SouthState Bank Corp (NYSE: SSB)

Sector: Financial Services Industry: Banks - Regional CIK: 0000764038
Market Cap 9.01 Bn
P/B 1.00
P/E 12.97
P/S 3.88
ROIC (Qtr) 6.72
Div Yield % 2.97
Rev 1y % (Qtr) 60.07
Total Debt (Qtr) 1.29 Bn
Debt/Equity (Qtr) 0.14

About

SouthState Corp (SSB) is a financial holding company based in Winter Haven, Florida, that operates a variety of banking services and products through its subsidiary, SouthState Bank, National Association. The company's primary business activities include lending, deposit-taking, and wealth management, with a focus on providing personalized services to its customers. SouthState Corp operates in the highly competitive banking industry, providing a range of products and services to individuals, businesses, and institutions located in the southeastern...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 423.08M provides strong 11.90x coverage of stock compensation 35.55M, indicating sustainable incentive practices.
  • Strong tangible asset base of 62.54B provides 48.46x coverage of total debt 1.29B, indicating robust asset backing and low credit risk.
  • Cash reserves of 3.14B provide ample 3.02x coverage of acquisition spending 1.04B, enabling strategic growth opportunities.
  • Strong free cash flow of 915.53M provides 0.98x coverage of SG&A expenses 933.32M, indicating efficient cost management.
  • Strong tangible asset base of 62.54B provides 60.09x coverage of acquisition spending 1.04B, enabling strategic growth.

Bear case

  • Operating cash flow of 423.08M barely covers its investment activities of 844.07M, with a coverage ratio of 0.50, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 423.08M provides thin coverage of dividend payments of (212.53M) with a -1.99 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 915.53M provides weak coverage of capital expenditures of (492.44M), with a -1.86 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 423.08M provides minimal 1.95x coverage of tax expenses of 217.02M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 915.53M represents just -3.01x of debt issuance (304.11M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

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 17.21 7.21
EV to Debt EV to Debt 5.64 5.20
EV to EBIT EV/EBIT 7.98 14.98
EV to EBITDA EV/EBITDA 6.98 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 7.95 8.87
EV to Market Cap EV to Market Cap 0.81 1.04
EV to Revenue EV/Rev 3.13 -3.76
Price to Book Value [P/B] P/B 1.00 1.17
Price to Earnings [P/E] P/E 12.97 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.27 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 30.30 35.28
Dividend per Basic Share Div per Share (Qtr) 2.22 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 24.54 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 2,554.25 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 159.30 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 5.71 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 39.75 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 47.90 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 40.44 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 40.44 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 12.25 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 769.66 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 39.42 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) -3.06 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) 0.14 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) 44.90 147.97
EBIT Margin % EBIT Margin % (Qtr) 39.23 155.41
EBT Margin % EBT Margin % (Qtr) 39.23 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 29.90 115.63