Affinity Bancshares (AFBI) AI Stock Analysis

• Market Cap: $138.77M
• Dividend Yield: N/A
• Average Volume (3M): 3.50K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.09
• Revenue Growth: 5.18%
• EPS Growth: 36.12%
• Country: US
• Employees: 88
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.34
• Shares Outstanding: 6,167,602
• 10 Day Avg. Volume: 3,583
• 30 Day Avg. Volume: 3,498
• 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: 0.85
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 16.10
• Enterprise Value/Ebitda: 11.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $24.50 ▲(24.05% Upside)

Affinity Bancshares' overall stock score is driven by solid financial performance and strong technical indicators. The company's prudent debt management and profitability are strengths, but declining revenue growth and cash flow challenges are concerns. The technical analysis shows bullish momentum, though overbought signals suggest caution. Valuation is moderate, with no dividend yield to attract income investors.

Positive Factors

Leadership Stability

The extension of executive employment agreements ensures leadership stability, supporting consistent operations and strategic planning.

Profitability

Strong profit margins indicate effective cost management and pricing power, supporting long-term financial health and competitiveness.

Prudent Debt Management

A low debt-to-equity ratio reflects prudent financial management, providing flexibility and reducing financial risk.

Negative Factors

Declining Revenue Growth

Declining revenue growth could limit future earnings potential and market share expansion if not addressed.

Cash Flow Challenges

Challenges in cash flow growth may hinder the company's ability to fund operations and investments, impacting long-term sustainability.

Decreasing Gross Profit Margin

A declining gross profit margin can affect profitability, indicating potential issues in cost control or pricing strategy.

Affinity Bancshares Business Overview & Revenue Model

Company Description

Affinity Bancshares (AFBI) is a financial holding company based in the United States that primarily operates in the banking sector. It provides a range of banking services, including personal and commercial loans, mortgage lending, and deposit products such as savings and checking accounts. The company aims to serve both individual consumers and businesses, focusing on building long-term relationships with its clients through tailored financial solutions.

How the Company Makes Money

Affinity Bancshares generates revenue through several key streams. Primarily, the company earns interest income from the loans it issues to customers, including mortgages, personal loans, and commercial loans. Additionally, AFBI receives income from fees associated with various banking services, such as account maintenance fees, transaction fees, and service charges. The bank may also earn revenue through investment activities, including interest and dividends from securities it holds. Strategic partnerships with local businesses and community organizations can enhance its customer base and contribute to its overall earnings. The company’s efficiency in managing its interest rate spread—the difference between interest earned on loans and interest paid on deposits—is also a critical factor in its profitability.

Affinity Bancshares Financial Statement Overview

Summary

Affinity Bancshares demonstrates strong profitability and prudent debt management, with a healthy net profit margin and low debt-to-equity ratio. However, declining revenue growth and cash flow challenges pose potential risks.

Income Statement

Affinity Bancshares shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a healthy net profit margin of 15.02% and an EBIT margin of 19.43%, indicating strong profitability. The gross profit margin has decreased significantly over the years, which could impact future profitability if not addressed.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.43 in the most recent annual report, indicating prudent financial management. Return on equity has shown improvement, reaching 6.03% in the TTM period, suggesting efficient use of equity. However, the equity ratio has slightly decreased, which could be a potential risk if the trend continues.

Cash Flow

Cash flow analysis reveals some challenges, with a negative free cash flow growth rate in the TTM period. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio remains strong at 96.06%, suggesting that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.23M	49.99M	45.17M	34.54M	35.13M	32.48M
Gross Profit	7.37M	30.61M	29.71M	31.45M	30.88M	25.01M
EBITDA	10.59M	7.72M	9.12M	9.66M	10.59M	4.58M
Net Income	7.55M	5.44M	6.45M	7.13M	7.57M	3.09M
Balance Sheet
Total Assets	925.22M	866.82M	843.26M	791.28M	788.09M	850.63M
Cash, Cash Equivalents and Short-Term Investments	50.76M	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	799.82M	737.70M	721.74M	674.18M	667.12M	769.84M
Stockholders Equity	125.41M	129.12M	121.52M	117.10M	120.97M	80.78M
Cash Flow
Free Cash Flow	10.22M	6.37M	7.34M	6.17M	11.02M	920.00K
Operating Cash Flow	10.24M	6.79M	7.87M	7.57M	11.85M	1.37M
Investing Cash Flow	-15.66M	-33.24M	-28.14M	-93.72M	-9.62M	-110.38M
Financing Cash Flow	37.96M	17.85M	43.97M	701.00K	-68.70M	239.15M

Affinity Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.75
• 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 19.75 is below the 20-day moving average (MA) of 20.19, above the 50-day MA of 19.42, and above the 200-day MA of 18.86, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 62.55 is Neutral, neither overbought nor oversold. The STOCH value of 79.21 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
FNWD	73 Outperform	$164.51M	19.93	5.05%	0.96%	-7.20%	-29.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AFBI	68 Neutral	$138.77M	18.41	5.95%	―	5.18%	36.12%
SRBK	67 Neutral	$132.12M	45.59	1.57%	0.88%	9.43%	166.36%
SFBC	63 Neutral	$110.88M	16.37	6.52%	1.75%	2.85%	73.41%
RVSB	61 Neutral	$109.98M	23.65	2.90%	1.51%	8.77%	369.81%
PNBK	55 Neutral	$220.78M	-0.68	-35.87%	―	-11.99%	63.64%

Affinity Bancshares Corporate Events

Affinity Bancshares Extends Executive Employment Agreements

On September 25, 2025, Affinity Bancshares, Inc. announced the extension of employment agreements for key executives, including the CEO and CFO, with new expiration dates set for 2027 and 2028. This decision reflects the company’s commitment to maintaining leadership stability, which could positively impact its operational consistency and strategic planning.