TOWNE BANK (TOWN) Stock Fundamental Analysis
NASDAQ:TOWN - Nasdaq - US89214P1093 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to TOWN. TOWN was compared to 398 industry peers in the Banks industry. Both the profitability and financial health of TOWN have multiple concerns. TOWN is quite expensive at the moment. It does show a decent growth rate. TOWN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TOWN had positive earnings in the past year.
TOWN had a positive operating cash flow in the past year.
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
The Return On Assets of TOWN (0.94%) is better than 61.81% of its industry peers.
TOWN has a Return On Equity (7.56%) which is comparable to the rest of the industry.
| 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.
In the last couple of years the Profit Margin of TOWN has remained more or less at the same level.
The Operating Margin and Gross Margin are not available for TOWN so they could not be analyzed.
| 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.
The number of shares outstanding for TOWN has been increased compared to 1 year ago.
TOWN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TOWN has an improved debt to assets ratio.
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.
Looking at the Debt to FCF ratio, with a value of 3.62, TOWN is doing worse than 64.82% of the companies in the same industry.
TOWN has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, TOWN is in the better half of the industry, outperforming 61.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.44%
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 been growing slightly by 2.83% over the past year.
TOWN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.47% yearly.
The Revenue has decreased by -0.07% in the past year.
TOWN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.23% yearly.
EPS 1Y (TTM)2.83%
EPS 3Y-9.69%
EPS 5Y2.47%
EPS Q2Q%25%
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y0.65%
Revenue growth 5Y4.23%
Sales Q2Q%13.9%
3.2 Future
The Earnings Per Share is expected to grow by 24.12% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.05% on average over the next years. This is quite good.
EPS Next Y23.52%
EPS Next 2Y24.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.31%
Revenue Next 2Y14.05%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.06, TOWN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of TOWN indicates a slightly more expensive valuation: TOWN is more expensive than 71.11% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TOWN to the average of the S&P500 Index (28.78), we can say TOWN is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.20 indicates a correct valuation of TOWN.
66.08% of the companies in the same industry are cheaper than TOWN, based on the Price/Forward Earnings ratio.
TOWN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
81.16% 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 | 30.53 | ||
| 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.
A more expensive valuation may be justified as TOWN's earnings are expected to grow with 24.12% in the coming years.
PEG (NY)0.64
PEG (5Y)6.11
EPS Next 2Y24.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TOWN has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.52, TOWN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, TOWN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
The dividend of TOWN is nicely growing with an annual growth rate of 7.96%!
TOWN has paid a dividend for at least 10 years, which is 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 Years12
Div Non Decr Years16
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 2Y24.12%
EPS Next 3YN/A
32.84
-0.17 (-0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners58.73%
Inst Owner Change-34.24%
Ins Owners6.75%
Ins Owner ChangeN/A
Market Cap2.48B
Analysts78
Price Target40.03 (21.89%)
Short Float %1.33%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend1
Dividend Growth(5Y)7.96%
DP46.38%
Div Incr Years12
Div Non Decr Years16
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)-3.68%
PT rev (3m)-1.87%
EPS NQ rev (1m)-1.6%
EPS NQ rev (3m)3.66%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)3.33%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 12.2 | ||
| P/S | 3.57 | ||
| P/FCF | 30.53 | ||
| P/OCF | 17.89 | ||
| P/B | 1.16 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.18
EY6.64%
EPS(NY)2.69
Fwd EY8.2%
FCF(TTM)1.08
FCFY3.28%
OCF(TTM)1.84
OCFY5.59%
SpS9.2
BVpS28.38
TBVpS21.51
PEG (NY)0.64
PEG (5Y)6.11
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
WACC17.44%
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)2.83%
EPS 3Y-9.69%
EPS 5Y2.47%
EPS Q2Q%25%
EPS Next Y23.52%
EPS Next 2Y24.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y0.65%
Revenue growth 5Y4.23%
Sales Q2Q%13.9%
Revenue Next Year16.31%
Revenue Next 2Y14.05%
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