TOWNE BANK (TOWN) Stock Fundamental Analysis
NASDAQ:TOWN - Nasdaq - US89214P1093 - Common Stock - Currency: USD
Overall TOWN gets a fundamental rating of 4 out of 10. We evaluated TOWN against 395 industry peers in the Banks industry. TOWN may be in some trouble as it scores bad on both profitability and health. TOWN has a decent growth rate and is not valued too expensively. TOWN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TOWN was profitable.
TOWN had a positive operating cash flow in the past year.
TOWN had positive earnings in each of the past 5 years.
Each year in the past 5 years TOWN had a positive operating cash flow.
1.2 Ratios
TOWN has a Return On Assets (0.94%) which is in line with its industry peers.
TOWN's Return On Equity of 7.56% is in line compared to the rest of the industry. TOWN outperforms 44.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 7.56% | ||
| ROIC | N/A |
ROA(3y)1.01%
ROA(5y)1.07%
ROE(3y)8.39%
ROE(5y)8.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TOWN has a Profit Margin (23.32%) which is in line with its industry peers.
TOWN's Profit Margin has been stable in the last couple of years.
TOWN 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) | 23.32% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-9.69%
PM growth 5Y-1.07%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
TOWN does not have a ROIC to compare to the WACC, probably because it is not profitable.
TOWN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TOWN has more shares outstanding
The debt/assets ratio for TOWN has been reduced compared to a year ago.
2.2 Solvency
TOWN has a debt to FCF ratio of 3.62. This is a good value and a sign of high solvency as TOWN would need 3.62 years to pay back of all of its debts.
TOWN has a worse Debt to FCF ratio (3.62) than 66.08% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that TOWN is not too dependend on debt financing.
TOWN has a better Debt to Equity ratio (0.14) than 60.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.12%
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 nice 14.42% over the past year.
The Earnings Per Share has been growing slightly by 2.47% on average over the past years.
Looking at the last year, TOWN shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
Measured over the past years, TOWN shows a small growth in Revenue. The Revenue has been growing by 4.23% on average per year.
EPS 1Y (TTM)14.42%
EPS 3Y-9.69%
EPS 5Y2.47%
EPS Q2Q%41.67%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y0.65%
Revenue growth 5Y4.23%
Sales Q2Q%14.93%
3.2 Future
Based on estimates for the next years, TOWN will show a very strong growth in Earnings Per Share. The EPS will grow by 26.54% on average per year.
TOWN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.30% yearly.
EPS Next Y23.99%
EPS Next 2Y26.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year18.35%
Revenue Next 2Y17.3%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.66 indicates a correct valuation of TOWN.
Based on the Price/Earnings ratio, TOWN is valued a bit more expensive than the industry average as 64.56% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.21, TOWN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 9.99, the valuation of TOWN can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as TOWN.
TOWN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
80.51% of the companies in the same industry are cheaper than TOWN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.43 | ||
| 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.
TOWN's earnings are expected to grow with 26.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)5.94
EPS Next 2Y26.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TOWN has a Yearly Dividend Yield of 3.14%.
TOWN's Dividend Yield is comparable with the industry average which is at 3.47.
TOWN's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
On average, the dividend of TOWN grows each year by 7.96%, which is quite nice.
TOWN has been paying a dividend for at least 10 years, so it has a reliable track record.
TOWN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.96%
Div Incr Years13
Div Non Decr Years17
5.3 Sustainability
TOWN pays out 46.38% of its income as dividend. This is a bit on the high side, but may be sustainable.
TOWN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP46.38%
EPS Next 2Y26.54%
EPS Next 3YN/A
34.88
+0.7 (+2.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners58.68%
Inst Owner Change0.25%
Ins Owners6.46%
Ins Owner ChangeN/A
Market Cap2.63B
Analysts80
Price Target39.78 (14.05%)
Short Float %1.93%
Short Ratio5.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend1
Dividend Growth(5Y)7.96%
DP46.38%
Div Incr Years13
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.94%
Min EPS beat(2)1.54%
Max EPS beat(2)12.34%
EPS beat(4)3
Avg EPS beat(4)7.14%
Min EPS beat(4)-2.37%
Max EPS beat(4)17.03%
EPS beat(8)4
Avg EPS beat(8)1.37%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)10
Avg EPS beat(16)3.51%
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-5.13%
Max Revenue beat(2)-2.74%
Revenue beat(4)0
Avg Revenue beat(4)-2.93%
Min Revenue beat(4)-5.13%
Max Revenue beat(4)-0.39%
Revenue beat(8)0
Avg Revenue beat(8)-3.38%
Revenue beat(12)2
Avg Revenue beat(12)-2.84%
Revenue beat(16)5
Avg Revenue beat(16)-1.33%
PT rev (1m)0%
PT rev (3m)-4.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.6%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 9.99 | ||
| P/S | 3.79 | ||
| P/FCF | 32.43 | ||
| P/OCF | 19.01 | ||
| P/B | 1.23 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.38
EY6.82%
EPS(NY)3.49
Fwd EY10.01%
FCF(TTM)1.08
FCFY3.08%
OCF(TTM)1.83
OCFY5.26%
SpS9.2
BVpS28.37
TBVpS21.51
PEG (NY)0.61
PEG (5Y)5.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 7.56% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.32% | ||
| GM | N/A | ||
| FCFM | 11.69% |
ROA(3y)1.01%
ROA(5y)1.07%
ROE(3y)8.39%
ROE(5y)8.95%
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 3Y-9.69%
PM growth 5Y-1.07%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 3.62 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 163.3% | ||
| Cap/Sales | 8.25% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 50.13% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC17.12%
ROIC/WACCN/A
Cap/Depr(3y)158.16%
Cap/Depr(5y)148.04%
Cap/Sales(3y)7.41%
Cap/Sales(5y)6.74%
Profit Quality(3y)106.18%
Profit Quality(5y)120.26%
High Growth Momentum
Growth
EPS 1Y (TTM)14.42%
EPS 3Y-9.69%
EPS 5Y2.47%
EPS Q2Q%41.67%
EPS Next Y23.99%
EPS Next 2Y26.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.14%
Revenue growth 3Y0.65%
Revenue growth 5Y4.23%
Sales Q2Q%14.93%
Revenue Next Year18.35%
Revenue Next 2Y17.3%
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 1Y-30.79%
FCF growth 3Y-45.01%
FCF growth 5YN/A
OCF growth 1Y-14.23%
OCF growth 3Y-35.63%
OCF growth 5YN/A