Seacoast Banking Corp Of Florida (NASDAQ: SBCF)

Sector: Financial Services Industry: Banks - Regional CIK: 0000730708
Market Cap 2.69 Bn
P/B 1.13
P/E 18.59
P/S 4.83
ROIC (Qtr) 4.33
Div Yield % 2.90
Rev 1y % (Qtr) 20.02
Total Debt (Qtr) 1.03 Bn
Debt/Equity (Qtr) 0.43

About

Seacoast Banking Corporation of Florida, often recognized by its stock symbol SBCF, operates as a bank holding company and national banking association within the financial services industry. With a rich history dating back to 1983, the company has grown to offer a diverse range of financial services, including commercial and retail banking, wealth management, mortgage and insurance services. These offerings are made available to customers across various countries and regions, primarily through its network of 77 traditional branches and advanced...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 178.54M provides strong 11.94x coverage of stock compensation 14.96M, indicating sustainable incentive practices.
  • Strong tangible asset base of 15.85B provides 15.33x coverage of total debt 1.03B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 171.24M exceeds capital expenditure of 7.30M by 23.46x, indicating strong organic growth funding capability.
  • Operating cash flow of 178.54M provides strong 2.51x coverage of operating expenses 71.12M, showing operational efficiency.
  • Strong tangible asset base of 15.85B provides 85.20x coverage of acquisition spending 186M, enabling strategic growth.

Bear case

  • Operating cash flow of 178.54M barely covers its investment activities of (1.06B), with a coverage ratio of -0.17, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 178.54M provides thin coverage of dividend payments of (62.35M) with a -2.86 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 590.38M provide limited buffer against comprehensive income items of (91.42M), which is -6.46x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 298.77M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Deposit liabilities of 13.09B significantly exceed cash reserves of 336.85M, which is 38.86x, indicating potential liquidity risk in stress scenarios.

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 0.20 0.14
EV to Cash from Ops. EV/CFO 18.84 7.21
EV to Debt EV to Debt 3.25 5.20
EV to EBIT EV/EBIT 18.02 14.98
EV to EBITDA EV/EBITDA 17.20 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 19.64 8.87
EV to Market Cap EV to Market Cap 1.25 1.04
EV to Revenue EV/Rev 6.04 -3.76
Price to Book Value [P/B] P/B 1.13 1.17
Price to Earnings [P/E] P/E 18.59 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.32 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 42.60 35.28
Dividend per Basic Share Div per Share (Qtr) 0.72 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 36.42 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -61.77 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -47.55 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 24.27 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 23.55 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 24.40 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 24.40 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 22.46 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 6.84 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.63 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) 0.34 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) 0.43 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) 35.10 147.97
EBIT Margin % EBIT Margin % (Qtr) 33.54 155.41
EBT Margin % EBT Margin % (Qtr) 33.54 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 26.00 115.63