LINKBANCORP INC (LNKB) Stock Fundamental Analysis
NASDAQ:LNKB - Nasdaq - US53578P1057 - Common Stock - Currency: USD
Overall LNKB gets a fundamental rating of 5 out of 10. We evaluated LNKB against 396 industry peers in the Banks industry. There are concerns on the financial health of LNKB while its profitability can be described as average. LNKB is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
LNKB had positive earnings in the past year.
In the past year LNKB had a positive cash flow from operations.
LNKB had positive earnings in 4 of the past 5 years.
Of the past 5 years LNKB 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.25%, LNKB belongs to the top of the industry, outperforming 81.06% of the companies in the same industry.
The Return On Equity of LNKB (12.18%) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.25% | ||
| ROE | 12.18% | ||
| ROIC | N/A |
ROA(3y)0.31%
ROA(5y)0.39%
ROE(3y)2.96%
ROE(5y)3.48%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LNKB has a better Profit Margin (29.55%) than 81.82% of its industry peers.
In the last couple of years the Profit Margin of LNKB has grown nicely.
LNKB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 29.55% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y147.53%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
LNKB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for LNKB remains at a similar level compared to 1 year ago.
Compared to 1 year ago, LNKB has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of LNKB is 2.41, which is a good value as it means it would take LNKB, 2.41 years of fcf income to pay off all of its debts.
LNKB's Debt to FCF ratio of 2.41 is in line compared to the rest of the industry. LNKB outperforms 41.67% of its industry peers.
LNKB has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
LNKB's Debt to Equity ratio of 0.21 is on the low side compared to the rest of the industry. LNKB is outperformed by 60.10% of its industry peers.
Although LNKB 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC19.46%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
LNKB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 388.46%, which is quite impressive.
LNKB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 186.61% yearly.
The Revenue has grown by 100.99% in the past year. This is a very strong growth!
LNKB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 81.30% yearly.
EPS 1Y (TTM)388.46%
EPS 3Y186.61%
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)100.99%
Revenue growth 3Y81.3%
Revenue growth 5YN/A
Sales Q2Q%46.88%
3.2 Future
The Earnings Per Share is expected to grow by 16.10% on average over the next years. This is quite good.
LNKB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.21% yearly.
EPS Next Y22.87%
EPS Next 2Y16.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.67%
Revenue Next 2Y6.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.49, the valuation of LNKB can be described as reasonable.
Based on the Price/Earnings ratio, LNKB is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LNKB to the average of the S&P500 Index (26.59), we can say LNKB is valued rather cheaply.
LNKB is valuated cheaply with a Price/Forward Earnings ratio of 7.55.
Based on the Price/Forward Earnings ratio, LNKB is valued cheaper than 83.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. LNKB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNKB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LNKB's earnings are expected to grow with 16.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y16.1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.39%, LNKB is a good candidate for dividend investing.
LNKB's Dividend Yield is a higher than the industry average which is at 3.51.
Compared to an average S&P500 Dividend Yield of 2.39, LNKB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
5.2 History
LNKB has been paying a dividend for over 5 years, so it has already some track record.
LNKB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
30.82% of the earnings are spent on dividend by LNKB. This is a low number and sustainable payout ratio.
DP30.82%
EPS Next 2Y16.1%
EPS Next 3YN/A
7.12
+0.1 (+1.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners34.41%
Inst Owner Change1.13%
Ins Owners33.09%
Ins Owner Change-0.01%
Market Cap266.22M
Analysts78
Price Target8.41 (18.12%)
Short Float %1.05%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP30.82%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.63%
Min EPS beat(2)-18.3%
Max EPS beat(2)5.04%
EPS beat(4)2
Avg EPS beat(4)-5.58%
Min EPS beat(4)-18.3%
Max EPS beat(4)5.04%
EPS beat(8)3
Avg EPS beat(8)-6.25%
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)3.81%
Min Revenue beat(2)-10.36%
Max Revenue beat(2)17.98%
Revenue beat(4)1
Avg Revenue beat(4)-2%
Min Revenue beat(4)-10.36%
Max Revenue beat(4)17.98%
Revenue beat(8)1
Avg Revenue beat(8)-9.09%
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)-1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)-4.18%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 7.55 | ||
| P/S | 2.2 | ||
| P/FCF | 10.24 | ||
| P/OCF | 9.25 | ||
| P/B | 0.91 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.75
EY10.53%
EPS(NY)0.94
Fwd EY13.25%
FCF(TTM)0.7
FCFY9.77%
OCF(TTM)0.77
OCFY10.82%
SpS3.24
BVpS7.86
TBVpS5.8
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.25% | ||
| ROE | 12.18% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.55% | ||
| GM | N/A | ||
| FCFM | 21.45% |
ROA(3y)0.31%
ROA(5y)0.39%
ROE(3y)2.96%
ROE(5y)3.48%
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 3Y147.53%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 43.15% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 72.58% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC19.46%
ROIC/WACCN/A
Cap/Depr(3y)178.21%
Cap/Depr(5y)124.64%
Cap/Sales(3y)6.3%
Cap/Sales(5y)4.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)388.46%
EPS 3Y186.61%
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y22.87%
EPS Next 2Y16.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)100.99%
Revenue growth 3Y81.3%
Revenue growth 5YN/A
Sales Q2Q%46.88%
Revenue Next Year15.67%
Revenue Next 2Y6.21%
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 1Y86773.3%
FCF growth 3Y71.02%
FCF growth 5YN/A
OCF growth 1Y552.88%
OCF growth 3Y74.72%
OCF growth 5YN/A