Live Oak Bancshares Inc. Common Stock (LOB)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach a regional bank differently from a manufacturer. Live Oak Bancshares, at $34.68 on 2026-10-13, has a $1.6B market cap. The FairStock calculations show a P/E of 12.17, a P/B of 1.32, and an ROE of 11.68%. That is not an obvious bargain, but it is not demanding if earnings hold. The filed figures show net income of $105.9M in FY2025, $77.5M in FY2024, and $73.9M in FY2023; diluted EPS was $2.23, $1.69, and $1.64. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $36.8M and diluted EPS $0.74, versus $23.4M and $0.51 in fiscal Q2 2025, the quarter ended 2025-06-30. That is real improvement. The computed Lynch category is STALWART, with profit growth of 12.2% a year over five years. But a bank's quality lives in credit and capital. I do not have CET1, net interest margin, nonperforming loan, reserve, or charge-off data here; combined ratio is not meaningful for a bank. Without them, I cannot judge underwriting risk. The beta of 1.94, the 52-week range of $29.36 to $44.53, the FairStock Score of 36/100, and the computed Piotroski F-Score of 5/9 tell me this is not a sleepy, fortress-like institution. The PEG of 0.03 looks cheap, but a sharp one-period profit jump can distort that measure. At 1.32 times book with an 11.68% ROE, I would call the price fair, perhaps mildly cheap, but not a margin-of-safety bargain. I would want consistent book value growth and clean credit before paying up.

In plain English: Live Oak Bancshares is a bank holding company that takes deposits and makes business loans, including commercial real estate and construction loans. Its profit has been growing, and the shares look inexpensive to fairly priced against the earnings and accounting value shown. The main catch is that banks are risky when credit turns, and important lending details are not included in the data.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer