Now trading at a price of $25.57, Cadence Bank has moved -0.8% so far today. In contrast, the S&P 500 index moved 0.6%. Read below for a basic value analysis of Cadence Bank.
Cadence Bank shares moved -18.0% over the last 52 weeks, with a high of $32.57 and a low of $22.04. During this time, the stock lagged the S&P 500 index by -6.4%. As of January 2022, the company's 50-day average price is $25.89519989013672. Cadence Bank provides commercial banking and financial services in the United States. The mid-cap Financial Services company has 6,629 full time employees and is based in Tupelo, MS. Cadence Bank has returned a 3.3% dividend yield over the last 12 months.
The Company Has Growing Cash Flows but Shrinking EPS:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $931 | $1,027 | $1,184 |
| Revenue Growth | n/a | 10.41% | 15.22% |
| Net Margins | 25.17% | 22.2% | 16.48% |
| Net Margins Growth | n/a | -11.8% | -25.77% |
| Earnings Per Share | $2.3 | $2.12 | $1.54 |
| EPS Growth | n/a | -7.83% | -27.36% |
| Free Cash Flow (MM) | $185 | $171 | $1,100 |
| FCF Growth | n/a | -7.56% | 544.94% |
| Capital Expenditures (MM) | -$55 | -$56 | -$72 |
| LT Debt to Equity | 0.12 | 0.11 | 0.09 |
Cadence Bank Is Fairly Priced at Current Levels:
Compared to the Financial Services sector's average of 13.34, Cadence Bank has a trailing twelve month P/E ratio of 18.7 and, according to its EPS guidance of 3.23, an expected P/E ratio of 7.9. Cadence Bank's PEG ratio is 0.75 based on its 25.0% annual average growth rate of historical and projected earnings per share. This suggests that company's shares are undervalued.
Furthermore, Cadence Bank is likely undervalued in terms of its equity because its P/B ratio is 1.2 compared to its sector average of 1.95. The company's shares are currently trading -18.4% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.99 * 21.925) = $31.33
Cadence Bank Is the Subject of Mixed Market Indicators:
11 analysts are following Cadence Bank and have set target prices ranging from $26 to $35 per share. On average, they have given the company a rating of buy. At the current price of $25.57, CADE is trading -18.36% away from its average analyst target price of $31.32 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 3.1% of the company's shares are tied to short positions. Institutions own 76.9% of Cadence Bank's shares, while the insider ownership rate stands at 0%. The biggest shareholder is the Vanguard Group, Inc. with a 18% stake in the company worth approximately $478,607,466.
