Signature Bank (SBNY) — Undervalued With Convincing Growth Indicators
Signature Bank shares moved -99.9% over the last 52 weeks, with a high of $296.96 and a low of $0.09. During this time, the stock lagged the S&P 500 index by -93.0%. As of April 2023, the company's 50-day average price is $90.43. Signature Bank provides digital assets banking business and comprises of certain loan portfolios. The large-cap Financial Services company has 2,243 full time employees and is based in New York, NY. Signature Bank has returned a 1499.7% dividend yield over the last 12 months.
Overview of the Company's Finances:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue | $1,339,541 | $1,594,340 | $2,001,416 | $2,696,371 |
| Net Income | $588,926 | $528,359 | $918,441 | $1,337,049 |
| Net Margins | 43.96% | 33.14% | 45.89% | 49.59% |
| Earnings Per Share | $10.87 | $9.96 | $15.03 | $21.58 |
| Diluted Shares | 54,011 | 52,899 | 58,508 | 62,974 |
| Free Cash Flow | $745,487 | $869,321 | $847,446 | $897,356 |
| Capital Expenditures | -$32,937 | -$35,042 | -$32,196 | -$48,321 |
| Long Term Debt | $4,598,263 | $3,667,833 | $3,209,473 | $11,855,373 |
| LT Debt to Equity | 0.96 | 0.63 | 0.41 | 1.48 |
Signature Bank has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. But based on its EPS guidance of 16.57, the company has a forward P/E ratio of 0.0. In contrast, the Financial Services sector's average P/E ratio is 14.34.Furthermore, Signature Bank is possibly undervalued in terms of its book value because its P/B ratio is 0.0 compared to its sector average of 1.57. Signature Bank's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards our conclusion that the stock is fairly valued.
Signature Bank Has a Small Amount of Insider Shareholders:
The only analyst following Signature Bank has set a target price of $145.0 per share, which is -99.89 away from its current price. This analyst rates the stock as hold. The company has an above average percentage of its shares sold short since 10.6% of the company's shares are tied to short positions. Institutions own 98.2% of Signature Bank's shares, while the insider ownership rate stands at 0.01%. which is a small amount of insider investors. The company's biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth $1,203,050.
