OTCPK:KTHN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Katahdin Bankshares Corp. operates as the bank holding company for Katahdin Trust Company, a state-chartered commercial bank that provides a range of commercial and retail banking services for individuals and businesses in Maine. More Details


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Katahdin Bankshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KTHN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

KTHN

-1.3%

US Banks

0.09%

US Market


1 Year Return

-8.2%

KTHN

-26.7%

US Banks

12.6%

US Market

Return vs Industry: KTHN exceeded the US Banks industry which returned -26.3% over the past year.

Return vs Market: KTHN underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

KTHNIndustryMarket
7 Day0%-1.3%0.09%
30 Day-2.5%0.3%-1.6%
90 Day0%-3.5%7.9%
1 Year-5.8%-8.2%-24.0%-26.7%15.2%12.6%
3 Year34.0%24.1%-15.5%-22.4%38.9%29.6%
5 Year78.2%54.7%21.0%6.1%87.6%66.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Katahdin Bankshares undervalued compared to its fair value and its price relative to the market?

45.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KTHN ($17.25) is trading below our estimate of fair value ($31.54)

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


Price To Earnings Ratio

PE vs Industry: KTHN is good value based on its PE Ratio (7.3x) compared to the US Banks industry average (9.8x).

PE vs Market: KTHN is good value based on its PE Ratio (7.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KTHN's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

27.2%

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 Katahdin Bankshares 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.


Next Steps

  • Examine whether Katahdin Bankshares 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 theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Katahdin Bankshares's filings and announcementshere.
  • Explore growth companies in the Banks industry.

Past Performance

How has Katahdin Bankshares performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTHN has high quality earnings.

Growing Profit Margin: KTHN's current net profit margins (24.4%) are higher than last year (21.8%).


Past Earnings Growth Analysis

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

Accelerating Growth: KTHN's earnings growth over the past year (14.9%) is below its 5-year average (18.2% per year).

Earnings vs Industry: KTHN earnings growth over the past year (14.9%) exceeded the Banks industry -3.1%.


Return on Equity

High ROE: KTHN's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Katahdin Bankshares'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: KTHN's Assets to Equity ratio (13.8x) is moderate.

Allowance for Bad Loans: KTHN has a sufficient allowance for bad loans (159%).

Low Risk Liabilities: 93% of KTHN's liabilities are made up of primarily low risk sources of funding.

Loan Level: KTHN has an appropriate level of Loans to Assets ratio (81%).

Low Risk Deposits: KTHN's Loans to Deposits ratio (94%) is appropriate.

Level of Bad Loans: KTHN has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

What is Katahdin Bankshares's current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KTHN's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: KTHN's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: KTHN's dividends per share have been stable in the past 10 years.

Growing Dividend: KTHN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.4%), KTHN'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

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

12.8yrs

Average board tenure


CEO

Jon Prescott (52 yo)

23.67yrs

Tenure

Mr. Jon Joseph Prescott has been the Chief Executive Officer and President of Katahdin Bankshares Corp. and its subsidiary Katahdin Trust Company since 1997. Mr. Prescott has been a Director of Katahdin Ba ...


Board Members

NamePositionTenureCompensationOwnership
Jon Prescott
President23.67yrsno data1.89%
$ 1.1m
Kimberley Niles
Director4.92yrsno datano data
Richard York
Vice Chairman of the Boardno datano data1.12%
$ 634.2k
Paul Powers
Director20.67yrsno data1.3%
$ 739.9k
Steven Richardson
Chairman of the Board23.67yrsno data2.85%
$ 1.6m
Peter Briggs
Director25.67yrsno data1.46%
$ 828.0k
Richard Harnum
Director3yrsno datano data
Keith Bourgoin
Director1.75yrsno datano data
Marianna Liddell
Director1.75yrsno datano data

12.8yrs

Average Tenure

71yo

Average Age

Experienced Board: KTHN's board of directors are seasoned and experienced ( 12.8 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

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


Top Shareholders

Company Information

Katahdin Bankshares Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Katahdin Bankshares Corp.
  • Ticker: KTHN
  • Exchange: OTCPK
  • Founded: 1918
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$56.882m
  • Shares outstanding: 3.30m
  • Website: https://www.katahdintrust.com

Number of Employees


Location

  • Katahdin Bankshares Corp.
  • 11 Main Street
  • PO Box 450
  • Patten
  • Maine
  • 4765
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KTHNOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2003

Biography

Katahdin Bankshares Corp. operates as the bank holding company for Katahdin Trust Company, a state-chartered commercial bank that provides a range of commercial and retail banking services for individuals ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 06:28
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.