at STAR Financial Group Inc. Mr. Marcuccilli serves as Vice Chairman of the Board of STAR Financial Bank and  ...


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.


Ownership Breakdown

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


Top Shareholders

Company Information

STAR Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: STAR Financial Group, Inc.
  • Ticker: SFIG.A
  • Exchange: OTCPK
  • Founded: 1943
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$247.583m
  • Shares outstanding: 3.70m
  • Website: https://www.starfinancial.com

Number of Employees


Location

  • STAR Financial Group, Inc.
  • 127 West Berry Street
  • 2nd Floor
  • Fort Wayne
  • Indiana
  • 46802
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFIG.AOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 2003

Biography

STAR Financial Group, Inc. operates as the bank holding company for STAR Financial Bank that provides various banking and financial services to individual and corporate customers in Central and Northeast Indiana. The company accepts checking and savings accounts, and health savings accounts; certificates of deposit; and individual retirement accounts. Its loan products include mortgage, home equity, auto, boat, recreational vehicle, and personal loans; commercial loans, including commercial real estate loans, agribusiness loans, and special loans and funding, as well as working capital and small bond financing products; small business loans; and equipment finance and leasing services. The company also offers credit cards; and treasury management services, such as ACH origination, account reconciliation, lockbox, merchant card processing, payroll, positive pay, remote deposit capture, sweep accounts, and wire transfer services. In addition, it provides home, auto, life, disability, long-term care, medicare, farm, property and casualty, risk management, employee benefits, specialty, and crop and hail insurance, as well as annuities; and bonding services. Further, the company offers private advisory services comprising investments, wealth management, and private banking services; and trust and investment advisory services, as well as online and mobile banking, bill payment, and money management services. It operates approximately 43 branches. STAR Financial Group, Inc. was founded in 1943 and is based in Fort Wayne, Indiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:23
End of Day Share Price2020/02/13 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.