Bok Financial Corp (NASDAQ: BOKF)

Sector: Financial Services Industry: Banks - Regional CIK: 0000875357
Market Cap 7.65 Bn
P/B 1.27
P/E 14.24
P/S 3.63
ROIC (Qtr) 5.24
Div Yield % 2.43
Rev 1y % (Qtr) 6.23
Total Debt (Qtr) 4.21 Bn
Debt/Equity (Qtr) 0.70

About

BOK Financial Corp, also known by its stock symbol BOKF, operates as a financial holding company in the United States, with a focus on the metropolitan areas of Tulsa and Oklahoma City in Oklahoma, Dallas, Fort Worth, Houston, and San Antonio in Texas, Albuquerque in New Mexico, Denver in Colorado, Phoenix in Arizona, and Kansas City in Kansas/Missouri. This company offers a comprehensive range of nationally competitive financial products and services, primarily catering to middle-market businesses, financial institutions, and consumers. The company...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 1.52B provides exceptional 66022.13x coverage of minority interest expenses 23000, showing strong core operations.
  • Strong tangible asset base of 49.11B provides 11.66x coverage of total debt 4.21B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 1.52B provides strong 69.15x coverage of stock compensation 21.96M, indicating sustainable incentive practices.
  • Robust free cash flow of 1.40B exceeds capital expenditure of 123.46M by 11.30x, indicating strong organic growth funding capability.
  • Cash position of 1.43B provides exceptional 62001.87x coverage of minority interest expenses 23000, indicating strong liquidity.

Bear case

  • Operating cash flow of 1.52B barely covers its investment activities of (921.23M), with a coverage ratio of -1.65, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.52B provides thin coverage of dividend payments of (146.14M) with a -10.39 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 1.40B represents just -0.96x of debt issuance (1.46B), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 5.88B provide limited buffer against comprehensive income items of (226.66M), which is -25.96x, indicating elevated exposure to market risks.
  • Operating cash flow of 1.52B is outpaced by equity issuance of (111.19M) (-13.66 ratio), indicating concerning reliance on equity markets for funding operations.

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 0.22 0.14
EV to Cash from Ops. EV/CFO 7.32 7.21
EV to Debt EV to Debt 2.64 5.20
EV to EBIT EV/EBIT 16.16 14.98
EV to EBITDA EV/EBITDA 13.94 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 7.96 8.87
EV to Market Cap EV to Market Cap 1.45 1.04
EV to Revenue EV/Rev 5.27 -3.76
Price to Book Value [P/B] P/B 1.27 1.17
Price to Earnings [P/E] P/E 14.24 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.67 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 27.10 35.28
Dividend per Basic Share Div per Share (Qtr) 2.28 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 10.27 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 12.27 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -3.39 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 3.64 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 14.22 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 12.27 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 14.06 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 14.06 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 15.23 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 386.14 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.09 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) 0.09 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) 0.70 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) 37.80 147.97
EBIT Margin % EBIT Margin % (Qtr) 32.63 155.41
EBT Margin % EBT Margin % (Qtr) 32.63 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 25.50 115.63