CBB Bancorp (CBBI) AI Stock Analysis

• Market Cap: $116.58M
• Dividend Yield: 3.89%
• Average Volume (3M): 3.46K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.18
• Revenue Growth: -2.49%
• EPS Growth: -19.48%
• Country: US
• Employees: 166
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 10,588,136
• 10 Day Avg. Volume: 1,138
• 30 Day Avg. Volume: 3,463
• PEG Ratio: -0.23
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 2.58
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: 3.56
• 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: ―

CBB Bancorp's overall stock score of 68 reflects its strong financial performance and attractive valuation, offset by technical indicators suggesting potential short-term weakness. Key strengths include profitability and a favorable P/E ratio, while revenue decline and past cash flow issues present challenges.

Positive Factors

Profitability

The significant improvement in net profit margin indicates strong profitability, suggesting efficient operations and effective cost management, which are crucial for long-term sustainability.

Cash Flow Management

Improved cash flow management enhances financial stability, allowing the company to invest in growth opportunities and weather economic fluctuations, supporting long-term business health.

Leverage Management

Prudent leverage management with a low debt-to-equity ratio reduces financial risk and enhances the company's ability to invest in growth and innovation, supporting sustainable business operations.

Negative Factors

Revenue Decline

A decline in total revenue can indicate challenges in market demand or competitive pressures, potentially impacting the company's ability to sustain growth and profitability over the long term.

Cash Flow Volatility

Volatility in cash flow can lead to uncertainty in financial planning and investment capacity, posing risks to long-term strategic initiatives and operational stability.

Asset Reduction

A decrease in total assets may limit the company's ability to leverage its balance sheet for growth opportunities, potentially affecting future expansion and competitive positioning.

CBB Bancorp Business Overview & Revenue Model

Company Description

CBB Bancorp, Inc. operates as the holding company for Commonwealth Business Bank that provides various commercial banking products and services to individuals and businesses in the United States. It offers checking, savings, money market, and certification of deposit accounts; SBA lending; business lines of credit; business term loans; business and commercial property loans; construction loans; and credit cards. The company also provides treasury management, and mobile and online banking services, as well as title and escrow services. In addition, it engages in investing activities; and offers trade finance services, including commercial letters of credit, standby letters of credit, and documentary collection services. The company offers its services through 9 full-service branches and 1 limited-service branch in Southern California, Dallas, Texas and Honolulu, and Hawaii; and 5 loan production offices in the states of Colorado, Georgia, Texas, and Washington. CBB Bancorp, Inc. was founded in 2005 and is headquartered in Los Angeles, California.

How the Company Makes Money

CBB Bancorp generates revenue primarily through interest income from its lending activities. The company earns interest by providing loans to businesses and individuals, where the interest rates charged on these loans are higher than the interest rates paid on deposits. This interest margin is a significant source of income for the bank. Additionally, CBBI earns non-interest income through various fees associated with its banking services, such as loan origination fees, transaction fees, and service charges on deposit accounts. The company also benefits from strategic partnerships with other financial services providers, which can enhance its product offerings and customer base, contributing to overall earnings.

CBB Bancorp Financial Statement Overview

Summary

CBB Bancorp exhibits solid financial performance with strong profitability and effective use of equity, as evidenced by a high net profit margin and a strong return on equity. However, the decline in total revenue and past volatility in cash flows present potential risks.

Income Statement

CBB Bancorp shows a stable performance with a consistent increase in net income over the years. The net profit margin improved from 18.8% to 35.9% in 2023, indicating strong profitability. However, total revenue declined slightly in 2023, impacting the revenue growth rate negatively. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio is relatively low, suggesting prudent leverage management. Return on equity has remained strong, rising to 12.2% in 2023, indicating effective use of equity to generate profits. The equity ratio is stable, showing a solid capital structure. However, total assets have slightly decreased, which could be a concern for future growth.

Cash Flow

CBB Bancorp's free cash flow has improved significantly, moving from a negative to a positive position in 2023, demonstrating better cash management. The operating cash flow to net income ratio also improved, indicating a stronger conversion of income to cash. However, past volatility in operating cash flow remains a risk factor, and consistent positive cash flows are needed to strengthen the position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.51M	122.69M	80.26M	93.28M	83.85M	64.15M
Gross Profit	94.34M	71.12M	80.26M	82.18M	78.66M	46.94M
EBITDA	28.16M	31.26M	41.27M	40.14M	39.50M	15.22M
Net Income	20.12M	22.43M	28.86M	27.92M	27.53M	9.88M
Balance Sheet
Total Assets	1.81B	1.82B	1.76B	1.81B	1.81B	1.38B
Cash, Cash Equivalents and Short-Term Investments	247.31M	0.00	301.39M	257.43M	367.32M	243.53M
Total Debt	0.00	62.91M	53.94M	55.81M	55.13M	110.09M
Total Liabilities	1.55B	1.57B	1.52B	1.60B	1.62B	1.22B
Stockholders Equity	261.93M	254.97M	235.71M	209.53M	185.24M	159.98M
Cash Flow
Free Cash Flow	0.00	44.28M	51.47M	-42.54M	-91.02M	-18.63M
Operating Cash Flow	0.00	44.60M	52.46M	-41.73M	-90.54M	-18.55M
Investing Cash Flow	0.00	-36.90M	105.42M	-36.31M	18.97M	-128.12M
Financing Cash Flow	0.00	23.39M	-87.90M	-20.56M	199.96M	206.02M

CBB Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.01
• 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 CBBI, the sentiment is Positive. The current price of 11.01 is above the 20-day moving average (MA) of 10.70, above the 50-day MA of 10.76, and above the 200-day MA of 10.47, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.64 is Neutral, neither overbought nor oversold. The STOCH value of 62.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBBI.

CBB Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBFG	78 Outperform	$138.57M	10.40	10.12%	2.69%	10.78%	21.72%
UNB	75 Outperform	$108.10M	9.52	15.11%	6.08%	14.52%	27.90%
CBBI	68 Neutral	$116.58M	6.11	7.94%	3.89%	-2.49%	-19.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRBK	67 Neutral	$125.51M	43.31	1.57%	0.88%	9.43%	166.36%
SFBC	63 Neutral	$112.27M	16.58	6.52%	1.75%	2.85%	73.41%
BSBK	48 Neutral	$108.94M	219.90	0.35%	―	-15.09%	―