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Bank7 (BSVN)
NASDAQ:BSVN
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Bank7
(NASDAQ:BSVN)
71Outperform
Bank7 (BSVN) vs. S&P 500 (SPY)
Market Cap
$367.93M
Dividend Yield2.29%
Average Volume (3M)16.21K
Price to Earnings (P/E)8.1
Beta (1Y)0.98
Revenue Growth9.18%
EPS Growth59.25%
CountryUS
Employees123
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)4.84
Shares Outstanding9,343,185
10 Day Avg. Volume19,074
30 Day Avg. Volume16,210
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)N/A
Price to Sales (P/S)4.28
Price to Cash Flow (P/CF)6.90
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$53.50Price Target Upside35.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Bank7 Business Overview & Revenue Model
Company DescriptionBank7 Corp. operates as bank holding company which engages in the ownership and management of the Bank7. It offers banking and financial services to individual and corporate customers located in Oklahoma, Kansas, and Texas. The company was founded by William B. Haines in 2004 and is headquartered in Oklahoma City, OK.
How the Company Makes MoneyBank7 makes money through various revenue streams within the banking sector. The primary source of revenue is the interest income earned from loans and credit products offered to customers, which includes personal loans, business loans, and mortgages. Additionally, the bank generates income from service fees associated with account maintenance, transaction services, and other banking activities. Bank7 also earns revenue through investment activities, including the interest and dividends from securities it holds. Partnerships with other financial service providers may contribute to its income through collaborative offerings or referral fees. Overall, the bank's profitability is driven by its ability to manage interest rate spreads, attract and retain customers, and maintain operational efficiency.
Bank7 Financial Statement Overview
Summary
Bank7 shows robust financial health, characterized by strong revenue growth, high profitability margins, and efficient cash flow management. The absence of debt reduces financial risk, although the equity ratio could be improved.Income Statement
Bank7 shows strong performance with a significant revenue growth rate of 9.75% in TTM compared to the previous year. The gross profit margin remains robust at 100%, which is typical for banks, and net profit margin has improved to 24.8% from the previous year's 21.6%. The EBIT and EBITDA margins are also healthy at 54.9% and 33.0% respectively, indicating strong operational efficiency.85
Very Positive
Balance Sheet
The balance sheet is solid, with a debt-to-equity ratio of 0, reflecting no reliance on debt. The return on equity (ROE) is strong at 17.47%, showing effective use of equity capital. The equity ratio is 11.73%, indicating a solid equity base relative to total assets, although slightly lower than industry norms, suggesting a focus on liabilities management.78
Positive
Cash Flow
Cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.59, indicating strong cash generation relative to reported profits. Free cash flow has grown by 15.67% year-over-year, demonstrating improved cash management. The free cash flow to net income ratio stands at 1.50, showcasing efficient conversion of profits into cash.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 143.55M | 130.79M | 72.37M | 55.49M | 48.83M | 43.48M | Gross Profit |
| 143.55M | 70.64M | 72.37M | 55.49M | 48.83M | 43.48M | EBIT |
| 78.81M | 37.22M | 49.39M | 30.91M | 25.88M | 15.04M | EBITDA |
| 47.42M | 38.52M | 40.66M | 31.95M | 26.98M | 15.92M | Net Income Common Stockholders |
| 35.66M | 28.27M | 29.64M | 23.16M | 19.27M | 8.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| -181.04M | 181.04M | 287.75M | 283.40M | 170.31M | 147.28M | Total Assets |
| 1.77B | 1.77B | 1.58B | 1.35B | 1.02B | 866.39M | Total Debt |
| 1.99M | 1.99M | 2.08M | 0.00 | 0.00 | 0.00 | Net Debt |
| -196.73M | -198.72M | -112.51M | -198.60M | -170.31M | -147.28M | Total Liabilities |
| 1.60B | 1.60B | 1.44B | 5.67M | 3.83M | 8.78M | Stockholders Equity |
| 170.33M | 170.33M | 144.10M | 127.41M | 107.32M | 100.13M |
| Cash Flow | Free Cash Flow | ||||
| 53.56M | 46.29M | 39.42M | 29.36M | 24.80M | 16.08M | Operating Cash Flow |
| 56.68M | 49.13M | 39.71M | 29.95M | 25.23M | 19.18M | Investing Cash Flow |
| 36.29M | -130.86M | -342.77M | -43.49M | -119.61M | -108.07M | Financing Cash Flow |
| -75.74M | 153.66M | 207.32M | 64.49M | 131.15M | 77.93M |
Bank7 Technical Analysis
Negative
39.38
Price Trends
42.71
Negative
43.89
Negative
39.62
Negative
Market Momentum
-0.99
Positive
36.38
Neutral
22.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSVN, the sentiment is Negative. The current price of 39.38 is below the 20-day moving average (MA) of 40.98, below the 50-day MA of 42.71, and below the 200-day MA of 39.62, indicating a bearish trend. The MACD of -0.99 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 22.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BSVN.
Bank7 Risk Analysis
Bank7 disclosed 25 risk factors in its most recent earnings report. Bank7 reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bank7 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.83B | 13.75 | 15.13% | 3.09% | 7.81% | -2.49% | |
73 Outperform | $3.60B | 16.85 | 14.16% | 1.64% | 12.93% | 1.40% | |
72 Outperform | $7.98B | 15.72 | 16.67% | 1.69% | -2.75% | 11.75% | |
71 Outperform | $367.93M | 8.14 | 23.83% | 2.29% | 9.18% | 59.25% | |
70 Outperform | $6.73B | 14.00 | 6.60% | 3.20% | 11.96% | 11.66% | |
68 Neutral | $6.35B | 12.15 | 9.70% | 2.27% | 11.17% | 1.47% | |
64 Neutral | $13.79B | 10.52 | 9.20% | 4.24% | 17.25% | -7.60% |
* Financial Sector Average
Performance Comparison
BSVN
Bank7
39.15
12.19
45.22%
BANF
BancFirst
109.23
23.51
27.43%
BOKF
Bok Financial
100.50
15.34
18.01%
CBSH
Commerce Bancshares
59.68
11.01
22.62%
CFR
Cullen/Frost Bankers
123.36
18.93
18.13%
PB
Prosperity Bancshares
70.30
9.93
16.45%
Bank7 Earnings Call Summary
Earnings Call Date: Jan 16, 2025 | % Change Since: -14.34% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with strong capital and liquidity positions and growth in the C&I segment. However, challenges such as loan shrinkage in certain sectors and potential NIM compression were highlighted.Highlights
Strong Capital and Liquidity Position
Bank7 Corp highlights its high levels of capital and strong liquidity position, further enhanced by adding a second liquidity backstop with the Fed.
Steady Net Interest Margin (NIM)
Despite expectations, Bank7's NIM remained stable and even increased, showing resilience in the current economic environment.
Growth in C&I Segment
The Commercial and Industrial (C&I) segment grew over 5% for the year, indicating healthy performance outside of the energy and hospitality sectors.
Total Shareholder Returns
The company proudly compounds shareholder value faster than most institutions, with a low dividend payout ratio allowing for potential increases.
Lowlights
Loan Shrinkage in Energy and Hospitality
Loan balances decreased in the energy and hospitality segments, primarily due to unscheduled payoffs and asset sales.
Pressure on Net Interest Margin
There is an expectation of NIM compression due to economic conditions and potential further interest rate cuts.
Nonaccrual Interest and Loan Paydowns
Nonaccrual interest was elevated due to onetime items, and significant loan paydowns are expected to continue in the first quarter.
Company Guidance
During the Bank7 Corp Q4 2024 earnings call, the executives provided several insights into their financial metrics and future guidance. They highlighted a steady Net Interest Margin (NIM) despite some expected compression, attributing their performance to strong asset quality and disciplined balance sheet management. The company reported that their dividend payout ratio remains at 20%, which is significantly lower than the 35% average for dividend-paying banks, suggesting potential room for increases. They also discussed a $160 million unscheduled principal payoff in the energy and hospitality sectors, impacting loan balances, but expressed optimism for loan growth in 2025, particularly in the Commercial & Industrial (C&I) segment, which grew over 5% during the year. Additionally, the executives conveyed a cautious yet optimistic outlook on the interest rate environment and underscored their commitment to managing both loan and deposit betas effectively amidst potential rate changes.Bank7 Corporate Events
Financial Disclosures
Bank7 Announces Record Financial Results for 2024
Positive
Jan 16, 2025
On January 16, 2025, Bank7 Corp announced record financial results for the year ended December 31, 2024. The company reported a significant increase in net income and earnings per share compared to 2023, with net income rising by 61.62% to $45.7 million and earnings per share increasing by 58.69% to $4.84. Despite a slight decrease in total assets, the company achieved robust capital ratios, maintaining its status as well-capitalized under regulatory standards. These results underscore Bank7 Corp’s strong performance, driven by effective balance sheet management and cost control strategies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.