TOWNE BANK (TOWN) Stock Fundamental Analysis
NASDAQ:TOWN - Nasdaq - US89214P1093 - Common Stock - Currency: USD
TOWN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 397 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. Finally 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.
In the past 5 years TOWN has always been profitable.
In the past 5 years TOWN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.94%, TOWN is in the better half of the industry, outperforming 61.71% of the companies in the same industry.
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
With a Profit Margin value of 23.32%, TOWN perfoms like the industry average, outperforming 49.62% of the companies in the same industry.
TOWN's Profit Margin has been stable in the last couple of years.
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.
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.
Compared to 1 year ago, TOWN has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TOWN is 3.62, which is a good value as it means it would take TOWN, 3.62 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.62, TOWN is not doing good in the industry: 64.48% of the companies in the same industry are doing better.
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 61.21% 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
WACC17.29%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TOWN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.83%.
TOWN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.47% yearly.
Looking at the last year, TOWN shows a decrease in Revenue. The Revenue has decreased by -0.07% in the last year.
The Revenue has been growing slightly by 4.23% on average over the past years.
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
Based on estimates for the next years, TOWN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.12% on average per year.
Based on estimates for the next years, TOWN will show a quite strong growth in Revenue. The Revenue will grow by 14.05% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 15.52 indicates a correct valuation of TOWN.
Based on the Price/Earnings ratio, TOWN is valued a bit more expensive than 71.28% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.21, TOWN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.57, the valuation of TOWN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TOWN indicates a slightly more expensive valuation: TOWN is more expensive than 68.26% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TOWN to the average of the S&P500 Index (20.44), we can say TOWN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
81.86% 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 | 31.46 | ||
| 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.
A more expensive valuation may be justified as TOWN's earnings are expected to grow with 24.12% in the coming years.
PEG (NY)0.66
PEG (5Y)6.29
EPS Next 2Y24.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.03%, TOWN has a reasonable but not impressive dividend return.
TOWN's Dividend Yield is comparable with the industry average which is at 3.49.
Compared to an average S&P500 Dividend Yield of 2.44, 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 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 Years12
Div Non Decr Years16
5.3 Sustainability
46.38% 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.
DP46.38%
EPS Next 2Y24.12%
EPS Next 3YN/A
33.84
-0.15 (-0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners58.73%
Inst Owner Change0.94%
Ins Owners6.75%
Ins Owner ChangeN/A
Market Cap2.55B
Analysts80
Price Target40.03 (18.29%)
Short Float %1.65%
Short Ratio4.04
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)-3.68%
EPS NQ rev (1m)-1.6%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)1.48%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 12.57 | ||
| P/S | 3.68 | ||
| P/FCF | 31.46 | ||
| P/OCF | 18.44 | ||
| P/B | 1.19 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.18
EY6.44%
EPS(NY)2.69
Fwd EY7.96%
FCF(TTM)1.08
FCFY3.18%
OCF(TTM)1.84
OCFY5.42%
SpS9.2
BVpS28.38
TBVpS21.51
PEG (NY)0.66
PEG (5Y)6.29
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
WACC17.29%
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