Quick BOFI

Fools,

For those of you that have not sold your shares (like me), here is a table with historical values:


QTR	BV/Shr.	QoQ	EPS	QoQ	TTM	Hi	Lo	Close	P/E	P/TBV	Hi	Lo	PEHi	PELo
Mar-12	15.64		0.58			17.61	15.48	17.08						
Jun-12	15.82		0.64			19.93	16.96	19.76						
Sep-12	16.36		0.67			26.66	19.50	26.05						
Dec-12	17.08		0.70		2.59	28.44	23.91	27.81	10.7	1.63	1.67	1.40	10.98	9.23
Mar-13	18.17	16%	0.74	28%	2.75	36.82	28.02	35.88	13.0	1.97	2.03	1.54	13.39	10.19
Jun-13	19.16	21%	0.78	22%	2.89	49.98	35.05	45.82	15.9	2.39	2.61	1.83	17.29	**12.13**
Sep-13	20.11	23%	0.85	27%	3.07	69.46	45.60	64.81	21.1	3.22	3.45	**2.27**	22.63	14.85
Dec-13	21.82	28%	0.91	30%	3.28	82.27	57.55	78.43	23.9	3.59	3.77	2.64	25.08	17.55
Mar-14	23.51	29%	1.00	35%	3.54	106.55	75.22	85.75	24.2	3.65	4.53	3.20	30.10	21.25
Jun-14	25.27	32%	1.09	40%	3.85	87.03	71.37	73.47	19.1	2.91	3.44	2.82	22.61	18.54
Sep-14	27.52	37%	1.20	41%	4.20	82.45	67.57	72.71	17.3	2.64	3.00	2.46	19.63	16.09
Dec-14	29.58	36%	1.26	38%	4.55	81.00	64.62	77.81	17.1	2.63	2.74	2.18	17.80	14.20
Mar-15	32.03	36%	1.35	35%	4.90	97.68	75.50	93.04	19.0	2.90	3.05	2.36	19.93	15.41
Jun-15	33.90	34%	1.54	41%	5.35	108.38	88.06	105.71	19.8	3.12	3.20	2.60	20.26	16.46
Sep-15	36.30	32%	1.60	33%	5.75	134.79	105.23	128.83	22.4	3.55	3.71	2.90	23.44	18.30
Dec Est	36.30		1.70	35%	6.19	143.92	77.83	81.25	13.1	**2.24**	3.96	**2.14**	23.25	12.57

The price per book value of 2.24 (assuming a price of $81.25) is now at a level, which has not been seen since the September quarter of 2013 and is in line with normal banks. And the P/E today is 14.13 (or 13.1 if one assumes they do $1.70 in expected earnings this quarter), which hasn’t been seen since the June 2013 quarter.

If the short attack turns out to be only a short attack, BOFI is valued historically low, especially since the business outlook is is a lot better than it was a couple of years ago when the valuations were similar.

Here are earnings numbers. The YoY growth has slowed a bit. But the performance is very good.


EPS	Mar	Jun	Sep	Dec		EPS TTM	Mar	Jun	Sep	Dec
2012	0.58	0.64	0.67	0.70		2012				2.59
2013	0.74	0.78	0.85	0.91		2013	2.75	2.89	3.07	3.28
2014	1.00	1.09	1.20	1.26		2014	3.54	3.85	4.20	4.55
2015	1.35	1.54	1.60			2015	4.90	5.35	5.75

EPS Y/Y	Mar	Jun	Sep	Dec
2012				
2013	28%	22%	27%	30%
2014	35%	40%	41%	38%
2015	35%	41%	33%	

The non-performance metrics improved marginally.


NP Assets	Mar	Jun	Sep	Dec		NP Loans	Mar	Jun	Sep	Dec
2012				0.79%		2012				0.95%
2013	0.71%	0.66%	0.55%	0.49%		2013	0.86%	0.80%	0.63%	0.58%
2014	0.50%	0.46%	0.52%	0.69%		2014	0.60%	0.57%	0.62%	0.80%
2015	0.65%	0.55%	0.50%			2015	0.72%	0.62%	0.57%	

The efficiency ratio deteriorated from last quarter. But it’s still better than the prior quarter and QoQ.


EffRat	Mar	Jun	Sep	Dec
2012				41.0%
2013	42.1%	42.8%	41.4%	39.9%
2014	35.1%	34.9%	34.8%	34.6%
2015	34.5%	31.6%	33.3%	 

If one pays a high price for a rosy consensus, it looks like one would certainly pay a low price for uncertainty.

My take, after reading all of the great posts on this and other boards, is that BOFI is an excellent buy now.

DJ

P.S. The price is now at about $84.50 as I finish this post.

29 Likes

Not buying more DJ but I am holding and appreciate you comments.
Mike

Hello DJ,

Good work! I would add that the March qtr. will be a game changer for BOFI as it will demonstrate the earnings power of the H & R Block transaction. Mgt. has indicated that the transaction will earn annually in the neighborhood of plus or minus $14 mil. after tax. They have also projected that about 70% of this will occur in the March qtr.

I have estimated that without Block, the eps for the March qtr. equates to $1.82 (+35%) then add in $.63 for the Block increment and the result is better than an 80% increase.

I am continuing to ‘catch the falling knife’

Best regards,

Mike

9 Likes