NasdaqCM:DNBF

Stock Analysis Report

Executive Summary

DNB Financial Corporation operates as the bank holding company for DNB First, National Association that provides a range of commercial banking products and services to individuals and small to medium sized businesses.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has DNB Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DNBF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

DNBF

-0.07%

US Banks

2.0%

US Market


1 Year Return

39.3%

DNBF

15.5%

US Banks

23.5%

US Market

Return vs Industry: DNBF exceeded the US Banks industry which returned 21.7% over the past year.

Return vs Market: DNBF exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

DNBFIndustryMarket
7 Day2.0%-0.07%2.0%
30 Day3.0%-1.8%4.3%
90 Day17.2%9.3%12.2%
1 Year40.2%39.3%18.9%15.5%26.1%23.5%
3 Year72.8%68.4%34.5%25.0%53.1%43.2%
5 Year135.2%124.3%86.0%65.1%75.5%56.1%

Price Volatility Vs. Market

How volatile is DNB Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DNB Financial undervalued compared to its fair value and its price relative to the market?

18.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DNBF ($47.66) is trading above our estimate of fair value ($24.8)

Significantly Below Fair Value: DNBF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DNBF is poor value based on its PE Ratio (18.7x) compared to the Banks industry average (12.8x).

PE vs Market: DNBF is good value based on its PE Ratio (18.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: DNBF is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: DNBF is overvalued based on its PB Ratio (1.7x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is DNB Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNBF's forecast earnings growth (8.6% per year) is above the savings rate (2.7%).

Earnings vs Market: DNBF's earnings (8.6% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: DNBF's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: DNBF's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has DNB Financial performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNBF has high quality earnings.

Growing Profit Margin: DNBF's current net profit margins (26.3%) are higher than last year (20.7%).


Past Earnings Growth Analysis

Earnings Trend: DNBF's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: DNBF's earnings growth over the past year (30.1%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: DNBF earnings growth over the past year (30.1%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: DNBF's Return on Equity (9.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DNB Financial'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

Inventory Level: DNBF has a low level of unsold assets or inventory.

Debt Coverage by Assets: DNBF's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: DNBF's level of assets compared to its equity is low.

Allowance for Bad Loans: DNBF has a low allowance for bad loans.

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

Loan Level: DNBF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DNBF's loans are broadly funded by customer deposits.

Level of Bad Loans: DNBF has an appropriate level of bad loans (0.77%)


Next Steps

Dividend

What is DNB Financial's current dividend yield, its reliability and sustainability?

0.59%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: DNBF's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: DNBF's dividend (0.59%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: DNBF is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: DNBF is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DNBF is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DNBF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of DNB Financial's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Bill Hieb (62yo)

3.9yrs

Tenure

US$603,805

Compensation

Mr. William J. Hieb, also known as Bill, serves as President & Chief Executive Officer of DNB Financial Corporation’s (“Corporation”) and DNB First, National Association’s (“Bank”) since April 4, 2016. He  ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD603.81K) is below average for companies of similar size in the US market ($USD1.08M).

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


Management Age and Tenure

2.7yrs

Average Tenure

62yo

Average Age

Experienced Management: DNBF's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

68yo

Average Age

Experienced Board: DNBF's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$6,472,88311 Jul 19
CT Opportunity Partners I LP
EntityCompany
Shares146,824
Max PriceUS$44.09
SellUS$1,036,73811 Jul 19
Driver Management Company LLC
EntityCompany
Shares23,000
Max PriceUS$45.20
BuyUS$2,80001 Apr 19
James Malloy
EntityIndividual
Role
Other Key Executive
Executive VP & Chief Commercial Lending Officer
Shares73
Max PriceUS$38.36
BuyUS$9,55201 Apr 19
Charles Murray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares249
Max PriceUS$38.36
BuyUS$9,28301 Apr 19
Mildred Joyner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares242
Max PriceUS$38.36
BuyUS$7,51901 Apr 19
Gerard Griesser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares196
Max PriceUS$38.36
BuyUS$7,67201 Apr 19
Thomas Fillippo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares200
Max PriceUS$38.36
BuyUS$5,79201 Apr 19
James B. Biery
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares151
Max PriceUS$38.36
BuyUS$7,51901 Apr 19
Peter Barsz
EntityIndividual
Shares196
Max PriceUS$38.36

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bruce Moroney (62yo)

    Executive VP

    • Compensation: US$225.60k
  • Eileen Knott (68yo)

    Senior Vice President

    • Charles Bradford (77yo)

      Senior VP & Director

      • Compensation: US$145.90k
    • Kristen LaDow (59yo)

      Senior Vice President

      • Compensation: US$136.83k
    • Gerald Sopp (62yo)

      Executive VP

      • Tenure: 12.9yrs
      • Compensation: US$478.84k
    • Bill Hieb (62yo)

      President

      • Tenure: 3.9yrs
      • Compensation: US$603.81k
    • Jonathan McGrain (55yo)

      Senior Vice President of Marketing

      • Frank Monterosso

        Senior VP & Director of Operations

        • Jim Malloy (57yo)

          Executive VP & Chief Commercial Lending Officer

          • Tenure: 1.1yrs
        • James Gagliano

          Senior VP and Director of Retail Banking & Consumer Lending of DNB First NA

          • Tenure: 1.4yrs

        Board Members

        • Jef McGill (58yo)

          Vice Chairman of the Board

          • Tenure: 3.2yrs
          • Compensation: US$38.55k
        • Gerry Griesser (69yo)

          Independent Director

          • Tenure: 10.2yrs
          • Compensation: US$42.41k
        • Charles Murray (61yo)

          Independent Director

          • Tenure: 3.2yrs
          • Compensation: US$45.04k
        • James Thornton (74yo)

          Chairman of the Board

          • Tenure: 3.9yrs
          • Compensation: US$119.96k
        • Thomas Fillippo (71yo)

          Independent Director

          • Tenure: 13.9yrs
          • Compensation: US$48.79k
        • Daniel O'Donnell (67yo)

          Independent Director

          • Tenure: 3.2yrs
          • Compensation: US$33.85k
        • Jim Biery (70yo)

          Independent Director

          • Tenure: 5.9yrs
          • Compensation: US$49.60k
        • Bill Hieb (62yo)

          President

          • Tenure: 3.9yrs
          • Compensation: US$603.81k
        • Mildred Joyner (69yo)

          Independent Director

          • Tenure: 15yrs
          • Compensation: US$53.44k
        • Mary Latoff (63yo)

          Director

          • Tenure: 3.9yrs
          • Compensation: US$35.95k

        Company Information

        DNB Financial Corporation's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: DNB Financial Corporation
        • Ticker: DNBF
        • Exchange: NasdaqCM
        • Founded: 1860
        • Industry: Regional Banks
        • Sector: Banks
        • Market Cap: US$200.363m
        • Shares outstanding: 4.34m
        • Website: https://www.dnbfirst.com

        Number of Employees


        Location

        • DNB Financial Corporation
        • 4 Brandywine Avenue
        • Downingtown
        • Pennsylvania
        • 19335
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        DNBFNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDApr 1994

        Biography

        DNB Financial Corporation operates as the bank holding company for DNB First, National Association that provides a range of commercial banking products and services to individuals and small to medium sized businesses. The company offers deposit products, including money market, savings, demand, and NOW accounts; and time deposits, as well as certificates of deposit, including IRAs and brokered deposits. It also provides loan products comprising fixed and variable rate loans; funds for the purchase of business property or ventures, working capital lines, small business administration loans, and lease financing for equipment and for various other purposes; and home equity and home mortgages, as well as term loans for the purchase of consumer goods. In addition, it offers cash management, remote capture, Internet banking, letters of credit, and other lending services, as well as commercial sweep accounts; and various investment and insurance products, such as fixed and variable annuities, 401(k) plans and rollovers, stocks, self-directed and managed IRAs, bonds, mutual funds, brokerage, long term care insurance, 529 college savings plans, life insurance, separately managed investment accounts, disability insurance, and self-employed pension plans. Further, the company provides wealth management and trust services to individuals, businesses, and non-profit organizations; investment and fiduciary services, such as investment management, investment advisory, estate settlement, client bill paying, custody, financial planning, corporate trustee/trust administration, and power of attorney and guardian of the estate capacities; and safekeeping and other depository services, as well as securities brokerage and ATM services. It operates through 15 community offices located in Chester, Delaware, and Philadelphia counties, Pennsylvania. The company was founded in 1860 and is headquartered in Downingtown, Pennsylvania. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2019/12/02 23:34
        End of Day Share Price2019/11/29 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.