NASDAQ
TOWN
Last Price
US $35.76
KEY FIGURES
MKT CAP
$2.7B
EPS
TTM
$1.76
PEG
TTM
-
P/E
TTM
20.28x
P/S
TTM
2.99x
YIELD
5.01%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
6.38%
Return on equity
ROIC: 0.72%
Valuation History
17.9X
Price to Earnings
EV/EBITDA: 12.8X
Cash flow
Profit margin
6.31%
(FY vs FY)
EBITDA Y/Y
1.68%
(FY vs FY)
Cash flow Y/Y
20.85%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $35.76
33.22%
Default assumptions
EBITDA Multiple
Fair Value
Market $35.76
-50.45%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
TowneBank cash flow to debt ratio of 70.45% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
TowneBank's free cash flow has increased 161.02% from $81.09M last year to $211.67M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
TowneBank's debt to equity ratio is 0.17, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
TowneBank's debt has increased relative to shareholder equity from 0.14 last year to 0.17 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
TowneBank has a net debt to EBITDA ratio of 0.47x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
TowneBank earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
TowneBank's profit margin has decreased (-6.56%) in the last year from 15.79% to 14.75%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
TowneBank's short-term liabilities of $13.50G exceed its short-term assets of $1.35G, signaling financial risk
Decreasing performance - ROA.
TowneBank's return on assets of 0.71% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
TowneBank's return on equity of 6.38%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
TowneBank's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
TowneBank had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
TowneBank has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
TowneBank has a free cash flow yield of 7.75%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
TowneBank's yearly earnings has increased 4.80% since last year from $161.76M to $169.53M, signaling increasing performance
Decreasing performance - Healthy revenue growth.
TowneBank's yearly revenue has decreased -20.76% since last year from $1.02G to $811.78M, signaling decreasing performance
Decreasing performance - ROIC.
ROIC 0.72% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
TowneBank's 3-year revenue CAGR of 10.70% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
TowneBank had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
TowneBank had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
TowneBank is undervalued relative to its fair value price of 47.64 based on Discounted Cash Flow model
Undervalued - Earnings yield.
TowneBank has an earnings yield of 4.93%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
TowneBank is overvalued relative to its fair value price of 17.72 based on EBITDA multiple model
Undervalued - EV/EBITDA.
TowneBank has an EV/EBITDA ratio of 11.38x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
TowneBank has no meaningful EPS growth rate; PEG ratio cannot be computed.
Undervalued - P/B ratio.
TowneBank has a price-to-book ratio of 1.09x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
TowneBank has a price-to-sales ratio of 2.99x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue