OTCPK:PKKW

Stock Analysis Report

Executive Summary

Parkway Acquisition Corp. operates as the holding company for the Skyline National Bank that provides various banking and financial services to individuals, and small and medium sized businesses in the United States.


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Parkway Acquisition's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PKKW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.1%

PKKW

6.3%

US Mortgage

5.3%

US Market


1 Year Return

-18.6%

PKKW

-26.6%

US Mortgage

-10.7%

US Market

Return vs Industry: PKKW exceeded the US Mortgage industry which returned -26.6% over the past year.

Return vs Market: PKKW underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

PKKWIndustryMarket
7 Day13.1%6.3%5.3%
30 Day-25.7%-26.5%-13.6%
90 Day-28.9%-34.1%-19.8%
1 Year-16.8%-18.6%-24.8%-26.6%-8.9%-10.7%
3 Year-3.0%-6.8%-18.0%-23.8%15.5%8.0%
5 Yearn/a2.8%-8.7%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Parkway Acquisition undervalued compared to its fair value and its price relative to the market?

7.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PKKW ($8.99) is trading above our estimate of fair value ($8.85)

Significantly Below Fair Value: PKKW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PKKW is good value based on its PE Ratio (7.8x) compared to the Mortgage industry average (10.5x).

PE vs Market: PKKW is good value based on its PE Ratio (7.8x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PKKW is good value based on its PB Ratio (0.7x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

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

2.5%

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 Parkway Acquisition 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 Parkway Acquisition 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 Parkway Acquisition's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has Parkway Acquisition performed over the past 5 years?

40.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PKKW has high quality earnings.

Growing Profit Margin: PKKW's current net profit margins (22.2%) are higher than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: PKKW's earnings have grown significantly by 40.4% per year over the past 5 years.

Accelerating Growth: PKKW's earnings growth over the past year (58.1%) exceeds its 5-year average (40.4% per year).

Earnings vs Industry: PKKW earnings growth over the past year (58.1%) exceeded the Mortgage industry 11.1%.


Return on Equity

High ROE: PKKW's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Parkway Acquisition'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: PKKW has a low level of unsold assets or inventory.

Debt Coverage by Assets: PKKW's debt is covered by short term assets (assets are 4.6x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: PKKW has an appropriate level of bad loans (1.7%)


Next Steps

Dividend

What is Parkway Acquisition's current dividend yield, its reliability and sustainability?

2.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PKKW's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: PKKW's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

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

Growing Dividend: PKKW's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.6%), PKKW'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?

3.8yrs

Average management tenure


CEO

Blake Edwards (53yo)

1.25s

Tenure

US$231,294

Compensation

Mr. Blake M. Edwards, Jr., has been President and Chief Executive Officer of Grayson Bankshares Inc. (now, Parkway Acquisition Corp.) since January 1, 2019. Mr. Edwards has been a Director of Parkway Acqui ...


CEO Compensation Analysis

Compensation vs Market: Blake's total compensation ($USD231.29K) is below average for companies of similar size in the US market ($USD605.16K).

Compensation vs Earnings: Blake's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Blake Edwards
President1.25yrsUS$231.29k0.017% $9.5k
Rodney Halsey
Executive VP & COO of Skyline National Bank8.92yrsUS$151.92k0.046% $25.3k
Laurie Vaught
Executive VP & CFO1.25yrsno datano data
Mary Tabor
Executive VP & Chief Credit Officer of Skyline National Bank3.75yrsno datano data
Lynn Murray
Chief Marketing & Human Resources Officer of Skyline National Bank3.75yrsno datano data
Jonathan Kruckow
Executive Vice President & Regional President of Virginiano datano data0.0033% $1.8k
Milo Cockerham
Executive VP & Chief Risk Officer of Skyline National Bankno datano datano data
C. Edwards
Executive VP & Regional President of NC for Skyline National Bankno datano data0.42% $227.1k
Beth Worrell
Executive VP & Chief Risk Officer of Skyline National Bankno datano datano data
Suzanne Yearout
Secretaryno datano datano data

3.8yrs

Average Tenure

50yo

Average Age

Experienced Management: PKKW's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Blake Edwards
President1.25yrsUS$231.29k0.017% $9.5k
Jacky Anderson
Director4.42yrsUS$30.45k0.035% $19.0k
Joseph Conduff
Independent Director4.42yrsUS$27.62k2.17% $1.2m
J. Vaughan
Independent Director4.42yrsUS$29.27k0.16% $87.9k
Thomas Jackson
Independent Chairman of the Board4.42yrsUS$35.73k0.18% $100.0k
Bryan Edwards
Independent Director4.42yrsUS$30.29k0.023% $12.7k
Theresa Lazo
Independent Director4.42yrsUS$28.78k0.30% $162.5k
Frank Stewart
Independent Director1.75yrsUS$15.09k1.87% $1.0m
James Shortt
Independent Vice Chairman of the Board3.83yrsUS$29.69k0.021% $11.4k
Melissa Gentry
Independent Director3.83yrsno datano data

4.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: PKKW's board of directors are considered experienced (4.4 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10%.


Top Shareholders

Company Information

Parkway Acquisition Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Parkway Acquisition Corp.
  • Ticker: PKKW
  • Exchange: OTCPK
  • Founded: 1900
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$54.545m
  • Shares outstanding: 6.07m
  • Website: https://www.skylinenationalbank.bank

Number of Employees


Location

  • Parkway Acquisition Corp.
  • 101 Jacksonville Circle
  • Floyd
  • Virginia
  • 24091
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PKKWOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 2016

Biography

Parkway Acquisition Corp. operates as the holding company for the Skyline National Bank that provides various banking and financial services to individuals, and small and medium sized businesses in the United States. Its deposit products include savings, demand, NOW, and money market deposits; certificates of deposit; and checking accounts and individual retirement accounts. The company also provides single and multi-family housing loans, farm loans, residential and commercial construction loans, loans for commercial real estate, commercial and agricultural production loans, lines of credit, and mortgage loans, as well as consumer loans, such as loans for household expenditures, car loans, and other loans. It operates through 20 full-service banking offices and 4 loan production offices. The company was formerly known as Grayson Bankshares, Inc. Parkway Acquisition Corp. was founded in 1900 and is headquartered in Floyd, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 02:15
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.