Live Oak Bancshares Inc. Common Stock (LOB)
StalwartFairStock Score: 36/100 — MIXED
Key Financials
| Current Price | $35.55 |
| Market Cap | $1.7B |
| P/E Ratio | 13.57 |
| ROE | 10.89% |
| Dividend Yield | 0.31% |
| Sector | Financial Services |
Strengths
- Solid return on equity of 10.9% above cost of capital
Concerns
- Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Live Oak Bancshares Inc. Common Stock is a micro-cap financial services company valued at $1.7 billion. The business generates $512 million in annual revenue with a 5.5% net margin. From a quality standpoint, Live shows distressed Altman Z-Score of 0.2 warrants caution and adequate 11% ROE. On valuation, the stock is attractively valued at 13.6x earnings, with a modest 8% margin of safety vs Graham Number. Our composite FairStock Score of 36/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer