NasdaqCM:CZNC

Stock Analysis Report

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Market Cap

US$394.2m

Last Updated

2021/08/01 22:15 UTC

Data Sources

Company Financials +

Executive Summary

Citizens & Northern Corporation operates as the bank holding company for Citizens & Northern Bank that provides a range of banking and mortgage services to individual and corporate customers in North Central Pennsylvania and Southern New York. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Citizens & Northern's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CZNC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CZNC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

CZNC

0.9%

US Banks

-0.4%

US Market


1 Year Return

39.5%

CZNC

59.1%

US Banks

35.9%

US Market

Return vs Industry: CZNC underperformed the US Banks industry which returned 59.1% over the past year.

Return vs Market: CZNC exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

CZNCIndustryMarket
7 Day-0.9%0.9%-0.4%
30 Day-0.4%-3.6%-0.3%
90 Day1.6%-4.6%3.1%
1 Year46.9%39.5%63.5%59.1%38.0%35.9%
3 Year7.6%-7.2%17.3%7.2%62.9%52.7%
5 Year46.7%16.0%89.5%65.8%121.3%96.9%

Long-Term Price Volatility Vs. Market

How volatile is Citizens & Northern's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Citizens & Northern undervalued compared to its fair value and its price relative to the market?

4.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CZNC ($24.7) is trading below our estimate of fair value ($25.95)

Significantly Below Fair Value: CZNC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CZNC is poor value based on its PE Ratio (15.5x) compared to the US Banks industry average (10.7x).

PE vs Market: CZNC is good value based on its PE Ratio (15.5x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CZNC is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: CZNC is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.1x).


Future Growth

How is Citizens & Northern forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CZNC's forecast earnings growth (3.7% per year) is above the savings rate (2%).

Earnings vs Market: CZNC's earnings (3.7% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: CZNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CZNC's revenue (0.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CZNC's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CZNC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Citizens & Northern performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CZNC has a large one-off loss of $7.9M impacting its June 30 2021 financial results.

Growing Profit Margin: CZNC's current net profit margins (25.1%) are lower than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: CZNC's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: CZNC's earnings growth over the past year (24.8%) exceeds its 5-year average (8.6% per year).

Earnings vs Industry: CZNC earnings growth over the past year (24.8%) underperformed the Banks industry 35%.


Return on Equity

High ROE: CZNC's Return on Equity (8.4%) is considered low.


Financial Health

How is Citizens & Northern's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CZNC's Assets to Equity ratio (7.7x) is low.

Allowance for Bad Loans: CZNC has a low allowance for bad loans (50%).

Low Risk Liabilities: 94% of CZNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: CZNC has an appropriate level of Loans to Assets ratio (68%).

Low Risk Deposits: CZNC's Loans to Deposits ratio (83%) is appropriate.

Level of Bad Loans: CZNC has an appropriate level of bad loans (1.6%).


Dividend

What is Citizens & Northern current dividend yield, its reliability and sustainability?

4.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CZNC's dividend (4.53%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: CZNC's dividend (4.53%) is in the top 25% of dividend payers in the US market (3.55%)


Stability and Growth of Payments

Stable Dividend: CZNC's dividends per share have been stable in the past 10 years.

Growing Dividend: CZNC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.9%), CZNC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure


CEO

Brad Scovill (62 yo)

6.33yrs

Tenure

US$1,045,911

Compensation

Mr. J. Bradley Scovill, also known as Brad, serves as Member of Community Depository Institutions Advisory Council at FRB of Philadelphia. He serves as President and Chief Executive Officer of Citizens & N...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD1.05M) is below average for companies of similar size in the US market ($USD1.74M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CZNC's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: CZNC's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CZNC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.6%.


Top Shareholders

Company Information

Citizens & Northern Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Citizens & Northern Corporation
  • Ticker: CZNC
  • Exchange: NasdaqCM
  • Founded: 1864
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$394.151m
  • Shares outstanding: 15.96m
  • Website: https://www.cnbankpa.com

Number of Employees


Location

  • Citizens & Northern Corporation
  • 90-92 Main Street
  • PO Box 58
  • Wellsboro
  • Pennsylvania
  • 16901
  • United States

Listings


Biography

Citizens & Northern Corporation operates as the bank holding company for Citizens & Northern Bank that provides a range of banking and mortgage services to individual and corporate customers in North Centr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:15
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.