Renasant Corp (RNST) stock analysis

P/E below its 5-year median

Renasant's P/E of 11.3 is below its own 5-year median of 12.1.

P/E below the industry

Renasant's P/E of 11.3 is below the Commercial Banks median of 12.1.

P/S below the industry

Renasant's price-to-sales of 3.35 is below the Commercial Banks median of 3.60.

P/B below the industry

Renasant's price-to-book of 0.96 is below the Commercial Banks median of 1.29.

Trading below fair value

The share price of $40.25 is below our fair value estimate of $44.04.

Margin of safety under 20%

The price is 8.6% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 16.1% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -11.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 127% over the last twelve months, against a 5-year average of 16.7% a year.

Growing faster than the industry

Revenue grew 25.7% 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 8.7% over the last twelve months and averaged 7.1% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.2%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Renasant's return on equity of 8.7% is below the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 16.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 30.3% over the last twelve months, against a 5-year average of 24.4%.

Net margin above the industry

Renasant's net margin of 30.3% is above the Commercial Banks median of 30.3%.

Well capitalized

Equity is 13.9% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 90.0% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.5% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 58.9% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 0.9% over the past year.

Modest borrowings

Borrowings other than deposits are 21.0% of equity.

Pays a dividend

Renasant paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Renasant yields 2.3%.

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 26.4% of net income.

Covered by free cash flow

Dividends take 20.2% of free cash flow.