Live Oak Bancshares, Inc. (LOB.PA) stock analysis
Close on Nov 3, 2026Market cap $1.15BP/E 8.7Yield 0.49%
StockData Score
Prices as of Nov 3, 2026How the score works
Solid18 of 30 checks passed
Live Oak Bancshares passes 18 of the 30 checks behind our score; 3 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 5/6
- Growth
- 2/6
- Past performance
- 2/6
- Financial health
- 5/6
- Dividend
- 4/6
What stands out
Trading below fair value
The share price of $34.42 is below our fair value estimate of $41.20.
Earnings grew over 5 years
Net income grew 12.2% a year on average over the last five fiscal years.
Earnings growth accelerating
Net income grew 149% over the last twelve months, against a 5-year average of 12.2% a year.
P/E below its 5-year median
Live Oak Bancshares's P/E of 12.1 is below its own 5-year median of 16.7.
What to watch
Margin of safety under 20%
The price is 16.5% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 11.7% over the last twelve months and averaged 15.1% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 0.7% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -17.1% a year over the last three fiscal years.
Valuation5/6
P/E below its 5-year median
Live Oak Bancshares's P/E of 12.1 is below its own 5-year median of 16.7.
P/E below the industry
Live Oak Bancshares's P/E of 12.1 is below the Commercial Banks median of 12.4.
P/S below the industry
Live Oak Bancshares's price-to-sales of 2.61 is below the Commercial Banks median of 3.67.
P/B below the industry
Live Oak Bancshares's price-to-book of 1.21 is below the Commercial Banks median of 1.28.
Trading below fair value
The share price of $34.42 is below our fair value estimate of $41.20.
Margin of safety under 20%
The price is 16.5% below fair value, less than the 20% cushion we look for.
Growth2/6
Revenue growing under 10% a year
Revenue grew 0.7% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -17.1% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 149% over the last twelve months, against a 5-year average of 12.2% a year.
Growing faster than the industry
Revenue grew 19.7% over the last twelve months; the Commercial Banks median is 11.4%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
Banks and insurers do not report gross profit.
Past performance2/6
Return on equity under 15%
Return on equity was 11.7% over the last twelve months and averaged 15.1% over five years; we look for 15% on both.
Return on assets under 1%
Return on assets was 0.9%; for a bank or insurer, 1% or more is considered good.
Return on equity above the industry
Live Oak Bancshares's return on equity of 11.7% is above the Commercial Banks median of 11.2%.
Earnings grew over 5 years
Net income grew 12.2% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 22.9% over the last twelve months, against a 5-year average of 23.7%.
Net margin below the industry
Live Oak Bancshares's net margin of 22.9% is below the Commercial Banks median of 30.0%.
Financial health5/6
Well capitalized
Equity is 8.2% of total assets; 8% or more is a comfortable cushion.
Loans funded by deposits
Loans equal 85.5% of deposits, so lending is funded by customer deposits.
Adequate loan-loss reserve
The allowance for credit losses is 1.6% of loans; we look for at least 1%.
Efficient operations
Non-interest expense takes 55.0% of revenue; under 60% is efficient for a bank.
Deposits growing
Deposits grew 15.5% over the past year.
Borrowings
Needs debt and equity figures.
Dividend4/6
Pays a dividend
Live Oak Bancshares paid dividends worth 0.3% of the share price over the last twelve months.
Yield below Treasuries
The 0.3% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.9% or more; Live Oak Bancshares yields 0.3%.
Dividend not cut
The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.
Covered by earnings
Dividends take 4.0% of net income.
Covered by free cash flow
Dividends take 2.3% of free cash flow.
Fair value
How we estimate itOur estimate per share
$41.20
The share price is 16% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 14.6× | 16.7× | 12.4× | $41.45 | 50% |
| P/B | 1.4× | 1.6× | 1.3× | $40.95 | 50% |
| Fair value | $41.20 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 16.7
- Commercial Banks median 12.4
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $9.32M
- Value traded per 1% price move
- $8.44M
Downside
Medium risk
- Typical loss in a bad month
- 19.9%
- Volatility (annualized)
- 32%
- Sharpe ratio, 1 year
- 0.20
- Beta to the S&P 500 (5Y)
- 1.38
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2013 to 2025
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +18.3% | +0.7% | +122.9% | +18.1% | |
| Net income | +36.7% | -15.6% | +12.2% | +17.8% | |
| EPS, diluted | +32.0% | -17.1% | +9.3% | +13.1% | |
| Free cash flow | +33.5% | – | – | – | |
| Dividend per share | 0.0% | 0.0% | 0.0% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 6.5% | 10.8% | 9.4% | |
| Return on assets | 1.0% | 0.9% | 0.8% | |
| Capex to revenue | 8.0% | 199.7% | 2.6% | |
| Diluted shares | 35M | 42M | 46M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Live Oak Bancshares generated $920.38M from operations and spent $184.41M on capital expenditure, dividends and share buybacks. 86% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 18.3% | 0.04× | 12.49× | 9.4% |
| FY2024 | 15.9% | 0.04× | 12.73× | 8.1% |
| FY2023 | 16.4% | 0.04× | 12.33× | 8.6% |
| FY2022 | 31.2% | 0.06× | 11.84× | 23.1% |
| FY2021 | 36.5% | 0.06× | 12.54× | 26.0% |
| FY2020 | 566.6% | 0.00× | 11.53× | 10.8% |
| FY2019 | 186.8% | 0.00× | 8.27× | 3.5% |
| FY2018 | 645.8% | 0.00× | 6.91× | 11.1% |
| FY2017 | 5414.8% | 0.00× | 6.84× | 30.5% |
| FY2016 | 10.1% | 0.10× | 6.65× | 6.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$105.87M
- Cash generatingOperating cash flow above zero$158.24M
- Return on assets improvedROA up on the prior year0.7% → 0.8%
- Earnings backed by cashOperating cash flow above net income$158.24M vs $105.87M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise46M → 46M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.04 → 0.04
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