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LIMESTONE BANCORP INC (LMST) Stock Fundamental Analysis

NASDAQ:LMST - US53262L1052 - Common Stock

23.42 USD
-0.33 (-1.39%)
Last: 4/28/2023, 8:00:00 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to LMST. LMST was compared to 395 industry peers in the Banks industry. While LMST is still in line with the averages on profitability rating, there are concerns on its financial health. LMST is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year LMST was profitable.
LMST had a positive operating cash flow in the past year.
LMST had positive earnings in each of the past 5 years.
In the past 5 years LMST always reported a positive cash flow from operatings.
LMST Yearly Net Income VS EBIT VS OCF VS FCFLMST Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 10M 20M 30M

1.2 Ratios

LMST's Return On Assets of 1.23% is fine compared to the rest of the industry. LMST outperforms 71.40% of its industry peers.
LMST's Return On Equity of 13.48% is fine compared to the rest of the industry. LMST outperforms 68.84% of its industry peers.
Industry RankSector Rank
ROA 1.23%
ROE 13.48%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
LMST Yearly ROA, ROE, ROICLMST Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40

1.3 Margins

Looking at the Profit Margin, with a value of 31.13%, LMST is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
In the last couple of years the Profit Margin of LMST has declined.
The Operating Margin and Gross Margin are not available for LMST so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 31.13%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y7.26%
PM growth 5Y-21.23%
GM growth 3YN/A
GM growth 5YN/A
LMST Yearly Profit, Operating, Gross MarginsLMST Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40 60 80 100

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3

2. Health

2.1 Basic Checks

LMST does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LMST has more shares outstanding
The debt/assets ratio for LMST has been reduced compared to a year ago.
LMST Yearly Shares OutstandingLMST Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2M 4M 6M
LMST Yearly Total Debt VS Total AssetsLMST Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B

2.2 Solvency

The Debt to FCF ratio of LMST is 1.88, which is an excellent value as it means it would take LMST, only 1.88 years of fcf income to pay off all of its debts.
LMST has a Debt to FCF ratio (1.88) which is in line with its industry peers.
LMST has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
LMST's Debt to Equity ratio of 0.34 is on the low side compared to the rest of the industry. LMST is outperformed by 73.95% of its industry peers.
Although LMST does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 1.88
Altman-Z N/A
ROIC/WACCN/A
WACC7.55%
LMST Yearly LT Debt VS Equity VS FCFLMST Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
LMST Yearly Current Assets VS Current LiabilitesLMST Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 5M 10M 15M

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5

3. Growth

3.1 Past

LMST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.45%, which is quite impressive.
LMST shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.41% yearly.
Looking at the last year, LMST shows a quite strong growth in Revenue. The Revenue has grown by 10.05% in the last year.
The Revenue has been growing by 9.68% on average over the past years. This is quite good.
EPS 1Y (TTM)22.45%
EPS 3Y18.8%
EPS 5Y-17.41%
EPS Q2Q%42.22%
Revenue 1Y (TTM)10.05%
Revenue growth 3Y11.98%
Revenue growth 5Y9.68%
Sales Q2Q%19.53%

3.2 Future

LMST is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.78% yearly.
Based on estimates for the next years, LMST will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y-1.4%
EPS Next 2Y-1.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.9%
Revenue Next 2Y4.22%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LMST Yearly Revenue VS EstimatesLMST Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
LMST Yearly EPS VS EstimatesLMST Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.76, the valuation of LMST can be described as reasonable.
LMST's Price/Earnings ratio is a bit more expensive when compared to the industry. LMST is more expensive than 73.72% of the companies in the same industry.
When comparing the Price/Earnings ratio of LMST to the average of the S&P500 Index (26.84), we can say LMST is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.90, the valuation of LMST can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LMST is valued a bit more expensive than the industry average as 66.05% of the companies are valued more cheaply.
LMST is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.48, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.76
Fwd PE 9.9
LMST Price Earnings VS Forward Price EarningsLMST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

LMST's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 7.32
EV/EBITDA N/A
LMST Per share dataLMST EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.78%
EPS Next 3YN/A

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1

5. Dividend

5.1 Amount

LMST has a yearly dividend return of 0.85%, which is pretty low.
With a Dividend Yield of 0.85, LMST pays less dividend than the industry average, which is at 3.17. 84.19% of the companies listed in the same industry pay a better dividend than LMST!
Compared to an average S&P500 Dividend Yield of 2.32, LMST's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.85%

5.2 History

The dividend of LMST decreases each year by -47.10%.
LMST does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-47.1%
Div Incr Years0
Div Non Decr Years0
LMST Yearly Dividends per shareLMST Yearly Dividends per shareYearly Dividends per share 2022 2023 0.05 0.1 0.15

5.3 Sustainability

LMST pays out 8.46% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of LMST has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP8.46%
EPS Next 2Y-1.78%
EPS Next 3YN/A
LMST Yearly Income VS Free CF VS DividendLMST Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 10M 20M 30M
LMST Dividend Payout.LMST Dividend Payout, showing the Payout Ratio.LMST Dividend Payout.PayoutRetained Earnings

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LIMESTONE BANCORP INC

NASDAQ:LMST (4/28/2023, 8:00:00 PM)

23.42

-0.33 (-1.39%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-19 2023-04-19/amc
Earnings (Next)07-18 2023-07-18/amc
Inst Owners0.13%
Inst Owner Change0%
Ins Owners1.62%
Ins Owner Change0%
Market Cap178.68M
Analysts43.33
Price Target28.56 (21.95%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.85%
Yearly Dividend0.2
Dividend Growth(5Y)-47.1%
DP8.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.53%
Min EPS beat(2)-0.4%
Max EPS beat(2)35.47%
EPS beat(4)3
Avg EPS beat(4)15.65%
Min EPS beat(4)-0.4%
Max EPS beat(4)35.47%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-4.86%
Max Revenue beat(2)2.37%
Revenue beat(4)3
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-4.86%
Max Revenue beat(4)5.1%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)12%
EPS NQ rev (1m)4.27%
EPS NQ rev (3m)7.02%
EPS NY rev (1m)0.87%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 9.76
Fwd PE 9.9
P/S 3.08
P/FCF 7.32
P/OCF 7.12
P/B 1.33
P/tB 1.42
EV/EBITDA N/A
EPS(TTM)2.4
EY10.25%
EPS(NY)2.37
Fwd EY10.1%
FCF(TTM)3.2
FCFY13.66%
OCF(TTM)3.29
OCFY14.04%
SpS7.6
BVpS17.55
TBVpS16.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.23%
ROE 13.48%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 31.13%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y7.26%
PM growth 5Y-21.23%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 1.88
Debt/EBITDA N/A
Cap/Depr 36.68%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 135.29%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC7.55%
ROIC/WACCN/A
Cap/Depr(3y)31.08%
Cap/Depr(5y)56.12%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)168%
Profit Quality(5y)150.16%
High Growth Momentum
Growth
EPS 1Y (TTM)22.45%
EPS 3Y18.8%
EPS 5Y-17.41%
EPS Q2Q%42.22%
EPS Next Y-1.4%
EPS Next 2Y-1.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.05%
Revenue growth 3Y11.98%
Revenue growth 5Y9.68%
Sales Q2Q%19.53%
Revenue Next Year6.9%
Revenue Next 2Y4.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.11%
FCF growth 3Y27.05%
FCF growth 5Y69.78%
OCF growth 1Y12.58%
OCF growth 3Y23.82%
OCF growth 5Y65.68%