Columbia Banking System, Inc. (COLB) stock analysis

P/E below its 5-year median

Columbia Banking System's P/E of 10.6 is below its own 5-year median of 10.8.

P/E below the industry

Columbia Banking System's P/E of 10.6 is below the Commercial Banks median of 12.1.

P/S below the industry

Columbia Banking System's price-to-sales of 3.14 is below the Commercial Banks median of 3.60.

P/B below the industry

Columbia Banking System's price-to-book of 1.23 is below the Commercial Banks median of 1.29.

Trading below fair value

The share price of $30.71 is below our fair value estimate of $31.52.

Margin of safety under 20%

The price is 2.6% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 27.3% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -4.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 74.7% over the last twelve months, against a 5-year average of 29.0% a year.

Growing faster than the industry

Revenue grew 33.6% 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 11.2% over the last twelve months and averaged 11.7% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.3%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Columbia Banking System's return on equity of 11.2% is below the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 29.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 30.2% over the last twelve months, against a 5-year average of 365%.

Net margin below the industry

Columbia Banking System's net margin of 30.2% is below the Commercial Banks median of 30.3%.

Well capitalized

Equity is 10.9% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 88.1% of deposits, so lending is funded by customer deposits.

Thin loan-loss reserve

The allowance for credit losses is 1.0% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 56.1% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 5.4% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Columbia Banking System paid dividends worth 4.8% of the share price over the last twelve months.

Yield above Treasuries

The 4.8% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Columbia Banking System yields 4.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 50.9% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.