27.88 USD
+0.43 (+1.57%)
Last: Aug 11, 2023, 08:22 PM
Taking everything into account, SAL scores 3 out of 10 in our fundamental rating. SAL was compared to 383 industry peers in the Banks industry. SAL has a bad profitability rating. Also its financial health evaluation is rather negative. SAL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- SAL had positive earnings in the past year.
- SAL had a positive operating cash flow in the past year.
1.2 Ratios
- SAL's Return On Assets of 0.94% is on the low side compared to the rest of the industry. SAL is outperformed by 62.83% of its industry peers.
- The Return On Equity of SAL (11.00%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 11% | ||
| ROIC | N/A |
ROA(3y)0.99%
ROA(5y)0.95%
ROE(3y)11.16%
ROE(5y)10.31%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SAL has a Profit Margin (26.49%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of SAL has grown nicely.
- The Operating Margin and Gross Margin are not available for SAL so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 26.49% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y2.77%
PM growth 5Y11.87%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- SAL does not have a ROIC to compare to the WACC, probably because it is not profitable.
- SAL has more shares outstanding than it did 1 year ago.
- Compared to 1 year ago, SAL has an improved debt to assets ratio.
2.2 Solvency
- SAL has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
- The Debt to FCF ratio of SAL (1.28) is better than 63.55% of its industry peers.
- SAL has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of SAL (0.22) is worse than 65.47% of its industry peers.
- Although SAL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.75%
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 2.32% over the past year.
- Measured over the past 5 years, SAL shows a small growth in Earnings Per Share. The EPS has been growing by 4.19% on average per year.
- Looking at the last year, SAL shows a small growth in Revenue. The Revenue has grown by 2.40% in the last year.
- Measured over the past years, SAL shows a small growth in Revenue. The Revenue has been growing by 7.50% on average per year.
EPS 1Y (TTM)2.32%
EPS 3Y-7.09%
EPS 5Y4.19%
EPS Q2Q%-10.61%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y9.38%
Revenue growth 5Y7.5%
Sales Q2Q%-13.37%
3.2 Future
- SAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.05% yearly.
- The Revenue is expected to decrease by -3.61% on average over the next years.
EPS Next Y13%
EPS Next 2Y12.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.18%
Revenue Next 2Y-3.61%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.52, the valuation of SAL can be described as reasonable.
- Based on the Price/Earnings ratio, SAL is valued a bit more expensive than 73.62% of the companies in the same industry.
- SAL is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 8.12, the valuation of SAL can be described as very reasonable.
- 72.90% of the companies in the same industry are more expensive than SAL, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. SAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, SAL is valued a bit cheaper than the industry average as 70.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.72 | ||
| 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 SAL's earnings are expected to grow with 12.05% in the coming years.
PEG (NY)0.81
PEG (5Y)2.51
EPS Next 2Y12.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.30%, SAL has a reasonable but not impressive dividend return.
- SAL's Dividend Yield is slightly below the industry average, which is at 2.67.
- Compared to an average S&P500 Dividend Yield of 1.83, SAL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
- The dividend of SAL decreases each year by -5.24%.
- SAL has been paying a dividend for at least 10 years, so it has a reliable track record.
- SAL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.24%
Div Incr Years3
Div Non Decr Years13
5.3 Sustainability
- 25.32% of the earnings are spent on dividend by SAL. This is a low number and sustainable payout ratio.
DP25.32%
EPS Next 2Y12.05%
EPS Next 3YN/A
SALISBURY BANCORP INC / SAL FAQ
What is the ChartMill fundamental rating of SALISBURY BANCORP INC (SAL) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SAL.
What is the valuation status of SALISBURY BANCORP INC (SAL) stock?
ChartMill assigns a valuation rating of 5 / 10 to SALISBURY BANCORP INC (SAL). This can be considered as Fairly Valued.
What is the profitability of SAL stock?
SALISBURY BANCORP INC (SAL) has a profitability rating of 3 / 10.
What is the financial health of SALISBURY BANCORP INC (SAL) stock?
The financial health rating of SALISBURY BANCORP INC (SAL) is 3 / 10.
Can you provide the dividend sustainability for SAL stock?
The dividend rating of SALISBURY BANCORP INC (SAL) is 5 / 10 and the dividend payout ratio is 25.32%.