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TOWNE BANK (TOWN) Stock Fundamental Analysis

NASDAQ:TOWN - Nasdaq - US89214P1093 - Common Stock - Currency: USD

34.2  +0.62 (+1.85%)

After market: 34.2 0 (0%)

Fundamental Rating

4

Overall TOWN gets a fundamental rating of 4 out of 10. We evaluated TOWN against 396 industry peers in the Banks industry. Both the profitability and financial health of TOWN have multiple concerns. TOWN is not valued too expensively and it also shows a decent growth rate. TOWN also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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3

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.
Each year in the past 5 years TOWN has been profitable.
Each year in the past 5 years TOWN had a positive operating cash flow.
TOWN Yearly Net Income VS EBIT VS OCF VS FCFTOWN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

1.2 Ratios

TOWN has a Return On Assets (0.94%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.56%, TOWN is in line with its industry, outperforming 44.44% of the companies in the same industry.
Industry RankSector 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
TOWN Yearly ROA, ROE, ROICTOWN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

TOWN's Profit Margin of 23.32% is in line compared to the rest of the industry. TOWN outperforms 48.23% of its industry peers.
In the last couple of years the Profit Margin of TOWN has remained more or less at the same level.
TOWN does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector 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
TOWN Yearly Profit, Operating, Gross MarginsTOWN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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2

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.
Compared to 5 years ago, TOWN has more shares outstanding
Compared to 1 year ago, TOWN has an improved debt to assets ratio.
TOWN Yearly Shares OutstandingTOWN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
TOWN Yearly Total Debt VS Total AssetsTOWN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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.
The Debt to FCF ratio of TOWN (3.62) is worse than 65.66% 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 60.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 3.62
Altman-Z N/A
ROIC/WACCN/A
WACC18.57%
TOWN Yearly LT Debt VS Equity VS FCFTOWN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
TOWN Yearly Current Assets VS Current LiabilitesTOWN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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6

3. Growth

3.1 Past

TOWN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.42%, which is quite good.
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.
TOWN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.14%.
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

TOWN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.54% yearly.
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.
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.
TOWN Yearly Revenue VS EstimatesTOWN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
TOWN Yearly EPS VS EstimatesTOWN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.37, the valuation of TOWN can be described as correct.
Based on the Price/Earnings ratio, TOWN is valued a bit more expensive than the industry average as 67.42% of the companies are valued more cheaply.
TOWN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.52.
The Price/Forward Earnings ratio is 9.80, which indicates a very decent valuation of TOWN.
TOWN's Price/Forward Earnings is on the same level as the industry average.
TOWN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.25.
Industry RankSector Rank
PE 14.37
Fwd PE 9.8
TOWN Price Earnings VS Forward Price EarningsTOWN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

TOWN's Price/Free Cash Flow ratio is rather expensive when compared to the industry. TOWN is more expensive than 80.81% of the companies in the same industry.
Industry RankSector Rank
P/FCF 31.8
EV/EBITDA N/A
TOWN Per share dataTOWN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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 26.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)5.83
EPS Next 2Y26.54%
EPS Next 3YN/A

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.13%, TOWN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.46, TOWN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, TOWN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.13%

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
TOWN Yearly Dividends per shareTOWN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

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.
The dividend of TOWN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.38%
EPS Next 2Y26.54%
EPS Next 3YN/A
TOWN Yearly Income VS Free CF VS DividendTOWN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M
TOWN Dividend Payout.TOWN Dividend Payout, showing the Payout Ratio.TOWN Dividend Payout.PayoutRetained Earnings

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TOWNE BANK

NASDAQ:TOWN (6/6/2025, 8:00:01 PM)

After market: 34.2 0 (0%)

34.2

+0.62 (+1.85%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-23 2025-04-23/amc
Earnings (Next)07-22 2025-07-22/bmo
Inst Owners58.73%
Inst Owner Change0.26%
Ins Owners6.75%
Ins Owner ChangeN/A
Market Cap2.58B
Analysts80
Price Target39.78 (16.32%)
Short Float %1.79%
Short Ratio4.5
Dividend
Industry RankSector Rank
Dividend Yield 3.13%
Yearly Dividend1
Dividend Growth(5Y)7.96%
DP46.38%
Div Incr Years13
Div Non Decr Years17
Ex-Date06-27 2025-06-27 (0.27)
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)-0.64%
PT rev (3m)-4.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.6%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)1.76%
Revenue NY rev (3m)2.27%
Valuation
Industry RankSector Rank
PE 14.37
Fwd PE 9.8
P/S 3.72
P/FCF 31.8
P/OCF 18.64
P/B 1.21
P/tB 1.59
EV/EBITDA N/A
EPS(TTM)2.38
EY6.96%
EPS(NY)3.49
Fwd EY10.21%
FCF(TTM)1.08
FCFY3.14%
OCF(TTM)1.83
OCFY5.37%
SpS9.2
BVpS28.37
TBVpS21.51
PEG (NY)0.6
PEG (5Y)5.83
Profitability
Industry RankSector 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 RankSector 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
WACC18.57%
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