SouthState Bank Corp (NYSE: SSB)

Sector: Financial Services Industry: Banks - Regional CIK: 0000764038
Market Cap 3.31 Bn
P/B 1.42
P/E 19.89
P/S 5.36
ROIC (Qtr) 6.72
Div Yield % 2.44
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.

Product and Service Breakdown of Revenue (2024)

Timing of Transfer of Good or Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PNC Pnc Financial Services Group, Inc. 116.04 Bn 32.12 7.88 62.34 Bn
2 USB Us Bancorp \De\ 92.41 Bn 16.38 4.66 77.98 Bn
3 NU Nu Holdings Ltd. 81.91 Bn 32.39 5.82 4.49 Bn
4 NWG NatWest Group plc 65.96 Bn 9.79 3.02 169.04 Bn
5 TFC Truist Financial Corp 65.29 Bn -29.96 6.01 71.11 Bn
6 FITB Fifth Third Bancorp 34.56 Bn 14.24 4.21 18.94 Bn
7 RF Regions Financial Corp 34.00 Bn -44.56 11.28 6.09 Bn
8 CFG Citizens Financial Group Inc/Ri 33.38 Bn 38.59 7.16 10.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.06 0.13
EV to Cash from Ops. EV/CFO 20.22 10.77
EV to Debt EV to Debt 2.89 6.49
EV to EBIT EV/EBIT 18.37 6.25
EV to EBITDA EV/EBITDA 15.84 192.10
EV to Free Cash Flow [EV/FCF] EV/FCF 20.80 4.75
EV to Market Cap EV to Market Cap 1.13 1.03
EV to Revenue EV/Rev 6.05 5.61
Price to Book Value [P/B] P/B 1.42 1.83
Price to Earnings [P/E] P/E 19.89 26.60
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.27 273.23
Dividend Payout Ratio % Div Payout % (Qtr) 30.30 34.77
Dividend per Basic Share Div per Share (Qtr) 2.22 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 24.54 33.82
Interest Coverage Interest Coverage 0.00 -0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 2,554.25 -74.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 159.30 16.02
Dividend Growth (1y) % Div 1y % (Qtr) 5.71 5.29
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 39.75 111.43
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 47.90 39.20
EBIT Growth (1y) % EBIT 1y % (Qtr) 40.44 61.65
EBT Growth (1y) % EBT 1y % (Qtr) 40.44 61.56
EPS Growth (1y) % EPS 1y % (Qtr) 12.25 76.44
FCF Growth (1y) % FCF 1y % (Qtr) 769.66 162.62
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 39.42 14.19
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 -0.06
Times Interest Earned Times Interest Earned 0.00 -0.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 44.90 148.90
EBIT Margin % EBIT Margin % (Qtr) 39.23 156.32
EBT Margin % EBT Margin % (Qtr) 39.23 155.57
Gross Margin % Gross Margin % (Qtr) 100.00 97.81
Net Profit Margin % Net Margin % (Qtr) 29.90 116.30