OTCPK:MLGF

Stock Analysis Report

Executive Summary

Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers.


Snowflake Analysis

Established dividend payer and good value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.3%

MLGF

-7.0%

US Banks

-2.6%

US Market


1 Year Return

-28.6%

MLGF

-32.9%

US Banks

-13.3%

US Market

Return vs Industry: MLGF exceeded the US Banks industry which returned -32.9% over the past year.

Return vs Market: MLGF underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

MLGFIndustryMarket
7 Day0.3%-7.0%-2.6%
30 Day-21.3%-24.6%-15.2%
90 Day-24.5%-41.9%-22.2%
1 Year-25.3%-28.6%-30.8%-32.9%-11.5%-13.3%
3 Year-10.2%-19.9%-21.4%-27.3%13.2%5.7%
5 Year12.2%-8.3%2.7%-9.2%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MLGF ($17.3) is trading below our estimate of fair value ($24.89)

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


Price To Earnings Ratio

PE vs Industry: MLGF is good value based on its PE Ratio (8.2x) compared to the Banks industry average (8.6x).

PE vs Market: MLGF is good value based on its PE Ratio (8.2x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MLGF is overvalued based on its PB Ratio (0.9x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

-2.8%

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 Malaga 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.


Next Steps

  • Examine whether Malaga 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 Malaga Financial's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has Malaga Financial performed over the past 5 years?

13.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: MLGF has high quality earnings.

Growing Profit Margin: MLGF's current net profit margins (45.9%) are higher than last year (41%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MLGF's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare MLGF's past year earnings growth to its 5-year average.

Earnings vs Industry: MLGF earnings growth over the past year (13.4%) exceeded the Banks industry 10.9%.


Return on Equity

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


Next Steps

Financial Health

How is Malaga 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


Financial Institutions Analysis

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

Allowance for Bad Loans: Insufficient data to determine if MLGF has a sufficient allowance for bad loans.

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

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

Low Risk Deposits: MLGF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MLGF has an appropriate level of bad loans.


Next Steps

Dividend

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

5.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MLGF's dividend (5.78%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: MLGF's dividend (5.78%) is in the top 25% of dividend payers in the US market (5.66%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43%), MLGF'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?

8.3yrs

Average management tenure


CEO

Randy Bowers (69yo)

13.42s

Tenure

Mr. Randy C. Bowers has been the Chief Executive Officer and President of Malaga Financial Corp. since November 20, 2006. Mr. Bowers serves as the Chief Executive Officer and President of Malaga Bank FSB,  ...


Leadership Team

NamePositionTenureCompensationOwnership
Randy Bowers
Chairman13.42yrsno datano data
Jasna Penich
Executive VP11.67yrsno datano data
Mark Bustamante
Senior Vice President of Income Property Lending - Lending Operationsno datano datano data
Dennis Mezzo
Senior VP & Loan Production Manager of Lending Operationsno datano datano data
Sacha Ohara
Senior VP & Branch Administrator - Retail Banking Operations8.25yrsno datano data
Mark Smith
Senior Vice President of Business Banking - Lending Operations8.25yrsno datano data
John Tellenbach
Chief Credit Officer & Senior VP - Lending Operations4.33yrsno datano data
Mel Hashimoto
VP & Controllerno datano datano data
Raymond Craemer
Corporate Secretary & Director18.25yrsno datano data

8.3yrs

Average Tenure

63.5yo

Average Age

Experienced Management: MLGF's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randy Bowers
Chairman13.42yrsno datano data
Raymond Craemer
Corporate Secretary & Director18.25yrsno datano data
Jerry Donahue
Director18.25yrsno datano data
Leo K. Lee
Director18.25yrsno datano data
Richard Oas
Director18.25yrsno datano data
Kenneth Wible
Director7.25yrsno datano data
Andrew C. Sheng
Director3.42yrsno datano data

18.3yrs

Average Tenure

71yo

Average Age

Experienced Board: MLGF's board of directors are seasoned and experienced ( 18.3 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

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


Key Information

  • Name: Malaga Financial Corporation
  • Ticker: MLGF
  • Exchange: OTCPK
  • Founded: 1985
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$126.434m
  • Shares outstanding: 7.31m
  • Website: https://www.malagabank.com

Number of Employees


Location

  • Malaga Financial Corporation
  • 2514 Via Tejon
  • Palos Verdes Estates
  • California
  • 90274
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLGFOTCPK (Pink Sheets LLC)YesCommon StockUSUSDFeb 1996

Biography

Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. The company offers checking accounts, savings accounts, money market accounts, and certificates of deposit. It also provides business loans and lines of credit, revolving lines of credit, term loans, lease and loan consolidation, equity lines of credit, small business administration loans, and special and income property loans, as well as personal loans and overdraft lines of credit. In addition, the company offers real estate loans comprising residential, construction, commercial, and apartment loans, as well as home equity lines of credit. Further, it provides U.S. savings bond redemption, coupon redemption, wire and telephone transfer, online and mobile banking, bill payer, e-statement, direct deposits, and ATM and VISA debit cards, as well as safe deposit boxes, notary, medallion signature guarantee, trust deed note collection, night depository, bank by mail, and photocopying services. As of April 17, 2018, the company operated six offices in the South Bay area of Los Angeles. Malaga Financial Corporation was founded in 1985 and is headquartered in Palos Verdes Estates, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 06:17
End of Day Share Price2020/04/06 00:00
Earnings2018/12/31
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.