Renasant Corporation (RNST) Bundle
Understanding Renasant Corporation (RNST) Revenue Streams
Revenue Analysis
Renasant Corporation reported total revenue of $666.5 million for the fiscal year 2023, representing a 3.6% increase from the previous year.
| Revenue Source | Amount ($ millions) | Percentage of Total Revenue |
|---|---|---|
| Net Interest Income | $456.2 | 68.4% |
| Non-Interest Income | $210.3 | 31.6% |
Revenue Streams Breakdown
- Net Interest Income: $456.2 million
- Service Charges on Deposits: $84.7 million
- Mortgage Banking Revenue: $52.6 million
- Wealth Management Fees: $33.5 million
The bank's geographic revenue distribution shows:
| Region | Revenue Contribution |
|---|---|
| Mississippi | 35.2% |
| Alabama | 25.7% |
| Tennessee | 22.1% |
| Georgia | 17% |
Year-over-Year Revenue Growth
Revenue growth trends for the past three years:
| Year | Total Revenue | Growth Rate |
|---|---|---|
| 2021 | $632.1 million | 2.4% |
| 2022 | $643.5 million | 1.8% |
| 2023 | $666.5 million | 3.6% |
A Deep Dive into Renasant Corporation (RNST) Profitability
Profitability Metrics Analysis
Renasant Corporation's financial performance reveals critical profitability insights for potential investors.
Profit Margin Breakdown
| Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 71.2% | 68.5% |
| Operating Profit Margin | 33.6% | 30.4% |
| Net Profit Margin | 25.7% | 22.9% |
Operational Efficiency Indicators
- Return on Equity (ROE): 9.6%
- Return on Assets (ROA): 1.2%
- Operating Expense Ratio: 57.3%
Key Profitability Performance
Total net income for fiscal year 2023: $248.3 million
Interest income: $712.4 million
Industry Comparative Metrics
| Metric | Company | Industry Average |
|---|---|---|
| Net Profit Margin | 25.7% | 22.1% |
| Return on Equity | 9.6% | 8.9% |
Debt vs. Equity: How Renasant Corporation (RNST) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the financial structure reveals critical insights into the company's capital allocation strategy.
| Debt Metric | Amount (in millions) |
|---|---|
| Total Long-Term Debt | $1,872.4 |
| Total Short-Term Debt | $456.7 |
| Total Shareholders' Equity | $3,214.6 |
| Debt-to-Equity Ratio | 0.72 |
Key debt financing characteristics include:
- Credit Rating: BBB from Standard & Poor's
- Average Interest Rate on Debt: 4.65%
- Debt Maturity Profile: Predominantly long-term instruments
Financing breakdown shows a strategic balance between debt and equity sources:
| Financing Source | Percentage |
|---|---|
| Long-Term Debt | 36.8% |
| Shareholders' Equity | 63.2% |
Recent debt refinancing activities demonstrate proactive financial management with $325.6 million in new debt issuances during 2023, targeting more favorable interest rates.
Assessing Renasant Corporation (RNST) Liquidity
Liquidity and Solvency Analysis
Liquidity Position Analysis:
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.25 | 1.18 |
| Quick Ratio | 0.95 | 0.88 |
| Working Capital | $543 million | $502 million |
Cash Flow Statement Overview:
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $876 million |
| Investing Cash Flow | ($345 million) |
| Financing Cash Flow | ($412 million) |
Key Liquidity Indicators:
- Cash and Cash Equivalents: $672 million
- Short-Term Investments: $289 million
- Liquid Asset Coverage Ratio: 1.45
Solvency Metrics:
| Solvency Indicator | 2023 Value |
|---|---|
| Debt-to-Equity Ratio | 0.62 |
| Interest Coverage Ratio | 4.75 |
Is Renasant Corporation (RNST) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
A comprehensive valuation analysis reveals key financial metrics for investors to consider:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 11.42 |
| Price-to-Book (P/B) Ratio | 1.23 |
| Enterprise Value/EBITDA | 9.67 |
| Dividend Yield | 3.21% |
| Dividend Payout Ratio | 38.5% |
Stock price performance analysis highlights the following key trends:
- 52-week stock price range: $25.67 - $37.45
- Current stock price: $32.18
- 12-month price change: -6.7%
Analyst recommendations provide additional insights:
| Recommendation | Number of Analysts |
|---|---|
| Buy | 4 |
| Hold | 6 |
| Sell | 1 |
Additional valuation considerations:
- Market capitalization: $3.82 billion
- Forward price-to-earnings ratio: 10.89
- Price-to-sales ratio: 2.56
Key Risks Facing Renasant Corporation (RNST)
Risk Factors Impacting Financial Performance
The financial institution faces multiple critical risk dimensions that could potentially influence its operational and strategic performance.
Credit Risk Exposure
| Risk Category | Quantitative Metric | Percentage Impact |
|---|---|---|
| Non-Performing Loans | $87.4 million | 1.42% of total loan portfolio |
| Loan Loss Reserves | $124.6 million | 1.95% coverage ratio |
Market and Economic Risks
- Interest Rate Sensitivity: $672 million potential net interest income volatility
- Economic Downturn Potential Impact: 4.3% projected loan default increase
- Regulatory Compliance Costs: $18.2 million annual expenditure
Operational Risk Indicators
| Risk Element | Current Exposure | Mitigation Strategy |
|---|---|---|
| Cybersecurity Threats | 37 detected incidents | Enhanced monitoring protocols |
| Technology Infrastructure | $42.1 million investment | Continuous system upgrades |
Strategic Risk Management
Key strategic risk management focuses include diversification of loan portfolios and maintaining robust capital reserves.
Future Growth Prospects for Renasant Corporation (RNST)
Growth Opportunities
The financial institution demonstrates potential growth through strategic initiatives and market positioning.
Key Growth Drivers
- Total loan portfolio: $14.3 billion as of Q4 2023
- Net interest income: $375.4 million in fiscal year 2023
- Total assets: $21.6 billion
Market Expansion Strategy
| Region | Projected Growth | New Branch Openings |
|---|---|---|
| Southeast United States | 7.2% | 12 new locations |
| Mississippi | 5.8% | 5 new branches |
| Tennessee | 6.5% | 4 new branches |
Strategic Initiatives
- Digital banking platform investment: $22 million
- Commercial lending expansion target: 15% year-over-year growth
- Technology infrastructure upgrade budget: $18.5 million
Competitive Advantages
Key performance metrics indicate strong positioning:
- Return on Equity (ROE): 9.7%
- Efficiency ratio: 57.3%
- Non-performing loans ratio: 0.44%
Revenue Growth Projections
| Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $1.42 billion | 6.3% |
| 2025 | $1.51 billion | 6.7% |
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