OTCPK:STBI

Stock Analysis Report

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Executive Summary

Sturgis Bancorp, Inc. operates as the holding company for Sturgis Bank & Trust Company that provides banking products and services to individuals and businesses in Michigan, the United States.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Sturgis Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

STBI

-8.9%

US Mortgage

2.6%

US Market


1 Year Return

-8.0%

STBI

-19.9%

US Mortgage

15.4%

US Market

Return vs Industry: STBI exceeded the US Mortgage industry which returned -20.7% over the past year.

Return vs Market: STBI underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

STBIIndustryMarket
7 Day0%-8.9%2.6%
30 Day33.3%-1.6%6.1%
90 Day35.6%19.7%16.6%
1 Year-5.1%-8.0%-17.9%-19.9%17.8%15.4%
3 Year21.4%11.2%-5.0%-11.6%43.9%34.7%
5 Year124.9%94.2%5.9%-5.4%76.2%57.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sturgis Bancorp undervalued compared to its fair value and its price relative to the market?

7.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STBI ($20) is trading above our estimate of fair value ($13.77)

Significantly Below Fair Value: STBI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STBI is good value based on its PE Ratio (7.8x) compared to the US Mortgage industry average (11.1x).

PE vs Market: STBI is good value based on its PE Ratio (7.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STBI is overvalued based on its PB Ratio (1x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

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

3.1%

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 Sturgis Bancorp 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

Past Performance

How has Sturgis Bancorp performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STBI has high quality earnings.

Growing Profit Margin: STBI's current net profit margins (24.4%) are higher than last year (23.8%).


Past Earnings Growth Analysis

Earnings Trend: STBI's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: STBI's earnings growth over the past year (13.5%) is below its 5-year average (19.8% per year).

Earnings vs Industry: STBI earnings growth over the past year (13.5%) exceeded the Mortgage industry 7.1%.


Return on Equity

High ROE: STBI's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is Sturgis 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


Financial Institutions Analysis

Asset Level: STBI's Assets to Equity ratio (14.1x) is moderate.

Allowance for Bad Loans: STBI has a sufficient allowance for bad loans (424%).

Low Risk Liabilities: 75% of STBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: STBI has an appropriate level of Loans to Assets ratio (65%).

Low Risk Deposits: STBI's Loans to Deposits ratio (92%) is appropriate.

Level of Bad Loans: STBI has an appropriate level of bad loans (0.2%).


Next Steps

Dividend

What is Sturgis Bancorp current dividend yield, its reliability and sustainability?

3.20%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: STBI's dividend (3.2%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: STBI's dividend (3.2%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24%), STBI'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?

4.2yrs

Average board tenure


CEO

Eric Eishen (54 yo)

17.25yrs

Tenure

US$283,148

Compensation

Mr. Eric L. Eishen is the President, Chief Executive Officer and Director of Sturgis Bancorp, Inc. and Sturgis Bank and Trust Company. He has been a full time employee of the Sturgis Bank and Trust Company ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD606.98K).

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


Board Members

NamePositionTenureCompensationOwnership
Eric Eishen
President17.25yrsUS$283.15k1.31%
$ 527.7k
Jeffrey Mohney
Director14.5yrsUS$23.78kno data
John Wiedlea
Chairman0.17yrUS$28.03kno data
David Franks
Director4.17yrsUS$21.69kno data
Michael Frost
Independent Director5.5yrsUS$24.59kno data
Kimberlee Bontrager
Director4yrsno datano data
Jason Halling
Director1.17yrsno datano data

4.2yrs

Average Tenure

59yo

Average Age

Experienced Board: STBI's board of directors are considered experienced (4.2 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Sturgis Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sturgis Bancorp, Inc.
  • Ticker: STBI
  • Exchange: OTCPK
  • Founded: 1905
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$40.257m
  • Shares outstanding: 2.12m
  • Website: https://www.sturgisbank.com

Location

  • Sturgis Bancorp, Inc.
  • 113-125 East Chicago Road
  • PO Box 600
  • Sturgis
  • Michigan
  • 49091
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STBIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 1994

Biography

Sturgis Bancorp, Inc. operates as the holding company for Sturgis Bank & Trust Company that provides banking products and services to individuals and businesses in Michigan, the United States. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 00:20
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
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.