IPO Preview: EverBank Financial

| About: EverBank Financial (EVER)

Based in Jacksonville, Florida, EverBank Financial (proposed EVER) scheduled $328 million IPO with a market capitalization of $1.5 billion at a price range mid-point of $13 for Thursday, May 3, 2012. [S-1]

EVER is one of six IPOs scheduled for the week of April 30th. (Full IPO calendar here).

Manager, Joint Managers: Goldman; BofA; Credit Suisse.

EVER is a diversified financial services company with an Internet portal. Regarding competition, EVER notes that many of its competitors have fewer regulatory constraints and may have lower cost structures.

Beginning in the third quarter of 2012, EVER intends to pay a quarterly cash dividend of $0.02 per share, an annual rate of 8 cents, which is a token .6% return at the price range mid-point of $13.


Regarding quarterly performance IPOdesktop notes that:

  • Net income for the September & December 2011 quarters is down for both quarters, compared to year earlier results.
  • Even though EVER was profitable in the June, September and December quarters, stockholders equity declined.
  • EVER is running a major loss in the 'non-interest' sector.

Comparing unadjusted earnings for calendar 2011 between EVER and BankUnited (NYSE:BKU) EVER looks like a discount. Comparing the adjusted earnings for EVER and with Bank of Internet's (NASDAQ:BOFI) earnings we find the P/E multiples are the same, 13.

IPOdesktop does not see a demonstrated growth pattern in the last six quarters for EVER. Considering the three bullet points above, IPOdesktop would avoid EVER on the IPO because there's just too much hair on the beast.

On the other hand, if investors buy the EVER & BKU comparison the stock will go up on the IPO.

EVER is a diversified financial services company that says it provides innovative banking, lending and investing products and services to 575,000 customers nationwide through, according to EVER, scalable, low-cost distribution channels.

EVER's business model, according to EVER, attracts financially sophisticated, self-directed, mass-affluent customers and a diverse base of small and medium-sized business customers.

EVER markets and distributes its products and services primarily through an integrated online financial portal, which is augmented by a nationwide network of independent financial advisors, 14 high-volume financial centers in targeted Florida markets and other financial intermediaries. These channels are connected by technology-driven centralized platforms, which provide operating leverage, according to EVER.

EVER's services are primarily offered over the Internet. While providing many competitive advantages, some customers may prefer a more traditional branch footprint.

Additionally, because EVER offers its services primarily over the Internet, it competes for customers nationally. As a result, competitors range from small community banks to the largest international financial institutions.

EVER faces substantial competition in all areas of operations from various competitors including Internet banks and national, regional and community banks within the markets in which we serve. EVER also competes with many other types of financial institutions, such as savings and loan institutions, credit unions, mortgage companies, other finance companies, brokerage firms, insurance companies, factoring companies and other financial intermediaries.

EVER expects to net $225 million from the sale of 19.2 shares. Shareholders expect to sell six million shares.

Proceeds are allocated for general corporate purposes.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclaimer: This EVER IPO report is based on a reading and analysis of EVER's S-1 filing which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.