William Penn Bancorporation (NasdaqCM:WMPN) - Share price, News & Analysis

Q: What is the Fair Price of WMPN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

WMPN ($11.64) is trading above our estimate of [[fair value]] ($1.67)

WMPN fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

WMPN Stock Overview

William Penn Bancorporation operates as the holding company for William Penn Bank that provides retail and commercial banking products and related financial services in the United States.

Rewards

Earnings grew by 110% over the past year

Risk Analysis

No risks detected for WMPN from our risk checks.

William Penn Bancorporation Competitors

Bogota Financial

NasdaqCM:BSBK

US$158.1m

OP Bancorp

NasdaqGM:OPBK

US$162.1m

Security National Financial

NasdaqGM:SNFC.A

US$175.0m

Western New England Bancorp

NasdaqGS:WNEB

US$170.6m

Price History & Performance

Summary of all time highs, changes and price drops for William Penn Bancorporation
Historical stock prices
Current Share Price	US$11.64
52 Week High	US$12.88
52 Week Low	US$11.35
Beta	0.94
1 Month Change	-0.43%
3 Month Change	-9.06%
1 Year Change	-1.61%
3 Year Change	3.07%
5 Year Change	57.71%
Change since IPO	222.80%

Shareholder Returns

	WMPN	US Mortgage	US Market
7D	1.0%	7.6%	6.6%
1Y	-1.6%	-37.6%	-18.4%

Return vs Industry: WMPN exceeded the US Mortgage industry which returned -37.6% over the past year.

Return vs Market: WMPN exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is WMPN's price volatile compared to industry and market?
WMPN volatility
WMPN Average Weekly Movement	2.6%
Mortgage Industry Average Movement	3.7%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

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

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

About the Company

Founded	Employees	CEO	Website
1870	103	Ken Stephon	https://www.williampenn.bank

William Penn Bancorporation operates as the holding company for William Penn Bank that provides retail and commercial banking products and related financial services in the United States. The company offers time, savings, and demand deposits; certificates of deposit; and checking, money market, savings and club, and individual retirement accounts. It also provides one- to four-family residential and investor commercial real estate, non-residential real estate, multi-family residential, commercial business and consumer, residential and commercial construction, and land loans, as well as home equity loans and lines of credit, small business administration loans, and CDARS.

William Penn Bancorporation Fundamentals Summary

How do William Penn Bancorporation's earnings and revenue compare to its market cap?
WMPN fundamental statistics
Market Cap	US$164.73m
Earnings (TTM)	US$3.83m
Revenue (TTM)	US$24.40m

43.1x

P/E Ratio

0.8x

P/B Ratio

Is WMPN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WMPN income statement (TTM)
Revenue	US$24.40m
Cost of Revenue	US$0
Gross Profit	US$24.40m
Other Expenses	US$20.58m
Earnings	US$3.83m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.27
Gross Margin	100.00%
Net Profit Margin	15.68%
Debt/Equity Ratio	9.7%

How did WMPN perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

11%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is WMPN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WMPN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for WMPN. This is calculated by dividing WMPN's market cap by their current preferred multiple.
What is WMPN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$164.73m

WMPN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does WMPN's PE Ratio compare to its peers?

WMPN PE Ratio vs Peers

The above table shows the PE ratio for WMPN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.2x
BSBK Bogota Financial	26.7x	4.9%	US$158.1m
OPBK OP Bancorp	5.1x	3.1%	US$162.1m
SNFC.A Security National Financial	5.7x	n/a	US$175.0m
WNEB Western New England Bancorp	7.3x	0.3%	US$170.6m
WMPN William Penn Bancorporation	43.1x	n/a	US$164.7m

Forward PE

Price-To-Earnings vs Peers: WMPN is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the peer average (11.2x).

Price to Earnings Ratio vs Industry

How does WMPN's PE Ratio compare vs other companies in the US Mortgage Industry?

Price-To-Earnings vs Industry: WMPN is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the US Mortgage industry average (11.3x)

Price to Earnings Ratio vs Fair Ratio

What is WMPN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WMPN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	43.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WMPN's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of WMPN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WMPN ($11.64) is trading above our estimate of fair value ($1.67)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is William Penn Bancorporation 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

9.5%

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 William Penn Bancorporation 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.

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Check out William Penn Bancorporation's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has William Penn Bancorporation 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

10.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WMPN has high quality earnings.

Growing Profit Margin: WMPN's current net profit margins (15.7%) are higher than last year (8.2%).

Past Earnings Growth Analysis

Earnings Trend: WMPN's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: WMPN's earnings growth over the past year (110%) exceeds its 5-year average (10.6% per year).

Earnings vs Industry: WMPN earnings growth over the past year (110%) exceeded the Mortgage industry 6.7%.

Return on Equity

High ROE: WMPN's Return on Equity (1.9%) is considered low.

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Financial Health

How is William Penn Bancorporation's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

5/6

Financial Health Score 5/6

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: WMPN's Assets to Equity ratio (4.2x) is low.

Allowance for Bad Loans: WMPN has a low allowance for bad loans (53%).

Low Risk Liabilities: 94% of WMPN's liabilities are made up of primarily low risk sources of funding.

Loan Level: WMPN has an appropriate level of Loans to Assets ratio (53%).

Low Risk Deposits: WMPN's Loans to Deposits ratio (74%) is appropriate.

Level of Bad Loans: WMPN has an appropriate level of bad loans (1.4%).

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Dividend

What is William Penn Bancorporation current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

1.03%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WMPN's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: WMPN's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.2%), WMPN's dividend payments are thoroughly 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.

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Management

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

2.6yrs

Average management tenure

CEO

Ken Stephon (62 yo)

3.67yrs

Tenure

US$645,979

Compensation

Mr. Kenneth J. Stephon, also known as Ken, became Chairman of the Board on November 18, 2020, and has been Chief Executive Officer since February 1, 2019. He became President on October 1, 2018 and had bee...

CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD645.98K) is below average for companies of similar size in the US market ($USD1.69M).

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

Leadership Team

Experienced Management: WMPN's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: WMPN's board of directors are seasoned and experienced ( 12.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: WMPN 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30