Glacier Bancorp, Inc. (NYSE: GBCI)

Sector: Financial Services Industry: Banks - Regional CIK: 0000868671
Market Cap 5.16 Bn
P/B 1.43
P/E 21.78
P/S 5.72
ROIC (Qtr) 3.31
Div Yield % 0.74
Rev 1y % (Qtr) 22.30
Total Debt (Qtr) 3.18 Bn
Debt/Equity (Qtr) 0.88

About

Glacier Bancorp, Inc. (GBCI) operates in the banking industry, with its wholly-owned subsidiary, Glacier Bank, providing a variety of banking services. These services are offered across eight states, including Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada, through its 221 branches. The company's operations are divided into four primary business segments: Retail Banking, Business Banking, Real Estate, Commercial, Agriculture, and Consumer Loans, and Mortgage Origination and Loan Servicing. The Retail Banking segment provides...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 352.90M provides strong 55.64x coverage of stock compensation 6.34M, indicating sustainable incentive practices.
  • Robust free cash flow of 331.57M exceeds capital expenditure of 21.33M by 15.54x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 27.83B provides 8.76x coverage of total debt 3.18B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 352.90M provides strong 2.42x coverage of operating expenses 145.93M, showing operational efficiency.
  • Operating cash flow of 352.90M provides strong 16.54x coverage of capital expenditure 21.33M, enabling organic growth.

Bear case

  • Operating cash flow of 352.90M barely covers its investment activities of 375.79M, with a coverage ratio of 0.94, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 352.90M provides thin coverage of dividend payments of (151.83M) with a -2.32 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 854.24M provide limited coverage of acquisition spending of (21.94M), which is -38.94x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 331.57M represents just -0.42x of debt issuance (786.35M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 1.14B provide limited buffer against comprehensive income items of (192.89M), which is -5.92x, 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 0.27 0.14
EV to Cash from Ops. EV/CFO 21.99 7.21
EV to Debt EV to Debt 2.44 5.20
EV to EBIT EV/EBIT 27.00 14.98
EV to EBITDA EV/EBITDA 23.35 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 23.40 8.87
EV to Market Cap EV to Market Cap 1.50 1.04
EV to Revenue EV/Rev 8.60 -3.76
Price to Book Value [P/B] P/B 1.43 1.17
Price to Earnings [P/E] P/E 21.78 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.56 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 32.40 35.28
Dividend per Basic Share Div per Share (Qtr) 0.33 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 11.80 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 46.85 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -13.52 15.78
Dividend Growth (1y) % Div 1y % (Qtr) -75.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 29.72 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 30.25 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 33.74 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 33.74 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 25.93 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 24.13 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.04 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.41 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) 0.88 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) 36.80 147.97
EBIT Margin % EBIT Margin % (Qtr) 31.85 155.41
EBT Margin % EBT Margin % (Qtr) 31.85 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 26.30 115.63