At the moment, the debt-to-equity of SVB Financial Group (NASDAQ:SIVB) is low, standing at 25.95, a figure that is less than the 61.93 average recorded by the industry. This means that the company is currently holding a debt level at 28.06 B.
Even though there was a rise of 13.64 M in revenue, the company failed to succeed in outperforming the industry average of 10.91%. For the most recent quarter, the net income has jumped by 542.90 M. This strength in their income has affected them and thus increased their earnings to $172.20 M. The 34.04% yoy growth of SIVB’s revenue has gone up that of the industry average by -0.41%. For the past 12 months, SVB Financial Group revenue has gone up by 34.45%. The sustained growth in their revenue has helped boost their earnings per share.
The 12-month return on equity has significantly fallen to 20.95 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Financial sector, the industry average is 16.76 while 16.20 is of the sector.
Also, looking at the price to cash flow of the company and the industry average, the 16.10 ratio of the stock is lower than the industry’s 16.92.
SVB Financial Group (NASDAQ:SIVB) has a price-to-earnings ratio of 13.18 which is lower than the 19.55 industry average at the moment. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 1.87 when compared to 2.62 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, SVB Financial Group ROE is above 16.20 that of both the sector average.
The operating profit margin for SVB Financial Group (SIVB) is 51.65%, a figure which is considered to be strong. It has gone 41.71 from the 45.38 over the past 5 years. In addition to this, their operating margin is 9.94 higher than the industry average.
The net profit margin which stood at 30.60 on average in the past 5 years has jumped to 38.32 in the last 12 months. Added to that, this ratio has surpassed the industry net margin that stands at 32.82.
Analysts meanwhile rate SVB Financial Group (NASDAQ:SIVB) as a strong buy. Still some above discussed indicators of the $12.89B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the SIVB shares to either perform positively or negatively when compared to other stocks. The primary strengths of SVB Financial Group can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.