Home Sectors Financial Services Present Fundamentals: Customers Bancorp Inc (NYSE: CUBI)

Present Fundamentals: Customers Bancorp Inc (NYSE: CUBI)

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Customers Bancorp Inc is in the financial services sector and is part of the banking industry. The company CEO is Jay S. Sidhu. Customers Bancorp Inc through its wholly-owned subsidiary Customers Bank provides financial products and services to small and middle-market businesses, not-for-profits, and consumers. It also provides lending to mortgage banking businesses.

Previous Intraday Trading Performance:

The CUBI stock showed a previous change of -1.02% with an open at 23.47 and a close of 23.28. It reached an intraday high of 23.89 and a low of 23.25.

SeekingAlpha:  Customers Bancorp Inc. (CUBI) CEO Jay Sidhu on Q2 2018 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $737.3m with 31.7m shares outstanding, of which the float is 29.6m shares. Trading volume reached 216,135 shares compared to its average volume of 163,285 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Customers Bancorp Inc shares returned -1.44% and in the past 30 trading days it returned -5.63%. Over three months, it changed -20.87%. In one year it has changed -29.58% and within that year its 52-week high was 33.85 and its 52-week low was 22.81. CUBI stock is 2.06% above its 52 Week Low.

Our calculations show a 200 day moving average of 28.33 and a 50 day moving average of 24.52. Currently CUBI stock is trading -17.83% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Customers Bancorp 2018 Q2 – Results – Earnings Call Slides

Earnings:

The last annual fiscal EPS for the company was reported at 1.97 that ended on 31st of December 2017, which according to the previous close, that is a PE of 11.82. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.65. The TTM EPS is 2.44, which comes to a TTM PE of 9.54. Historically, the PE high was 11.82 and the PE low was 7.80. If the stock reached its PE low, that would represent a price of 19.03, which is a decrease of -18.24%.

The following are the last four quarter reported earnings per share:
06-30-2018:  0.64
03-31-2018:  0.64
12-31-2017:  0.55
09-30-2017:  0.61

Base on our calculations, the intrinsic value per share is 29.11, which means it is possibly undervalued and has a margin of safety of 20.02%

Indicators to Watch:

Based on the latest filings, there is 82.20% of institutional ownership. Short-interest is 728,164, which is 2.30% of shares outstanding. The short-interest ratio or days-to-cover ratio is 4.74. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.70

SeekingAlpha:  Customers Bancorp 2018 Q2 – Results – Earnings Call Slides

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 8.89%, return on assets is 0.57%, profit margin is 19.34%, price-to-sales is 2.07 and price-to-book is 1.04.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 2  :Past Performance Score
 6  :Financial Strength Score
 2  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.