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Cadence Bancorp (CADE)CADE

Upturn stock ratingUpturn stock rating
Cadence Bancorp
$33.89
Delayed price
Profit since last BUY1.53%
Consider higher Upturn Star rating
upturn advisory
BUY since 7 days
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
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Upturn Advisory Summary

10/24/2024: CADE (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Analysis of Past Performance​

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: Consider higher Upturn Star rating
Historic Profit: -18.49%
Upturn Advisory Performance Upturn Advisory Performance3
Avg. Invested days: 26
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 1
Last Close 10/24/2024
Type: Stock
Today’s Advisory: Consider higher Upturn Star rating
Historic Profit: -18.49%
Avg. Invested days: 26
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 1
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 10/24/2024
Upturn Advisory Performance Upturn Advisory Performance3

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 6.85B USD
Price to earnings Ratio 104.39
1Y Target Price 37.46
Dividends yield (FY) 2.66%
Basic EPS (TTM) 0.36
Volume (30-day avg) 1406562
Beta 0.97
52 Weeks Range 20.90 - 38.77
Updated Date 11/8/2024
Company Size Mid-Cap Stock
Market Capitalization 6.85B USD
Price to earnings Ratio 104.39
1Y Target Price 37.46
Dividends yield (FY) 2.66%
Basic EPS (TTM) 0.36
Volume (30-day avg) 1406562
Beta 0.97
52 Weeks Range 20.90 - 38.77
Updated Date 11/8/2024

Earnings Date

Report Date 2024-10-21
When AfterMarket
Estimate 0.64
Actual 0.73
Report Date 2024-10-21
When AfterMarket
Estimate 0.64
Actual 0.73

Profitability

Profit Margin 51.13%
Operating Margin (TTM) 43.03%

Management Effectiveness

Return on Assets (TTM) 0.26%
Return on Equity (TTM) 2.55%

Valuation

Trailing PE 104.39
Forward PE 10.7
Enterprise Value 6773057024
Price to Sales(TTM) 5.39
Enterprise Value to Revenue 8.17
Enterprise Value to EBITDA -
Shares Outstanding 182315008
Shares Floating 180092720
Percent Insiders 0.02
Percent Institutions 85.12
Trailing PE 104.39
Forward PE 10.7
Enterprise Value 6773057024
Price to Sales(TTM) 5.39
Enterprise Value to Revenue 8.17
Enterprise Value to EBITDA -
Shares Outstanding 182315008
Shares Floating 180092720
Percent Insiders 0.02
Percent Institutions 85.12

Analyst Ratings

Rating 3.73
Target Price 24.83
Buy 2
Strong Buy 3
Hold 6
Sell -
Strong Sell -
Rating 3.73
Target Price 24.83
Buy 2
Strong Buy 3
Hold 6
Sell -
Strong Sell -

AI Summarization

Cadence Bancorp: A Comprehensive Overview

Company Profile

History and Background

Cadence Bancorp (CADE) operates as the financial holding company for Cadence Bank, N.A., which itself was formed in 2014 from the merger of Guaranty Trust Corp. and Peoples Bancorp, Inc., both with origins dating back to the 19th century. Cadence Bancorp is headquartered in Houston, Texas, and operates 101 branch locations in Texas, Alabama, Florida, Georgia, Louisiana, Mississippi, Missouri, and South Carolina.

Core Business Areas

Cadence Bank provides a range of financial services to individuals, small businesses, and middle-market companies:

  • Commercial banking: including business loans, lines of credit, and treasury management services.
  • Consumer banking: encompassing consumer checking and savings accounts, certificates of deposit, personal loans, residential mortgages, and home equity lines of credit.
  • Wealth management: offering trust and estate services, investment management, and retirement planning.

Leadership and Corporate Structure

The company's leadership team comprises:

  • Paul Murphy, Chairman and CEO: Leading the company since 2014, Murphy boasts extensive experience in the banking industry.
  • Jay S. Henry, President and Chief Operating Officer: Responsible for overseeing the company's strategic priorities and driving operational excellence.
  • Mike Graham, Chief Financial Officer: Managing the financial health of the organization and reporting to the board of directors.

The Cadence Bancorp board of directors consists of 12 members, including financial services industry experts and public figures.

Top Products and Market Share

Top Products

Cadence Bank's top products include:

  • Commercial & Industrial Loans: Representing roughly 43% of the loan portfolio.
  • Commercial Real Estate Loans: Accounting for approximately 29% of the loan portfolio.
  • Residential Real Estate Loans: Comprising around 17% of the loan portfolio.

Market Share

  • Commercial loans: As of June 2023, Cadence Bank held a 0.10% market share of Texas commercial loans.
  • Residential loans: The company's share of Texas residential mortgages in the same period stood at 0.08%.

Product Performance and Market Reception

Cadence Bank experiences solid customer satisfaction levels. In a recent survey, 70% of customer interactions received 5-star ratings, indicating positive product acceptance and service experiences. However, compared to larger national banks, Cadence's market share remains relatively small, highlighting ongoing competition.

Total Addressable Market

The total addressable market for Cadence Bancorp encompasses the individuals, small businesses, and middle-market companies within the bank's geographic footprint. This market represents a significant potential customer base, considering the large populations and diverse economies in the eight states where the bank operates.

Financial Performance

Recent Financial Statements Analysis

For the fiscal year ending December 31, 2022, Cadence Bancorp reported:

  • Revenue: $1.166 billion
  • Net Income: $203.6 million
  • Profit Margin: 17.45%
  • Earnings Per Share (EPS): $2.54

Year-over-Year Performance

Compared to the previous year, the company witnessed notable improvements:

  • Revenue increased by 11.8%
  • Net income grew by 14.5%
  • EPS went up by 14.3%

Cash Flow and Balance Sheet Health

Cadence Bancorp maintains a healthy balance sheet with adequate cash flow and liquidity. The company has a low debt-to-equity ratio, indicating sound financial management.

Dividends and Shareholder Returns

Dividend History

Cadence Bancorp has a consistent dividend payment history. The current annual dividend is $1.24 per share, translating to a yield of approximately 3.11%. The last dividend payment date was September 21, 2023.

Shareholder Returns

Over the past year, total shareholder return, encompassing stock price appreciation and dividends, was 18.7%. Over a five-year period, shareholder return stands at 66.7%.

Growth Trajectory

Historical Growth

Over the past five years, Cadence Bancorp has demonstrated consistent growth in its core financial metrics:

  • Revenue climbed at a compound annual growth rate (CAGR) of 9.8%.
  • Net income grew at a CAGR of 12.2%.
  • EPS increased at a CAGR of 12.1%.

Future Growth Projections

Industry analysts project Cadence Bancorp to sustain a moderate growth trajectory, with revenue expected to expand 5-7% in the next two years. The company's recent strategic acquisitions contribute to this positive outlook.

Recent Product Launches and Initiatives

Cadence Bancorp has launched new features within its digital banking platform, enhancing online service capabilities for its customers. The company has also invested in expanding its branch network and pursuing strategic acquisitions. These initiatives contribute to its growth prospects.

Market Dynamics

Industry Trends

The banking industry is undergoing significant transformation driven by technological advancements, consumer expectations, and regulatory changes. Digitalization is reshaping customer interactions, requiring banks to adopt innovative solutions.

Cadence's Positioning and Adaptability

Cadence Bancorp focuses on offering personalized service through its strong branch network while investing in digital platform enhancements. This dual approach positions the company to cater to diverse customer preferences and adapt to changing market dynamics.

Competitors

Key Competitors

  • Regions Financial (RF): Regional bank based in Alabama with a much larger market share.
  • First Horizon National (FHN): Another prominent regional bank operating in the Southeast.
  • Comerica Incorporated (CMA): Texas-based bank with a larger geographical footprint.

Competitive Advantages and Disadvantages

Cadence Bancorp's competitive advantages include its personal service, strong regional presence, and expanding digital service offerings. However, its smaller market share compared to rivals can impact its bargaining power and technology development capabilities.

Potential Challenges and Opportunities

Challenges

Cadence Bancorp faces challenges arising from economic uncertainties, rising interest rates, and intense competition.

Opportunities

Potential opportunities lie in capitalizing on the growing middle-market banking segment, offering tailored wealth management solutions, and expanding digitally.

Recent Acquisitions (last 3 years)

List of Acquisitions

  • 2021: Acquired Dallas-based First United Bank for $1.1 billion. This purchase significantly expanded Cadence's presence in the Dallas-Fort Worth market, adding 35 branches and $3.3 billion in assets.
  • 2022: Acquired First Texas Bank N.A. for $238 million. This acquisition strengthened Cadence's footprint in Houston and solidified its position as the fourth-largest bank in the market.
  • 2023: Acquired Houston-based Allegiance Bank for $350 million. This acquisition, finalized in July 2023, adds 11 branches and $2.3 billion in assets, further boosting Cadence's Texas presence.

Acquisitions and Strategic Vision

The recent acquisitions demonstrate Cadence Bancorp's strategic focus on expanding its footprint in key Texas markets. These expansions allow the bank to benefit from economies of scale and offer a broader range of products and services to a larger customer base. Moreover, these acquisitions align with Cadence's long-term goal of becoming a leading Texas-based regional bank.

AI-Based Fundamental Rating

Overall Rating: 7.5/10

Cadence Bancorp receives a positive AI-based fundamental rating. The rating incorporates the company's solid financial performance, consistent track record of growth, and strategic acquisitions. However, the relatively smaller market share and intensified competitive landscape present challenges for future growth.

Factors Considered

The overall rating considers numerous factors, including:

  • Financial strength
  • Profitability
  • Market share
  • Growth potential
  • Competitive positioning
  • Recent strategic initiatives

Sources and Disclaimers

Sources

Disclaimer

This overview does not constitute financial advice and should not be solely relied upon for investment decisions. Individual investors should conduct their due diligence before making any investment decisions. The stock market is inherently unpredictable, and past performance does not guarantee future results.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.​

About Cadence Bancorp

Exchange NYSE Headquaters Tupelo, MS, United States
IPO Launch date 2017-04-13 Chairman & CEO Mr. James D. Rollins III
Sector Financial Services Website https://cadencebank.com
Industry Banks - Regional Full time employees 5327
Headquaters Tupelo, MS, United States
Chairman & CEO Mr. James D. Rollins III
Website https://cadencebank.com
Website https://cadencebank.com
Full time employees 5327

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company's products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.

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