BOK Financial Q3 Earnings: Is NasdaqGS:BOKF Cheap at 0.8x Price/Book?

in EARNINGS/INVESTING IDEAS by

BOK Financial Corporation (NasdaqGS:BOKF) is scheduled to report Q3 earnings results before markets open for trading on October 21, 2020.

The company is expected to report earnings of $1.56/share on revenue of $482.3 million. The consensus earnings per share (EPS) of $1.56/share is based on a poll of 10 analysts and represents a decline in eps of −21.9% over the same quarter last year, when the company reported earnings of $2/share.

The revenue forecast of $482.3 million based on a poll of 8 analysts implies a year-over-year (YoY) growth in revenue of 2.9%. Last year the company reported $468.5 million in revenue for the quarter.

Expected to report EPS contraction of −21.9% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $482.29 $468.48 2.9%
EPS $1.56 $2 −21.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, and missed expectations 5 quarters.

What are your expectations from BOK Financial Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.09 $0.96 −11.8% Missed
Q1, 2020 $1.33 $0.88 −34.1% Missed
Q4, 2019 $1.89 $1.61 −14.4% Missed
Q3, 2019 $1.92 $2 4.2% Beat
Q2, 2019 $1.81 $1.95 8.0% Beat
Q1, 2019 $1.72 $1.69 −1.8% Missed
Q4, 2018 $1.66 $1.50 −9.7% Missed
Q3, 2018 $1.75 $1.79 2.3% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 3.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 22, 2020 $55.14 $57.27 3.9% Increase
April 22, 2020 $42.97 $45.45 5.8% Increase
January 22, 2020 $85.35 $82.19 −3.7% Decline
October 23, 2019 $78.91 $77.76 −1.5% Decline

Fundamentals And Technical Analysis

BOK Financial Corporation is currently trading at $56.36/share, up 0.5% for the day. The company is trading at approximately 64.0% of its 52-week high of $88.28/share. The company’s stock price is down −1.6% since the last earnings report and down −2.3% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 49.43 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:BOKF Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 10.51 and a forward P/E multiple of 11.22.

BOK Financial Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.78. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $56.36
P/E Ratio 10.5x
P/E Ratio (Fwd) 11.2x
PEG Ratio −0.5
Total Debt / Total Capital 57.9%
Levered Free Cash Flow $439.3 million
Price To Sales 2.5x

Finbox

BOK Financial Corporation is a mid-cap stock with a market capitalization of $3.941 billion. The company operates in the Financials sector and the Banks industry.

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, and cash management services, as well as customer risk management products for small businesses, middle market, and larger commercial customers. This segment also operates TransFund electronic funds transfer network. The Consumer Banking segment provides lending and deposit services to small business customers through the retail branch network; and mortgage banking services. The Wealth Management segment offers fiduciary, private banking, and investment advisory services; insurance services; and brokerage and trading services, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, manufacturing, wholesale/retail, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other enhancements to real estate and property held by borrowers for investment purposes; and residential mortgage, personal, and home equity loans. Further, the company provides automated teller machine (ATM), call center, and Internet and mobile banking services. As of December 31, 2019, it operated 2,463 TransFund ATM locations. BOK Financial Corporation was founded in 1910 and is headquartered in Tulsa, Oklahoma.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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