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Live Oak Bancshares, Inc. (LOB) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Live Oak Bancshares, Inc.

LOBMarket cap $1.59BPrice $34.3

Country🇺🇸United States

SectorFinancials

IndustryBanks

Runs a digital-first bank that lends almost entirely to small businesses through SBA loans, no branches required. It's become the largest SBA 7(a) lender in the country, proving fintech can out-hustle Main Street banking.

In Bastion Portfolios?

52W Return+3%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-2%–

Revenue Forecast

Rev CAGR (1y)na–

Rev CAGR (3y)+20%–

Rev CAGR (5y)+14%8

Earnings Forecast

EPS Growth Y+1+34%9

EPS Growth Y+2+35%9

EPS Growth Y+3+4%5

Quality

Margins

EBIT Margin0%5

Net Income Margin27%9

Free Cash Flow Margin45%10

Debt

Net Debt/EBITDAna–

Efficiency

ROE12%5

ROA1%3

Earnings Stability55

GEAR+

Not enough data to calculate the GEAR+ rating.

Value

Price Multiples

P/E Ratio (Forward)108

P/E Ratio (Forward 3y)89

P/BV1.38

EV Multiples

EV/EBITDA Fwd08

EV/EBIT Fwd08

Yield

Free Cash Flow Yield0.0%8

Dividend Yield0.4%1

Momentum

Short term

1 month return-13%2

3 month return-15%2

YTD return-0%5

Mid term

Price vs 52wHigh77%5

1 year return-4%4

Long term

3 year return+20%4

5 year return-48%1

Risk Shield

Price Risk

Beta1.04

Volatility33%6

Free Cash Flow

Free Cash Flow Margin45%10

Free Cash Flow Yield0.0%8

Quality

ROCE15%3

Earnings Stability55

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

LOBLive Oak Bancshares

Revenue FY25$481M

GROWTH RATING↗

——

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-2%–

Revenue, next 1Yna–

Revenue, next 3Y, CAGR+20%–

Revenue, next 5Y, CAGR+14%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+34%9

EPS growth, FY27E+35%9

EPS growth, FY28E+4%5

GROWTH ASSESSMENT

STRENGTHS

Revenue is set to grow 20%/yr over the next 3 years, ahead of most of the market.8/10

After shrinking over the last 3 years, revenue is set to grow 20%/yr from here.

The runway holds up: revenue is set to grow 14%/yr over five years.8/10

Earnings are set to grow faster than sales (EPS about 34%/yr vs revenue 20%/yr), so margins should widen.

WATCH

None flagged.

WEAKNESSES

Growth is the weak spot here, trailing 100% of companies worldwide.

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK13 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-13%2

3-month return-15%2

YTD return-0%5

MID & LONG-TERM▾SCORE

% of 52-week high77%5

1-year return-4%4

3-year return+20%4

5-year return-48%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

It's down 4% over the past year, now 23% below its 52-week high. That is right in line with the market.

Returns sit at the market level so far this year (+0%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+20% over three years and -48% over five), behind 70% of the market.

The stock is underperforming over the past month (-13%) and over three months (-15%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Live Oak Bancshares, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

LOBLive Oak Bancshares

Revenue FY25$481M

GROWTH RATING↗

——

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-2%–

Revenue, next 1Yna–

Revenue, next 3Y, CAGR+20%–

Revenue, next 5Y, CAGR+14%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+34%9

EPS growth, FY27E+35%9

EPS growth, FY28E+4%5

GROWTH ASSESSMENT

STRENGTHS

Revenue is set to grow 20%/yr over the next 3 years, ahead of most of the market.8/10

After shrinking over the last 3 years, revenue is set to grow 20%/yr from here.

The runway holds up: revenue is set to grow 14%/yr over five years.8/10

Earnings are set to grow faster than sales (EPS about 34%/yr vs revenue 20%/yr), so margins should widen.

WATCH

None flagged.

WEAKNESSES

Growth is the weak spot here, trailing 100% of companies worldwide.

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK13 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-13%2

3-month return-15%2

YTD return-0%5

MID & LONG-TERM▾SCORE

% of 52-week high77%5

1-year return-4%4

3-year return+20%4

5-year return-48%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

It's down 4% over the past year, now 23% below its 52-week high. That is right in line with the market.

Returns sit at the market level so far this year (+0%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+20% over three years and -48% over five), behind 70% of the market.

The stock is underperforming over the past month (-13%) and over three months (-15%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Live Oak Bancshares, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community