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FETM

Fentura Financial OTCPK:FETM Stock Report

Last Price

US$23.00

Market Cap

US$102.4m

7D

-2.5%

1Y

-10.7%

Updated

01 Oct, 2022

Data

Company Financials
FETM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends1/6

FETM Stock Overview

Fentura Financial, Inc. operates as the bank holding company for The State Bank that provides banking products and services to individuals, small businesses, and governmental entities.

Fentura Financial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fentura Financial
Historical stock prices
Current Share PriceUS$23.00
52 Week HighUS$29.25
52 Week LowUS$23.00
Beta0.65
1 Month Change-4.17%
3 Month Change-7.26%
1 Year Change-10.68%
3 Year Change9.52%
5 Year Change24.66%
Change since IPO92.03%

Recent News & Updates

Shareholder Returns

FETMUS BanksUS Market
7D-2.5%-3.2%-2.5%
1Y-10.7%-26.1%-23.2%

Return vs Industry: FETM exceeded the US Banks industry which returned -26.1% over the past year.

Return vs Market: FETM exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is FETM's price volatile compared to industry and market?
FETM volatility
FETM Average Weekly Movement2.2%
Banks Industry Average Movement3.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: FETM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: FETM's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1898n/aRon Justicehttps://www.fentura.com

Fentura Financial, Inc. operates as the bank holding company for The State Bank that provides banking products and services to individuals, small businesses, and governmental entities. Fentura Financial, Inc. was founded in 1898 and is headquartered in Fenton, Michigan.

Fentura Financial Fundamentals Summary

How do Fentura Financial's earnings and revenue compare to its market cap?
FETM fundamental statistics
Market CapUS$102.45m
Earnings (TTM)US$13.76m
Revenue (TTM)US$57.30m

7.4x

P/E Ratio

0.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FETM income statement (TTM)
RevenueUS$57.30m
Cost of RevenueUS$0
Gross ProfitUS$57.30m
Other ExpensesUS$43.54m
EarningsUS$13.76m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.10
Gross Margin100.00%
Net Profit Margin24.01%
Debt/Equity Ratio93.6%

How did FETM perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

11%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

FETM 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

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

FETM PE Ratio vs Peers
The above table shows the PE ratio for FETM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.5x
TWCF Town and Country Financial
8.1xn/aUS$98.8m
FXNC First National
7.9xn/aUS$95.7m
TYBT Trinity Bank N.A
14.9xn/aUS$95.0m
FMIA First Miami Bancorp
7.5xn/aUS$104.6m
FETM Fentura Financial
7.4xn/aUS$102.4m

Price-To-Earnings vs Peers: FETM is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (9.5x).


Price to Earnings Ratio vs Industry

How does FETM's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: FETM is good value based on its Price-To-Earnings Ratio (7.4x) compared to the US Banks industry average (9.4x)


Price to Earnings Ratio vs Fair Ratio

What is FETM'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.

FETM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.4x
Fair PE Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: FETM ($23) is trading below our estimate of fair value ($63.08)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Fentura Financial 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


10.6%

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 Fentura Financial 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.


Discover growth companies

  • Examine whether Fentura Financial is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Fentura Financial's filings and announcements here.

Past Performance

How has Fentura Financial performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FETM has high quality earnings.

Growing Profit Margin: FETM's current net profit margins (24%) are lower than last year (29.4%).


Past Earnings Growth Analysis

Earnings Trend: FETM's earnings have grown by 15.7% per year over the past 5 years.

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

Earnings vs Industry: FETM had negative earnings growth (-21.2%) over the past year, making it difficult to compare to the Banks industry average (8.4%).


Return on Equity

High ROE: FETM's Return on Equity (11.6%) is considered low.


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Financial Health

How is Fentura Financial's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • 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: FETM's Assets to Equity ratio (12.4x) is moderate.

Allowance for Bad Loans: FETM has a sufficient allowance for bad loans (548%).

Low Risk Liabilities: 91% of FETM's liabilities are made up of primarily low risk sources of funding.

Loan Level: FETM has an appropriate level of Loans to Assets ratio (83%).

Low Risk Deposits: FETM's Loans to Deposits ratio (99%) is appropriate.

Level of Bad Loans: FETM has an appropriate level of bad loans (0.2%).


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Dividend

What is Fentura Financial current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.57%

Current Dividend Yield

Dividend Yield vs Market

Fentura Financial Dividend Yield vs Market
How does Fentura Financial dividend yield compare to the market?
SegmentDividend Yield
Company (Fentura Financial)1.6%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Banks)3.4%
Analyst forecast in 3 Years (Fentura Financial)n/a

Notable Dividend: FETM's dividend (1.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: FETM's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FETM has been paying a dividend for less than 10 years.

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


Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.4%), FETM'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?

10.4yrs

Average board tenure


CEO

Ron Justice (57 yo)

10.42yrs

Tenure

Mr. Justice has served as President and Chief Executive Officer of Fentura since April 2012. Mr. Justice began his career with The State Bank (the “Bank”) after graduating from University of Michigan – Fli...


Board Members

Experienced Board: FETM's board of directors are seasoned and experienced ( 10.4 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

What is the ownership structure of FETM?
Owner TypeNumber of SharesOwnership Percentage
Institutions142,5393.2%
VC/PE Firms298,1496.7%
Individual Insiders436,5679.8%
Hedge Funds457,54510.3%
General Public3,100,13869.9%

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


Top Shareholders

Top 12 shareholders own 30.1% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.32%
Jacobs Asset Management, LLC
457,545$10.5m0%4.82%
6.72%
Banc Funds Company, L.L.C.
298,149$6.9m0%0.63%
3.14%
Ronald Rybar
139,420$3.2m0%no data
2.67%
Siena Capital Partners GP, LLC
118,389$2.7m4.41%0.91%
2.1%
William Dery
92,947$2.1m0%no data
1.53%
Brian Petty
68,067$1.6m0%no data
1.17%
Randy Hicks
52,106$1.2m0%no data
0.83%
Steven Krause
36,615$842.1k0%no data
0.67%
Thomas McKenney
29,574$680.2k0%no data
0.54%
John G. Ullman & Associates, Inc.
24,150$555.5k-0.41%0.1%
0.35%
Ronald Justice
15,491$356.3k0%no data
0.053%
Aaron Wirsing
2,347$54.0k0%no data

Company Information

Fentura Financial, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Fentura Financial, Inc.
  • Ticker: FETM
  • Exchange: OTCPK
  • Founded: 1898
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$102.447m
  • Shares outstanding: 4.43m
  • Website: https://www.fentura.com

Location

  • Fentura Financial, Inc.
  • 175 North Leroy Leroy Street
  • Fenton
  • Michigan
  • 48430
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FETMOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 1995

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.