| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 4/6 |
TOWN Stock Overview
TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals.
Rewards
Risk Analysis
No risks detected for TOWN from our risk checks.
TowneBank Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$28.17 |
| 52 Week High | US$34.79 |
| 52 Week Low | US$27.27 |
| Beta | 0.99 |
| 1 Month Change | -6.63% |
| 3 Month Change | -10.06% |
| 1 Year Change | -13.64% |
| 3 Year Change | 7.15% |
| 5 Year Change | -4.99% |
| Change since IPO | 326.94% |
Recent News & Updates
Shareholder Returns
| TOWN | US Banks | US Market | |
|---|---|---|---|
| 7D | 1.6% | -1.5% | -2.7% |
| 1Y | -13.6% | -19.9% | -12.9% |
Return vs Industry: TOWN exceeded the US Banks industry which returned -18.6% over the past year.
Return vs Market: TOWN matched the US Market which returned -12.7% over the past year.
Price Volatility
| TOWN volatility | |
|---|---|
| TOWN Average Weekly Movement | 3.9% |
| Banks Industry Average Movement | 4.0% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.0% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1998 | 2,795 | J. Davis | https://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
| TOWN fundamental statistics | |
|---|---|
| Market Cap | US$2.00b |
| Earnings (TTM) | US$191.97m |
| Revenue (TTM) | US$677.43m |
10.4x
P/E Ratio1.1x
P/B RatioIs TOWN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TOWN income statement (TTM) | |
|---|---|
| Revenue | US$677.43m |
| Cost of Revenue | US$0 |
| Gross Profit | US$677.43m |
| Other Expenses | US$485.46m |
| Earnings | US$191.97m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.71 |
| Gross Margin | 100.00% |
| Net Profit Margin | 28.34% |
| Debt/Equity Ratio | 33.4% |
How did TOWN perform over the long term?
See historical performance and comparisonDividends
2.8%
Current Dividend Yield30%
Payout RatioValuation
Is TowneBank undervalued compared to its fair value and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
47.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TOWN ($28.17) is trading below our estimate of fair value ($53.24)
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 (9.6x).
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
1/6Future 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 (12.5% 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 (7.8% 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
2/6Past 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
6/6Financial 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
4/6Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.84%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TOWN's dividend (2.84%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: TOWN's dividend (2.84%) is low compared to the top 25% of dividend payers in the US market (4.09%).
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.
Discover strong dividend paying companies
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 ($USD5.43M).
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$1.997b
- Shares outstanding: 70.90m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/21 00:00 |
| End of Day Share Price | 2022/05/20 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.