Live Oak Bancshares (LOB) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: 0.4%
• Average Volume (3M): 257.19K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.09
• 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: 256,877
• 30 Day Avg. Volume: 257,187
• 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: 0.64
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 8.09
• 1Y Price Target: $42.50
• Price Target Upside: 33.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.03
• Revenue Forecast (FY): $573.79M

• Rating: 66 Neutral
• Price Target: $32.00 ▲(0.25% Upside)

Live Oak Bancshares' overall stock score is driven by its strong financial performance and positive earnings call sentiment, which highlight growth in SBA lending and strategic advancements in technology. However, bearish technical indicators and moderate valuation metrics temper the overall score. The company's robust cash flow and low leverage provide a solid foundation, but operational challenges and market conditions pose risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and successful strategic initiatives, supporting long-term business sustainability.

Loan Origination

Record loan originations reflect robust demand and effective lending strategies, enhancing future revenue potential and market position.

Credit Quality

Improved credit quality reduces risk and enhances financial stability, allowing for more confident expansion and investment in growth areas.

Negative Factors

Profitability Decline

Declining profitability metrics suggest rising operational costs or inefficiencies, which could hinder long-term financial performance if not addressed.

Increased Payoffs and Paydowns

Higher payoffs and paydowns may indicate customer churn or refinancing, potentially impacting future interest income and loan growth.

Intentional Net Charge-Offs

Increased charge-offs, even if intentional, can strain financial resources and reflect underlying credit risks that need careful management.

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: Neutral
• Last Price: 31.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOB, the sentiment is Neutral. The current price of 31.92 is above the 20-day moving average (MA) of 31.24, below the 50-day MA of 33.40, and above the 200-day MA of 31.03, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 87.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LOB.

Live Oak Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STBA	79 Outperform	$1.43B	10.74	9.35%	3.50%	-1.48%	-1.58%
NBHC	71 Outperform	$1.36B	11.35	9.06%	3.22%	-2.46%	-1.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LOB	66 Neutral	$1.46B	21.40	6.31%	0.40%	10.41%	-19.43%
CCB	66 Neutral	$1.68B	35.24	11.82%	―	-2.11%	6.48%
HOPE	65 Neutral	$1.36B	26.80	2.19%	5.27%	-7.96%	-52.79%
TFIN	57 Neutral	$1.29B	191.08	1.11%	―	2.04%	-64.17%

Live Oak Bancshares Corporate Events

Live Oak Bancshares Delays Q3 2025 Report

Live Oak Bancshares has announced a delay in filing its Form 10-Q (Quarter Report) for the period ending September 30, 2025. The delay is primarily due to the need to amend previous financial statements, specifically the Statements of Cash Flows, which were found to have material misclassifications. These adjustments, however, do not affect the company’s overall financial health or key performance metrics. The company anticipates completing the filing by November 17, 2025. Despite these restatements, no significant changes are expected in the company’s financial results. The company is actively working on compliance and the notification was signed by Walter J. Phifer, the Chief Financial Officer.

The most recent analyst rating on (LOB) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Live Oak Bancshares stock, see the LOB Stock Forecast page.

Live Oak Bancshares’ Optimistic Earnings Call Highlights Growth

Live Oak Bancshares Inc. recently held its earnings call, revealing a largely optimistic outlook despite some challenges. The company reported substantial growth in SBA lending and positive financial performance, alongside strategic advancements in technology. However, concerns were noted regarding an increase in nonaccrual loans and potential impacts from a government shutdown. Overall, the sentiment was buoyant, driven by strong financial metrics and strategic initiatives.

Live Oak Bancshares Reports Strong Q3 2025 Results

Live Oak Bancshares, Inc., a financial holding company and parent of Live Oak Bank, is known for its innovative approach to banking, focusing on service and technology to support small businesses across the United States.

Live Oak Bancshares CEO Announces Stock Trading Plan

On August 27, 2025, James S. Mahan III, Chairman and CEO of Live Oak Bancshares, announced a prearranged stock trading plan to sell up to 400,000 shares of his holdings. This plan, part of his personal financial and tax strategies, will be executed from November 2025 through September 2026, adhering to Rule 10b5-1 under the Securities Exchange Act of 1934.

The most recent analyst rating on (LOB) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Live Oak Bancshares stock, see the LOB Stock Forecast page.

Live Oak Bancshares Declares Cash Dividend Announcement

On August 19, 2025, Live Oak Bancshares‘ Board of Directors declared a cash dividend of $0.03 per share for its Voting Common Stock and $0.23845 per depositary share for its 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock, to be paid on September 15, 2025, to shareholders recorded by September 2, 2025.

The most recent analyst rating on (LOB) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Live Oak Bancshares stock, see the LOB Stock Forecast page.

Live Oak Bancshares Gains from Apiture Acquisition Deal

On August 19, 2025, Computer Services Inc. announced its definitive agreement to acquire Apiture, Inc., in which Live Oak Banking Company holds an investment. This transaction will see Apiture become a wholly owned subsidiary of CSI, with Live Oak Banking Company receiving a portion of the merger consideration. The deal is expected to bring Live Oak Bancshares an estimated pre-tax gain of $20 million to $25 million, while also ceasing further pass-through losses from the investment.

The most recent analyst rating on (LOB) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Live Oak Bancshares stock, see the LOB Stock Forecast page.