Stock Yards Bancorp, Inc. (NASDAQ: SYBT)

Sector: Financial Services Industry: Banks - Regional CIK: 0000835324
Market Cap 1.93 Bn
P/B 1.86
P/E 14.30
P/S 5.11
ROIC (Qtr) 9.22
Div Yield % 2.39
Rev 1y % (Qtr) 16.49
Total Debt (Qtr) 406.68 Mn
Debt/Equity (Qtr) 0.39

About

Stock Yards Bancorp, Inc., commonly known as SYBT, operates in the financial and banking industry, with its headquarters in Louisville, Kentucky, and a ticker symbol of SYBT. The company's primary business activities involve providing a range of banking services to individuals and businesses in its markets. Stock Yards Bancorp operates in the United States, specifically in Kentucky, Indiana, and Ohio. The company's revenue is generated mainly from net interest income and fee income from various financial services provided to customers. Net interest...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 9.10B provides 22.38x coverage of total debt 406.68M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 132.87M provides strong 42.52x coverage of stock compensation 3.12M, indicating sustainable incentive practices.
  • Robust free cash flow of 122.85M exceeds capital expenditure of 10.02M by 12.26x, indicating strong organic growth funding capability.
  • Operating cash flow of 132.87M provides strong 2.75x coverage of operating expenses 48.26M, showing operational efficiency.
  • Retained earnings of 648.01M provide strong 3.13x coverage of intangibles 207.15M, indicating quality earnings retention.

Bear case

  • Operating cash flow of 132.87M barely covers its investment activities of (406.02M), with a coverage ratio of -0.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 132.87M provides thin coverage of dividend payments of (36.81M) with a -3.61 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 122.85M represents just -1.21x of debt issuance (101.42M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 648.01M provide limited buffer against comprehensive income items of (67.62M), which is -9.58x, indicating elevated exposure to market risks.
  • Operating cash flow of 132.87M is outpaced by equity issuance of (3.30M) (-40.21 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 0.21 0.14
EV to Cash from Ops. EV/CFO 14.62 7.21
EV to Debt EV to Debt 4.78 5.20
EV to EBIT EV/EBIT 11.47 14.98
EV to EBITDA EV/EBITDA 11.02 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 15.81 8.87
EV to Market Cap EV to Market Cap 1.00 1.04
EV to Revenue EV/Rev 5.13 -3.76
Price to Book Value [P/B] P/B 1.86 1.17
Price to Earnings [P/E] P/E 14.30 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.67 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 27.20 35.28
Dividend per Basic Share Div per Share (Qtr) 1.25 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 29.88 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -17.31 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 198.85 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 3.31 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 26.63 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 15.54 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 24.94 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 24.94 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 26.03 76.34
FCF Growth (1y) % FCF 1y % (Qtr) -15.68 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 14.00 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) 0.26 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) 0.39 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) 46.60 147.97
EBIT Margin % EBIT Margin % (Qtr) 44.74 155.41
EBT Margin % EBT Margin % (Qtr) 44.74 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 35.70 115.63