Live Oak Bancshares (LOB) AI Stock Analysis

• Market Cap: $1.67B
• Dividend Yield: 0.33%
• Average Volume (3M): 295.27K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.97
• Revenue Growth: 10.41%
• EPS Growth: -19.43%
• Country: US
• Employees: 1,008
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.55
• Shares Outstanding: 45,731,300
• 10 Day Avg. Volume: 366,216
• 30 Day Avg. Volume: 295,273
• PEG Ratio: 7.67
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 3.65
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 8.09
• 1Y Price Target: $42.67
• Price Target Upside: 17.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.02
• Revenue Forecast (FY): $572.47M

• Rating: 71 Outperform
• Price Target: $36.00 ▼(-1.26% Downside)

Live Oak Bancshares' overall stock score reflects its strong financial position and positive earnings call highlights, including robust loan and deposit growth. However, the high P/E ratio and low dividend yield suggest potential overvaluation. Technical indicators show a neutral trend, with some short-term overbought signals. The company's strategic initiatives in AI and technology, alongside its strong cash flow, position it well for future growth, despite risks from nonaccrual loans and potential government shutdown impacts.

Positive Factors

SBA Lending Leadership

Being the top SBA 7(a) lender with a 44% increase in production enhances Live Oak's market position, supporting long-term growth and competitive advantage in small business lending.

Strong Cash Flow

Robust cash generation supports operational flexibility and investment in growth opportunities, ensuring financial stability and resilience against economic fluctuations.

AI and Technology Advancements

Leveraging AI to enhance efficiency and customer service can lead to improved operational leverage and profitability, positioning the company for future technological advancements.

Negative Factors

Increase in Nonaccrual Loans

Rising nonaccrual loans indicate potential credit quality issues, which could impact future earnings and require increased provisions, affecting profitability.

Profitability Decline

Declining profitability metrics suggest operational challenges that could hinder long-term earnings growth and require strategic adjustments to maintain margins.

Government Shutdown Concerns

A government shutdown could disrupt SBA loan processes, impacting revenue from this key segment and potentially slowing growth in the short to medium term.

Live Oak Bancshares Business Overview & Revenue Model

Company Description

Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also offers 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 provides settlement, accounting, and securitization services for government guaranteed loans; wealth and investment management services to high-net-worth individuals and families; investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies; and an on-site restaurant location to company employees and business visitors. Live Oak Bancshares, Inc. was incorporated in 2008 and is headquartered in Wilmington, North Carolina.

How the Company Makes Money

Live Oak Bancshares generates revenue primarily through interest income from loans issued to small businesses, which includes commercial loans, SBA loans, and other specialized lending products. Additionally, the company earns non-interest income through fees associated with its banking services, such as account maintenance fees, transaction fees, and loan origination fees. The bank's focus on technology and online banking allows it to operate with lower overhead costs, which can enhance profit margins. Strategic partnerships with various industry players, including technology platforms and lending networks, further contribute to its revenue streams by expanding its reach and customer base.

Live Oak Bancshares Financial Statement Overview

Summary

Live Oak Bancshares demonstrates a solid financial position with strong cash flow generation and a stable balance sheet. While revenue growth is moderate, profitability metrics have shown some decline, which could indicate operational challenges. The company's low leverage and strong cash flow provide a buffer against potential risks, positioning it well for future growth opportunities.

Income Statement

Live Oak Bancshares shows moderate revenue growth with a 2.8% increase in TTM, but profitability metrics such as net profit margin and EBIT margin have declined compared to previous years. The gross profit margin remains stable, indicating efficient cost management. However, the declining net profit margin suggests rising expenses or other operational challenges.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.10 in TTM, indicating prudent financial leverage. The equity ratio is healthy, and although ROE has decreased, it remains positive, reflecting the company's ability to generate returns on equity. The overall stability is commendable, but the declining ROE could be a concern if the trend continues.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 26.9% in TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is close to 1, highlighting effective cash management. Overall, cash flow performance is a strong point for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	964.75M	929.29M	776.55M	508.83M	506.41M	378.31M
Gross Profit	304.80M	396.61M	382.26M	350.92M	426.77M	243.97M
EBITDA	116.35M	112.52M	104.10M	231.11M	232.15M	69.08M
Net Income	69.56M	77.47M	73.90M	176.21M	167.00M	59.54M
Balance Sheet
Total Assets	14.67B	12.94B	11.27B	9.86B	8.21B	7.87B
Cash, Cash Equivalents and Short-Term Investments	2.27B	634.39M	1.71B	1.30B	1.10B	1.05B
Total Debt	105.05M	112.82M	23.35M	83.20M	318.29M	1.54B
Total Liabilities	13.46B	11.94B	10.37B	9.04B	7.50B	7.30B
Stockholders Equity	1.20B	999.03M	902.67M	811.03M	715.13M	567.85M
Cash Flow
Free Cash Flow	166.67M	487.16M	573.23M	80.73M	-122.80M	-281.99M
Operating Cash Flow	170.69M	536.47M	620.07M	124.48M	-119.72M	-261.00M
Investing Cash Flow	-334.83M	-2.08B	-1.77B	-1.44B	-149.80M	-2.62B
Financing Cash Flow	1.97B	1.57B	1.32B	1.53B	154.95M	2.98B

Live Oak Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOB, the sentiment is Positive. The current price of 36.46 is above the 20-day moving average (MA) of 33.61, above the 50-day MA of 32.96, and above the 200-day MA of 31.17, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 71.91 is Negative, neither overbought nor oversold. The STOCH value of 93.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOB.

Live Oak Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STBA	80 Outperform	$1.59B	11.99	9.35%	3.33%	-1.48%	-1.58%
NBHC	79 Outperform	$1.50B	12.55	9.06%	3.02%	-2.46%	-1.98%
CCB	75 Outperform	$1.77B	36.98	11.82%	―	-2.11%	6.48%
LOB	71 Outperform	$1.67B	24.45	6.31%	0.33%	10.41%	-19.43%
HOPE	69 Neutral	$1.47B	28.90	2.19%	4.89%	-7.96%	-52.79%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFIN	67 Neutral	$1.47B	218.79	1.11%	―	2.04%	-64.17%

Live Oak Bancshares Corporate Events

Live Oak Bancshares Appoints New Chief Risk Officer

On December 1, 2025, Live Oak Bancshares appointed Ewa Stasiowska as Chief Risk Officer, succeeding Gregory W. Seward who will remain as General Counsel. Stasiowska, with over two decades of experience in risk management, is expected to enhance Live Oak’s risk management practices as the company continues to grow, having recently surpassed the $10 billion asset threshold.

Live Oak Bancshares Announces Upcoming Cash Dividend

On November 18, 2025, Live Oak Bancshares, Inc. announced a cash dividend of $0.03 per share for its Voting Common Stock and $0.52344 per depositary share for its 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock. These dividends are scheduled to be paid on December 15, 2025, to shareholders recorded by December 2, 2025, reflecting the company’s commitment to returning value to its investors.