SouthState Corporation (SSB) AI Stock Analysis

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SouthState Corporation

(NYSE:SSB)

81Outperform

SouthState Corporation's stock is rated as a strong performer with a score of 81. The most significant strengths are its robust financial performance, including zero debt and strong profitability, and a positive earnings call highlighting strategic improvements in net interest margins and capital positioning. The stock's technical indicators suggest caution with a bearish trend, but its reasonable valuation and dividend yield support a balanced investment outlook.

SouthState Corporation (SSB) vs. S&P 500 (SPY)

Market Cap

$9.06B

Dividend Yield2.39%

Average Volume (3M)878.42K

Price to Earnings (P/E)14.1

Beta (1Y)1.13

Revenue Growth19.50%

EPS Growth3.48%

CountryUS

Employees4,986

SectorFinancial

Sector Strength88

IndustryBanks - Regional

Share Statistics

EPS (TTM)6.33

Shares Outstanding101,364,630

10 Day Avg. Volume786,781

30 Day Avg. Volume878,425

Financial Highlights & Ratios

PEG Ratio4.06

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.13

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit4.76

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$119.00

Price Target Upside33.14% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

SouthState Corporation Business Overview & Revenue Model

Company DescriptionSouthState Corporation (SSB) is a financial services company primarily engaged in providing a broad range of banking products and services. The company operates through its subsidiary, SouthState Bank, and serves individual, business, and commercial clients. Its core offerings include personal and business banking, mortgage lending, wealth management, and investment services across the southeastern United States.

How the Company Makes MoneySouthState Corporation generates revenue primarily through its interest income from loans and leases, as well as non-interest income from fees and service charges. The company earns interest income by lending to individuals and businesses, including mortgage, commercial, and consumer loans. Additionally, it receives non-interest income from account maintenance fees, transaction fees, wealth management services, and other financial services. The company's earnings are also bolstered by strategic partnerships and acquisitions that expand its market presence and enhance its service offerings.

SouthState Corporation Financial Statement Overview

Summary

SouthState Corporation demonstrates strong financial health across all key areas. The income statement reflects solid revenue growth and profitability, while the balance sheet is exceptionally strong with no debt and a solid equity base. Cash flows are robust, though future improvements in free cash flow growth could further enhance financial flexibility. Overall, the company is well-positioned for continued stability and growth in the banking sector.

Income Statement

Very Positive

SouthState Corporation shows a strong income statement with consistent revenue growth, evidenced by a 38% increase from 2022 to 2023 and a further 10% increase from 2023 to 2024. Gross profit margins have remained high, reflecting efficient cost management. The net profit margin improved from 25.4% in 2023 to 25% in 2024, indicating stable profitability despite economic challenges. However, the absence of EBITDA data limits a complete margin analysis.

Balance Sheet

Very Positive

The balance sheet is robust with a high equity ratio of 12.7% in 2024, indicating a strong capital base. The debt-to-equity ratio is effectively zero, reflecting zero debt, which is a significant strength for financial stability. Return on equity increased from 8.9% in 2023 to 9.1% in 2024, signaling efficient use of shareholders' capital. Overall, the balance sheet positions the company well against potential economic downturns.

Cash Flow

Positive

The cash flow statement reflects strong operational cash flows, with a slight decline in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is solid, demonstrating effective cash generation relative to net income. However, free cash flow growth was negligible, indicating stable rather than expanding cash reserves. Despite this, the cash position remains strong, supporting future growth and investment opportunities.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.14B	1.94B	1.56B	1.55B	901.62M
	Gross Profit
2.14B	1.94B	1.56B	1.55B	901.62M
	EBIT
2.12B	0.00	694.72M	604.28M	103.97M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
534.78M	494.31M	496.05M	475.54M	120.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.85B	5.30B	5.88B	5.67B	7.94B
	Total Assets
46.38B	44.90B	43.92B	41.96B	37.79B
	Total Debt
381.22M	481.59M	392.27M	327.07M	390.18M
	Net Debt
-417.07M	-280.85M	-156.11M	-149.59M	-4.22B
	Total Liabilities
40.49B	39.37B	38.84B	327.07M	390.18M
	Stockholders Equity
5.89B	5.53B	5.07B	4.80B	4.65B
Cash Flow		Free Cash Flow
511.96M	507.87M	1.71B	508.85M	520.01M
	Operating Cash Flow
511.96M	546.76M	1.73B	537.26M	536.94M
	Investing Cash Flow
-886.18M	-1.43B	-4.86B	-2.32B	1.23B
	Financing Cash Flow
767.41M	566.00M	-2.28B	4.02B	2.15B

SouthState Corporation Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price89.38

Price Trends

50DMA

90.57

Negative

100DMA

96.36

Negative

200DMA

96.69

Negative

Market Momentum

MACD

-0.59

Negative

RSI

53.45

Neutral

STOCH

56.14

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSB, the sentiment is Neutral. The current price of 89.38 is above the 20-day moving average (MA) of 85.27, below the 50-day MA of 90.57, and below the 200-day MA of 96.69, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 56.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSB.

SouthState Corporation Risk Analysis

SouthState Corporation disclosed 70 risk factors in its most recent earnings report. SouthState Corporation reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

SouthState Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSB	81 Outperform	$9.06B	14.11	7.18%	2.39%	19.50%	3.48%
CBSH	76 Outperform	$8.45B	15.64	16.86%	1.66%	-4.70%	17.68%
CFR	73 Outperform	$8.05B	14.13	15.26%	3.01%	7.81%	-2.49%
WBS	73 Outperform	$8.37B	11.20	8.62%	3.22%	2.60%	-9.07%
GGAL	71 Outperform	$9.85B	5.24	38.13%	4.32%	-35.65%	70.23%
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%
FHN	58 Neutral	$9.58B	13.15	9.09%	3.18%	-0.38%	-1.30%

* Financial Sector Average

Performance Comparison

SSB

SouthState Corporation

89.38

10.87

13.85%

CBSH

Commerce Bancshares

63.02

10.47

19.92%

CFR

Cullen/Frost Bankers

125.23

23.00

22.50%

FHN

First Horizon

18.89

3.74

24.69%

GGAL

Grupo Financiero Galicia SA

58.16

24.01

70.31%

WBS

Webster Financial

49.75

4.68

10.38%

SouthState Corporation Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: -0.41%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive outlook with significant improvements in net interest margin and earnings performance. Strategic moves have strengthened the company's capital position, although balance sheet growth and noninterest income were below expectations. Uncertainties related to tariffs and conversion challenges remain, but overall, the highlights significantly outweigh the lowlights.

Q1-2025 Updates

Positive Updates

Improved Net Interest Margin

SouthState Corporation achieved a net interest margin of 3.85%, an improvement of 37 basis points from the previous quarter, driven by better-than-expected deposit costs and strategic moves.

Strong Earnings Performance

The company reported an adjusted return on assets of 1.38% and an impressive return on tangible common equity of approximately 20%, with PPNR per share growing by 25% over the past year.

Successful Strategic Capital Moves

Completion of three strategic capital moves: the closing of the independent financial transaction, a sale leaseback of bank branches, and a securities portfolio restructuring.

Loan Yield Improvement

Loan yield improved to 6.25%, which is close to peer median loan yields, with new loan origination rates at 6.90%.

Capital Position and Growth Prospects

Higher-than-expected capital ratios post-acquisition, with a CET1 ratio of 11%, providing flexibility for future growth or defense.

Negative Updates

Slowed Balance Sheet Growth

Balance sheet growth slowed due to normal seasonality, a slowing economy, and stiff competition on loan pricing.

Noninterest Income Below Expectations

Noninterest income of $86 million was slightly below expectations, mainly due to slower capital markets activity.

Tariff Uncertainties

Uncertainty regarding the impact of tariffs on growth trajectory, leading to some clients pausing capital projects.

Conversion Challenges

Anticipation of potential challenges with the conversion process in the upcoming months, though preparations are underway.

Company Guidance

In the first quarter of fiscal year 2025, SouthState Corporation implemented three strategic capital initiatives that significantly impacted their financial performance. These initiatives included closing an independent financial transaction, executing a sale leaseback of bank branches, and restructuring their securities portfolio. These moves resulted in a higher net interest margin of 3.85%, driving an adjusted return on assets to 1.38% and return on tangible common equity to approximately 20%. Despite a slowdown in balance sheet growth due to normal seasonality, economic conditions, and competition in loan pricing, the bank's pre-provision net revenue per share increased by 25% over the past year. The asset quality remained stable with nonaccruals and substandard loans consistent, and net charge-offs were just four basis points. Moreover, the acquisition closing positioned the bank with higher capital ratios than initially modeled, allowing for rapid capital accumulation and strategic flexibility, whether for defense or growth, in the face of potential tariff impacts on the bank’s growth trajectory.

SouthState Corporation Corporate Events

M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures

SouthState Corporation Reports Q1 2025 Financial Results

Positive

Apr 24, 2025

SouthState Corporation reported its first quarter 2025 financial results, highlighting a strategic reset with the acquisition of Independent Bank Group and a securities restructuring that improved its net interest margin to 3.85%. The company declared a quarterly cash dividend of $0.54 per share, payable on May 16, 2025. The quarter saw significant transactions, including a sale leaseback transaction and a securities portfolio restructuring, positioning SouthState with strong capital and asset quality amid industry uncertainties.

Spark’s Take on SSB Stock

According to Spark, TipRanks’ AI Analyst, SSB is a Outperform.

SouthState Corporation’s strong financial performance and strategic maneuvers, such as the acquisition of Independent Financial, support its stability and potential for growth. Despite technical indicators showing a bearish trend, the company’s solid financials and reasonable valuation offer a balanced outlook. The earnings call highlighted positive developments, though challenges remain with non-performing assets and expenses. Overall, the stock’s score reflects a promising yet cautious investment opportunity.

To see Spark’s full report on SSB stock, click here.

Financial Disclosures

SouthState Corporation to Announce Q1 2025 Earnings

Neutral

Apr 4, 2025

SouthState Corporation announced that it will release its first quarter 2025 earnings results on April 24, 2025, after the market closes. A conference call to discuss these results will be held on April 25, 2025, providing stakeholders an opportunity to gain insights into the company’s financial performance and strategic direction.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.