AMEX:PRK

Stock Analysis Report

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Executive Summary

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in Ohio, Northern Kentucky, North Carolina, and South Carolina.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

PRK

1.1%

US Banks

2.3%

US Market


1 Year Return

-31.4%

PRK

-27.6%

US Banks

6.7%

US Market

Return vs Industry: PRK matched the US Banks industry which returned -30.8% over the past year.

Return vs Market: PRK underperformed the US Market which returned 6.1% over the past year.


Shareholder returns

PRKIndustryMarket
7 Day-0.6%1.1%2.3%
30 Day-2.9%-10.1%1.5%
90 Day-14.7%-5.5%17.8%
1 Year-28.0%-31.4%-25.1%-27.6%9.0%6.7%
3 Year-25.9%-34.8%-16.0%-22.7%36.6%27.7%
5 Year-6.1%-23.7%6.5%-6.4%64.2%46.2%

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?

19.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRK ($67.57) is trading below our estimate of fair value ($83.43)

Significantly Below Fair Value: PRK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PRK is poor value based on its PE Ratio (11.1x) compared to the US Banks industry average (9.1x).

PE vs Market: PRK is good value based on its PE Ratio (11.1x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: PRK is poor value based on its PEG Ratio (25.1x)


Price to Book Ratio

PB vs Industry: PRK is overvalued based on its PB Ratio (1.1x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRK's forecast earnings growth (0.4% per year) is below the savings rate (2.2%).

Earnings vs Market: PRK's earnings (0.4% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: PRK's revenue (1.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: PRK's revenue (1.1% per year) is forecast to grow slower than 20% 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 (10.3%).


Next Steps

Past Performance

How has Park National performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRK has high quality earnings.

Growing Profit Margin: PRK's current net profit margins (25.2%) are lower than last year (29.6%).


Past Earnings Growth Analysis

Earnings Trend: PRK's earnings have grown by 6.1% per year over the past 5 years.

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

Earnings vs Industry: PRK had negative earnings growth (-4.8%) over the past year, making it difficult to compare to the Banks industry average (1.8%).


Return on Equity

High ROE: PRK's Return on Equity (10.1%) is considered low.


Next Steps

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 (8.9x) is low.

Allowance for Bad Loans: PRK has a low allowance for bad loans (52%).

Low Risk Liabilities: 94% 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 (74%).

Low Risk Deposits: PRK's Loans to Deposits ratio (89%) is appropriate.

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


Next Steps

Dividend

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

6.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRK's dividend (6.04%) is higher than the bottom 25% of dividend payers in the US market (1.7%).

High Dividend: PRK's dividend (6.04%) is in the top 25% of dividend payers in the US market (4.69%)


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 reasonable payout ratio (66.7%), PRK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRK's dividends in 3 years are forecast to be covered by earnings (72.1% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

David Trautman (58yo)

6.5yrs

Tenure

US$2,113,848

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 has been a Director of Park National Corp. since  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.11M) is below average for companies of similar size in the US market ($USD3.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Trautman
CEO & Chairman of the Board6.5yrsUS$2.11m0.40% $4.4m
Matthew Miller
President & Director1.17yrsUS$929.13k0.037% $407.1k
Brady Burt
CFO, Secretary & Treasurer7.58yrsUS$968.46k0.061% $668.5k
Kelly Herreman
Chief Accounting Officer3.25yrsno data0.0087% $95.5k
Jeffrey Wilson
Chief Administrative Officer7.83yrsno datano data
Laura Lewis
Senior VPno datano datano data
Stuart Parsons
Senior Vice Presidentno datano datano data
Phillip Leitnaker
Member of Advisory Board of Fairfield National Divisionno datano datano data
Jerry Nethers
Vice Presidentno datano datano data
Cynthia Crane
Vice Presidentno datano datano data

6.5yrs

Average Tenure

54yo

Average Age

Experienced Management: PRK's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Trautman
CEO & Chairman of the Board6.5yrsUS$2.11m0.40% $4.4m
Matthew Miller
President & Director1.17yrsUS$929.13k0.037% $407.1k
Charles DeLawder
Director26.25yrsUS$888.03k0.85% $9.3m
Donna Alvarado
Independent Director7.25yrsUS$107.53k0.036% $397.3k
Leon Zazworsky
Lead Independent Director8.5yrsUS$136.77k0.29% $3.2m
F. Englefield
Independent Director15.5yrsUS$109.64k0.047% $515.8k
Stephen Kambeitz
Independent Director10.5yrsUS$95.99k0.022% $247.2k
Timothy McLain
Independent Director10.5yrsUS$76.98k0.018% $201.4k
Robert O'Neill
Independent Director7.25yrsUS$107.61k0.13% $1.4m
Julia Sloat
Independent Director5.08yrsUS$73.84k0.016% $176.6k

7.9yrs

Average Tenure

59.5yo

Average Age

Experienced Board: PRK's board of directors are considered experienced (7.9 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.


Recent Insider Transactions

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: AMEX
  • Founded: 1908
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.101b
  • Shares outstanding: 16.30m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRKAMEX (NYSE MKT LLC)YesCommon StockUSUSDAug 1990

Biography

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in Ohio, Northern Kentucky, North Carolina, and South Carolina. It offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services for individual customers. The company also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; consumer loans, such as automobile loans and leases; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, it offers aircraft financing and asset management services. The company operates 125 financial service offices, including 138 automated teller machines. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 00:12
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.