TOWNE BANK (TOWN) Stock Fundamental Analysis
NASDAQ:TOWN - US89214P1093 - Common Stock
36.2 USD
+0.24 (+0.67%)
36.2 USD
0 (0%)
Taking everything into account, TOWN scores 4 out of 10 in our fundamental rating. TOWN was compared to 391 industry peers in the Banks industry. Both the profitability and financial health of TOWN have multiple concerns. TOWN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! TOWN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TOWN had positive earnings in the past year.
In the past year TOWN had a positive cash flow from operations.
TOWN had positive earnings in each of the past 5 years.
TOWN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TOWN's Return On Assets of 1.01% is fine compared to the rest of the industry. TOWN outperforms 64.96% of its industry peers.
With a Return On Equity value of 8.07%, TOWN perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 8.07% | ||
| 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 (24.72%) 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) | 24.72% | ||
| 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.
The number of shares outstanding for TOWN has been increased compared to 5 years ago.
TOWN has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of TOWN is 1.72, which is an excellent value as it means it would take TOWN, only 1.72 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 1.72, TOWN perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
TOWN has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.13, TOWN is in the better half of the industry, outperforming 61.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.53%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TOWN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.36%, which is quite impressive.
Measured over the past 5 years, TOWN shows a small growth in Earnings Per Share. The EPS has been growing by 2.47% on average per year.
Looking at the last year, TOWN shows a quite strong growth in Revenue. The Revenue has grown by 12.03% in the last year.
The Revenue has been growing slightly by 4.23% on average over the past years.
EPS 1Y (TTM)25.36%
EPS 3Y-9.69%
EPS 5Y2.47%
EPS Q2Q%42.11%
Revenue 1Y (TTM)12.03%
Revenue growth 3Y0.65%
Revenue growth 5Y4.23%
Sales Q2Q%18.56%
3.2 Future
TOWN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.76% yearly.
The Revenue is expected to grow by 19.75% on average over the next years. This is quite good.
EPS Next Y35.1%
EPS Next 2Y27.42%
EPS Next 3Y24.76%
EPS Next 5YN/A
Revenue Next Year21.01%
Revenue Next 2Y19.77%
Revenue Next 3Y19.75%
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
Based on the Price/Earnings ratio of 13.82, the valuation of TOWN can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as TOWN.
When comparing the Price/Earnings ratio of TOWN to the average of the S&P500 Index (27.03), we can say TOWN is valued slightly cheaper.
TOWN is valuated reasonably with a Price/Forward Earnings ratio of 10.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TOWN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.54, TOWN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
TOWN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TOWN is more expensive than 62.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.69 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TOWN's 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 24.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)5.6
EPS Next 2Y27.42%
EPS Next 3Y24.76%
5. Dividend
5.1 Amount
TOWN has a Yearly Dividend Yield of 2.95%.
Compared to an average industry Dividend Yield of 3.56, TOWN has a dividend in line with its industry peers.
TOWN's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.96%
Div Incr Years13
Div Non Decr Years17
5.3 Sustainability
42.25% of the earnings are spent on dividend by TOWN. This is a bit on the high side, but may be sustainable.
The dividend of TOWN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP42.25%
EPS Next 2Y27.42%
EPS Next 3Y24.76%
36.2
+0.24 (+0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners58.72%
Inst Owner Change3.31%
Ins Owners6.4%
Ins Owner ChangeN/A
Market Cap2.73B
Analysts80
Price Target42.08 (16.24%)
Short Float %1.69%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend1
Dividend Growth(5Y)7.96%
DP42.25%
Div Incr Years13
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.22%
Min EPS beat(2)8.09%
Max EPS beat(2)12.34%
EPS beat(4)4
Avg EPS beat(4)9.75%
Min EPS beat(4)1.54%
Max EPS beat(4)17.03%
EPS beat(8)5
Avg EPS beat(8)4.98%
EPS beat(12)7
Avg EPS beat(12)0.94%
EPS beat(16)10
Avg EPS beat(16)1.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.37%
Min Revenue beat(4)-5.13%
Max Revenue beat(4)-0.39%
Revenue beat(8)0
Avg Revenue beat(8)-2.99%
Revenue beat(12)1
Avg Revenue beat(12)-2.96%
Revenue beat(16)4
Avg Revenue beat(16)-1.94%
PT rev (1m)5.77%
PT rev (3m)5.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)8.96%
EPS NY rev (3m)8.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.67%
Revenue NY rev (3m)2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 10.23 | ||
| P/S | 3.8 | ||
| P/FCF | 16.69 | ||
| P/OCF | 12.31 | ||
| P/B | 1.24 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.62
EY7.24%
EPS(NY)3.54
Fwd EY9.78%
FCF(TTM)2.17
FCFY5.99%
OCF(TTM)2.94
OCFY8.12%
SpS9.53
BVpS29.19
TBVpS22.36
PEG (NY)0.39
PEG (5Y)5.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 8.07% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 24.72% | ||
| GM | N/A | ||
| FCFM | 22.76% |
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-Score8
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 166.13% | ||
| Cap/Sales | 8.08% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 92.07% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC16.53%
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)25.36%
EPS 3Y-9.69%
EPS 5Y2.47%
EPS Q2Q%42.11%
EPS Next Y35.1%
EPS Next 2Y27.42%
EPS Next 3Y24.76%
EPS Next 5YN/A
Revenue 1Y (TTM)12.03%
Revenue growth 3Y0.65%
Revenue growth 5Y4.23%
Sales Q2Q%18.56%
Revenue Next Year21.01%
Revenue Next 2Y19.77%
Revenue Next 3Y19.75%
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-9.28%
FCF growth 3Y-45.01%
FCF growth 5YN/A
OCF growth 1Y-5.35%
OCF growth 3Y-35.63%
OCF growth 5YN/A