Nicolet Bankshares Inc (NIC) stock analysis

P/E above its 5-year median

Nicolet Bankshares's P/E of 19.3 is above its own 5-year median of 14.9.

P/E above the industry

Nicolet Bankshares's P/E of 19.3 is above the Commercial Banks median of 12.1.

P/S above the industry

Nicolet Bankshares's price-to-sales of 6.15 is above the Commercial Banks median of 3.60.

P/B above the industry

Nicolet Bankshares's price-to-book of 1.63 is above the Commercial Banks median of 1.29.

Trading above fair value

The share price of $174.86 is above our fair value estimate of $131.03.

Margin of safety under 20%

The price is 33.4% 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 10%+ a year

Diluted EPS grew 14.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 21.6% over the last twelve months, against a 5-year average of 20.2% a year.

Growing faster than the industry

Revenue grew 55.3% 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 10.2% over the last twelve months and averaged 9.7% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.5%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Nicolet Bankshares's return on equity of 10.2% is below the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 20.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 29.8% over the last twelve months, against a 5-year average of 30.9%.

Net margin below the industry

Nicolet Bankshares's net margin of 29.8% is below the Commercial Banks median of 30.3%.

Well capitalized

Equity is 14.8% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 85.3% 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 60.6% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 65.5% over the past year.

Modest borrowings

Borrowings other than deposits are 0.0% of equity.

Pays a dividend

Nicolet Bankshares paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Nicolet Bankshares yields 0.8%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 15.3% of net income.

Covered by free cash flow

Dividends take 13.8% of free cash flow.