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Upturn AI SWOT - About
LOB 
Live Oak Bancshares Inc (LOB)
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Upturn Advisory Summary
03/27/2025: LOB (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 46.8% | Avg. Invested days 43 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.22B USD | Price to earnings Ratio 15.88 | 1Y Target Price 37 |
Price to earnings Ratio 15.88 | 1Y Target Price 37 | ||
Volume (30-day avg) 356537 | Beta 1.7 | 52 Weeks Range 26.06 - 50.49 | Updated Date 04/2/2025 |
52 Weeks Range 26.06 - 50.49 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 0.45% | Basic EPS (TTM) 1.69 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 19.23% | Operating Margin (TTM) 17.45% |
Management Effectiveness
Return on Assets (TTM) 0.64% | Return on Equity (TTM) 8.12% |
Valuation
Trailing PE 15.88 | Forward PE - | Enterprise Value 733845056 | Price to Sales(TTM) 3.04 |
Enterprise Value 733845056 | Price to Sales(TTM) 3.04 | ||
Enterprise Value to Revenue 2.69 | Enterprise Value to EBITDA - | Shares Outstanding 45565300 | Shares Floating 34841973 |
Shares Outstanding 45565300 | Shares Floating 34841973 | ||
Percent Insiders 23.22 | Percent Institutions 72.47 |
Analyst Ratings
Rating 3 | Target Price 47 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Live Oak Bancshares Inc
Company Overview
History and Background
Live Oak Bancshares was founded in 2008 in Wilmington, North Carolina. It focuses on providing financial services to small businesses in specific industries, often underserved by larger banks. It has grown through specialization and technology-driven lending.
Core Business Areas
- Commercial Banking: Provides lending and deposit services to small businesses across various sectors. Specializes in SBA and USDA lending programs.
- Venture Investment: Invests in fintech companies to enhance its technology platform and expand its offerings.
- Lease and Capital: Facilitates providing equipment and financing solutions, often in conjunction with its specialized industry lending.
Leadership and Structure
James S. (Chip) Mahan III is the Chairman and CEO. The company has a board of directors and operates with a decentralized structure, allowing for specialized industry expertise within each lending division.
Top Products and Market Share
Key Offerings
- SBA 7(a) Loans: Offers SBA 7(a) loans to small businesses across various industries. Live Oak is a leading SBA lender. Market share data varies year to year, but consistently ranks among the top. Competitors include traditional banks like Wells Fargo and Bank of America, as well as other SBA lenders like Celtic Bank and Huntington National Bank.
- USDA Loans: Provides USDA loans, particularly for businesses in rural areas. Live Oak has a significant presence in the USDA lending market. Competitors include Farm Credit institutions and other rural-focused lenders.
- Commercial Real Estate Loans: Offers loans for commercial real estate projects, often targeting specialized industries. Competitors include traditional banks and commercial mortgage companies.
Market Dynamics
Industry Overview
The banking industry is highly competitive and heavily regulated. Smaller banks like Live Oak face pressure from larger institutions and fintech disruptors. The SBA and USDA lending markets are driven by government policy and economic conditions.
Positioning
Live Oak differentiates itself through industry specialization and a technology-driven lending platform. This allows for deeper industry knowledge and faster loan processing compared to traditional banks.
Total Addressable Market (TAM)
The TAM for small business lending is estimated to be in the hundreds of billions of dollars annually. Live Oak is well-positioned to capture a significant portion of this market due to its specialization and expertise.
Upturn SWOT Analysis
Strengths
- Industry specialization
- Technology-driven lending platform
- Strong SBA and USDA lending expertise
- High employee satisfaction
- Strong brand reputation in niche markets
Weaknesses
- Concentration in specific industries
- Smaller balance sheet compared to larger banks
- Reliance on government-backed lending programs
- Potential for regulatory changes to impact profitability
- Higher operating expenses due to specialized services
Opportunities
- Expansion into new specialized industries
- Increased adoption of technology in lending
- Growing demand for small business financing
- Strategic acquisitions to expand capabilities
- Partnerships with fintech companies to enhance services
Threats
- Economic downturn impacting small businesses
- Increased competition from larger banks and fintech companies
- Changes in government lending programs
- Rising interest rates impacting loan demand
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- WAL
- CADE
- TCBI
Competitive Landscape
Live Oak's industry specialization and technology-driven platform provide a competitive advantage. However, it faces competition from larger banks with greater resources and fintech companies with innovative solutions.
Major Acquisitions
Apiture
- Year: 2021
- Acquisition Price (USD millions): 200
- Strategic Rationale: Acquisition of Apiture to bolster digital banking platform and enhance customer experience.
Growth Trajectory and Initiatives
Historical Growth: Live Oak has experienced strong growth in recent years, driven by its industry specialization and technology-driven lending platform.
Future Projections: Analyst estimates vary, but generally project continued growth for Live Oak, driven by its expansion into new industries and its increasing market share in existing markets.
Recent Initiatives: Recent initiatives include investments in fintech companies, expansion into new lending sectors, and the development of new technology solutions.
Summary
Live Oak Bancshares is a specialized lender with a strong focus on small businesses and government-backed loans. Its industry expertise and technology platform are key strengths. However, it faces challenges from larger banks and potential regulatory changes. The company's growth trajectory is positive, but it must continue to innovate to maintain its competitive advantage.
Similar Companies
CADE
Cadence Bancorp
CADE
Cadence Bancorp
FFWM
First Foundation Inc.
FFWM
First Foundation Inc.
TCBI
Texas Capital Bancshares Inc
TCBI
Texas Capital Bancshares Inc
WAL
Western Alliance Bancorporation
WAL
Western Alliance Bancorporation
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change. Always conduct thorough research and consult with a qualified financial advisor before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Live Oak Bancshares Inc
Exchange NYSE | Headquaters Wilmington, NC, United States | ||
IPO Launch date 2015-07-23 | Chairman & CEO Mr. James S. Mahan III | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 1008 | Website https://www.liveoak.bank |
Full time employees 1008 | Website https://www.liveoak.bank | ||
Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various banking products and services in the United States. It operates through two segments: Banking and Fintech. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also provides commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company offers settlement, accounting, and securitization services for government guaranteed loans; financing for renewable energy application industry; wealth and investment management services to high-net-worth individuals and families; and investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies. Live Oak Bancshares, Inc. was incorporated in 2008 and is headquartered in Wilmington, North Carolina.
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