NYSE:BBT
$27.36
(2/9 11:06AM)
+0.8%
| Open | $27.37 |
Mkt Cap | $18.7 Billion |
| High | $27.61 |
52Wk High | $29.85 |
| Low | $27.21 |
52Wk Low | $12.90 |
| Volume | 1.4 Million |
Avg Vol 10D | 8.7 Million |
Ockham's Rating/Recommendation Summary
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BBT Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at BBT through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.77x and 1.85x respectively.
Utilizing this range we can see that BBT’s current Price to Sales per share ratio of 1.79x is significantly below its average levels historically. In fact, with a current price of $27.51, BBT is a full 23% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for BBT.
BBT Cash Earnings
Looking at BBT specifically in their Cash Earnings capabilities, Ockham views BBT as significantly above its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from BBT. For example, BBT's Cash Earnings ratio per share has fluctuated between 11.49 and 18.47 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where BBT is with respect to prior business periods.
So what does this tell us about BBT in particular? Basically, we would value the current level of Cash Earnings per share (which is at 22.74) as significantly overvalued. Just by looking at the last closing price of BBT, which was $27.51, we can see that compared to the historical high Price to Cash Earnings levels we calculated, the market has already rewarded BBT with a higher stock price. So basically, we don't view this level of Cash Earnings or stock price as compatible with a long term value at this point. Just remember, that does not mean that BBT may not have other merits with which to find a good investment opportunity, it just means that we would prefer to see either an increase in Cash Earnings or a decrease in stock price before we would become bullish on this metric.
BBT Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In BBT’s case, the estimated annual dividend is $0.60 resulting in a current dividend yield of 2.18%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from BBT against the historic high and low levels over the past 10 years. The highest dividend yield from BBT over this period was 14.42% while the lowest dividend yield was 2.01% It is never a good sign for a company to pay significantly lower dividends, in this case 73.46% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
Heard on Power Lunch: CEO of BBT Discussed
BB&T Corporation's CEO is obviously vital to his company, so we believe any news covering him is worth knowing for investors.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards BBT and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, BB&T Corporation has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on BBT because the price has gotten too high to be justified by the fundamentals.
“… One of the other companies that produced profits today, the profitted regional bank BB&T out with earnings and the earnings per share were lower than they were falling about 35% ... …”
Earnings Discussion for BB&T Corporation on Power Lunch
Earnings are one of the most important fundamental factors we track, so we are always interested in the latest profit reports and news.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards BBT and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, BB&T Corporation has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on BBT because the price has gotten too high to be justified by the fundamentals.
“… We'll have it all in earnings central and plus the ceo of the regional banking powerhouse BB&T. He'll joan us first on cnbc to talk about profits. > > …”
Power Lunch Has News on BBT
The latest news from Power Lunch on BBT is available through Ockham's news analytics platform RazorWire.
At Ockham, we are not advising buying BB&T Corporation at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BBT has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe BB&T Corporation will perform just about the same as the index.
“… The ceo of regional bank BBT, billionaire zuckerman chairman of boston properties and the ceo of spectra energy. > > i'm julia boorstin. …”
News on BBT From the Pundits on Imus In The Morning
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to BB&T Corporation.
As of this week's report, we have an Overvalued valuation on BBT because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, BB&T Corporation has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards BBT and think that it will generally perform in-line with the S&P 500.
“… We got results in from BB&T, the regional bank earning 27 cents a share, 6 cents better than estimates and the company adding to the provision for loan losses and the ceo sees ... …”
News on BBT From the Pundits on Fox Business
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to BB&T Corporation.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BBT has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe BB&T Corporation will perform just about the same as the index. At Ockham, we are not advising buying BB&T Corporation at the current price level because according to our methodology it is not supported by the fundamentals.
“… BB&T up 2 1/2%. I would imagine -- we're going to have to get some comment on this. Here's the thing, if you are a morgan stanley or a goldman sachs, you don't lend money to ... …”
See More News on BBT from Fox Business
BB&T Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Fox Business.
We noticed recently that in comparison to all other stocks we analyze in the news; BBT has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… Justin, can you put in a full screen that shows nyb and BBT? I want to make a point here because the president throws around the word bank sort of as a catch all; right? …”
News on BBT From the Pundits on Fox Business
News has broken via the television and viral blogs regarding BBT, so investors should take an interest in learning what was said.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe BB&T Corporation will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BBT. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.38% today. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BBT has been less covered in the news compared to the rest of our universe of stocks.
“… Credit suisse talking about the regional banking sector today saying that the sector will not need any additional capital; specifically, upping sun trust BB&T. …”
The Opening Bell on Fox Business: What is Happening with BB&T Corporation Now?
BB&T Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Opening Bell on Fox Business.
BB&T Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; BBT has received less coverage from the financial media in business television and blogs.
“… Talking about banks, look at BBT upgraded at credit suisse to a buy. This is the 7th upgrade that this stock has gotten since october. …”
See More News on BBT from Squawk On The Street
The latest news on Squawk On The Street in regards to BBT came through on RazorWire recently.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe BB&T Corporation will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BBT. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BBT has been less covered in the news compared to the rest of our universe of stocks.
“… Check out sun trust, BB&T, up over 2% here this morning. Packaging corp, 7% higher at credit suisse, two billion dollar companies up 60% on a year-to-date basis. > > …”
See Who is Talking About News from BBT on Fox Business
The latest news on Fox Business in regards to BBT came through on RazorWire recently.
In comparison to the other stocks that we follow, BB&T Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. The Ockham valuation currently has a Fairly Valued stance on BBT because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards BBT and think that it will generally perform in-line with the S&P 500.
“… andy wolf of b BB&T. > > david: we'll ask the man . …”