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

-7.0%

US Banks

-2.6%

US Market


1 Year Return

39.3%

DNBF

-32.9%

US Banks

-13.3%

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%-7.0%-2.6%
30 Day3.0%-24.6%-15.2%
90 Day17.2%-41.9%-22.2%
1 Year40.2%39.3%-30.8%-32.9%-11.5%-13.3%
3 Year72.8%68.4%-21.4%-27.3%13.2%5.7%
5 Year135.2%124.3%2.7%-9.2%31.8%17.2%

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.


Next Steps

Financial Health

How is DNB Financial's financial position?


Financial Position Analysis

Short Term Liabilities: DNBF's short term assets ($27.0M) do not cover its short term liabilities ($932.7M).

Long Term Liabilities: DNBF's short term assets ($27.0M) do not cover its long term liabilities ($59.7M).


Debt to Equity History and Analysis

Debt Level: DNBF's debt to equity ratio (41.6%) is considered high.

Reducing Debt: DNBF's debt to equity ratio has reduced from 62.1% to 41.6% over the past 5 years.

Debt Coverage: DNBF's debt is well covered by operating cash flow (28.9%).

Interest Coverage: Insufficient data to determine if DNBF's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.59%

Current Dividend Yield


Dividend Yield vs Market

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

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

2.7yrs

Average management tenure


CEO

Bill Hieb (62yo)

3.92s

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.


Leadership Team

NamePositionTenureCompensationOwnership
William Hieb
President3.92yrsUS$603.81k1.1% $2.2m
Gerald Sopp
Executive VP12.92yrsUS$478.84k0.56% $1.1m
Bruce Moroney
Executive VPno dataUS$225.60k0.42% $833.6k
James Malloy
Executive VP & Chief Commercial Lending Officer1.08yrsno data0.026% $51.3k
Frank Monterosso
Senior VP & Director of Operationsno datano datano data
Jonathan McGrain
Senior Vice President of Marketingno datano datano data
Eileen Knott
Senior Vice Presidentno datano datano data
Charles Bradford
Senior VP & Directorno dataUS$145.90kno data
Kristen LaDow
Senior Vice Presidentno dataUS$136.83kno data
James Gagliano
Senior VP and Director of Retail Banking & Consumer Lending of DNB First NA1.42yrsno datano data

2.7yrs

Average Tenure

62yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
William Hieb
President3.92yrsUS$603.81k1.1% $2.2m
John McGill
Vice Chairman of the Board3.17yrsUS$38.55k2.34% $4.7m
Gerard Griesser
Independent Director10.17yrsUS$42.41k0.68% $1.4m
Charles Murray
Independent Director3.17yrsUS$45.04k2.06% $4.1m
James Thornton
Chairman of the Board3.92yrsUS$119.96k0.72% $1.4m
Thomas Fillippo
Independent Director13.92yrsUS$48.79k1.09% $2.2m
George O'Donnell
Independent Director3.17yrsUS$33.85k0.69% $1.4m
James B. Biery
Independent Director5.92yrsUS$49.60k0.34% $685.8k
Mildred Joyner
Independent Director15yrsUS$53.44k0.47% $938.3k
Mary Latoff
Director3.92yrsUS$35.95k1.7% $3.4m

4.9yrs

Average Tenure

68yo

Average Age

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


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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.