S&T Bancorp (STBA) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 3.72%
• Average Volume (3M): 202.92K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.92
• Revenue Growth: 1.26%
• EPS Growth: N/A
• Country: US
• Employees: 1,206
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 0.86
• Shares Outstanding: 38,370,213
• 10 Day Avg. Volume: 213,613
• 30 Day Avg. Volume: 202,916
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.69
• Price to Cash Flow (P/CF): 6.50
• P/FCF Ratio: 3.90
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $43.00
• Price Target Upside: 16.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

S&T Bancorp presents a mixed investment case. Strong financial performance and attractive valuation are significant positives, while technical indicators suggest caution due to potential bearish trends. The earnings call provides a positive outlook, balancing out some of the technical concerns. Overall, the stock is moderately attractive, supported by robust financials and a favorable valuation.

S&T Bancorp Business Overview & Revenue Model

Company Description

S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that provides retail and commercial banking products and services. The company operates through six segments: Commercial Real Estate, Commercial and Industrial, Business Banking, Commercial Construction, Consumer Real Estate, and Other Consumer. The company accepts time and demand deposits; and offers commercial and consumer loans, cash management services, and brokerage and trust services, as well as acts as guardian and custodian of employee benefits. It also manages private investment accounts for individuals and institutions. In addition, the company distributes life insurance and long-term disability income insurance products, as well as offers title insurance agency services to commercial customers; and acts as a reinsurer of credit life, accident, and health insurance policies. As of December 31, 2021, it operated 73 banking branches and 5 loan production offices located in Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. S&T Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.

How the Company Makes Money

S&T Bancorp generates revenue primarily through interest income and non-interest income. Interest income is earned from the company's lending activities, which include commercial and consumer loans, as well as mortgages. The difference between the interest earned on loans and the interest paid on deposits and borrowed funds constitutes the net interest margin, a significant source of income for the bank. Non-interest income is derived from fees and service charges related to the bank's deposit accounts, loan servicing, and wealth management services. Additionally, S&T Bancorp may earn income from investment securities and other financial instruments. The company also benefits from strategic partnerships and community engagement, which help expand its customer base and enhance its service offerings, contributing to its overall earnings.

S&T Bancorp Financial Statement Overview

Summary

S&T Bancorp demonstrates strong revenue growth and efficient cost management, reflected in high EBIT margins. The strategic reduction in leverage has improved its balance sheet strength, albeit potentially limiting growth. Cash flow management is stable, though profitability needs enhancement to improve net profit margins.

Income Statement

S&T Bancorp has demonstrated strong revenue growth over recent years, increasing from $299M in 2019 to $515M in 2024. The gross profit margin remains robust at 100% due to its nature as a financial institution. However, the net profit margin has decreased slightly from 37.2% in 2023 to 25.5% in 2024, indicating pressure on profitability. The EBIT margin is notably high at 98.8% for 2024, reflecting efficient cost management.

Balance Sheet

The company's balance sheet reflects a healthy equity position with an equity ratio of 14.3% in 2024. The debt-to-equity ratio has improved significantly, dropping from 0.39 in 2023 to 0.11 in 2024, indicating a strong reduction in leverage. However, the banking industry typically operates with higher leverage, and this conservative approach may limit growth potential.

Cash Flow

The cash flow statements show a stable operating cash flow, with a slight increase in free cash flow in 2024. However, the free cash flow to net income ratio has decreased from 1.1 in 2023 to 1.32 in 2024, suggesting less cash is being generated relative to net income. The operating cash flow to net income ratio remains consistent, indicating steady cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
515.87M	389.14M	374.04M	340.72M	339.11M
	Gross Profit
515.87M	389.14M	374.04M	340.72M	339.11M
	EBIT
509.52M	178.80M	199.96M	135.67M	21.04M
	EBITDA
0.00	0.00	177.96M	147.15M	33.10M
	Net Income Common Stockholders
131.26M	144.78M	135.52M	110.34M	21.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.23B	233.61M	210.01M	1.83B	1.00B
	Total Assets
9.66B	9.55B	9.11B	9.49B	8.97B
	Total Debt
150.00M	503.63M	439.19M	76.82M	162.76M
	Net Debt
-94.82M	270.02M	229.19M	-845.39M	-66.90M
	Total Liabilities
8.28B	8.27B	7.93B	76.82M	7.81B
	Stockholders Equity
1.38B	1.28B	1.18B	1.21B	1.15B
Cash Flow		Free Cash Flow
173.37M	165.53M	236.57M	212.50M	48.03M
	Operating Cash Flow
173.37M	171.75M	240.43M	216.11M	53.45M
	Investing Cash Flow
-118.29M	-444.22M	-398.59M	11.98M	-161.10M
	Financing Cash Flow
-43.87M	296.07M	-554.05M	464.46M	139.49M

S&T Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STBA, the sentiment is Neutral. The current price of 36.88 is above the 20-day moving average (MA) of 35.07, below the 50-day MA of 37.26, and below the 200-day MA of 39.28, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 80.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STBA.

S&T Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STEL	74 Outperform	$1.30B	11.67	7.40%	2.09%	-0.58%	-3.02%
GABC	71 Outperform	$1.37B	12.92	12.16%	3.01%	11.44%	-2.75%
CCB	71 Outperform	$1.32B	27.09	12.33%	―	30.90%	-0.62%
STBA	70 Outperform	$1.26B	9.65	9.84%	3.72%	1.26%	―
NBHC	70 Outperform	$1.35B	12.20	8.70%	3.23%	1.74%	-16.68%
SRCE	67 Neutral	$1.48B	10.44	12.84%	2.45%	9.30%	15.19%
Sector *	63 Neutral	$12.31B	9.55	7.88%	79.24%	12.71%	-4.71%

S&T Bancorp Corporate Events

S&T Bancorp Reports Strong Q1 2025 Financial Results

S&T Bancorp, Inc. reported a net income of $33.4 million for the first quarter of 2025, showing an increase from both the previous quarter and the same quarter in 2024. The company experienced strong customer deposit and loan growth, an increase in net interest margin, and maintained excellent asset quality, which contributed to its solid financial performance. The total portfolio loans and deposits saw significant growth, and asset quality remained robust with a decrease in nonperforming assets. S&T Bancorp continues to maintain a strong regulatory capital position.

Spark’s Take on STBA Stock

According to Spark, TipRanks’ AI Analyst, STBA is a Neutral.

S&T Bancorp demonstrates strong financial performance with efficient cost management and strategic leverage reduction, although profitability pressure exists. Technical analysis suggests bearish trends, but valuation metrics offer reasonable value and income potential. The earnings call and corporate strategy showcase optimism and growth potential, balancing the risks and supporting a moderately positive outlook.

To see Spark’s full report on STBA stock, click here.

S&T Bancorp Unveils Strategic Growth Plans

S&T Bancorp has released its investor presentation, outlining its strategic priorities and performance targets aimed at sustainable growth and enhanced profitability. The company emphasizes its foundational growth strategy, financial performance metrics, and its preparedness to leverage merger and acquisition opportunities, while focusing on maintaining asset quality and expanding customer growth strategies.

S&T Bancorp Reports 2024 Financial Results and Dividend Increase

S&T Bancorp reported its financial results for the fourth quarter and full year 2024. In the fourth quarter of 2024, the company achieved a net income of $33.1 million, slightly higher than the third quarter, but lower than the previous year. Asset quality improved significantly with a reduction in nonperforming assets and net recoveries, while total deposits and portfolio loans increased. For the full year 2024, net income was $131.3 million, a decrease from 2023, attributed to higher funding costs despite a rise in interest income. The board declared a cash dividend increase, reflecting a 3.03% hike from the previous year.