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Cnb Financial Corp. (CCNE)
NASDAQ:CCNE

Cnb Financial (CCNE) AI Stock Analysis

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Cnb Financial

(NASDAQ:CCNE)

67Neutral
CNB Financial presents a mixed picture. The company is financially stable with no debt and solid revenue growth, but profitability improvements are necessary. The stock shows bearish technical indicators, yet it appears undervalued with a good dividend yield. Despite a recent decline in net income, the expansion in loans and deposits is a positive sign of growth.
Positive Factors
Growth Strategy
The ESSA deal is anticipated to increase total assets to $8.5 billion, highlighting the company's growth strategy.
Profitability
The bank's profitability is expected to improve with ROA and ROTCE projected to reach approximately 1.15% and 14.0%-14.5%.
Stock Valuation
Shares are considered undervalued at approximately 85% of P/TBV, indicating a compelling value at current levels.
Negative Factors
Investor Concerns
TBV dilution of 15% and an earnback period of 3.3 years are modestly higher than what investors generally prefer.
Market Reaction
CCNE shares traded down 3.6% following the ESSA acquisition announcement, slightly underperforming KRX peers.

Cnb Financial (CCNE) vs. S&P 500 (SPY)

Cnb Financial Business Overview & Revenue Model

Company DescriptionCNB Financial Corporation (CCNE) is a financial services company headquartered in Clearfield, Pennsylvania. It operates primarily through its subsidiary, CNB Bank, providing a wide range of banking products and services to individuals and businesses. The company offers commercial banking, retail banking, wealth management, and other financial services across several states, primarily focusing on community-oriented banking solutions.
How the Company Makes MoneyCNB Financial makes money primarily through interest income generated from loans provided to individuals and businesses, such as personal loans, mortgages, and commercial loans. The bank also earns revenue through fees for various banking services, including transaction fees, account maintenance fees, and late payment fees. Additionally, it generates income from investment securities and wealth management services, providing financial planning and investment advisory services to clients. Key partnerships with financial service providers and technology companies may enhance its service offerings, contributing to its overall earnings.

Cnb Financial Financial Statement Overview

Summary
Cnb Financial exhibits a solid financial position with strong revenue growth and efficient operations. The absence of debt significantly enhances financial stability. However, the dip in net income and return on equity suggests potential areas for improvement in profitability and shareholder returns. The company should continue to monitor its capital investments to ensure sustainable growth.
Income Statement
82
Very Positive
Cnb Financial has demonstrated strong growth in revenue over the years, with a significant increase from 2023 to 2024. The gross profit margin remains high as expected in the banking industry. The EBIT and EBITDA margins indicate efficient core operations. However, the slight decline in net income from 2023 to 2024 suggests some pressure on profitability, potentially due to increased expenses or lower interest margins.
Balance Sheet
75
Positive
The company's balance sheet shows a healthy equity base with zero debt in 2024, which significantly reduces financial risk. The equity ratio is stable, reflecting a strong reliance on equity financing. However, the return on equity has decreased compared to previous years, indicating room for improvement in generating returns for shareholders.
Cash Flow
78
Positive
Cnb Financial's operating cash flow has improved, indicating better cash generation efficiency. The free cash flow has also increased, reflecting effective cash management. The free cash flow to net income ratio is strong, demonstrating robust cash conversion. However, the substantial negative investing cash flow could indicate aggressive capital investments, which need careful monitoring.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
325.47M218.14M219.62M189.38M159.63M
Gross Profit
325.47M217.17M219.62M189.38M159.63M
EBIT
318.71M71.83M102.29M70.78M40.09M
EBITDA
0.0079.57M84.79M74.59M0.00
Net Income Common Stockholders
54.58M58.02M63.19M57.71M32.74M
Balance SheetCash, Cash Equivalents and Short-Term Investments
532.32M221.87M477.69M1.43B1.12B
Total Assets
6.19B5.75B5.48B5.33B4.73B
Total Debt
145.50M142.54M236.98M104.28M70.62M
Net Debt
-297.53M-79.51M130.69M-627.92M-462.07M
Total Liabilities
5.58B5.18B4.94B4.89B4.31B
Stockholders Equity
610.70M571.25M530.76M442.85M416.14M
Cash FlowFree Cash Flow
71.51M36.05M51.76M52.44M23.11M
Operating Cash Flow
71.51M47.02M64.05M58.92M28.76M
Investing Cash Flow
-203.28M-149.46M-804.70M-409.76M-168.68M
Financing Cash Flow
352.76M218.20M114.73M550.34M479.64M

Cnb Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.95
Price Trends
50DMA
22.67
Negative
100DMA
24.05
Negative
200DMA
24.19
Negative
Market Momentum
MACD
-0.16
Negative
RSI
53.20
Neutral
STOCH
70.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCNE, the sentiment is Positive. The current price of 21.95 is above the 20-day moving average (MA) of 21.37, below the 50-day MA of 22.67, and below the 200-day MA of 24.19, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 70.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCNE.

Cnb Financial Risk Analysis

Cnb Financial disclosed 30 risk factors in its most recent earnings report. Cnb Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cnb Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
BHBHB
68
Neutral
$454.00M10.429.67%4.06%6.33%3.44%
68
Neutral
$463.47M11.3911.31%2.60%13.97%12.00%
67
Neutral
$439.33M8.978.84%3.23%8.67%
PGPGC
66
Neutral
$487.06M15.365.31%0.71%6.72%-17.45%
66
Neutral
$526.18M12.7112.19%1.25%18.85%6.74%
63
Neutral
$12.46B9.558.14%17103.96%12.70%-4.66%
54
Neutral
$513.60M8.52-13.29%4.76%-23.31%-169.87%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CCNE
Cnb Financial
21.99
3.17
16.84%
BHB
Bar Harbor Bankshares
29.30
4.29
17.15%
EBTC
Enterprise Bancorp
37.76
13.79
57.53%
FISI
Financial Institutions
25.54
8.62
50.95%
PGC
Peapack-Gladstone Financial
27.94
5.13
22.49%
CBNK
Capital Bancorp
31.06
11.38
57.83%

Cnb Financial Corporate Events

Executive/Board ChangesM&A TransactionsShareholder Meetings
CNB Financial Shareholders Approve Key Proposals at Annual Meeting
Neutral
Apr 16, 2025

On April 15, 2025, CNB Financial Corporation held its Annual Meeting where shareholders approved several key proposals. These included the issuance of common stock related to a merger agreement with ESSA Bancorp, Inc., the election of three Class 2 directors, the approval of the 2025 Omnibus Incentive Plan, and a non-binding advisory resolution on executive compensation. Additionally, the appointment of Forvis Mazars, LLP as the independent registered public accounting firm for 2025 was ratified, and provisions for potential adjournments of the meeting were approved.

Spark’s Take on CCNE Stock

According to Spark, TipRanks’ AI Analyst, CCNE is a Neutral.

CNB Financial demonstrates solid financial performance with strong revenue growth and no debt, though profitability improvements are needed. The technical analysis suggests bearish trends, but potential undervaluation and a rewarding dividend offer a cushion. The strategic merger is a positive corporate event that could enhance long-term growth prospects.

To see Spark’s full report on CCNE stock, click here.

Financial Disclosures
CNB Financial Reports Decrease in Net Income
Negative
Apr 15, 2025

CNB Financial Corporation reported a decrease in net income for the year ending December 31, 2024, primarily due to increased deposit costs compared to the previous year. Despite this, the company showed growth in loans and deposits, with total loans reaching $4.6 billion and total deposits at $5.4 billion by the end of 2024, reflecting increases of 3.14% and 7.45% respectively from 2023. The corporation’s Return on Average Assets and Return on Average Equity also saw declines, while the book value per common share increased by 7.20% to $26.34.

Spark’s Take on CCNE Stock

According to Spark, TipRanks’ AI Analyst, CCNE is a Neutral.

CNB Financial demonstrates solid financial performance with strong revenue growth and no debt, though profitability improvements are needed. The technical analysis suggests bearish trends, but potential undervaluation and a rewarding dividend offer a cushion. The strategic merger is a positive corporate event that could enhance long-term growth prospects.

To see Spark’s full report on CCNE stock, click here.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.