NasdaqGM:SONA

Stock Analysis Report

Southern National Bancorp of Virginia

Executive Summary

Southern National Bancorp of Virginia, Inc.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Southern National Bancorp of Virginia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

SONA

3.4%

US Banks

0.4%

US Market


1 Year Return

5.7%

SONA

11.9%

US Banks

11.4%

US Market

Return vs Industry: SONA underperformed the US Banks industry which returned 11.9% over the past year.

Return vs Market: SONA underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

SONAIndustryMarket
7 Day1.4%3.4%0.4%
30 Day0.2%3.8%0.3%
90 Day1.1%3.3%-1.2%
1 Year8.2%5.7%15.2%11.9%13.9%11.4%
3 Year25.6%17.9%54.5%43.8%47.2%37.6%
5 Year59.3%35.6%69.9%51.4%62.4%44.6%

Price Volatility Vs. Market

How volatile is Southern National Bancorp of Virginia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Southern National Bancorp of Virginia undervalued compared to its fair value and its price relative to the market?

11.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SONA ($15.51) is trading above our estimate of fair value ($1.09)

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


Price To Earnings Ratio

PE vs Industry: SONA is good value based on its PE Ratio (11.7x) compared to the Banks industry average (12.6x).

PE vs Market: SONA is good value based on its PE Ratio (11.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SONA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SONA is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Southern National Bancorp of Virginia forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SONA's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: SONA's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: SONA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SONA's revenue is expected to decline over the next 3 years (-5.3% per year).

High Growth Revenue: SONA's revenue is forecast to decline over the next 3 years (-5.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Southern National Bancorp of Virginia performed over the past 5 years?

33.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SONA's earnings have grown significantly by 33.2% per year over the past 5 years.

Accelerating Growth: SONA's earnings growth over the past year (56.9%) exceeds its 5-year average (33.2% per year).

Earnings vs Industry: SONA earnings growth over the past year (56.9%) exceeded the Banks industry 29.2%.


Return on Equity

High ROE: SONA's Return on Equity (8.8%) is considered low.


Return on Assets

ROA vs Industry: SONA has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SONA's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Southern National Bancorp of Virginia'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: SONA has a low level of unsold assets or inventory.

Debt Coverage by Assets: SONA's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: SONA has an appropriate level of bad loans (0.24%)


Next Steps

Dividend

What is Southern National Bancorp of Virginia's current dividend yield, its reliability and sustainability?

2.32%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SONA's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SONA's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: SONA has been paying a dividend for less than 10 years and during this time payments have been volatile.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.4%), SONA'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 Southern National Bancorp of Virginia's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Joe Shearin (63yo)

2.3yrs

Tenure

US$1,096,912

Compensation

Mr. Joe A. Shearin has been Chief Executive Officer and Director at Southern National Bancorp of Virginia, Inc. and Sonabank since June 23, 2017. He has been President of Southern National Bancorp of Virgi ...


CEO Compensation Analysis

Compensation vs. Market: Joe has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

68yo

Average Age

Experienced Management: SONA's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

71yo

Average Age

Experienced Board: SONA's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$6,52427 Sep 19
Charles Kabbash
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceUS$9.32
BuyUS$33,97113 Feb 19
John Biagas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,225
Max PriceUS$15.29
BuyUS$13,97504 Feb 19
Joe Shearin
EntityIndividual
Role
Chief Executive Officer
President
Shares945
Max PriceUS$14.79
BuyUS$6,91004 Feb 19
William Cook
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares462
Max PriceUS$14.96
BuyUS$14,53804 Feb 19
Charles Kabbash
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares950
Max PriceUS$15.30
BuyUS$9,97801 Feb 19
William Cook
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares672
Max PriceUS$14.86
BuyUS$19,99831 Jan 19
Joe Shearin
EntityIndividual
Role
Chief Executive Officer
President
Shares1,345
Max PriceUS$14.88
BuyUS$20,63231 Jan 19
Charles Kabbash
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,350
Max PriceUS$15.28
BuyUS$36,17431 Jan 19
Georgia Derrico
EntityIndividual
Role
Chairman of the Board
Co-Founder & Executive Chairman
Shares2,431
Max PriceUS$15.00
BuyUS$8,25028 Jan 19
William Stevens
EntityIndividual
Role
Senior Key Executive
Chief Credit Risk Officer
Shares1,500
Max PriceUS$5.50
BuyUS$11,00028 Jan 19
William Lagos
EntityIndividual
Shares2,000
Max PriceUS$5.50
BuyUS$20,65518 Dec 18
Daniel Burch
EntityIndividual
Shares1,500
Max PriceUS$13.77
BuyUS$16,05920 Nov 18
Charles Kabbash
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,020
Max PriceUS$15.94
BuyUS$15,45009 Nov 18
Jeffrey Culver
EntityIndividual
Shares1,000
Max PriceUS$15.45
BuyUS$4,54406 Nov 18
Robert Clagett
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$15.15
BuyUS$15,37506 Nov 18
Jeffrey Culver
EntityIndividual
Shares1,000
Max PriceUS$15.50
BuyUS$15,25002 Nov 18
R. Porter
EntityIndividual
Role
Vice Chairman
Co-Founder & Executive Vice Chairman
Shares1,000
Max PriceUS$15.25
BuyUS$15,25002 Nov 18
Georgia Derrico
EntityIndividual
Role
Chairman of the Board
Co-Founder & Executive Chairman
Shares1,000
Max PriceUS$15.25
BuyUS$50,00801 Nov 18
John Biagas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,290
Max PriceUS$15.20
BuyUS$4,57101 Nov 18
Joe Shearin
EntityIndividual
Role
Chief Executive Officer
President
Shares300
Max PriceUS$15.24

Ownership Breakdown


Management Team

  • Georgia Derrico (74yo)

    Co-Founder & Executive Chairman

    • Tenure: 15.3yrs
    • Compensation: US$1.38m
  • Rod Porter (73yo)

    Co-Founder & Executive Vice Chairman

    • Tenure: 15.3yrs
    • Compensation: US$1.05m
  • Jeff Karafa (54yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$324.04k
  • William Stevens (74yo)

    Chief Credit Risk Officer

    • Tenure: 14.5yrs
    • Compensation: US$217.42k
  • Joe Shearin (63yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$1.10m
  • R. Porter (73yo)

    Secretary

    • Tenure: 0yrs
  • Douglas Taylor (62yo)

    Chief Risk Officer

    • Tenure: 2.3yrs
  • Robyn Reid

    VP, Treasurer & Controller

    • Tenure: 1.5yrs
  • Jr. Sheflett (48yo)

    Executive VP

    • Tenure: 0.6yrs

Board Members

  • Georgia Derrico (74yo)

    Co-Founder & Executive Chairman

    • Tenure: 15.3yrs
    • Compensation: US$1.38m
  • Rod Porter (73yo)

    Co-Founder & Executive Vice Chairman

    • Tenure: 15.3yrs
    • Compensation: US$1.05m
  • F. Garrett (79yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$47.55k
  • Rand Cook (65yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$49.40k
  • Eric Johnson (65yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$50.00k
  • Joe Shearin (63yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$1.10m
  • Charles Kabbash (81yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$48.00k
  • John Biagas (54yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$62.75k
  • W. Jennings (69yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$47.55k
  • Bob Clagett (77yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$50.75k

Company Information

Southern National Bancorp of Virginia, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Southern National Bancorp of Virginia, Inc.
  • Ticker: SONA
  • Exchange: NasdaqGM
  • Founded: 2004
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$374.467m
  • Shares outstanding: 24.14m
  • Website: https://www.sonabank.com

Number of Employees


Location

  • Southern National Bancorp of Virginia, Inc.
  • 6830 Old Dominion Drive
  • McLean
  • Virginia
  • 22101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SONANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 2006

Biography

Southern National Bancorp of Virginia, Inc. operates as the bank holding company for Sonabank that provides commercial banking services to middle market corporate clients and retail clients in the United S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:49
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.