114.29 USD
+4.25 (+3.86%)
114.29 USD
0 (0%)
NBN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 383 industry peers in the Banks industry. There are concerns on the financial health of NBN while its profitability can be described as average. NBN is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year NBN was profitable.
- NBN had a positive operating cash flow in the past year.
- Each year in the past 5 years NBN has been profitable.
- In the past 5 years NBN always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of NBN (2.13%) is better than 96.87% of its industry peers.
- NBN has a better Return On Equity (17.30%) than 96.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 17.3% | ||
| ROIC | N/A |
ROA(3y)1.78%
ROA(5y)2.26%
ROE(3y)15.75%
ROE(5y)19%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of NBN (39.93%) is better than 95.04% of its industry peers.
- In the last couple of years the Profit Margin of NBN has grown nicely.
- The Operating Margin and Gross Margin are not available for NBN so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 39.93% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y0.05%
PM growth 5Y6.2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- NBN does not have a ROIC to compare to the WACC, probably because it is not profitable.
- NBN has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for NBN has been increased compared to 5 years ago.
- Compared to 1 year ago, NBN has a worse debt to assets ratio.
2.2 Solvency
- NBN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.33%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.72% over the past year.
- NBN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.85% yearly.
- NBN shows a strong growth in Revenue. In the last year, the Revenue has grown by 37.80%.
- NBN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.17% yearly.
EPS 1Y (TTM)20.72%
EPS 3Y23.66%
EPS 5Y31.85%
EPS Q2Q%-9.85%
Revenue 1Y (TTM)37.8%
Revenue growth 3Y25.45%
Revenue growth 5Y22.17%
Sales Q2Q%-4.91%
3.2 Future
- NBN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.41% yearly.
- The Revenue is expected to grow by 10.21% on average over the next years. This is quite good.
EPS Next Y7.7%
EPS Next 2Y16.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.18%
Revenue Next 2Y10.21%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.02 indicates a reasonable valuation of NBN.
- Based on the Price/Earnings ratio, NBN is valued a bit cheaper than 68.15% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. NBN is valued rather cheaply when compared to this.
- NBN is valuated reasonably with a Price/Forward Earnings ratio of 8.37.
- 85.64% of the companies in the same industry are more expensive than NBN, based on the Price/Forward Earnings ratio.
- NBN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
- NBN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.65 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- NBN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as NBN's earnings are expected to grow with 16.41% in the coming years.
PEG (NY)1.43
PEG (5Y)0.35
EPS Next 2Y16.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.04%, NBN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.60, NBN's dividend is way lower than its industry peers. On top of this 87.47% of the companies listed in the same industry pay a better dividend than NBN!
- Compared to an average S&P500 Dividend Yield of 1.82, NBN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.04% |
5.2 History
- The dividend of NBN decreases each year by -0.82%.
- NBN has been paying a dividend for at least 10 years, so it has a reliable track record.
- As NBN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-0.82%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
- 0.38% of the earnings are spent on dividend by NBN. This is a low number and sustainable payout ratio.
DP0.38%
EPS Next 2Y16.41%
EPS Next 3YN/A
NORTHEAST BANK / NBN FAQ
What is the ChartMill fundamental rating of NORTHEAST BANK (NBN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NBN.
Can you provide the valuation status for NORTHEAST BANK?
ChartMill assigns a valuation rating of 5 / 10 to NORTHEAST BANK (NBN). This can be considered as Fairly Valued.
Can you provide the profitability details for NORTHEAST BANK?
NORTHEAST BANK (NBN) has a profitability rating of 5 / 10.
What is the valuation of NORTHEAST BANK based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NORTHEAST BANK (NBN) is 11.02 and the Price/Book (PB) ratio is 1.91.
What is the expected EPS growth for NORTHEAST BANK (NBN) stock?
The Earnings per Share (EPS) of NORTHEAST BANK (NBN) is expected to grow by 7.7% in the next year.