OTCPK:PKKW

Stock Analysis Report

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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. More Details


Snowflake Analysis

Excellent balance sheet with proven 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

PKKW

-5.0%

US Mortgage

-1.4%

US Market


1 Year Return

-29.2%

PKKW

-20.2%

US Mortgage

17.8%

US Market

Return vs Industry: PKKW underperformed the US Mortgage industry which returned -19.2% over the past year.

Return vs Market: PKKW underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

PKKWIndustryMarket
7 Day-1.7%-5.0%-1.4%
30 Day-7.9%2.6%4.7%
90 Day-14.5%9.5%8.2%
1 Year-27.4%-29.2%-17.8%-20.2%20.5%17.8%
3 Year-20.8%-25.0%-5.8%-13.6%42.2%32.7%
5 Yearn/a20.1%4.0%83.4%62.7%

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?

8.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PKKW ($8.55) is trading above our estimate of fair value ($8.24)

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 (8x) compared to the US Mortgage industry average (11.1x).

PE vs Market: PKKW is good value based on its PE Ratio (8x) compared to the US market (19x).


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 (0.6x) 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?

-11.9%

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

Past Performance

How has Parkway Acquisition performed over the past 5 years?

38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PKKW has high quality earnings.

Growing Profit Margin: PKKW's current net profit margins (20.3%) are higher than last year (18.6%).


Past Earnings Growth Analysis

Earnings Trend: PKKW's earnings have grown significantly by 38.3% per year over the past 5 years.

Accelerating Growth: PKKW's earnings growth over the past year (10.3%) is below its 5-year average (38.3% per year).

Earnings vs Industry: PKKW earnings growth over the past year (10.3%) exceeded the Mortgage industry 6%.


Return on Equity

High ROE: PKKW's Return on Equity (7.9%) 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


Financial Institutions Analysis

Asset Level: PKKW's Assets to Equity ratio (9.6x) is low.

Allowance for Bad Loans: PKKW has a low allowance for bad loans (98%).

Low Risk Liabilities: 97% of PKKW's liabilities are made up of primarily low risk sources of funding.

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

Low Risk Deposits: PKKW's Loans to Deposits ratio (93%) is appropriate.

Level of Bad Loans: PKKW has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

3.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PKKW's dividend (3.04%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: PKKW's dividend (3.04%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 (24.4%), 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?

3.0yrs

Average management tenure


CEO

Blake Edwards (54 yo)

1.75yrs

Tenure

US$336,162

Compensation

Mr. Blake M. Edwards, Jr., has been President and Chief Executive Officer of Parkway Acquisition Corp. since January 1, 2019 and as its Director since February 19 2019. He is President and Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Blake's total compensation ($USD336.16K) is below average for companies of similar size in the US market ($USD589.00K).

Compensation vs Earnings: Blake's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Blake Edwards
President1.75yrsUS$336.16k0.017%
$ 9.0k
Jonathan Kruckow
Executive VP & Regional President of Virginia for Skyline National Bankno dataUS$184.58k0.0033%
$ 1.7k
C. Edwards
Executive VP & Regional President of NC for Skyline National Bankno dataUS$175.89k0.42%
$ 216.0k
Laurie Vaught
Executive VP & CFO1.75yrsno datano data
Rodney Halsey
Executive VP & COO of Skyline National Bank9.42yrsUS$151.92k0.046%
$ 24.1k
Mary Tabor
Executive VP & Chief Credit Officer of Skyline National Bank4.25yrsno datano data
Lynn Murray
Chief Marketing & Human Resources Officer of Skyline National Bank4.25yrsno datano data
Milo Cockerham
Executive VP & Chief Retail Banking Officer of Skyline National Bankno datano datano data
Beth Worrell
Executive VP & Chief Risk Officer of Skyline National Bank1.75yrsno datano data
Suzanne Yearout
Secretaryno datano datano data
Jena Reeves
VP, BSA Officerno datano datano data

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: PKKW's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Blake Edwards
President1.75yrsUS$336.16k0.017%
$ 9.0k
Jacky Anderson
Director4.92yrsUS$29.64k0.035%
$ 18.1k
Joseph Conduff
Independent Director4.92yrsUS$27.22k2.17%
$ 1.1m
J. Vaughan
Independent Director4.92yrsUS$26.35k0.16%
$ 83.6k
Thomas Jackson
Independent Chairman of the Board4.92yrsUS$31.20k0.18%
$ 95.1k
Bryan Edwards
Independent Director4.92yrsUS$28.29k0.023%
$ 12.0k
Theresa Lazo
Independent Director4.92yrsUS$27.26k0.30%
$ 154.6k
Frank Stewart
Independent Director2.25yrsUS$25.73k1.88%
$ 972.5k
T. Gallimore
Independent Director4.92yrsUS$26.42k0.13%
$ 69.7k
James Shortt
Independent Vice Chairman of the Board4.33yrsUS$28.59k0.021%
$ 10.8k
R. Jarratt
Independent Director4.92yrsUS$26.66k0.61%
$ 315.9k
A. Gentry
Independent Director4.33yrsUS$26.24kno data

4.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PKKW's board of directors are considered experienced (4.9 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.


Recent Insider Transactions

Ownership Breakdown

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


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$51.820m
  • Shares outstanding: 6.06m
  • 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 Uni ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 01:00
End of Day Share Price2020/10/21 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.