Live Oak Bancshares, Inc. Fundamental Analysis (NYSE: LOB)
Live Oak Bancshares, Inc. Fundamental Analysis (NYSE: LOB)
Live Oak Bancshares, Inc. (NYSE: LOB) shows strong financial fundamentals with a PE ratio of 14.62, profit margin of 12.73%, and ROE of 10.91%. The company generates $1.1B in annual revenue with strong year-over-year growth of 12.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LOB's fundamental strength across five key dimensions:
Efficiency Score
WeakLOB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLOB trades at attractive valuation levels.
Growth Score
ExcellentLOB delivers strong and consistent growth momentum.
Financial Health Score
ModerateLOB shows balanced financial health with some risks.
Profitability Score
WeakLOB struggles to sustain strong margins.
Key Financial Metrics
Is LOB Expensive or Cheap?
P/E Ratio
LOB trades at 14.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LOB's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Live Oak Bancshares, Inc. at 1.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.63 times EBITDA. This signals the market has high growth expectations.
How Well Does LOB Make Money?
Net Profit Margin
For every $100 in sales, Live Oak Bancshares, Inc. keeps $12.73 as profit after all expenses.
Operating Margin
Core operations generate 18.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.91 in profit for every $100 of shareholder equity.
ROA
Live Oak Bancshares, Inc. generates $0.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Live Oak Bancshares, Inc. produces operating cash flow of $140.64M, showing steady but balanced cash generation.
Free Cash Flow
Live Oak Bancshares, Inc. generates strong free cash flow of $126.13M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.73 in free cash annually.
FCF Yield
LOB converts 6.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How LOB Stacks Against Its Sector Peers
| Metric | LOB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.62 | 21.04 | Better (Cheaper) |
| ROE | 10.91% | 654.00% | Weak |
| Net Margin | 12.73% | -780.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.87 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 877.76 | Weak Liquidity |
| ROA | 0.86% | 6586.00% | Weak |
LOB outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Live Oak Bancshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
143.88%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
54.44%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
153.72%
Industry Style: Value, Dividend, Cyclical
High Growth