Stock Yards Bancorp, Inc. (SYBT) | Investment Case

1. Company Snapshot

1.a. Company Description

Stock Yards Bancorp, Inc.operates as a holding company for Stock Yards Bank & Trust Company that provides various financial services for individuals, corporations, and others in the United States.It operates in two segments, Commercial Banking, and WM&T.

The Commercial Banking segment offers mortgage banking and deposit services; retail, commercial, and commercial real estate lending services; and online banking, mobile banking, private banking, leasing, treasury management, merchant, international banking, correspondent banking, and other banking services.This segment also provides securities brokerage services through an arrangement with a third party broker-dealer.The WM&T segment provides investment management, financial and retirement planning, and trust and estate services, as well as retirement plan management for businesses and corporations.

The company operates through 73 full service banking center locations in Louisville, central, eastern and northern Kentucky, as well as Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets.Stock Yards Bancorp, Inc.was founded in 1904 and is headquartered in Louisville, Kentucky.

Show Full description

1.b. Last Insights on SYBT

Stock Yards Bancorp, Inc.'s recent performance was driven by strong Q2 earnings, beating estimates with $1.15 per share, up from $0.94 a year ago. A 3.2% dividend hike to $0.32 per common share, sustainable given decent liquidity, rewarded shareholders. The company's record Q2 earnings of $34.0 million and appointment of David L. Hardy to its Board of Directors enhanced its potential for a near-term turnaround. Additionally, a "buy" rating from analysts, citing a hammer chart and upward-revised earnings estimates, contributed to positive momentum.

1.c. Company Highlights

Last Price	67.04
Change Percentage	-0.42%
Open	67.17
Previous Close	67.32
Market Cap ( Millions)	1976
Volume	146197
Year High	83.83
Year Low	60.75
M A 50	67.29
M A 200	72.57

FCF Yield	0.79%
Dividend Yield	1.86%
ROE	13.85%
Debt / Equity	0.00%
Net Debt / EBIDTA	-48.36%
Price To Book	2.0
Price Earnings Ratio	14.56
Price To FCF	126.2
Price To sales	3.77
EV / EBITDA	10.84

2. Transcript Summary

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3. NewsRoom

American Century Companies Inc. Has $18.22 Million Holdings in Stock Yards Bancorp, Inc. $SYBT

Dec -03

Source: defenseworld.net

Stock Yards Bank & Trust announces Bowling Green Market President with deep community ties

Dec -01

Source: globenewswire.com

Stock Yards (SYBT) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -29

Source: zacks.com

Stock Yards Bancorp (SYBT) Q3 Earnings and Revenues Top Estimates

Oct -29

Source: zacks.com

Stock Yards Bancorp Reports Record Third Quarter Earnings of $36.2 Million or $1.23 Per Diluted Share

Oct -29

Source: globenewswire.com

Stock Yards Bank & Trust Co. Has $173.13 Million Stake in Microsoft Corporation $MSFT

Oct -24

Source: defenseworld.net

Stock Yards Bank & Trust Co. Purchases 6,532 Shares of NVIDIA Corporation $NVDA

Oct -21

Source: defenseworld.net

8 Upcoming Dividend Increases

Sep -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.24%)

6. Segments

Commercial Banking

Expected Growth: 5%

Stock Yards Bancorp, Inc.'s 5% growth in Commercial Banking is driven by strong loan demand, expansion into new markets, and strategic partnerships. Additionally, the bank's focus on customer relationships, efficient operations, and effective risk management have contributed to its growth. Furthermore, a favorable interest rate environment and a growing economy have also supported the segment's expansion.

Wealth Management and Trust

Expected Growth: 7%

Stock Yards Bancorp's Wealth Management and Trust segment growth of 7% is driven by increasing demand for investment management services, expansion of trust services, and strategic acquisitions. Additionally, the segment benefits from a strong market presence, diversified revenue streams, and a growing client base seeking wealth management solutions.

7. Detailed Products

Commercial Banking

Stock Yards Bancorp, Inc. offers a range of commercial banking services, including cash management, treasury management, and commercial lending to businesses of all sizes.

Consumer Banking

The company provides consumer banking services, including checking and savings accounts, credit cards, personal loans, and mortgages to individuals.

Wealth Management

Stock Yards offers wealth management services, including investment management, trust services, and financial planning to individuals and families.

Mortgage Banking

The company provides mortgage banking services, including residential and commercial mortgage lending, to individuals and businesses.

Insurance Services

Stock Yards offers insurance services, including life insurance, disability insurance, and long-term care insurance to individuals and businesses.

8. Stock Yards Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Stock Yards Bancorp, Inc. is medium due to the presence of alternative financial institutions and digital banking platforms.

Bargaining Power Of Customers

The bargaining power of customers for Stock Yards Bancorp, Inc. is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Stock Yards Bancorp, Inc. is medium due to the presence of multiple suppliers of financial services and technology.

Threat Of New Entrants

The threat of new entrants for Stock Yards Bancorp, Inc. is high due to the low barriers to entry in the financial services industry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for Stock Yards Bancorp, Inc. is high due to the presence of multiple competitors in the financial services industry and the need to differentiate itself through innovative products and services.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	31.57%
Debt Cost	4.63%
Equity Weight	68.43%
Equity Cost	8.10%
WACC	7.00%
Leverage	46.14%

11. Quality Control: Stock Yards Bancorp, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

West Bank

A-Score: 6.5/10

Value: 6.8

Growth: 4.8

Quality: 6.8

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

Affinity Bancshares

A-Score: 6.2/10

Value: 6.3

Growth: 7.3

Quality: 5.4

Yield: 7.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Stock Yards Bancorp

A-Score: 5.9/10

Value: 4.4

Growth: 6.8

Quality: 6.5

Yield: 4.0

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

BCB Bancorp

A-Score: 5.3/10

Value: 5.4

Growth: 5.8

Quality: 2.8

Yield: 10.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

Union Bankshares

A-Score: 4.8/10

Value: 5.1

Growth: 4.8

Quality: 4.6

Yield: 5.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

First Guaranty Bancshares

A-Score: 3.6/10

Value: 6.5

Growth: 4.8

Quality: 2.8

Yield: 3.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-0.44%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.00%

Stock Yards Bancorp, Inc. - US8610251048

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SYBT

1.c. Company Highlights

Average Growth

Average Quality

Medium Volatility

Earnings Beats

Revenues Beats

Fairly Valued

Average Yield

Strong Momentum

Stable Momentum

Expensive

Lower Quality

Revenues Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.24%)

6. Segments

Commercial Banking

Expected Growth: 5%

Wealth Management and Trust

Expected Growth: 7%

7. Detailed Products

Commercial Banking

Consumer Banking

Wealth Management

Mortgage Banking

Insurance Services

8. Stock Yards Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Stock Yards Bancorp, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

67.04$

Current Price

67.04$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA