Ohio Valley Banc (NasdaqGM:OVBC) - Share price, News & Analysis

OVBC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

OVBC Stock Overview

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services.

Rewards

Trading at 39.5% below our estimate of its fair value

Risk Analysis

No risks detected for OVBC from our risk checks.

Ohio Valley Banc Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ohio Valley Banc
Historical stock prices
Current Share Price	US$28.70
52 Week High	US$32.29
52 Week Low	US$23.87
Beta	0.22
1 Month Change	-5.90%
3 Month Change	-5.50%
1 Year Change	17.29%
3 Year Change	-25.59%
5 Year Change	-20.39%
Change since IPO	280.83%

Shareholder Returns

	OVBC	US Banks	US Market
7D	-9.6%	3.7%	6.6%
1Y	17.3%	-17.7%	-18.5%

Return vs Industry: OVBC exceeded the US Banks industry which returned -19.3% over the past year.

Return vs Market: OVBC exceeded the US Market which returned -20.5% over the past year.

Price Volatility

Is OVBC's price volatile compared to industry and market?
OVBC volatility
OVBC Average Weekly Movement	6.4%
Banks Industry Average Movement	3.8%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: OVBC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: OVBC's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1872	255	Larry Miller	https://www.ovbc.com

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit.

Ohio Valley Banc Fundamentals Summary

How do Ohio Valley Banc's earnings and revenue compare to its market cap?
OVBC fundamental statistics
Market Cap	US$136.95m
Earnings (TTM)	US$12.33m
Revenue (TTM)	US$52.69m

11.1x

P/E Ratio

1.0x

P/B Ratio

Is OVBC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OVBC income statement (TTM)
Revenue	US$52.69m
Cost of Revenue	US$0
Gross Profit	US$52.69m
Other Expenses	US$40.37m
Earnings	US$12.33m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.58
Gross Margin	100.00%
Net Profit Margin	23.39%
Debt/Equity Ratio	20.1%

How did OVBC perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

33%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is OVBC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OVBC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for OVBC. This is calculated by dividing OVBC's market cap by their current preferred multiple.
What is OVBC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$136.95m

OVBC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does OVBC's PE Ratio compare to its peers?

OVBC PE Ratio vs Peers

The above table shows the PE ratio for OVBC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.6x

Forward PE

Price-To-Earnings vs Peers: OVBC is good value based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (11.6x).

Price to Earnings Ratio vs Industry

How does OVBC's PE Ratio compare vs other companies in the U.S. Banks Industry?

Price-To-Earnings vs Industry: OVBC is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the US Banks industry average (9.5x)

Price to Earnings Ratio vs Fair Ratio

What is OVBC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OVBC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate OVBC's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of OVBC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OVBC ($28.7) is trading below our estimate of fair value ($47.46)

Significantly Below Fair Value: OVBC is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

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

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Future Growth

How is Ohio Valley Banc forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.6%

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 Ohio Valley Banc 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.

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Examine whether Ohio Valley Banc is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Ohio Valley Banc performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OVBC has high quality earnings.

Growing Profit Margin: OVBC's current net profit margins (23.4%) are lower than last year (24.9%).

Past Earnings Growth Analysis

Earnings Trend: OVBC's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: OVBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OVBC had negative earnings growth (-3.6%) over the past year, making it difficult to compare to the Banks industry average (20.7%).

Return on Equity

High ROE: OVBC's Return on Equity (9%) is considered low.

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Financial Health

How is Ohio Valley Banc's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: OVBC's Assets to Equity ratio (9.2x) is low.

Allowance for Bad Loans: OVBC has a sufficient allowance for bad loans (124%).

Low Risk Liabilities: 96% of OVBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: OVBC has an appropriate level of Loans to Assets ratio (64%).

Low Risk Deposits: OVBC's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: OVBC has an appropriate level of bad loans (0.5%).

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Dividend

What is Ohio Valley Banc current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.93%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OVBC's dividend (2.93%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: OVBC's dividend (2.93%) is low compared to the top 25% of dividend payers in the US market (4.34%).

Stability and Growth of Payments

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

Growing Dividend: OVBC's dividend payments have not increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32.5%), OVBC'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 or that it will be covered by earnings.

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Management

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

7.1yrs

Average management tenure

CEO

Larry Miller (57 yo)

7.08yrs

Tenure

US$623,299

Compensation

Mr. Larry E. Miller II, has been the President of Ohio Valley Banc Corp. and Ohio Valley Bank Company since May 15, 2019 and served as its Chief Operating Officer since May 2015 until May 2022. He serves a...

CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD623.30K) is about average for companies of similar size in the US market ($USD758.64K).

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

Leadership Team

Experienced Management: OVBC's management team is seasoned and experienced (7.1 years average tenure).

Board Members

Experienced Board: OVBC's board of directors are considered experienced (5.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: OVBC 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31