Bank of Princeton (BPRN) AI Stock Analysis

• Market Cap: $220.18M
• Dividend Yield: 3.72%
• Average Volume (3M): 8.66K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.84
• Revenue Growth: 16.39%
• EPS Growth: -72.87%
• Country: US
• Employees: 242
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.10
• Shares Outstanding: 6,747,923
• 10 Day Avg. Volume: 10,913
• 30 Day Avg. Volume: 8,662
• 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: 1.01
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 3.05
• Enterprise Value/Ebitda: 13.31
• 1Y Price Target: $35.00
• Price Target Upside: 8.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $35.00 ▲(8.43% Upside)

The Bank of Princeton's overall stock score is driven by strong financial performance and a stable dividend yield. However, the high P/E ratio and recent impairment charge pose risks. Technical indicators suggest a cautious outlook, with mixed signals on momentum.

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 through various channels, primarily through interest income from loans and mortgages, which constitutes a significant portion of its earnings. The bank lends money to consumers and businesses, charging interest on these loans, which provides a steady income stream. Additionally, BPRN earns money through fees associated with account services, such as overdraft fees, ATM fees, and maintenance fees on accounts. The bank may also generate revenue from investment services and wealth management fees. Strategic partnerships with local businesses and community organizations can enhance customer acquisition and retention, further contributing to its revenue base. Overall, the bank's focus on community banking allows it to cultivate loyal customer relationships, which is essential for its long-term profitability.

Bank of Princeton Financial Statement Overview

Summary

The Bank of Princeton exhibits solid financial health with robust revenue growth and profitability margins. While the income statement shows strong revenue growth and net profit margins, there is some pressure on operating efficiency. The balance sheet is stable with low leverage, although the slight decline in stockholders' equity compared to liabilities is a concern. Cash flow is healthy despite fluctuations in free cash flow growth.

Income Statement

The Bank of Princeton's income statement reflects a solid performance with strong revenue growth over the years. The TTM revenue growth rate is approximately 4.12%, indicating a steady upward trend. The gross profit margin stands at 53.5%, showcasing efficient cost management. Net profit margin improved to 8.26%, reflecting increased profitability. However, the EBIT margin has slightly declined to 10.47%, suggesting some pressure on operating efficiency. Overall, the bank demonstrates robust income generation and profitability.

Balance Sheet

The balance sheet of the Bank of Princeton presents a stable financial position. The debt-to-equity ratio is low at 0.08, indicating conservative leverage and prudent financial management. Return on Equity (ROE) is healthy at 4.22%, suggesting effective use of equity capital. The equity ratio is strong at 11.52%, highlighting a solid capital base. However, the slight decline in stockholders' equity compared to liabilities may pose a potential risk if not managed carefully.

Cash Flow

The cash flow statement reveals a positive trajectory, with a free cash flow growth rate of -28.3% on an annual basis, which is a concern. However, the operating cash flow to net income ratio is 0.99, indicating efficient cash generation from operations. The free cash flow to net income ratio is 0.84, demonstrating adequate free cash flow relative to earnings. Overall, the bank maintains a healthy cash flow position, albeit with some fluctuations in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.51M	131.10M	105.40M	78.94M	73.94M	66.48M
Gross Profit	73.01M	69.58M	69.33M	72.94M	63.64M	48.43M
EBITDA	16.72M	15.10M	32.31M	36.10M	31.14M	19.18M
Net Income	11.28M	10.24M	25.77M	26.49M	22.49M	13.81M
Balance Sheet
Total Assets	2.32B	2.34B	1.92B	1.60B	1.69B	1.60B
Cash, Cash Equivalents and Short-Term Investments	209.84M	227.59M	125.88M	106.64M	113.18M	143.06M
Total Debt	22.24M	22.94M	24.28M	26.77M	18.56M	18.99M
Total Liabilities	2.05B	2.08B	1.68B	1.38B	1.47B	1.39B
Stockholders Equity	266.99M	262.04M	240.21M	219.60M	216.58M	208.82M
Cash Flow
Free Cash Flow	9.47M	13.21M	21.40M	23.38M	11.71M	15.00M
Operating Cash Flow	11.12M	14.73M	23.11M	23.99M	12.90M	18.10M
Investing Cash Flow	-130.44M	-154.05M	-5.76M	-26.46M	3.54M	-140.25M
Financing Cash Flow	14.89M	106.11M	79.85M	-102.89M	64.84M	126.98M

Bank of Princeton Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.28
• 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 BPRN, the sentiment is Positive. The current price of 32.28 is above the 20-day moving average (MA) of 31.40, above the 50-day MA of 31.00, and above the 200-day MA of 31.83, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 79.31 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	$216.89M	10.24	8.28%	5.75%	14.84%	169.99%
PWOD	76 Outperform	$228.43M	10.75	10.50%	4.27%	14.11%	29.41%
MBCN	73 Outperform	$233.63M	12.88	8.60%	2.84%	7.42%	15.82%
PVBC	71 Outperform	$224.61M	20.15	4.59%	―	-3.01%	48.26%
BPRN	68 Neutral	$220.18M	34.62	2.70%	3.72%	16.39%	-72.87%
Sector *	68 Neutral	$17.53B	11.77	10.43%	3.83%	9.84%	1.31%
BLFY	60 Neutral	$197.12M	―	-3.41%	―	7.69%	-28.95%

Bank of Princeton Corporate Events

Bank of Princeton Declares Quarterly Cash Dividend

On July 23, 2025, Princeton Bancorp, Inc. announced a quarterly cash dividend of $0.30 per share, payable on August 29, 2025, to shareholders of record as of August 6, 2025. This decision demonstrates the Board’s ongoing commitment to providing shareholder returns, although future dividends may be adjusted based on the company’s financial condition and regulatory considerations.

The most recent analyst rating on (BPRN) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Bank of Princeton stock, see the BPRN Stock Forecast page.

Bank of Princeton Announces $9.9 Million Impairment Charge

On May 28, 2025, the Bank of Princeton‘s Board of Directors, CEO, and CFO determined that a material impairment charge of $9.9 million is necessary due to the delinquency of two commercial real estate loans. This decision follows bids received for the collateral of these loans, which the lead bank is attempting to sell. The after-tax impact on the company’s income statement is projected to be approximately $6.0 million, or $0.86 per diluted common share, although the properties’ occupancy levels are expected to cover operational and maintenance costs.

The most recent analyst rating on (BPRN) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Bank of Princeton stock, see the BPRN Stock Forecast page.