Amerant Bancorp Inc. (NYSE: AMTB)

Sector: Financial Services Industry: Banks - Regional CIK: 0001734342
Market Cap 770.34 Mn
P/B 0.82
P/E 11.57
P/S 1.98
ROIC (Qtr) 3.30
Div Yield % 2.28
Rev 1y % (Qtr) 576.47
Total Debt (Qtr) 1.04 Bn
Debt/Equity (Qtr) 1.10

About

Amerant Bancorp Inc., often known as Amerant Bank, operates in the banking industry, providing a wide range of financial services to individuals and businesses in the United States and select international markets. The company, headquartered in Coral Gables, Florida, boasts of $9.7 billion in assets as of December 31, 2023. Amerant Bank's primary business activities revolve around deposit, credit, investment, wealth management, retail banking, mortgage services, and fiduciary services. The company has a significant presence in the United States,...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 178.04M provides strong 40.75x coverage of stock compensation 4.37M, indicating sustainable incentive practices.
  • Strong tangible asset base of 10.39B provides 10.04x coverage of total debt 1.04B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 174.92M exceeds capital expenditure of 3.12M by 56.05x, indicating strong organic growth funding capability.
  • Retained earnings of 620.54M represent substantial 0.66x of equity 944.94M, indicating strong internal capital generation.
  • Retained earnings of 620.54M provide strong 32.33x coverage of intangibles 19.19M, indicating quality earnings retention.

Bear case

  • Operating cash flow of 178.04M barely covers its investment activities of (799.43M), with a coverage ratio of -0.22, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 178.04M provides thin coverage of dividend payments of (15.19M) with a -11.72 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 630.86M provide limited coverage of acquisition spending of (73.91M), which is -8.54x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 174.92M represents just -1.23x of debt issuance (141.96M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 620.54M provide limited buffer against comprehensive income items of (6.93M), which is -89.52x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.11 0.14
EV to Cash from Ops. EV/CFO 6.19 7.21
EV to Debt EV to Debt 1.06 5.20
EV to EBIT EV/EBIT 13.39 14.98
EV to EBITDA EV/EBITDA 12.43 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 6.30 8.87
EV to Market Cap EV to Market Cap 1.43 1.04
EV to Revenue EV/Rev 2.83 -3.76
Price to Book Value [P/B] P/B 0.82 1.17
Price to Earnings [P/E] P/E 11.57 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.39 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 21.10 35.28
Dividend per Basic Share Div per Share (Qtr) 0.36 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 8.59 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 64.09 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.10 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 233.85 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 256.37 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 232.24 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 232.24 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 216.33 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 1,055.78 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 48.19 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.08 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 1.10 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 22.80 147.97
EBIT Margin % EBIT Margin % (Qtr) 21.12 155.41
EBT Margin % EBT Margin % (Qtr) 21.12 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 17.10 115.63