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Is SouthState Bank (SSB) Undervalued Following Its Third Quarter Earnings Miss?

Simply Wall St · 1d ago

SouthState Bank (SSB) reported third quarter results that fell short of market expectations, with revenue and earnings per share declining year over year, while several operating metrics remained relatively stable.

SouthState Bank shares recently edged up, with a 7 day share price return of 3.64% and a 90 day share price return of 1.51%. The 1 year total shareholder return of 12.24% and 3 year total shareholder return of 71.60% point to momentum that has built over time despite the latest earnings miss, buybacks, dividend affirmation and reported net charge offs.

Compare SouthState Bank's mixed quarter with other regionals by scanning our hand-picked list of solid balance sheet and fundamentals (25 results) that have weathered recent reporting seasons with resilient fundamentals.

SouthState Bank shares have crept higher even as third quarter earnings missed forecasts, which leaves a clear tension between the current US$102.78 price and both analyst targets and intrinsic value estimates. How far apart is fair value from where the stock trades now?

Most Popular Narrative: 14% Undervalued

On the most followed view of SouthState Bank, a fair value of $119.86 sits well above the recent $102.78 close. This puts the current debate squarely on whether the growth and margin story can support that gap.

The successful integration of prior acquisitions such as Independent Bank, together with the current 11.1% CET1 ratio after buybacks and dividend payments, leaves room for SouthState Bank to keep using operating scale and capital strength to support margins and earnings.

See why 15 investors see SouthState Bank as 14% undervalued.

Result: Fair Value of $119.86 (UNDERVALUED)

Still, the SouthState Bank story leans heavily on keeping deposit costs in check and holding expense growth near guidance, and either could break the thesis.

Find out about the key risks to this SouthState Bank narrative.

Next Steps

Mixed signals on SouthState Bank so far. If you want to move quickly and anchor your own view in the data, start with the 4 key rewards and 1 important warning sign.

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