NasdaqGM:SONA

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Southern National Bancorp of Virginia

Executive Summary

Southern National Bancorp of Virginia, Inc.


Snowflake Analysis

Very undervalued with flawless balance sheet.


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

Stable Share Price: SONA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.4%

SONA

3.9%

US Banks

2.5%

US Market


1 Year Return

-39.7%

SONA

-20.0%

US Banks

16.3%

US Market

Return vs Industry: SONA underperformed the US Banks industry which returned -20% over the past year.

Return vs Market: SONA underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

SONAIndustryMarket
7 Day7.4%3.9%2.5%
30 Day3.1%6.5%5.3%
90 Day-2.4%10.3%16.3%
1 Year-37.6%-39.7%-17.2%-20.0%18.8%16.3%
3 Year-38.9%-43.4%-9.0%-16.4%45.0%35.7%
5 Year-9.4%-21.3%13.9%0.03%75.8%56.8%

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?

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SONA ($9.04) is trading below our estimate of fair value ($15.22)

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


Price To Earnings Ratio

PE vs Industry: SONA is good value based on its PE Ratio (9.7x) compared to the US Banks industry average (9.9x).

PE vs Market: SONA is good value based on its PE Ratio (9.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SONA is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: SONA is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


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 2 analysts?

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SONA's forecast earnings growth (27.8% per year) is above the savings rate (2.2%).

Earnings vs Market: SONA's earnings (27.8% per year) are forecast to grow faster than the US market (23.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SONA's revenue (0.3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SONA's revenue (0.3% per year) is forecast to grow slower than 20% 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?

32.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SONA has high quality earnings.

Growing Profit Margin: SONA's current net profit margins (25.7%) are lower than last year (33.2%).


Past Earnings Growth Analysis

Earnings Trend: SONA's earnings have grown significantly by 32.5% per year over the past 5 years.

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

Earnings vs Industry: SONA had negative earnings growth (-29.3%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: SONA's Return on Equity (5.9%) is considered low.


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


Financial Institutions Analysis

Asset Level: SONA's Assets to Equity ratio (8x) is low.

Allowance for Bad Loans: SONA has a sufficient allowance for bad loans (158%).

Low Risk Liabilities: 80% of SONA's liabilities are made up of primarily low risk sources of funding.

Loan Level: SONA has an appropriate level of Loans to Assets ratio (81%).

Low Risk Deposits: SONA's Loans to Deposits ratio (116%) is appropriate.

Level of Bad Loans: SONA has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

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

4.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SONA's dividend (4.42%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: SONA's dividend (4.42%) is in the top 25% of dividend payers in the US market (4.36%)


Stability and Growth of Payments

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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.7%), 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

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

1.7yrs

Average management tenure


CEO

Dennis Zember (50 yo)

0.50

Tenure

Mr. Dennis J. Zember, Jr., serves as President, Chief Executive Officer and Director of Southern National Bancorp of Virginia, Inc. and Sonabank since February 19, 2020. He served as the President, Chief E ...


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Karafa
Executive VP & CFO1.92yrsUS$279.25k0.026%
$ 58.0k
George Sheflett
Executive VP1.42yrsUS$291.62k0.043%
$ 94.9k
Dennis Zember
President0.50yrno data0.16%
$ 361.6k
William Stevens
Chief Credit Risk Officer15.33yrsUS$217.42k0.084%
$ 185.9k
Douglas Taylor
Chief Risk Officer3.17yrsno datano data
R. Porter
Secretaryno datano datano data
Robyn Reid
VP, Treasurer & Controllerno datano datano data
Tyler Stafford
President of Panacea Financial0.083yrno datano data

1.7yrs

Average Tenure

55yo

Average Age

Experienced Management: SONA's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dennis Zember
President0.50yrno data0.16%
$ 361.6k
F. Garrett
Independent Director3.17yrsUS$53.84k0.11%
$ 243.7k
William Cook
Independent Non-Executive Chairman0.42yrUS$58.95k0.079%
$ 174.5k
Eric Johnson
Independent Director3.17yrsUS$60.75k0.11%
$ 252.2k
Charles Kabbash
Independent Director15.33yrsUS$57.60k0.54%
$ 1.2m
John Biagas
Independent Director3.17yrsUS$63.20k0.20%
$ 442.9k
W. Jennings
Independent Director8.75yrsUS$57.45k0.18%
$ 385.8k
Robert Clagett
Independent Director6yrsUS$58.09k0.12%
$ 259.5k
J. Thomas
Observer to the Board3.17yrsno datano data

3.2yrs

Average Tenure

68yo

Average Age

Experienced Board: SONA's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SONA 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

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$220.229m
  • Shares outstanding: 24.36m
  • 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 individuals and small and medium sized businesses in the United St ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 00:26
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.