OTCPK:EFIN

Stock Analysis Report

Eastern Michigan Financial

Executive Summary

Eastern Michigan Financial Corporation operates as the bank holding company for Eastern Michigan Bank that provides retail and commercial banking services in Michigan.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Share Price & News

How has Eastern Michigan Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

EFIN

2.7%

US Banks

0.5%

US Market


1 Year Return

6.1%

EFIN

2.9%

US Banks

6.8%

US Market

Return vs Industry: EFIN exceeded the US Banks industry which returned 2.9% over the past year.

Return vs Market: EFIN matched the US Market which returned 6.8% over the past year.


Shareholder returns

EFINIndustryMarket
7 Day0%2.7%0.5%
30 Day-1.9%1.1%-0.8%
90 Day0%2.7%-0.9%
1 Year9.9%6.1%5.8%2.9%9.2%6.8%
3 Year46.4%33.3%52.0%41.5%45.6%36.2%
5 Year93.4%65.1%69.2%50.7%63.2%45.4%

Price Volatility Vs. Market

How volatile is Eastern Michigan Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Eastern Michigan Financial undervalued compared to its fair value and its price relative to the market?

6.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EFIN ($26) is trading below our estimate of fair value ($27.66)

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


Price To Earnings Ratio

PE vs Industry: EFIN is good value based on its PE Ratio (8.3x) compared to the Banks industry average (12.5x).

PE vs Market: EFIN is good value based on its PE Ratio (8.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EFIN is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Eastern Michigan Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFIN's forecast earnings growth (5.9% per year) is above the savings rate (2.7%).

Earnings vs Market: EFIN's earnings (5.9% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: Insufficient data to determine if EFIN's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if EFIN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EFIN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Eastern Michigan Financial performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EFIN's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: EFIN's earnings growth over the past year (38.7%) exceeds its 5-year average (14.8% per year).

Earnings vs Industry: EFIN earnings growth over the past year (38.7%) exceeded the Banks industry 29.7%.


Return on Equity

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


Return on Assets

ROA vs Industry: EFIN's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate EFIN's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Eastern Michigan Financial'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

Inventory Level: EFIN has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if EFIN's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: EFIN's level of assets compared to its equity is low.

Allowance for Bad Loans: EFIN has a low allowance for bad loans.

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

Loan Level: EFIN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EFIN's loans are broadly funded by customer deposits.

Level of Bad Loans: EFIN has an appropriate level of bad loans (0.92%)


Next Steps

Dividend

What is Eastern Michigan Financial's current dividend yield, its reliability and sustainability?

3.12%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EFIN's dividend (3.12%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EFIN's dividend (3.12%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: EFIN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EFIN's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.6%), EFIN'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 and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Eastern Michigan Financial's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average board tenure


CEO

Tim Ward 0

4.8yrs

Tenure

0

Mr. Timothy M. Ward serves as the Chief Executive Officer and Vice Chairman of Eastern Michigan Financial Corporation and Eastern Michigan Bank. Mr. Ward served as President of Eastern Michigan Financial C ...


Board Age and Tenure

6.5yrs

Average Tenure

Experienced Board: EFIN's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Will Oldford (54yo)

    President & Director

    • Tenure: 3.9yrs
  • Tim Ward

    Vice Chairman & CEO

    • Tenure: 4.8yrs
  • Errin McMillan

    VP & CFO

    • Tenure: 0yrs

Board Members

  • Will Oldford (54yo)

    President & Director

    • Tenure: 3.9yrs
  • Earl DesJardins

    Chairman

    • Tenure: 0yrs
  • Bradley Apsey

    Director

    • Tenure: 0yrs
  • Karen Flanagan

    Director

    • Tenure: 0yrs
  • Tim Ward

    Vice Chairman & CEO

    • Tenure: 4.8yrs
  • John Williams

    Director

    • Tenure: 17.8yrs
  • Patricia Ryan

    Director

    • Tenure: 0yrs
  • Kathlene Partaka

    Director

    • Tenure: 0yrs
  • Donna Niester

    Director

    • Tenure: 0yrs

Company Information

Eastern Michigan Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eastern Michigan Financial Corporation
  • Ticker: EFIN
  • Exchange: OTCPK
  • Founded: 1895
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$31.292m
  • Shares outstanding: 1.20m
  • Website: https://www.easternmichiganbank.com

Location

  • Eastern Michigan Financial Corporation
  • 65 North Howard Avenue
  • Croswell
  • Michigan
  • 48422
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFINOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2003

Biography

Eastern Michigan Financial Corporation operates as the bank holding company for Eastern Michigan Bank that provides retail and commercial banking services in Michigan. The company offers checking, savings, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:43
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.