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LIVE OAK BANCSHARES INC (LOB) Stock Fundamental Analysis

NYSE:LOB - New York Stock Exchange, Inc. - US53803X1054 - Common Stock

41.05  -0.28 (-0.68%)

Fundamental Rating

4

LOB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 405 industry peers in the Banks industry. LOB may be in some trouble as it scores bad on both profitability and health. LOB is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year LOB was profitable.
LOB had a positive operating cash flow in the past year.
Each year in the past 5 years LOB has been profitable.
In multiple years LOB reported negative operating cash flow during the last 5 years.
LOB Yearly Net Income VS EBIT VS OCF VS FCFLOB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M 600M

1.2 Ratios

LOB has a Return On Assets of 0.66%. This is in the lower half of the industry: LOB underperforms 60.05% of its industry peers.
LOB has a Return On Equity (8.31%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA 0.66%
ROE 8.31%
ROIC N/A
ROA(3y)1.49%
ROA(5y)1.12%
ROE(3y)17.76%
ROE(5y)13.42%
ROIC(3y)N/A
ROIC(5y)N/A
LOB Yearly ROA, ROE, ROICLOB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

With a Profit Margin value of 17.04%, LOB is not doing good in the industry: 68.59% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of LOB has declined.
The Operating Margin and Gross Margin are not available for LOB so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 17.04%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.63%
PM growth 5Y-8.46%
GM growth 3YN/A
GM growth 5YN/A
LOB Yearly Profit, Operating, Gross MarginsLOB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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3

2. Health

2.1 Basic Checks

LOB does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LOB has more shares outstanding
The number of shares outstanding for LOB has been increased compared to 5 years ago.
LOB has a better debt/assets ratio than last year.
LOB Yearly Shares OutstandingLOB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
LOB Yearly Total Debt VS Total AssetsLOB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

LOB has a debt to FCF ratio of 0.25. This is a very positive value and a sign of high solvency as it would only need 0.25 years to pay back of all of its debts.
LOB has a better Debt to FCF ratio (0.25) than 87.44% of its industry peers.
LOB has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
LOB has a better Debt to Equity ratio (0.11) than 69.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.25
Altman-Z N/A
ROIC/WACCN/A
WACC24.43%
LOB Yearly LT Debt VS Equity VS FCFLOB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B 1.5B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
LOB Yearly Current Assets VS Current LiabilitesLOB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 5M 10M 15M

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7

3. Growth

3.1 Past

LOB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.45%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.44% on average over the past years.
The Revenue has grown by 11.05% in the past year. This is quite good.
LOB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.47% yearly.
EPS 1Y (TTM)20.45%
EPS 3Y5.67%
EPS 5Y4.44%
EPS Q2Q%-68.18%
Revenue 1Y (TTM)11.05%
Revenue growth 3Y17.64%
Revenue growth 5Y17.47%
Sales Q2Q%2.07%

3.2 Future

Based on estimates for the next years, LOB will show a very strong growth in Earnings Per Share. The EPS will grow by 29.79% on average per year.
Based on estimates for the next years, LOB will show a quite strong growth in Revenue. The Revenue will grow by 12.55% on average per year.
EPS Next Y18.55%
EPS Next 2Y28.78%
EPS Next 3Y29.79%
EPS Next 5YN/A
Revenue Next Year3.86%
Revenue Next 2Y10.03%
Revenue Next 3Y12.55%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
LOB Yearly Revenue VS EstimatesLOB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
LOB Yearly EPS VS EstimatesLOB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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4

4. Valuation

4.1 Price/Earnings Ratio

LOB is valuated quite expensively with a Price/Earnings ratio of 25.82.
Based on the Price/Earnings ratio, LOB is valued more expensive than 82.91% of the companies in the same industry.
LOB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 15.09 indicates a correct valuation of LOB.
68.09% of the companies in the same industry are cheaper than LOB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.44. LOB is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 25.82
Fwd PE 15.09
LOB Price Earnings VS Forward Price EarningsLOB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

LOB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LOB is cheaper than 93.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3.95
EV/EBITDA N/A
LOB Per share dataLOB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

LOB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LOB's earnings are expected to grow with 29.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)5.82
EPS Next 2Y28.78%
EPS Next 3Y29.79%

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5

5. Dividend

5.1 Amount

With a yearly dividend of 0.30%, LOB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.22, LOB's dividend is way lower than its industry peers. On top of this 86.68% of the companies listed in the same industry pay a better dividend than LOB!
Compared to an average S&P500 Dividend Yield of 2.28, LOB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.3%

5.2 History

The dividend of LOB has a limited annual growth rate of 0.03%.
LOB has paid a dividend for at least 10 years, which is a reliable track record.
LOB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.03%
Div Incr Years0
Div Non Decr Years8
LOB Yearly Dividends per shareLOB Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

6.42% of the earnings are spent on dividend by LOB. This is a low number and sustainable payout ratio.
LOB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP6.42%
EPS Next 2Y28.78%
EPS Next 3Y29.79%
LOB Yearly Income VS Free CF VS DividendLOB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M
LOB Dividend Payout.LOB Dividend Payout, showing the Payout Ratio.LOB Dividend Payout.PayoutRetained Earnings

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LIVE OAK BANCSHARES INC

NYSE:LOB (1/22/2025, 10:41:35 AM)

41.05

-0.28 (-0.68%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)10-23 2024-10-23/amc
Earnings (Next)01-22 2025-01-22/amc
Inst Owners69.34%
Inst Owner Change-0.11%
Ins Owners20.02%
Ins Owner Change0.62%
Market Cap1.86B
Analysts48
Price Target49.98 (21.75%)
Short Float %3.39%
Short Ratio6.05
Dividend
Industry RankSector Rank
Dividend Yield 0.3%
Yearly Dividend0.12
Dividend Growth(5Y)0.03%
DP6.42%
Div Incr Years0
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.86%
Min EPS beat(2)-50.02%
Max EPS beat(2)26.3%
EPS beat(4)1
Avg EPS beat(4)-16.71%
Min EPS beat(4)-50.02%
Max EPS beat(4)26.3%
EPS beat(8)3
Avg EPS beat(8)-18.62%
EPS beat(12)5
Avg EPS beat(12)-17.24%
EPS beat(16)9
Avg EPS beat(16)1.69%
Revenue beat(2)2
Avg Revenue beat(2)3.75%
Min Revenue beat(2)3.43%
Max Revenue beat(2)4.06%
Revenue beat(4)3
Avg Revenue beat(4)1.93%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)4.06%
Revenue beat(8)5
Avg Revenue beat(8)1.06%
Revenue beat(12)9
Avg Revenue beat(12)13.18%
Revenue beat(16)12
Avg Revenue beat(16)13.33%
PT rev (1m)2.08%
PT rev (3m)-2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.31%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-3.3%
Valuation
Industry RankSector Rank
PE 25.82
Fwd PE 15.09
P/S 3.78
P/FCF 3.95
P/OCF 3.46
P/B 1.84
P/tB 1.94
EV/EBITDA N/A
EPS(TTM)1.59
EY3.87%
EPS(NY)2.72
Fwd EY6.63%
FCF(TTM)10.38
FCFY25.29%
OCF(TTM)11.86
OCFY28.9%
SpS10.87
BVpS22.3
TBVpS21.14
PEG (NY)1.39
PEG (5Y)5.82
Profitability
Industry RankSector Rank
ROA 0.66%
ROE 8.31%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 17.04%
GM N/A
FCFM 95.49%
ROA(3y)1.49%
ROA(5y)1.12%
ROE(3y)17.76%
ROE(5y)13.42%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.63%
PM growth 5Y-8.46%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.25
Debt/EBITDA N/A
Cap/Depr 304.19%
Cap/Sales 13.62%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 560.24%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC24.43%
ROIC/WACCN/A
Cap/Depr(3y)148.42%
Cap/Depr(5y)145.61%
Cap/Sales(3y)6.22%
Cap/Sales(5y)8.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.45%
EPS 3Y5.67%
EPS 5Y4.44%
EPS Q2Q%-68.18%
EPS Next Y18.55%
EPS Next 2Y28.78%
EPS Next 3Y29.79%
EPS Next 5YN/A
Revenue 1Y (TTM)11.05%
Revenue growth 3Y17.64%
Revenue growth 5Y17.47%
Sales Q2Q%2.07%
Revenue Next Year3.86%
Revenue Next 2Y10.03%
Revenue Next 3Y12.55%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y519.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y375.23%
OCF growth 3YN/A
OCF growth 5Y150.39%