Parke Bancorp (NasdaqCM:PKBK) - Share price, News & Analysis

PKBK fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	2/6

PKBK Stock Overview

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses.

Rewards

Trading at 60.6% below our estimate of its fair value

Earnings grew by 35.2% over the past year

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months

Parke Bancorp Competitors

Old National Bancorp

NasdaqGS:ONB

US$4.6b

Associated Banc-Corp

NYSE:ASB

US$2.9b

Customers Bancorp

NYSE:CUBI

US$1.3b

Metropolitan Bank Holding

NYSE:MCB

US$848.6m

Price History & Performance

Summary of all time highs, changes and price drops for Parke Bancorp
Historical stock prices
Current Share Price	US$23.63
52 Week High	US$25.85
52 Week Low	US$18.50
Beta	0.74
1 Month Change	-4.41%
3 Month Change	-1.87%
1 Year Change	9.60%
3 Year Change	22.32%
5 Year Change	35.51%
Change since IPO	760.13%

Shareholder Returns

	PKBK	US Banks	US Market
7D	0.3%	0.06%	0.1%
1Y	9.6%	-18.6%	-12.7%

Return vs Industry: PKBK exceeded the US Banks industry which returned -18.2% over the past year.

Return vs Market: PKBK exceeded the US Market which returned -11.5% over the past year.

Price Volatility

Is PKBK's price volatile compared to industry and market?
PKBK volatility
PKBK Average Weekly Movement	3.4%
Banks Industry Average Movement	4.0%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

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

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

About the Company

Founded	Employees	CEO	Website
1999	104	Vito Pantilione	https://www.parkebank.com

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans.

Parke Bancorp Fundamentals Summary

How do Parke Bancorp's earnings and revenue compare to its market cap?
PKBK fundamental statistics
Market Cap	US$283.66m
Earnings (TTM)	US$41.39m
Revenue (TTM)	US$78.05m

6.8x

P/E Ratio

1.2x

P/B Ratio

Is PKBK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PKBK income statement (TTM)
Revenue	US$78.05m
Cost of Revenue	US$0
Gross Profit	US$78.05m
Other Expenses	US$36.65m
Earnings	US$41.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.47
Gross Margin	100.00%
Net Profit Margin	53.04%
Debt/Equity Ratio	50.3%

How did PKBK perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

18%

Payout Ratio

Valuation

Is Parke Bancorp undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PKBK ($23.63) is trading below our estimate of fair value ($59.92)

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

Price To Earnings Ratio

PE vs Industry: PKBK is good value based on its PE Ratio (6.8x) compared to the US Banks industry average (9.7x).

PE vs Market: PKBK is good value based on its PE Ratio (6.8x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: PKBK's PB Ratio (1.2x) is in line with the US Banks industry average.

Future Growth

How is Parke Bancorp 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

10.0%

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 Parke Bancorp 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.

Past Performance

How has Parke Bancorp performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

21.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PKBK has high quality earnings.

Growing Profit Margin: PKBK's current net profit margins (53%) are higher than last year (48.6%).

Past Earnings Growth Analysis

Earnings Trend: PKBK's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: PKBK's earnings growth over the past year (35.2%) exceeds its 5-year average (21.9% per year).

Earnings vs Industry: PKBK earnings growth over the past year (35.2%) exceeded the Banks industry 20.9%.

Return on Equity

High ROE: PKBK's Return on Equity (17.3%) is considered low.

Financial Health

How is Parke Bancorp'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: PKBK's Assets to Equity ratio (8.5x) is low.

Allowance for Bad Loans: PKBK has a sufficient allowance for bad loans (767%).

Low Risk Liabilities: 92% of PKBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: PKBK has an appropriate level of Loans to Assets ratio (71%).

Low Risk Deposits: PKBK's Loans to Deposits ratio (87%) is appropriate.

Level of Bad Loans: PKBK has an appropriate level of bad loans (0.3%).

Dividend

What is Parke Bancorp current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

2.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PKBK's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: PKBK's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (4.07%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PKBK has been paying a dividend for less than 10 years.

Growing Dividend: PKBK's dividend payments have increased, but the company has only paid a dividend for 8 years.

Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.4%), PKBK'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.

Discover strong dividend paying companies

Management

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

9.8yrs

Average management tenure

CEO

Vito Pantilione (69 yo)

17.33yrs

Tenure

US$1,437,112

Compensation

Mr. Vito S. Pantilione has been President, Chief Executive Officer and Director of Parke Bancorp, Inc. since formation in 2005. Mr. Pantilione serves as the President and Chief Executive Officer and a Dire...

CEO Compensation Analysis

Compensation vs Market: Vito's total compensation ($USD1.44M) is about average for companies of similar size in the US market ($USD1.69M).

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

Leadership Team

Experienced Management: PKBK's management team is seasoned and experienced (9.8 years average tenure).

Board Members

Experienced Board: PKBK's board of directors are seasoned and experienced ( 15.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: PKBK insiders have sold more shares than they have bought 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	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31