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TOWNE BANK (TOWN) Stock Fundamental Analysis

NASDAQ:TOWN - Nasdaq - US89214P1093 - Common Stock

34.11  -0.4 (-1.16%)

Fundamental Rating

3

Taking everything into account, TOWN scores 3 out of 10 in our fundamental rating. TOWN was compared to 405 industry peers in the Banks industry. TOWN may be in some trouble as it scores bad on both profitability and health. TOWN is quite expensive at the moment. It does show a decent growth rate. Finally 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.
Of the past 5 years TOWN 4 years 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 0 100M 200M 300M 400M 500M

1.2 Ratios

TOWN has a Return On Assets of 0.87%. This is comparable to the rest of the industry: TOWN outperforms 59.30% of its industry peers.
With a Return On Equity value of 6.96%, TOWN perfoms like the industry average, outperforming 40.95% of the companies in the same industry.
Industry RankSector Rank
ROA 0.87%
ROE 6.96%
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
TOWN Yearly ROA, ROE, ROICTOWN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

With a Profit Margin value of 22.21%, TOWN perfoms like the industry average, outperforming 50.50% 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 RankSector Rank
OM N/A
PM (TTM) 22.21%
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
TOWN Yearly Profit, Operating, Gross MarginsTOWN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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1

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
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 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 5B 10B 15B

2.2 Solvency

TOWN has a debt to FCF ratio of 10.15. This is a negative value and a sign of low solvency as TOWN would need 10.15 years to pay back of all of its debts.
TOWN's Debt to FCF ratio of 10.15 is on the low side compared to the rest of the industry. TOWN is outperformed by 72.11% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that TOWN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.13, TOWN is in the better half of the industry, outperforming 66.58% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 10.15
Altman-Z N/A
ROIC/WACCN/A
WACC14.15%
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 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 20M 40M 60M 80M 100M

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4

3. Growth

3.1 Past

TOWN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.78%.
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.
Looking at the last year, TOWN shows a decrease in Revenue. The Revenue has decreased by -5.86% in the last year.
Measured over the past years, TOWN shows a small growth in Revenue. The Revenue has been growing by 5.44% on average per year.
EPS 1Y (TTM)-10.78%
EPS 3Y1.79%
EPS 5Y1.38%
EPS Q2Q%-3.33%
Revenue 1Y (TTM)-5.86%
Revenue growth 3Y1.47%
Revenue growth 5Y5.44%
Sales Q2Q%0.96%

3.2 Future

The Earnings Per Share is expected to grow by 15.47% on average over the next years. This is quite good.
TOWN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.56% yearly.
EPS Next Y1.84%
EPS Next 2Y10.87%
EPS Next 3Y15.47%
EPS Next 5YN/A
Revenue Next Year-1.54%
Revenue Next 2Y5.86%
Revenue Next 3Y7.56%
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 accelerating: in the next years the growth will be better than in the last years.
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.48, which indicates a correct valuation of TOWN.
Based on the Price/Earnings ratio, TOWN is valued a bit more expensive than the industry average as 69.60% 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 28.29.
A Price/Forward Earnings ratio of 13.09 indicates a correct valuation of TOWN.
TOWN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.44. TOWN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 16.48
Fwd PE 13.09
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

80.90% of the companies in the same industry are cheaper than TOWN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 90.53
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

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as TOWN's earnings are expected to grow with 15.47% in the coming years.
PEG (NY)8.96
PEG (5Y)11.98
EPS Next 2Y10.87%
EPS Next 3Y15.47%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.94%, TOWN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.22, TOWN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, TOWN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.94%

5.2 History

The dividend of TOWN is nicely growing with an annual growth rate of 7.73%!
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
TOWN Yearly Dividends per shareTOWN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8

5.3 Sustainability

50.20% 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.
DP50.2%
EPS Next 2Y10.87%
EPS Next 3Y15.47%
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 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 (1/22/2025, 11:34:29 AM)

34.11

-0.4 (-1.16%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)10-23 2024-10-23/amc
Earnings (Next)01-23 2025-01-23/amc
Inst Owners55.31%
Inst Owner Change-0.04%
Ins Owners6.79%
Ins Owner ChangeN/A
Market Cap2.56B
Analysts78
Price Target40.8 (19.61%)
Short Float %1.25%
Short Ratio3.25
Dividend
Industry RankSector Rank
Dividend Yield 2.94%
Yearly Dividend0.97
Dividend Growth(5Y)7.73%
DP50.2%
Div Incr Years12
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.29%
Min EPS beat(2)1.54%
Max EPS beat(2)17.03%
EPS beat(4)2
Avg EPS beat(4)2.7%
Min EPS beat(4)-5.4%
Max EPS beat(4)17.03%
EPS beat(8)3
Avg EPS beat(8)-1.63%
EPS beat(12)6
Avg EPS beat(12)-1.2%
EPS beat(16)10
Avg EPS beat(16)4.32%
Revenue beat(2)0
Avg Revenue beat(2)-2.76%
Min Revenue beat(2)-5.13%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-4.09%
Min Revenue beat(4)-7.4%
Max Revenue beat(4)-0.39%
Revenue beat(8)0
Avg Revenue beat(8)-3.59%
Revenue beat(12)3
Avg Revenue beat(12)-2.34%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
PT rev (1m)6.67%
PT rev (3m)11.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.54%
Valuation
Industry RankSector Rank
PE 16.48
Fwd PE 13.09
P/S 3.81
P/FCF 90.53
P/OCF 30.75
P/B 1.19
P/tB 1.58
EV/EBITDA N/A
EPS(TTM)2.07
EY6.07%
EPS(NY)2.61
Fwd EY7.64%
FCF(TTM)0.38
FCFY1.1%
OCF(TTM)1.11
OCFY3.25%
SpS8.94
BVpS28.56
TBVpS21.63
PEG (NY)8.96
PEG (5Y)11.98
Profitability
Industry RankSector Rank
ROA 0.87%
ROE 6.96%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 22.21%
GM N/A
FCFM 4.21%
ROA(3y)1.14%
ROA(5y)1.12%
ROE(3y)9.65%
ROE(5y)9.13%
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 3Y0.37%
PM growth 5Y-2.49%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 10.15
Debt/EBITDA N/A
Cap/Depr 157.59%
Cap/Sales 8.19%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 18.97%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC14.15%
ROIC/WACCN/A
Cap/Depr(3y)139.84%
Cap/Depr(5y)140.35%
Cap/Sales(3y)6.19%
Cap/Sales(5y)6.39%
Profit Quality(3y)164.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.78%
EPS 3Y1.79%
EPS 5Y1.38%
EPS Q2Q%-3.33%
EPS Next Y1.84%
EPS Next 2Y10.87%
EPS Next 3Y15.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.86%
Revenue growth 3Y1.47%
Revenue growth 5Y5.44%
Sales Q2Q%0.96%
Revenue Next Year-1.54%
Revenue Next 2Y5.86%
Revenue Next 3Y7.56%
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-92.98%
FCF growth 3Y12.59%
FCF growth 5Y-16.38%
OCF growth 1Y-81.43%
OCF growth 3Y8.04%
OCF growth 5Y-12.1%