Bank of Princeton (BPRN) AI Stock Analysis

• Market Cap: $241.50M
• Dividend Yield: 3.5%
• Average Volume (3M): 10.25K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.62
• Revenue Growth: 12.92%
• EPS Growth: 56.52%
• Country: US
• Employees: 242
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.95
• Shares Outstanding: 6,762,859
• 10 Day Avg. Volume: 11,108
• 30 Day Avg. Volume: 10,252
• PEG Ratio: -0.36
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 17.03
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: 8.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $37.00 ▲(3.61% Upside)

The Bank of Princeton's strong profitability and stable balance sheet are key strengths, though the sharp decline in revenue growth is a major concern. Positive technical indicators and a significant dividend increase support the stock's attractiveness, but valuation remains moderate.

Positive Factors

Profitability

A high net profit margin indicates efficient cost management and strong earnings potential, supporting long-term financial stability.

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, enabling the bank to invest in growth opportunities and weather economic downturns.

Dividend Increase

The dividend increase reflects management's confidence in the company's financial health and commitment to returning value to shareholders.

Negative Factors

Revenue Growth Decline

A sharp decline in revenue growth can signal weakening market demand or operational challenges, potentially impacting long-term growth prospects.

Declining ROE

Declining ROE may indicate less efficient use of equity capital, potentially affecting investor confidence and future investment returns.

Executive Compensation Plan Amendment

Changes in executive compensation plans can alter management incentives, potentially impacting strategic decision-making and company performance.

Bank of Princeton Business Overview & Revenue Model

Company Description

Princeton Bancorp, Inc. operates as a bank holding company. It is a full-service financial institution that provides business and personal banking. It offers traditional retail banking services, one-to-four-family residential mortgage loans, multi-family and commercial mortgage loans, construction loans, commercial business loans, and consumer loans, including home equity loans and lines of credit. The company was founded in 2017 and is headquartered in Princeton, NJ.

How the Company Makes Money

Bank of Princeton generates revenue primarily through interest income from loans and mortgages, which constitute a significant portion of its earnings. The bank offers various loan products, including personal loans, auto loans, commercial real estate loans, and business loans, earning interest on these loans over their term. Additionally, BPRN earns non-interest income through service fees, account maintenance charges, and transaction fees for services such as wire transfers and ATM usage. The bank may also generate income from investment securities, which include U.S. Treasury bonds and government agency securities. Strategic partnerships with local businesses and community organizations help enhance its customer base and increase deposit levels, further contributing to its revenue streams.

Bank of Princeton Financial Statement Overview

Summary

The Bank of Princeton demonstrates a mixed financial performance. While profitability metrics are strong, the significant decline in revenue growth in the TTM is a major concern. The balance sheet remains stable with low leverage, but declining ROE could pose future risks. Cash flow generation has improved, yet the lack of some TTM ratios limits a full assessment. Overall, the bank shows financial resilience but faces challenges in sustaining growth.

Income Statement

The Bank of Princeton shows a mixed performance in its income statement. The TTM data indicates a significant decline in revenue growth, with a negative growth rate of -80.1%, which is concerning. However, the bank maintains a strong net profit margin of 42.25% in the TTM, showcasing profitability. Historical data shows fluctuating EBIT and EBITDA margins, with a notable drop in gross profit margin from 2022 to the TTM. Overall, while profitability remains strong, the sharp decline in revenue growth is a critical weakness.

Balance Sheet

The balance sheet of the Bank of Princeton is relatively stable. The debt-to-equity ratio is low, indicating conservative leverage, which is a positive sign of financial stability. Return on equity has decreased in the TTM compared to previous years, which could be a concern for investors. The equity ratio remains healthy, suggesting a strong capital base. Overall, the balance sheet reflects stability with low leverage, but declining ROE could be a potential risk.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate of 54.1% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is not available for the TTM, but historical data shows variability. The free cash flow to net income ratio is robust at 84.68% in the TTM, reflecting efficient cash conversion. Despite the positive cash flow growth, the absence of some ratios in the TTM data limits a comprehensive analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	140.81M	131.10M	105.40M	78.94M	73.94M	66.48M
Gross Profit	76.58M	69.58M	69.13M	72.55M	63.64M	48.43M
EBITDA	25.25M	15.10M	32.31M	36.10M	31.14M	19.18M
Net Income	17.76M	10.24M	25.77M	26.49M	22.49M	13.81M
Balance Sheet
Total Assets	2.23B	2.34B	1.92B	1.60B	1.69B	1.60B
Cash, Cash Equivalents and Short-Term Investments	193.79M	227.59M	125.88M	106.64M	113.18M	143.06M
Total Debt	21.22M	22.94M	24.28M	26.77M	18.56M	18.99M
Total Liabilities	1.96B	2.08B	1.68B	1.38B	1.47B	1.39B
Stockholders Equity	266.61M	262.04M	240.21M	219.60M	216.58M	208.82M
Cash Flow
Free Cash Flow	12.35M	13.21M	21.40M	23.38M	11.71M	15.00M
Operating Cash Flow	13.70M	14.73M	23.11M	23.99M	12.90M	18.10M
Investing Cash Flow	9.67M	-154.05M	-5.76M	-26.46M	3.54M	-140.25M
Financing Cash Flow	-131.53M	106.11M	79.85M	-102.89M	64.84M	126.98M

Bank of Princeton Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BPRN, the sentiment is Positive. The current price of 35.71 is above the 20-day moving average (MA) of 34.86, above the 50-day MA of 32.93, and above the 200-day MA of 31.16, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 50.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BPRN.

Bank of Princeton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCNB	77 Outperform	$239.75M	9.94	8.97%	5.21%	5.07%	228.39%
HWBK	74 Outperform	$237.42M	10.35	14.27%	2.30%	0.16%	258.06%
OPBK	74 Outperform	$214.50M	9.19	10.99%	3.32%	9.10%	12.36%
FRAF	73 Outperform	$240.21M	14.93	9.91%	2.44%	12.06%	10.38%
BPRN	73 Outperform	$241.50M	13.88	6.73%	3.50%	12.92%	56.52%
CFFI	71 Outperform	$237.46M	8.92	10.89%	2.51%	8.53%	42.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Bank of Princeton Corporate Events

Bank of Princeton Amends Executive Compensation Plan

On November 19, 2025, The Bank of Princeton‘s Board of Directors approved an amendment to the Deferred Compensation Plan, effective January 1, 2026. This plan allows the CEO and COO to defer a portion of their cash compensation into phantom investments, including company stock, and offers discretionary employer contributions subject to approval. The plan is voluntary, requiring annual deferral elections and offering flexible payout options, impacting the company’s executive compensation strategy.

Princeton Bancorp Announces 16.7% Dividend Increase

On October 29, 2025, Princeton Bancorp, Inc. announced a 16.7% increase in its third-quarter cash dividend, declaring a cash dividend of $0.35 per share of common stock. This decision reflects the Board of Directors and management’s confidence in the company’s performance and commitment to providing strong returns to shareholders. The dividend will be payable on November 26, 2025, to shareholders of record as of November 7, 2025. The announcement underscores the company’s strategic focus on maintaining financial health and delivering shareholder value, although future dividends are contingent on various factors, including financial conditions and regulatory requirements.