Company Overview
S&T Bancorp, Inc. functions as a bank holding company that serves as the parent entity for S&T Bank, offering retail and commercial banking products and services to consumers, commercial entities, and small businesses within Pennsylvania and Ohio. The institution accepts various time and demand deposits while originating loans for both commercial and consumer segments, alongside providing cash management solutions. Operating within the Financial Services sector and specifically categorized under Banks - Regional, the company targets a niche market defined by local community needs rather than nationwide scale. The company demonstrates a substantial market capitalization of $1.56B, supported by an annual revenue of $394.70M and a workforce of 1,209 employees. These financial figures indicate that S&T Bancorp, Inc. maintains a significant operational footprint within its regional footprint, balancing the capital requirements of a large balance sheet with the localized service model typical of regional banking institutions.
Financial Health
The company reported revenue of $394.70M and net income of $134.23M over the trailing twelve months, while EBITDA data is not disclosed in the available facts. The substantial gap between revenue and net income reveals a cost structure where operating expenses absorb nearly 66% of total revenue before interest and taxes are factored in, a characteristic dynamic for banks where fee income and interest margins are critical. Free cash flow is not available for this period, which limits the ability to assess immediate capital generation from operations independent of financing activities. The gross margin stands at 0.0%, reflecting the inherent nature of banking where the primary revenue stream is net interest income rather than the sale of physical goods or services. Operating margins are recorded at 43.7%, while profit margins reach 34.0%, indicating that after all operating expenses and interest costs are deducted, the company retains a significant portion of revenue as net profit. The balance sheet shows cash reserves of $197.19M against total debt of $346.14M, with a debt-to-equity ratio not provided in the current data. Without a specific debt-to-equity figure, the leverage assessment relies on the absolute debt level relative to cash, suggesting a moderate exposure where liabilities exceed liquid cash holdings. The current ratio is not disclosed, preventing a direct calculation of short-term liquidity relative to current liabilities. Return on Equity is 9.4%, and Return on Assets is 1.4%, metrics that collectively reveal management effectiveness in generating returns on the shareholders' equity base and the total asset portfolio respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 11.73, while the forward P/E ratio is 10.84. The difference between these two metrics implies that the market expects earnings growth to be moderate, as the forward multiple is lower than the trailing multiple, suggesting anticipated earnings expansion over the coming year. The price-to-book ratio is 1.05, which indicates that the company's market valuation is slightly above its book value, reflecting a modest market premium for its assets and future earnings potential. The price-to-sales ratio stands at 3.96, while EV/EBITDA is not available for this company. These alternative valuation metrics suggest that investors are pricing the stock based on revenue generation and equity value rather than traditional earnings-based multiples, which is common for financial institutions where EBITDA is less standardized. The 52-week high is $44.91 and the 52-week low is $30.84. Without the specific current share price in the provided facts, the relative trading position cannot be calculated as a percentage, but the range defines the volatility envelope within which the stock has traded recently. The beta value is 0.88, which explains that the stock exhibits slightly lower price volatility relative to the broader market, moving less aggressively than the overall index during periods of market fluctuation.
Growth & Income
Revenue growth year-over-year is 2.9%, while earnings growth year-over-year is 4.0%. Since earnings growth exceeds revenue growth, it implies that the company is achieving operational leverage or improving cost efficiency as its revenue base expands, leading to a faster increase in profitability than in top-line sales. The dividend yield is 3.5%, and the payout ratio is 39.5%. This payout ratio is sustainable given the company's earnings, as the payout of approximately 40% leaves a significant majority of profits available for reinvestment into the business or for absorbing potential loan losses. Because the company pays dividends, it is not relying solely on reinvesting earnings into growth; rather, it balances returning capital to shareholders with maintaining a robust dividend stream. The overall growth and income profile for S&T Bancorp, Inc. combines moderate double-digit earnings growth with a steady dividend yield, offering a balanced approach for income-focused investors seeking stability in the regional banking sector.