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Live Oak BancsharesLOB -0.59%70 ROE % is 9.51% as of Mar. 2026, which is 6% below its 10-year median of 10.12. GuruFocus rates LOB with a GF Score™ of 70/100 and a GF Value™ of $43.14 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,524 Banks companies, Live Oak Bancshares ranks better than 58.27% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Live Oak Bancshares ROE % Related Terms
Live Oak Bancshares ROE % Historical Data
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The historical data trend for Live Oak Bancshares's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Live Oak Bancshares's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Live Oak Bancshares ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Live Oak Bancshares's ROE % distribution charts can be found below:
* The bar in red indicates where Live Oak Bancshares's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Live Oak Bancshares (LOB) has a ROE % of 9.51% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Live Oak Bancshares and its competitors. This is near median its historical median of 10.12. Over the past decade, Live Oak Bancshares' ROE % has ranged from 3.52 to 30.46. According to the industry distribution chart, Live Oak Bancshares ranks #636 out of 1524 companies in the Banks industry, placing it in the top 41.7%.
Is Live Oak Bancshares' ROE % too high?
Live Oak Bancshares' current ROE % of 9.51% is near median its 10-year median of 10.12. Over the past 10 years, this metric has ranged from a low of 3.52 to a high of 30.46. The Banks industry median ROE % is 10.33. Live Oak Bancshares' value of 9.51% is 7.9% below this industry median. Based on the distribution chart, Live Oak Bancshares ranks #636 out of 1524 companies in the Banks industry, which is above the industry midpoint. Overall, Live Oak Bancshares has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Live Oak Bancshares' ROE % compare to NBHC and CHCO?
According to the Banks industry distribution chart, Live Oak Bancshares ranks #636 out of 1524 companies for ROE %. This puts Live Oak Bancshares in the upper half of its industry. The industry median ROE % is 10.33. Live Oak Bancshares' value of 9.51% is 7.9% below this benchmark. Historically, Live Oak Bancshares' own ROE % has ranged from 3.52 to 30.46 over the past decade. While the company's 10-year median is 10.12 vs. the industry median of 10.33, Live Oak Bancshares has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Banks company?
The median ROE % among Banks companies is 10.33, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Live Oak Bancshares's current ROE % of 9.51% is 7.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Live Oak Bancshares and its competitors. For the Banks industry, the median ROE % is 10.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Live Oak Bancshares's current ROE % is 9.51%, which is near median its own 10-year median of 10.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Live Oak Bancshares stock overvalued right now?
Based on GuruFocus' analysis, Live Oak Bancshares (LOB) is currently considered Fairly Valued. The stock's GF Value™ is $43.14, compared to a current price of $42.46 — trading 1.6% below its estimated fair value. The current ROE % is 9.51%, which is near median its 10-year median of 10.12 and 7.9% below the Banks industry median of 10.33. Live Oak Bancshares' overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Live Oak Bancshares (LOB), the current ROE % is 9.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Live Oak Bancshares (LOB) Overvalued in 2026?
Based on GuruFocus' analysis, Live Oak Bancshares stock appears to be undervalued.
The current stock price of $42.46 is trading 1.6% below its estimated GF Value™ of $43.14.
GuruFocus considers Live Oak Bancshares to be Fairly Valued.
Key valuation signals for LOB:
ROE %: 9.51% (near median its 10-year median of 10.12)
GF Value™: $43.14 vs. price of $42.46 (1.6% below fair value)
Industry Position: 7.9% below the Banks median (#636 of 1524)
No single metric tells the full story. See the LOB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Live Oak Bancshares Inc operates as the bank holding company for the Live Oak Banking Company. The company specializes in lending and deposit-related services to small businesses nationwide. The company identifies and extends lending to credit-worthy borrowers both within specific industries, also called verticals, through expertise within those industries, and more broadly to select borrowers outside of those industries. A portion of the loans originated by the Bank are partially guaranteed by the Small Business Administration under the 7(a) Loan Program and the U.S. Department of Agriculture Rural Energy for America Program, Water and Environmental Program, Business and Industry and Community Facilities loan programs.
70GF Score
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