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TOWN

TowneBank NasdaqGS:TOWN Stock Report

Last Price

US$27.68

Market Cap

US$2.0b

7D

-3.1%

1Y

-16.5%

Updated

16 May, 2022

Data

Company Financials +
TOWN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends4/6

TOWN Stock Overview

TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals.

TowneBank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for TowneBank
Historical stock prices
Current Share PriceUS$27.68
52 Week HighUS$34.79
52 Week LowUS$27.27
Beta0.99
1 Month Change-4.52%
3 Month Change-12.87%
1 Year Change-16.48%
3 Year Change5.61%
5 Year Change-6.64%
Change since IPO319.51%

Recent News & Updates

Shareholder Returns

TOWNUS BanksUS Market
7D-3.1%-3.5%0.7%
1Y-16.5%-20.8%-10.8%

Return vs Industry: TOWN exceeded the US Banks industry which returned -19.6% over the past year.

Return vs Market: TOWN underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is TOWN's price volatile compared to industry and market?
TOWN volatility
TOWN Average Weekly Movement3.9%
Banks Industry Average Movement3.9%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: TOWN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TOWN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19982,617J. Davishttps://www.townebank.com

TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals. The company operates through three segments: Banking, Realty, and Insurance. It accepts various deposits, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts.

TowneBank Fundamentals Summary

How do TowneBank's earnings and revenue compare to its market cap?
TOWN fundamental statistics
Market CapUS$1.99b
Earnings (TTM)US$191.97m
Revenue (TTM)US$677.43m

10.4x

P/E Ratio

1.1x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TOWN income statement (TTM)
RevenueUS$677.43m
Cost of RevenueUS$0
Gross ProfitUS$677.43m
Other ExpensesUS$485.46m
EarningsUS$191.97m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.67
Gross Margin100.00%
Net Profit Margin28.34%
Debt/Equity Ratio33.4%

How did TOWN perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

30%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


48.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TOWN ($27.68) is trading below our estimate of fair value ($53.67)

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


Price To Earnings Ratio

PE vs Industry: TOWN is poor value based on its PE Ratio (10.4x) compared to the US Banks industry average (9.7x).

PE vs Market: TOWN is good value based on its PE Ratio (10.4x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: TOWN is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: TOWN's PB Ratio (1.1x) is in line with the US Banks industry average.


Future Growth

How is TowneBank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOWN's forecast earnings growth (5.3% per year) is above the savings rate (1.9%).

Earnings vs Market: TOWN's earnings (5.3% per year) are forecast to grow slower than the US market (12.6% per year).

High Growth Earnings: TOWN's earnings are forecast to grow, but not significantly.

Revenue vs Market: TOWN's revenue (5.3% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: TOWN's revenue (5.3% 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 TOWN's Return on Equity is forecast to be high in 3 years time


Past Performance

How has TowneBank 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


19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TOWN has high quality earnings.

Growing Profit Margin: TOWN's current net profit margins (28.3%) are lower than last year (28.8%).


Past Earnings Growth Analysis

Earnings Trend: TOWN's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: TOWN's earnings growth over the past year (2%) is below its 5-year average (19.1% per year).

Earnings vs Industry: TOWN earnings growth over the past year (2%) underperformed the Banks industry 20.9%.


Return on Equity

High ROE: TOWN's Return on Equity (10.6%) is considered low.


Financial Health

How is TowneBank'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: TOWN's Assets to Equity ratio (8.9x) is low.

Allowance for Bad Loans: TOWN has a sufficient allowance for bad loans (2152%).

Low Risk Liabilities: 93% of TOWN's liabilities are made up of primarily low risk sources of funding.

Loan Level: TOWN has an appropriate level of Loans to Assets ratio (59%).

Low Risk Deposits: TOWN's Loans to Deposits ratio (71%) is appropriate.

Level of Bad Loans: TOWN has an appropriate level of bad loans (0%).


Dividend

What is TowneBank current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TOWN's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: TOWN's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

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

Growing Dividend: TOWN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.2%), TOWN'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.


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

J. Davis (70 yo)

4.17yrs

Tenure

US$1,726,871

Compensation

Mr. J. Morgan Davis has been Chief Executive Officer TowneBank since March 2018 and served as its President since 2011 until July 2021. Mr. Davis served as the President and Chief Banking Officer of TowneB...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD1.73M) is below average for companies of similar size in the US market ($USD5.45M).

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


Leadership Team

Experienced Management: TOWN's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: TOWN's board of directors are seasoned and experienced ( 18.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TOWN 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

TowneBank's employee growth, exchange listings and data sources


Key Information

  • Name: TowneBank
  • Ticker: TOWN
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$1.991b
  • Shares outstanding: 71.81m
  • Website: https://www.townebank.com

Number of Employees


Location

  • TowneBank
  • 5716 High Street
  • Portsmouth
  • Virginia
  • 23703
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.