American Business Bank provides various banking and financial services to wholesalers, manufacturers, businesses, professionals, and non-profits in California.
The last earnings update was 50 days ago.
Discounted Cash Flow Calculation for OTCPK:AMBZ using Excess Returns Model Model
The calculations below outline how an intrinsic value for American Business Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
American Business Bank
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
American Business Bank's
is considered below, and whether this is a fair price.
Price based on past earnings
American Business Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
American Business Bank's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Unable to determine if American Business Bank is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
American Business Bank's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
American Business Bank
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
American Business Bank's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Leon I. Blankstein serves as the President, Chief Executive Officer and Director of American Business Bank (the “Bank”). He was one of the original Organizers and Founders of the Bank. After obtaining a B.S. in Economics from USC in 1981, Mr. Blankstein began his banking career as a Management Trainee in the Commercial Loan Department at Bank of America (“BOA”) where he was quickly promoted to Loan Officer. He stayed at BOA two years before accepting a position as a Corporate Banking Officer at 1st Business Bank (“1st Bank”). Mr. Blankstein’s career at 1st Bank spanned 14 years, during which time he was promoted to Vice President/Group Manager in the corporate downtown office. He completed the last few years of his career with 1st Bank assisting with the growth of the San Fernando Valley Regional Office. Mr. Blankstein and four other senior banking officers left 1st Bank to form American Business Bank. Mr. Blankstein was a Member of the Lions Club in Gardena for approximately ten years. He is currently on the Board of the Jewish Home for the Aging.
Insufficient data for Leon to compare compensation growth.
Insufficient data for Leon to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
American Business Bank
management team in years:
The tenure for the American Business Bank management team is about average.
American Business Bank provides various banking and financial services to wholesalers, manufacturers, businesses, professionals, and non-profits in California. Its deposit products include checking, money market, savings, business demand deposit, business money market, special deposit, zero balance, and sweep accounts, as well as certificates of deposit. The company’s loan products comprise personal loans, lines of credit, short term working capital lines, term loans, commercial/industrial real estate loans, and accounts receivable lines. It also offers various services, such as telephone notification, lock box processing, investment, courier, remote deposit, consulting, general business advice, investment banking, investment management, equipment leasing, residential mortgage lending, and professional referral services, as well as online banking services consisting of bill payment, fund transfer, account information, automatic clearing house origination, stop payment, and wire transfer services; and provides credit cards and ATM cards. In addition, the company offers international banking services, including international money transfer, letters of credit, foreign currency deposit, documentary and cleaning collection, and foreign currency exchange services. It operates through five loan production offices in Anaheim, Irvine, Torrance, the Warner Center, and Ontario. American Business Bank was founded in 1998 and is headquartered in Los Angeles, California.
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