OTCPK:FETM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

FETM

2.9%

US Banks

0.07%

US Market


1 Year Return

-2.6%

FETM

8.6%

US Banks

8.9%

US Market

Return vs Industry: FETM underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: FETM underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

FETMIndustryMarket
7 Day0.3%2.9%0.07%
30 Day1.4%3.4%-0.3%
90 Day2.7%2.1%-1.6%
1 Year-1.3%-2.6%11.8%8.6%11.3%8.9%
3 Year51.2%45.8%54.8%44.1%46.3%36.8%
5 Year119.5%103.9%70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

40.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FETM ($21) is trading below our estimate of fair value ($35.48)

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


Price To Earnings Ratio

PE vs Industry: FETM is good value based on its PE Ratio (8.1x) compared to the Banks industry average (12.6x).

PE vs Market: FETM is good value based on its PE Ratio (8.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FETM is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FETM's forecast earnings growth (3.6% per year) is above the savings rate (2.7%).

Earnings vs Market: FETM's earnings (3.6% per year) are forecast to grow slower than the US market (14.5% per year).

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

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

High Growth Revenue: Insufficient data to determine if FETM'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 FETM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Fentura Financial performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FETM's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: FETM's earnings growth over the past year (10.9%) is below its 5-year average (18.2% per year).

Earnings vs Industry: FETM earnings growth over the past year (10.9%) underperformed the Banks industry 29.7%.


Return on Equity

High ROE: FETM's Return on Equity (11.7%) is considered low.


Return on Assets

ROA vs Industry: FETM has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Fentura 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: FETM has a low level of unsold assets or inventory.

Debt Coverage by Assets: FETM's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: FETM has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: FETM has an appropriate level of bad loans (0.13%)


Next Steps

Dividend

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

1.33%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FETM's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FETM's dividend (1.33%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.5%), 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 and that it will be covered by earnings.


Next Steps

Management

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

7.9yrs

Average board tenure


CEO

Ron Justice (54yo)

7.5yrs

Tenure

0

Mr. Ronald L. Justice, also known as Ron has been the Chief Executive Officer and President of Fentura Financial Inc. since April 26, 2012. Mr. Justice has been President and Chief Executive Officer at The ...


Board Age and Tenure

7.9yrs

Average Tenure

61yo

Average Age

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

  • Ron Justice (54yo)

    President

    • Tenure: 7.5yrs
  • Dennis Leyder (65yo)

    Senior Vice President

    • Tenure: 14.8yrs
    • Compensation: US$166.50k
  • Aaron Wirsing

    Secretary

    • Tenure: 0yrs

Board Members

  • Thomas McKenney (67yo)

    Independent Chairman of the Board

    • Tenure: 7.9yrs
    • Compensation: US$22.00k
  • Brian Petty (61yo)

    Independent Vice Chairman of the Board

    • Tenure: 7.9yrs
    • Compensation: US$21.00k
  • Ron Justice (54yo)

    President

    • Tenure: 7.5yrs
  • Patrick Hanniford

    Director of Davison State Bank & Director of Livingston Community Bank

    • Tenure: 0yrs
  • Kenneth Burchfield

    Chairman of Livingston Community Bank and Director of Davison State Bank

    • Tenure: 0yrs
  • Steven Krause (56yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$18.00k
  • William Dery (68yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$18.00k
  • Ron Rybar (62yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$20.00k
  • Randy Hicks (61yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$18.25k

Company Information

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


Key Information

  • Name: Fentura Financial, Inc.
  • Ticker: FETM
  • Exchange: OTCPK
  • Founded: 1898
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$97.833m
  • Shares outstanding: 4.66m
  • Website: https://www.fentura.com

Location

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

Listings

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

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:35
End of Day Share Price2019/10/22 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.