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SVB Financial Group
SIVB : NASDAQ : Financial
$105.99 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 387,300
10/23/14 - 3:59 PM ET

Financial Analysis


SVB FINANCIAL GROUP's gross profit margin for the second quarter of its fiscal year 2014 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line.

At the same time, stockholders' equity ("net worth") has greatly increased by 44.79% from the same quarter last year.

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Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)228.05276.22
EBITDA ($mil)97.68147.81
EBIT ($mil)88.1139.01
Net Income ($mil)50.848.58


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)2649.83873.25
Total Assets ($mil)33309.0222153.9
Total Debt ($mil)459.37461.34
Equity ($mil)2675.741847.96


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin95.2590.42
EBITDA Margin42.8353.51
Operating Margin38.6350.32
Sales Turnover0.050.05
Return on Assets0.80.82
Return on Equity10.039.85
Debt Q2 FY14 Q2 FY13
Current Ratio0.00.0
Debt/Capital0.150.2
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)50.745.46
Div / share0.00.0
EPS1.041.06
Book value / share52.7840.65
Institutional Own % n/a n/a
Avg Daily Volume388508.0556971.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 17.10 for the Commercial Banks industry and a value on par with the S&P 500 average of 18.06. Conducting a second comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 2.49 and a premium versus the industry average of 1.11. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SVB FINANCIAL GROUP proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SIVB 17.26 Peers 17.10   SIVB 14.06 Peers 15.11

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SIVB is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SIVB is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SIVB 17.77 Peers 45.23   SIVB 1.01 Peers 1.07

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SIVB is trading at a significant discount to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SIVB trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SIVB 1.87 Peers 1.11   SIVB 42.28 Peers 13.29

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SIVB is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SIVB is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SIVB 3.09 Peers 2.16   SIVB 54.04 Peers -3.38

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SIVB is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SIVB has a sales growth rate that significantly exceeds its peers.

 

 

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