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Upturn AI SWOT - About
LOB 
Live Oak Bancshares, Inc. (LOB)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
08/14/2025: LOB (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
3 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $35
1 Year Target Price $35
| 0 | Strong Buy |
| 0 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 113.55% | Avg. Invested days 58 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.58B USD | Price to earnings Ratio 28.5 | 1Y Target Price 35 |
Price to earnings Ratio 28.5 | 1Y Target Price 35 | ||
Volume (30-day avg) 3 | Beta 1.83 | 52 Weeks Range 22.66 - 50.44 | Updated Date 08/15/2025 |
52 Weeks Range 22.66 - 50.44 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 0.35% | Basic EPS (TTM) 1.21 |
Earnings Date
Report Date 2025-07-22 | When Before Market | Estimate 0.56 | Actual 0.51 |
Profitability
Profit Margin 13.81% | Operating Margin (TTM) 28.9% |
Management Effectiveness
Return on Assets (TTM) 0.44% | Return on Equity (TTM) 5.51% |
Valuation
Trailing PE 28.5 | Forward PE - | Enterprise Value 1026302528 | Price to Sales(TTM) 3.88 |
Enterprise Value 1026302528 | Price to Sales(TTM) 3.88 | ||
Enterprise Value to Revenue 3.26 | Enterprise Value to EBITDA - | Shares Outstanding 45731300 | Shares Floating 34975756 |
Shares Outstanding 45731300 | Shares Floating 34975756 | ||
Percent Insiders 23.39 | Percent Institutions 67.65 |
Upturn AI SWOT
Live Oak Bancshares, Inc.
Company Overview
History and Background
Live Oak Bancshares Inc. was founded in 2008 in Wilmington, North Carolina, with a focus on providing financing to small businesses in specific industries. It has evolved from a single-industry lender to a diversified financial services company, embracing fintech solutions.
Core Business Areas
- Commercial Banking: Provides SBA, USDA, and conventional loans to small businesses across various sectors. Core focus on industry expertise and relationship-based lending.
- Venture Banking: Offers tailored financing solutions to technology and growth-oriented companies.
- Warehouse Lending: Provides financing to independent mortgage companies.
- Fintech Investments: Invests in and partners with innovative fintech companies to enhance banking services and expand market reach.
Leadership and Structure
The company is led by CEO James S. Mahan III. The organizational structure includes distinct divisions for banking, venture capital, and fintech, with a focus on decentralized decision-making within specialized teams.
Top Products and Market Share
Key Offerings
- SBA 7(a) Loans: Live Oak is a leading SBA 7(a) lender, focusing on specific industries like veterinary practices, funeral homes, and renewable energy. They consistently rank among the top SBA lenders by volume. Competitors include traditional banks and other specialized SBA lenders.
- USDA Loans: Similar to SBA loans, Live Oak provides USDA loans for rural businesses. Competitors include Farm Credit institutions and regional banks.
- Fintech Solutions: Investments and partnerships in fintech companies offer technology-driven banking solutions, including digital account opening and loan origination. Competitors include other banks investing in fintech and stand-alone fintech companies.
Market Dynamics
Industry Overview
The banking industry is experiencing increased competition, regulatory changes, and the rise of fintech companies. Small business lending is a key area, with demand driven by economic growth and entrepreneurial activity.
Positioning
Live Oak positions itself as a niche player focused on specific industries and leveraging technology to provide specialized financial services. Its competitive advantages include industry expertise, streamlined processes, and a strong SBA lending track record.
Total Addressable Market (TAM)
The TAM for small business lending is substantial, estimated to be in the hundreds of billions of dollars annually. Live Oak's specialized approach allows it to capture a significant share within its target sectors.
Upturn SWOT Analysis
Strengths
- Specialized industry expertise
- Strong SBA lending track record
- Fintech investments and partnerships
- Efficient loan origination process
- Experienced management team
Weaknesses
- Concentration in specific industries
- Reliance on government-backed loan programs
- Smaller scale compared to larger banks
- Potential for credit losses in specialized sectors
Opportunities
- Expansion into new industries
- Increased fintech adoption
- Strategic acquisitions
- Growing demand for small business financing
- Development of new financial products
Threats
- Economic downturn
- Increased competition from larger banks and fintech companies
- Changes in government regulations
- Rising interest rates
- Credit risk in specialized sectors
Competitors and Market Share
Key Competitors
- TOWN
- PB
- WSFS
Competitive Landscape
Live Oak differentiates itself through industry expertise and a focus on niche markets. However, it faces competition from larger banks with greater resources and broader product offerings. Fintech companies also pose a threat by offering alternative financing solutions.
Major Acquisitions
Apiture
- Year: 2023
- Acquisition Price (USD millions): 201.3
- Strategic Rationale: Accelerate innovation, enhance digital banking solutions, and strengthen its position in the fintech space. Brings digital banking capabilities in house.
Growth Trajectory and Initiatives
Historical Growth: Live Oak has experienced strong growth in loan originations and revenue, driven by its specialized lending approach and fintech investments.
Future Projections: Future growth is expected to be driven by continued expansion into new industries, increased fintech adoption, and strategic acquisitions.
Recent Initiatives: Recent initiatives include investments in new fintech platforms, expansion into new lending sectors, and partnerships with other financial institutions.
Summary
Live Oak Bancshares is a specialized lender with a strong focus on small businesses in niche industries, leveraging technology to enhance its services. While its industry expertise and SBA lending track record are strengths, the company faces competition from larger banks and potential risks associated with its concentrated lending portfolio. Future growth depends on successful expansion into new markets and effective management of credit risk. Its acquisition of Apiture shows its dedication to keeping up in the financial space.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q), Investor presentations, Press releases, Third-party financial data providers
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Live Oak Bancshares, Inc.
Exchange NYSE | Headquaters Wilmington, NC, United States | ||
IPO Launch date 2015-07-23 | Chairman & CEO Mr. James S. Mahan III | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 1056 | Website https://www.liveoak.bank |
Full time employees 1056 | Website https://www.liveoak.bank | ||
Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various banking products and services in the United States. It operates through two segments: Banking and Fintech. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also provides commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company offers settlement, accounting, and securitization services for government guaranteed loans; financing for renewable energy application industry; wealth and investment management services to high-net-worth individuals and families; and investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies. Live Oak Bancshares, Inc. was incorporated in 2008 and is headquartered in Wilmington, North Carolina.
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