Amerant Bancorp Inc. (AMTB) stock analysis

P/E above its 5-year median

Amerant Bancorp's P/E of 21.9 is above its own 5-year median of 11.8.

P/E above the industry

Amerant Bancorp's P/E of 21.9 is above the Commercial Banks median of 12.0.

P/S below the industry

Amerant Bancorp's price-to-sales of 2.82 is below the Commercial Banks median of 3.61.

P/B above the industry

Amerant Bancorp's price-to-book of 1.30 is above the Commercial Banks median of 1.28.

Trading above fair value

The share price of $30.42 is above our fair value estimate of $21.54.

Margin of safety under 20%

The price is 41.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 9.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -12.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 17.1% over the last twelve months; the Commercial Banks median is 11.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 6.1% over the last twelve months and averaged 6.1% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.5%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Amerant Bancorp's return on equity of 6.1% is below the Commercial Banks median of 11.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 13.4% over the last twelve months, against a 5-year average of 13.7%.

Net margin below the industry

Amerant Bancorp's net margin of 13.4% is below the Commercial Banks median of 30.3%.

Well capitalized

Equity is 8.9% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 79.7% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.3% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 75.9% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 0.6% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Amerant Bancorp paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Amerant Bancorp yields 1.2%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 26.2% of net income.

Covered by free cash flow

Dividends take 14.1% of free cash flow.