ServisFirst Bancshares, Inc. (SFBS) stock analysis

P/E below its 5-year median

ServisFirst Bancshares's P/E of 13.1 is below its own 5-year median of 16.8.

P/E above the industry

ServisFirst Bancshares's P/E of 13.1 is above the Commercial Banks median of 12.1.

P/S below the industry

ServisFirst Bancshares's price-to-sales of 3.40 is below the Commercial Banks median of 3.60.

P/B below the industry

ServisFirst Bancshares's price-to-book of 1.10 is below the Commercial Banks median of 1.29.

Trading below fair value

The share price of $41.15 is below our fair value estimate of $58.25.

Margin of safety over 20%

The price is 29.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 3.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 34.1% over the last twelve months, against a 5-year average of 10.3% a year.

Growing faster than the industry

Revenue grew 24.5% 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 over 15%

Return on equity was 17.9% over the last twelve months and averaged 17.2% over five years.

Return on assets over 1%

Return on assets was 1.9%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

ServisFirst Bancshares's return on equity of 17.9% is above the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 10.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 51.7% over the last twelve months, against a 5-year average of 48.6%.

Net margin above the industry

ServisFirst Bancshares's net margin of 51.7% is above the Commercial Banks median of 30.3%.

Well capitalized

Equity is 11.1% of total assets; 8% or more is a comfortable cushion.

Loans exceed deposits

Loans equal 103% of deposits, so the bank relies on other borrowing.

Adequate loan-loss reserve

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

Efficient operations

Non-interest expense takes 29.6% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 0.1% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

ServisFirst Bancshares paid dividends worth 1.8% of the share price over the last twelve months.

Yield below Treasuries

The 1.8% 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; ServisFirst Bancshares yields 1.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.