NasdaqCM:EMCF

Stock Analysis Report

Executive Summary

Emclaire Financial Corp operates as the bank holding company for The Farmers National Bank of Emlenton that provides retail and commercial financial products and services to individuals and businesses in western Pennsylvania.

Rewards

PE ratio (13.7x) is below the US market (18.9x)

Earnings grew by 43.9% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($89M)



Snowflake Analysis

Flawless balance sheet with proven track record.


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Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

EMCF

-0.07%

US Banks

2.0%

US Market


1 Year Return

7.7%

EMCF

15.5%

US Banks

23.5%

US Market

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

Return vs Market: EMCF underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

EMCFIndustryMarket
7 Day-0.6%-0.07%2.0%
30 Day-2.1%-1.8%4.3%
90 Day4.5%9.3%12.2%
1 Year11.7%7.7%18.9%15.5%26.1%23.5%
3 Year32.2%18.6%34.5%25.0%53.1%43.2%
5 Year65.3%36.8%86.0%65.1%75.5%56.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EMCF ($33.01) is trading above our estimate of fair value ($31.64)

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


Price To Earnings Ratio

PE vs Industry: EMCF is poor value based on its PE Ratio (13.7x) compared to the Banks industry average (12.8x).

PE vs Market: EMCF is good value based on its PE Ratio (13.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EMCF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EMCF is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Emclaire Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Emclaire Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Emclaire Financial performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMCF has a large one-off loss of $2.6M impacting its September 30 2019 financial results.

Growing Profit Margin: EMCF's current net profit margins (19.8%) are higher than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: EMCF's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: EMCF's earnings growth over the past year (43.9%) exceeds its 5-year average (7.5% per year).

Earnings vs Industry: EMCF earnings growth over the past year (43.9%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: EMCF's Return on Equity (7.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Emclaire 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: EMCF has a low level of unsold assets or inventory.

Debt Coverage by Assets: EMCF's debt is covered by short term assets (assets are 2.1x debt).


Financial Institutions Analysis

Asset Level: EMCF's level of assets compared to its equity is moderate.

Allowance for Bad Loans: EMCF has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: EMCF has an appropriate level of bad loans (0.72%)


Next Steps

Dividend

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

3.61%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: EMCF's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: EMCF's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: EMCF's dividend payments have been volatile in the past 10 years.

Growing Dividend: EMCF's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.8%), EMCF's dividend payments are well 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

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

6.8yrs

Average management tenure


CEO

Bill Marsh (52yo)

11yrs

Tenure

US$665,758

Compensation

Mr. William C. Marsh, also known as Bill, has been the Chairman of the Board, Chief Executive Officer and President of Emclaire Financial Corp. since January 1, 2009. Mr. Marsh has been the Chairman of the ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD665.76K) is about average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

6.8yrs

Average Tenure

52yo

Average Age

Experienced Management: EMCF's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

11.0yrs

Average Tenure

60yo

Average Age

Experienced Board: EMCF's board of directors are seasoned and experienced ( 11 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$116,25006 Nov 19
William Marsh
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares3,750
Max PriceUS$31.00
BuyUS$322,49820 Aug 19
Robert Freeman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,923
Max PriceUS$32.50
BuyUS$3,13515 Jul 19
Milissa Bauer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$31.35
BuyUS$9,96705 Jun 19
Deanna McCarrier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares310
Max PriceUS$32.15
BuyUS$19,90831 May 19
Deanna McCarrier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares630
Max PriceUS$31.60
BuyUS$3,15029 May 19
James Crooks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$31.50
BuyUS$9,95429 May 19
Deanna McCarrier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares316
Max PriceUS$31.50
BuyUS$2,96624 May 19
James Crooks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares94
Max PriceUS$31.55
BuyUS$9,95424 May 19
Deanna McCarrier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares314
Max PriceUS$31.70
BuyUS$19,90223 May 19
Deanna McCarrier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares633
Max PriceUS$31.78
BuyUS$19,91925 Mar 19
Deanna McCarrier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares637
Max PriceUS$31.34
BuyUS$9,95521 Mar 19
Deanna McCarrier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares320
Max PriceUS$31.11

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.8%.


Management Team

  • Bill Marsh (52yo)

    Chairman

    • Tenure: 11yrs
    • Compensation: US$665.76k
  • David Cox (68yo)

    Vice Chairman of the Board

    • Tenure: 11yrs
    • Compensation: US$80.50k
  • Andrew Hogue

    Assistant Vice President of Compliance & Security of The Farmers National Bank of Emlenton

    • Robert Foust

      Senior Vice President of Corporate Banking - The Farmers National Bank of Emlenton

      • Kathy Buzzard

        Senior Vice President of Operations - The Farmers National Bank of Emlenton

        • Tenure: 13yrs
      • Jennifer Poulsen (49yo)

        Secretary & COO

        • Compensation: US$283.68k
      • Amanda Engles (41yo)

        CFO & Treasurer

        • Tenure: 2.6yrs
      • Bob Vernick (52yo)

        Chief Lending & Business Development Officer and Senior VP

        • Compensation: US$238.70k
      • Eric Gantz

        SVP & Chief Credit Officer

        • Tenure: 0.8yrs

      Board Members

      • Bill Marsh (52yo)

        Chairman

        • Tenure: 11yrs
        • Compensation: US$665.76k
      • David Cox (68yo)

        Vice Chairman of the Board

        • Tenure: 11yrs
        • Compensation: US$80.50k
      • John Mason (70yo)

        Independent Director

        • Tenure: 31yrs
        • Compensation: US$54.50k
      • Robert Hunter (77yo)

        Independent Director

        • Tenure: 31yrs
        • Compensation: US$51.50k
      • Mark Freemer (59yo)

        Independent Director

        • Tenure: 15.3yrs
        • Compensation: US$53.10k
      • James Crooks (66yo)

        Independent Director

        • Tenure: 15.3yrs
        • Compensation: US$53.10k
      • Nicholas Varischetti (35yo)

        Independent Director

        • Tenure: 5yrs
        • Compensation: US$47.95k
      • Milissa Bauer (56yo)

        Independent Director

        • Tenure: 5yrs
        • Compensation: US$50.35k
      • Robert Freeman (61yo)

        Independent Director

        • Tenure: 5yrs
        • Compensation: US$50.50k
      • Deanna McCarrier (55yo)

        Independent Director

        • Tenure: 3.3yrs
        • Compensation: US$51.70k

      Company Information

      Emclaire Financial Corp's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Emclaire Financial Corp
      • Ticker: EMCF
      • Exchange: NasdaqCM
      • Founded: 1900
      • Industry: Regional Banks
      • Sector: Banks
      • Market Cap: US$89.087m
      • Shares outstanding: 2.70m
      • Website: https://www.emclairefinancial.com

      Number of Employees


      Location

      • Emclaire Financial Corp
      • 612 Main Street
      • Emlenton
      • Pennsylvania
      • 16373
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      EMCFNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 1996

      Biography

      Emclaire Financial Corp operates as the bank holding company for The Farmers National Bank of Emlenton that provides retail and commercial financial products and services to individuals and businesses in western Pennsylvania. The company’s deposit products include checking, savings, and term certificate accounts; time deposits; noninterest bearing and interest bearing demand deposit accounts; and money market accounts. Its loan portfolio comprises one-to-four family mortgage loans, residential and commercial mortgages loans, home equity loans, and commercial business and commercial real estate loans; and consumer loans, such as loans for automobile purchases, home improvements not secured by real estate, capital, and other personal expenditures, as well as unsecured revolving personal lines of credit and overdraft protection. The company, through its subsidiary, Emclaire Settlement Services, LLC, also provides real estate settlement services. As of February 20, 2019, it operated 20 full service offices in Venango, Allegheny, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, and Mercer counties in Pennsylvania, as well as in Hancock County, West Virginia. The company was founded in 1900 and is headquartered in Emlenton, Pennsylvania. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/17 23:33
      End of Day Share Price2020/01/17 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.