Citizens & Northern (CZNC) AI Stock Analysis

• Market Cap: $313.71M
• Dividend Yield: 5.59%
• Average Volume (3M): 41.89K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.74
• Revenue Growth: 8.59%
• EPS Growth: 14.56%
• Country: US
• Employees: 386
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.40
• Shares Outstanding: 15,514,943
• 10 Day Avg. Volume: 22,668
• 30 Day Avg. Volume: 41,887
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 10.69
• 1Y Price Target: $21.75
• Price Target Upside: 8.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: $22.50 ▲(12.39% Upside)

Citizens & Northern's strong financial performance, characterized by consistent revenue growth and solid profitability, is the most significant factor driving the stock score. The valuation is attractive with a reasonable P/E ratio and a high dividend yield, making it appealing to income-focused investors. Technical indicators suggest a stable price trend with no strong momentum, adding to the stock's overall stability. The absence of notable earnings call insights or corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial stability.

Profitability

High gross profit margins reflect efficient cost management, which can sustain profitability and competitive advantage over time.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling the company to invest in growth opportunities.

Negative Factors

Debt Levels

Rising debt levels could strain financial resources and limit the company's ability to respond to market changes or invest in growth.

Free Cash Flow Variability

Variability in free cash flow growth may indicate challenges in maintaining consistent cash generation, affecting long-term planning.

EBIT and EBITDA Margin Fluctuations

Fluctuating margins suggest potential volatility in operating efficiencies, which could impact profitability and operational stability.

Citizens & Northern Business Overview & Revenue Model

Company Description

Citizens & Northern Corporation operates as the bank holding company for Citizens & Northern Bank that provides a range of banking and mortgage services to individual and corporate customers. The company offers lending products include commercial, mortgage, and consumer loans, as well as specialized instruments, such as commercial letters-of-credit; and deposit products, including various types of checking accounts, passbook and statement savings accounts, money market accounts, interest checking accounts, individual retirement accounts, and certificates of deposits. It also offers wealth management services, including administration of trusts and estates, retirement plans, and other employee benefit plans, and investment management services; and a range of personal and commercial insurance products; mutual funds, annuities, educational savings accounts, and other investment products through registered agents. In addition, the company reinsures credit and mortgage, life and accident, and health insurance products. As of December 31, 2021, it had 31 branch offices, including 23 in the Northern tier/Northcentral region of Pennsylvania, 2 in the Southern tier of New York State, 4 in Southeastern Pennsylvania, and 2 in Southcentral Pennsylvania, as well as a lending office in Elmira, New York. The company was founded in 1864 and is based in Wellsboro, Pennsylvania.

How the Company Makes Money

CZNC generates revenue through several key streams, primarily from interest income on loans, which includes personal loans, commercial loans, and mortgages. The company earns interest from the loans it extends to customers, with interest rates varying based on creditworthiness and market conditions. Additionally, CZNC generates non-interest income through fees from various banking services, including account maintenance fees, ATM fees, and transaction fees. Wealth management services also contribute to revenue, as customers pay for investment management, financial planning, and advisory services. Furthermore, CZNC may engage in strategic partnerships with other financial institutions or service providers to enhance its product offerings and reach, ultimately contributing to its overall earnings.

Citizens & Northern Financial Statement Overview

Summary

Citizens & Northern shows strong financial performance with a robust income statement, healthy balance sheet, and commendable cash flow management. Consistent revenue growth and strong profitability are evident, though increasing debt levels and variability in cash flow growth require careful monitoring.

Income Statement

Citizens & Northern showed strong income statement metrics with consistent revenue growth and stable profitability. The TTM (Trailing-Twelve-Months) Gross Profit Margin is healthy at approximately 67.7%, indicating efficient cost management. The Net Profit Margin stands at about 17.1%, reflecting solid bottom-line performance. Revenue growth has been steady over the past years, with a notable increase from 2022 to 2025. However, EBIT and EBITDA margins have seen slight fluctuations, indicating some volatility in operating efficiencies.

Balance Sheet

The balance sheet is robust with a reasonable Debt-to-Equity Ratio of 0.69 as of the latest TTM, suggesting prudent financial leverage. The Return on Equity is strong at about 9.6%, showcasing effective use of equity financing. The Equity Ratio is approximately 10.8%, highlighting a stable capital structure. However, the total debt has increased over the years, which could pose potential risks if not managed carefully.

Cash Flow

Cash flows are well-managed, with a positive Free Cash Flow to Net Income Ratio of around 1.01, indicating strong cash generation relative to earnings. The Operating Cash Flow to Net Income Ratio at approximately 1.07 further supports the company's solid cash flow position. However, the Free Cash Flow Growth Rate has been uneven, reflecting some variability in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	157.28M	155.47M	136.24M	115.48M	108.95M	100.44M
Gross Profit	106.40M	104.31M	102.95M	98.70M	98.73M	86.93M
EBITDA	35.34M	34.05M	32.63M	34.74M	39.82M	25.19M
Net Income	26.95M	25.96M	24.15M	26.62M	30.55M	19.22M
Balance Sheet
Total Assets	2.61B	2.61B	2.52B	2.45B	2.33B	2.24B
Cash, Cash Equivalents and Short-Term Investments	523.20M	348.61M	472.63M	553.08M	622.63M	451.19M
Total Debt	194.77M	207.67M	211.76M	181.78M	77.56M	91.18M
Total Liabilities	2.33B	2.34B	2.25B	2.20B	2.03B	1.94B
Stockholders Equity	281.83M	275.28M	262.38M	249.32M	301.40M	299.76M
Cash Flow
Free Cash Flow	27.18M	31.13M	31.28M	31.31M	32.98M	21.65M
Operating Cash Flow	28.89M	33.03M	33.55M	34.60M	34.84M	24.78M
Investing Cash Flow	-6.48M	-20.94M	-53.20M	-234.69M	-103.89M	96.58M
Financing Cash Flow	47.38M	58.70M	24.73M	151.94M	68.88M	-56.47M

Citizens & Northern Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.02
• 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 CZNC, the sentiment is Positive. The current price of 20.02 is above the 20-day moving average (MA) of 19.99, above the 50-day MA of 19.50, and above the 200-day MA of 19.19, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 27.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CZNC.

Citizens & Northern Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIVB	81 Outperform	$406.73M	8.33	10.02%	3.22%	6.20%	18.80%
CZNC	79 Outperform	$313.71M	11.42	9.73%	5.59%	8.59%	14.56%
NECB	74 Outperform	$300.99M	6.37	14.25%	4.96%	4.02%	-0.62%
PBFS	73 Outperform	$338.19M	15.98	6.98%	―	31.28%	23.21%
FSBW	72 Outperform	$320.79M	10.04	11.31%	3.21%	5.10%	-7.22%
BCML	70 Outperform	$329.57M	13.84	7.50%	2.87%	1.75%	2.76%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%

Citizens & Northern Corporate Events

Citizens & Northern Announces Merger with Susquehanna

On April 23, 2025, Citizens & Northern Corporation (C&N) announced a merger agreement with Susquehanna Community Financial, Inc. (SQCF), where SQCF will merge into C&N, and Susquehanna Community Bank will merge into Citizens & Northern Bank. The merger, expected to close in the fourth quarter of 2025, will result in a combined entity with approximately $3.2 billion in assets, enhancing C&N’s market presence in Pennsylvania. The merger is anticipated to be accretive to earnings per share by 17% in 2026, with SQCF shareholders receiving 0.80 shares of C&N common stock for each SQCF share. The merger aims to expand C&N’s market reach, diversify its loan portfolio, and improve service offerings.