Affinity Bancshares (AFBI) AI Stock Analysis

• Market Cap: $123.77M
• Dividend Yield: N/A
• Average Volume (3M): 8.32K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.13
• Revenue Growth: 6.51%
• EPS Growth: 28.94%
• Country: US
• Employees: 88
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.33
• Shares Outstanding: 6,292,422
• 10 Day Avg. Volume: 15,370
• 30 Day Avg. Volume: 8,322
• PEG Ratio: -1.38
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 17.62
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 5.31
• Enterprise Value/Ebitda: 16.87
• 1Y Price Target: $22.00
• Price Target Upside: 12.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $22.00 ▲(12.47% Upside)

Affinity Bancshares' strong financial performance and positive technical indicators contribute significantly to its overall score. The company's robust revenue growth and cash flow generation are key strengths, though challenges with net profit margins and leverage need addressing. The stock's valuation is reasonable, but the lack of a dividend yield might limit its appeal to some investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product demand, supporting long-term business expansion and stability.

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, allowing for reinvestment in business operations and potential debt reduction.

Gross Profit Margin

A strong gross profit margin reflects effective cost control and pricing power, contributing to sustainable profitability.

Negative Factors

Net Profit Margin Decline

Declining net profit margins can erode profitability, necessitating cost management and efficiency improvements to maintain earnings.

Increasing Leverage

Rising leverage may constrain financial flexibility and increase risk, requiring careful management to avoid long-term financial strain.

Low Return on Equity

Low ROE indicates inefficient use of equity capital, potentially impacting investor confidence and long-term shareholder value.

Affinity Bancshares Business Overview & Revenue Model

Company Description

Affinity Bancshares (AFBI) is a financial services holding company based in the United States, primarily focused on providing a range of banking and financial solutions. The company operates through its subsidiary, which offers various products and services, including personal and commercial banking, mortgage lending, and wealth management. Affinity Bancshares aims to serve both individual customers and businesses, emphasizing customer-centric solutions and community engagement.

How the Company Makes Money

Affinity Bancshares generates revenue through multiple key streams, primarily from interest income on loans and mortgages issued to customers. The company earns interest from its loan portfolio, which includes personal loans, commercial loans, and residential mortgages. Additionally, AFBI generates non-interest income through fees associated with account maintenance, transaction services, and wealth management services. Partnerships with local businesses and community organizations also contribute to its customer base and revenue through increased lending activities and cross-selling opportunities. The bank's focus on community-oriented banking helps foster customer loyalty and retention, further enhancing its earnings potential.

Affinity Bancshares Financial Statement Overview

Summary

Affinity Bancshares shows consistent revenue growth and strong profit margins. However, declines in EBIT and EBITDA margins, along with room for improvement in cash generation efficiency, suggest operational challenges.

Income Statement

Affinity Bancshares has demonstrated consistent revenue growth, with a notable increase of 11.5% in the most recent TTM period. Gross profit margin remains strong at 61.4%, and the net profit margin is healthy at 11.7%. However, there is a noticeable decline in EBIT and EBITDA margins, suggesting potential cost pressures or efficiency challenges.

Balance Sheet

The balance sheet shows a stable equity ratio of 13.4%, indicating a solid base of equity relative to assets. The debt-to-equity ratio has improved, reaching 0.44, reflecting controlled leverage levels. Return on equity is satisfactory at 4.9%, though it suggests room for improvement in profitability relative to equity.

Cash Flow

Operating cash flow growth is positive, with a 10.3% increase over the previous period. The free cash flow to net income ratio stands at 1.19, indicating efficient cash conversion from earnings. The operating cash flow to net income ratio is slightly low at 1.26, which could imply less cash generation efficiency from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.20M	49.99M	45.17M	34.54M	35.13M	32.48M
Gross Profit	31.42M	30.61M	29.71M	31.45M	30.88M	25.01M
EBITDA	9.89M	7.72M	9.12M	9.66M	10.59M	4.58M
Net Income	7.06M	5.44M	6.45M	7.13M	7.57M	3.09M
Balance Sheet
Total Assets	933.80M	866.82M	843.26M	791.28M	788.09M	850.63M
Cash, Cash Equivalents and Short-Term Investments	46.62M	41.42M	98.59M	72.52M	160.33M	202.26M
Total Debt	54.00M	60.40M	40.00M	10.03M	48.99M	24.12M
Total Liabilities	809.70M	737.70M	721.74M	674.18M	667.12M	769.84M
Stockholders Equity	124.10M	129.12M	121.52M	117.10M	120.97M	80.78M
Cash Flow
Free Cash Flow	10.23M	6.37M	7.34M	6.17M	11.02M	920.00K
Operating Cash Flow	10.65M	6.79M	7.87M	7.57M	11.85M	1.37M
Investing Cash Flow	-22.28M	-33.24M	-28.14M	-93.72M	-9.62M	-110.38M
Financing Cash Flow	50.90M	17.85M	43.97M	701.00K	-68.70M	239.15M

Affinity Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFBI, the sentiment is Positive. The current price of 19.56 is above the 20-day moving average (MA) of 19.30, above the 50-day MA of 19.02, and above the 200-day MA of 18.38, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 73.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFBI.

Affinity Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFBI	76 Outperform	$123.77M	18.25	5.67%	―	6.51%	28.94%
FNWD	71 Outperform	$137.32M	25.69	3.51%	1.51%	-7.40%	-59.70%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
SFBC	66 Neutral	$121.07M	19.42	6.07%	1.61%	7.86%	59.25%
RVSB	60 Neutral	$101.39M	19.72	3.25%	1.60%	10.30%	170.86%
SRBK	57 Neutral	$122.06M	33.68	1.91%	0.67%	26.46%	―
PNBK	55 Neutral	$165.59M	―	-82.98%	―	-11.96%	-500.26%