Reliant Q3 Earnings: Is NasdaqCM:RBNC Cheap at 0.9x Price/Book?

in EARNINGS/INVESTING IDEAS by

Reliant Bancorp, Inc. (NasdaqCM:RBNC) is scheduled to report Q3 earnings results after markets close for trading on October 22, 2020.

The company is expected to report earnings of $0.46/share on revenue of $30.976 million. The consensus earnings per share (EPS) of $0.46/share is based on a poll of 6 analysts and represents a growth in eps of 20.2% over the same quarter last year, when the company reported earnings of $0.38/share.

The revenue forecast of $30.976 million based on a poll of 5 analysts implies a year-over-year (YoY) growth in revenue of 84.1%. Last year the company reported $16.824 million in revenue for the quarter.

Expected to report EPS growth of 20.2% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $30.98 $16.82 84.1%
EPS $0.46 $0.38 20.2%

Earnings Call Trends

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

What are your expectations from Reliant Bancorp, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.30 $0.60 98.7% Beat
Q1, 2020 $0.30 $0.25 −16.2% Missed
Q4, 2019 $0.39 $0.47 20.5% Beat
Q3, 2019 $0.38 $0.38 −0.9% Missed
Q2, 2019 $0.36 $0.36 −1.1% Missed
Q1, 2019 $0.33 $0.33 −0.8% Missed
Q4, 2018 $0.36 $0.35 −1.9% Missed
Q3, 2018 $0.36 $0.36 0.9% 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 5.7%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $14.76 $15.60 5.7% Increase
April 28, 2020 $11.74 $14.60 24.4% Increase
January 23, 2020 $22.40 $21.97 −1.9% Decline
October 22, 2019 $23.89 $22.61 −5.4% Decline

Fundamentals And Technical Analysis

Reliant Bancorp, Inc. is currently trading at $15.64/share, down −2.1% for the day. The company is trading at approximately 65.5% of its 52-week high of $23.89/share. The company’s stock price is up 0.3% since the last earnings report and down −0.9% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 60.45 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqCM:RBNC Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 16.09 and a forward P/E multiple of 8.76.

Reliant Bancorp, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.86. The following table summarizes some other key fundamental ratios:

Data as of October 20, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $15.64
P/E Ratio 16.1x
P/E Ratio (Fwd) 8.8x
PEG Ratio −1.3
Total Debt / Total Capital 36.1%
Levered Free Cash Flow -$72.594 million
Price To Sales 3x

Finbox

Reliant Bancorp, Inc. is a micro-cap stock with a market capitalization of $254.1 million. The company operates in the Financials sector and the Banks industry.

Reliant Bancorp, Inc. operates as a financial holding company for Reliant Bank that provides a range of commercial banking services for businesses and individuals in the Middle Tennessee region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area. It operates in two segments, Retail Banking and Residential Mortgage Banking. The company offers checking, savings, and money market deposit accounts; certificates of deposit; time deposits; and non-interest-bearing and interest bearing demand deposits. It also provides commercial, industrial, and agricultural loans; 1-4 family residential, 1-4 family HELOC, and multi-family and commercial real estate loans, as well as construction, land development, and farmland loans; consumer loans, such as loans for household, family, and other personal expenditures; loans to states and political subdivisions, and other depository institutions; and mortgage refinancing services. In addition, the company originates traditional first lien residential mortgage loans and first lien home equity lines of credit; and provides safe deposit boxes, debit cards, and official bank checks, as well as direct deposit, online and mobile banking, and automated teller machine services. As of December 31, 2018, it operated through a network of 16 full-service branch offices in Davidson, Hickman, Hamilton, Maury, Robertson, Rutherford, Sumner, and Williamson counties in Tennessee; and mortgage production offices in Williamson and Sumner counties. The company was formerly known as Commerce Union Bancshares, Inc. and changed its name to Reliant Bancorp, Inc. in January 2018. Reliant Bancorp, Inc. was founded in 2006 and is based in Brentwood, Tennessee.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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