Glacier Bancorp, Inc. – Value Analysis (NASDAQ:GBCI) : August 5, 2017

Capitalcube gives Glacier Bancorp, Inc. a score of 54.

Our analysis is based on comparing Glacier Bancorp, Inc. with the following peers – CoBiz Financial Inc., Guaranty Bancorp, First Interstate BancSystem, Inc. Class A, Zions Bancorporation, Western Alliance Bancorporation, National Bank Holdings Corporation Class A, U.S. Bancorp and Wells Fargo & Company (COBZ-US, GBNK-US, FIBK-US, ZION-US, WAL-US, NBHC-US, USB-US and WFC-US).

Fundamental Overview

Glacier Bancorp, Inc. has a fundamental score of 54 and has a relative valuation of OVERVALUED.

Fundamental Score

Company Overview

  • It currently trades at a Price/Book ratio of (2.23).
  • The market expects GBCI-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • GBCI-US has relatively high profit margins while operating with median capital turns.
  • Changes in annual revenues are in line with its chosen peers but lags in terms of earnings suggesting that the company is less cost conscious and may be spending for growth.
  • GBCI-US‘s return on equity currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
  • While GBCI-US‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s equity capital investment seems appropriate for a business with peer median returns.

Drivers of Margin

  • Margins do not suggest any relative benefit from a pricing or an operating cost advantage.
  • The company’s net interest income (net interest income/total revenues) of 74.82% is around peer median suggesting that GBCI-US‘s lending operations does not benefit from any differentiating pricing advantage. In addition, GBCI-US‘s pre-tax margin of 38.69% is also around the peer median suggesting no operating cost advantage relative to peers.
  • The company’s proportion of fee based income (i.e. non interest income/total revenues) of 25.18% is around peer median. In addition, GBCI-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 59.85x is also around peer median — suggesting no cost advantage on fee-based overhead operations.
Drivers of Margins

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Differentiated; High Cost, Commodity; High Cost, Commodity; Low Cost

Company Profile

Glacier Bancorp, Inc. operates as a bank holding company with interest in providing commercial banking services. The company offers banking products and services, including transaction and savings deposits, commercial, consumer, agriculture, real estate loans, mortgage origination services and retail brokerage services. It also offers full service brokerage services, including selling products, such as stocks, bonds, mutual funds, limited partnerships, annuities and other insurance products. The company serves individuals, small to medium-sized businesses, community organizations and public entities. Glacier Bancorp was founded in 2004 and is headquartered in Kalispell, MT.