Here's a Quick Look Into the Fundamentals of Signature Bank (SBNY) Stock

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.