Banc of California, Inc. (BANC)
Financial Services · NYQ · US
Fundamentals
Valuation and ratings
Banc of California, Inc. trades at USD21.48, which is 113% below the USD45.85 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 36 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 16.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Banc of California, Inc.
Banc of California, Inc. operates as the bank holding company for Banc of California that provides banking and treasury management services in the United States. The company offers deposit products, including checking, savings, money market, demand, and retirement accounts, as well as time deposits, certificates of deposit, and safe deposit boxes. It also provides real estate loans, such as commercial real estate mortgage, multi-family, other residential real estate mortgage, and real estate construction and land loans; commercial loans and leases comprising lender finance, equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending loans; and consumer loans. In addition, the company offers electronic payment services for commercial clients, such as merchant acquiring and card issuing services; automated bill payments, cash and treasury management, master demand accounts, foreign exchange, interest rate swaps, card payment services, remote and mobile deposit capture, automated clearing house origination, wire transfer, and direct deposit; and investment management services. It serves small and middle-market businesses, venture capital and private equity firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. The company offers its products and services through branches located throughout California; Denver, Colorado; and Durham, North Carolina, as well as through regional offices in the United States. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.
BANC passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
9 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Israel Englander, MILLENNIUM MANAGEMENT LLC$128.00M · 0.1% of book
- Ken Griffin, CITADEL ADVISORS LLC$22.19M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$21.46M · 0.0% of book
- Steve Cohen, Point72 Asset Management, L.P.$21.05M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$9.10M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Banc of California, Inc. (BANC) undervalued?
Against our discounted cash flow estimate of USD45.85, BANC at USD21.48 is 113% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own BANC?
9 of the institutions we track reported a position in BANC in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is BANC's P/E ratio?
BANC trades at 16.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for BANC, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.