TOWNE BANK (TOWN)
US89214P1093 - Common Stock
We assign a fundamental rating of 3 out of 10 to TOWN. TOWN was compared to 412 industry peers in the Banks industry. Both the profitability and financial health of TOWN have multiple concerns. TOWN is valied quite expensively at the moment, while 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 4 of the past 5 years.
1.2 Ratios
TOWN has a Return On Assets of 0.91%. This is comparable to the rest of the industry: TOWN outperforms 55.47% of its industry peers.
Looking at the Return On Equity, with a value of 7.53%, TOWN is doing worse than 64.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 7.53% | ||
| ROIC | N/A |
ROA(3y)1.14%
ROA(5y)1.12%
ROE(3y)9.65%
ROE(5y)9.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 22.14%, TOWN perfoms like the industry average, outperforming 42.58% of the companies in the same industry.
In the last couple of years the Profit Margin of TOWN has declined.
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) | 22.14% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y0.37%
PM growth 5Y-2.49%
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.
Compared to 1 year ago, TOWN has more shares outstanding
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
The Debt to FCF ratio of TOWN is 2.71, which is a good value as it means it would take TOWN, 2.71 years of fcf income to pay off all of its debts.
TOWN has a Debt to FCF ratio (2.71) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.16 indicates that TOWN is not too dependend on debt financing.
TOWN's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. TOWN outperforms 64.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.95%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TOWN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.46%.
Measured over the past 5 years, TOWN shows a small growth in Earnings Per Share. The EPS has been growing by 1.38% on average per year.
TOWN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.08%.
The Revenue has been growing slightly by 5.44% on average over the past years.
EPS 1Y (TTM)-18.46%
EPS 3Y1.79%
EPS 5Y1.38%
EPS growth Q2Q-31.25%
Revenue 1Y (TTM)1.08%
Revenue growth 3Y1.47%
Revenue growth 5Y5.44%
Revenue growth Q2Q-11.27%
3.2 Future
Based on estimates for the next years, TOWN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.37% on average per year.
The Revenue is expected to grow by 4.88% on average over the next years.
EPS Next Y1.13%
EPS Next 2Y9.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.55%
Revenue Next 2Y4.88%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TOWN is valuated correctly with a Price/Earnings ratio of 13.37.
Compared to the rest of the industry, the Price/Earnings ratio of TOWN indicates a slightly more expensive valuation: TOWN is more expensive than 70.32% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TOWN to the average of the S&P500 Index (28.15), we can say TOWN is valued rather cheaply.
The Price/Forward Earnings ratio is 13.22, which indicates a correct valuation of TOWN.
70.32% of the companies in the same industry are cheaper than TOWN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.20. TOWN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 13.22 |
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 76.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.11 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TOWN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)11.79
PEG (5Y)9.72
EPS Next 2Y9.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TOWN has a Yearly Dividend Yield of 3.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.67, TOWN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, TOWN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
5.2 History
On average, the dividend of TOWN grows each year by 7.73%, 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)7.73%
Div Incr Years12
Div Non Decr Years16
5.3 Sustainability
46.45% 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.
DP46.45%
EPS Next 2Y9.37%
EPS Next 3YN/A
TOWNE BANK
NASDAQ:TOWN (5/17/2024, 7:00:01 PM)
After market: 28.34 0 (0%)28.34
+0.39 (+1.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 13.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)11.79
PEG (5Y)9.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 7.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 22.14% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.46%
EPS 3Y1.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.08%
Revenue growth 3Y1.47%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y