NYSEAM:PRK

Stock Analysis Report

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Market Cap

US$1.8b

Last Updated

2021/07/27 01:58 UTC

Data Sources

Company Financials +

Executive Summary

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. More Details


Snowflake Analysis

6 star dividend payer with excellent balance sheet.


Similar Companies

Share Price & News

How has Park National's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

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


Market Performance


7 Day Return

2.0%

PRK

3.7%

US Banks

3.3%

US Market


1 Year Return

64.6%

PRK

59.0%

US Banks

37.8%

US Market

Return vs Industry: PRK exceeded the US Banks industry which returned 55% over the past year.

Return vs Market: PRK exceeded the US Market which returned 39.1% over the past year.


Shareholder returns

PRKIndustryMarket
7 Day2.0%3.7%3.3%
30 Day-8.1%-4.8%1.1%
90 Day-11.8%-3.8%2.9%
1 Year71.4%64.6%63.5%59.0%39.9%37.8%
3 Year15.4%1.3%17.7%7.6%65.8%55.4%
5 Year54.1%25.6%96.5%71.8%124.3%99.4%

Long-Term Price Volatility Vs. Market

How volatile is Park National's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

22.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRK ($111.73) is trading below our estimate of fair value ($144.36)

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


Price To Earnings Ratio

PE vs Industry: PRK is poor value based on its PE Ratio (12.3x) compared to the US Banks industry average (11x).

PE vs Market: PRK is good value based on its PE Ratio (12.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PRK is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (1.1x).


Future Growth

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

-6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRK's earnings are forecast to decline over the next 3 years (-6.3% per year).

Earnings vs Market: PRK's earnings are forecast to decline over the next 3 years (-6.3% per year).

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

Revenue vs Market: PRK's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: PRK's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRK's Return on Equity is forecast to be low in 3 years time (12.2%).


Past Performance

How has Park National performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRK has high quality earnings.

Growing Profit Margin: PRK's current net profit margins (31.8%) are higher than last year (25.2%).


Past Earnings Growth Analysis

Earnings Trend: PRK's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: PRK's earnings growth over the past year (49%) exceeds its 5-year average (9% per year).

Earnings vs Industry: PRK earnings growth over the past year (49%) exceeded the Banks industry 28.4%.


Return on Equity

High ROE: PRK's Return on Equity (14.3%) is considered low.


Financial Health

How is Park National'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: PRK's Assets to Equity ratio (9.5x) is low.

Allowance for Bad Loans: PRK has a low allowance for bad loans (67%).

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

Loan Level: PRK has an appropriate level of Loans to Assets ratio (71%).

Low Risk Deposits: PRK's Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: PRK has an appropriate level of bad loans (1.8%).


Dividend

What is Park National current dividend yield, its reliability and sustainability?

3.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRK's dividend (3.69%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: PRK's dividend (3.69%) is in the top 25% of dividend payers in the US market (3.56%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.9%), PRK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRK's dividends in 3 years are forecast to be covered by earnings (53.8% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

David Trautman (59 yo)

7.5yrs

Tenure

US$2,110,992

Compensation

Mr. David L. Trautman has been the Chief Executive Officer of Park National Corp. and its subsidiary Park National Bank since January 1, 2014. Mr. Trautman serves as Chairman at Park National Corporation s...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.11M) is below average for companies of similar size in the US market ($USD3.72M).

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


Leadership Team

Experienced Management: PRK's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: PRK's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Park National Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Park National Corporation
  • Ticker: PRK
  • Exchange: NYSEAM
  • Founded: 1908
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.826b
  • Shares outstanding: 16.34m
  • Website: https://www.parknationalcorp.com

Number of Employees


Location

  • Park National Corporation
  • 50 North Third Street
  • PO Box 3500
  • Newark
  • Ohio
  • 43058-3500
  • United States

Listings


Biography

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. It offers deposits for demand...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 01:58
End of Day Share Price2021/07/26 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.