Katahdin Bankshares (KTHN) AI Stock Analysis

• Market Cap: $107.06M
• Dividend Yield: 2.8%
• Average Volume (3M): 265.00
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.27
• Revenue Growth: 7.63%
• EPS Growth: 8.12%
• Country: US
• Employees: 174
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.99
• Shares Outstanding: 3,401,000
• 10 Day Avg. Volume: 200
• 30 Day Avg. Volume: 265
• PEG Ratio: -0.55
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 9.03
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 8.79
• 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: 74 Outperform
• Price Target: $35.00 ▲(21.07% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Katahdin Bankshares' overall stock score is driven by its solid financial performance and attractive valuation. While technical indicators suggest neutral momentum, the company's strong balance sheet and cash flow management provide a stable foundation. The lack of earnings call and corporate events data does not impact the score.

Positive Factors

Balance Sheet Strength

A conservative leverage profile and strong equity ratio provide durable capital buffers that support lending through economic cycles, regulatory compliance, and loss absorption. This structural strength preserves funding flexibility and credit capacity for 2–6 months and beyond.

Cash Generation Ability

Consistent operating cash flow above reported earnings indicates high cash conversion that supports dividends, loan originations, and reinvestment without needing external capital. That persistent cash generation underpins operational resilience and strategic optionality over the medium term.

Community Banking Funding Model

A local, community-focused deposit base tends to be stickier and lower cost than wholesale funding. Deep local relationships support steady deposit inflows and targeted loan demand, giving a structural competitive advantage in regional markets for stable funding and client retention.

Negative Factors

Pressure on Profitability and Margins

Declining operating and net margins erode retained earnings and constrain the bank’s ability to accumulate capital organically. If persistent, margin compression reduces internal reinvestment capacity, limits balance sheet growth, and pressures long-run profitability and dividend sustainability.

Declining Return on Equity

A falling ROE signals less efficient use of shareholder capital, potentially reflecting lower loan yields or rising costs. Sustained ROE decline undermines investor returns and may necessitate strategic changes to restore profitability or adjust capital deployment priorities.

Free Cash Flow Volatility

While overall cash generation is positive, variability in free cash flow can complicate capital planning and discretionary investments. Persistent FCF swings increase reliance on careful liquidity management and may limit predictable funding for growth initiatives or shareholder distributions.

Katahdin Bankshares Business Overview & Revenue Model

Company Description

Katahdin Bankshares Corp. operates as the bank holding company for Katahdin Trust Company, a state-chartered commercial bank that provides a range of commercial and retail banking services for individuals and businesses in Maine. It provides various deposit products comprising checking and savings accounts, money market and NOW accounts, certificates of deposit, individual retirement accounts, and Coverdell education savings accounts. The company also offers mortgage, construction, homebuyer, home equity, rural development, and personal loans; and business loans and lines of credit comprising business term, municipal, and small business administration loans, as well as business mortgages, business letters of credit, agency guaranteed programs. In addition, it provides online and telephone banking, bill payment, and e-check deposit, reorder checks, money and wire transfer, debit and credit cards, gift cards, ATMs, and merchant services. Further, the company offers equipment financing services in the trucking, construction, forest products, and marine industries; and securities and insurance products. It operates 16 full-service branches in northern Maine, greater Bangor, and Portland regions. The company was founded in 1918 and is based in Patten, Maine.

How the Company Makes Money

Katahdin Bankshares generates revenue primarily through interest income from loans and mortgages, which represent a significant portion of its earnings. The company offers various loan products, including personal loans, business loans, and real estate financing, which yield interest payments from borrowers. Additionally, Katahdin Bankshares earns non-interest income through service fees, account maintenance charges, and fees related to investment services. The bank also benefits from strategic partnerships with local businesses and organizations, enhancing its customer base and contributing to overall revenue growth. Furthermore, the bank's emphasis on community engagement and local lending fosters customer loyalty and attracts deposits, which are crucial for funding its lending activities.

Katahdin Bankshares Financial Statement Overview

Summary

Katahdin Bankshares presents a solid financial position with strong cash flow management and a healthy balance sheet. However, there is some pressure on margins and profitability, which slightly affects the overall score.

Income Statement

Katahdin Bankshares has shown resilient revenue figures over the past years with a slight decline in recent performance. The Gross Profit Margin remains strong at 100%, indicating excellent cost management. However, recent years have seen a decrease in EBIT and Net Income margins, reflecting some pressure on profitability.

Balance Sheet

The company maintains a healthy balance sheet with a low Debt-to-Equity Ratio, indicating conservative leverage usage. The Equity Ratio indicates a robust capital position, although there is a slight decline in ROE, suggesting slower growth in shareholder returns compared to previous years.

Cash Flow

Katahdin Bankshares demonstrates stable cash flow management, with positive Operating Cash Flow consistently exceeding Net Income, indicating strong cash-generating ability. The Free Cash Flow has seen some fluctuations, but overall growth remains positive, supporting ongoing operations and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.69M	38.35M	51.21M	40.95M	39.83M	42.21M
Gross Profit	40.98M	38.35M	39.07M	37.28M	35.63M	34.50M
EBITDA	10.89M	9.74M	13.26M	12.96M	12.66M	11.63M
Net Income	8.92M	8.06M	9.91M	9.72M	9.47M	9.52M
Balance Sheet
Total Assets	1.09B	1.08B	1.03B	983.54M	940.50M	937.01M
Cash, Cash Equivalents and Short-Term Investments	29.00M	50.90M	181.27M	177.32M	173.44M	151.19M
Total Debt	30.00M	34.70M	31.53M	22.98M	22.91M	34.35M
Total Liabilities	991.47M	988.52M	946.44M	903.87M	856.89M	860.80M
Stockholders Equity	95.73M	91.80M	87.81M	79.66M	83.60M	76.20M
Cash Flow
Free Cash Flow	0.00	8.83M	9.97M	8.11M	10.85M	12.77M
Operating Cash Flow	0.00	10.22M	11.10M	11.54M	11.64M	13.50M
Investing Cash Flow	0.00	-24.61M	-55.56M	-78.17M	-3.17M	-41.21M
Financing Cash Flow	0.00	38.76M	40.48M	34.22M	-2.50M	67.25M

Katahdin Bankshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.91
• 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 KTHN, the sentiment is Neutral. The current price of 28.91 is below the 20-day moving average (MA) of 31.87, below the 50-day MA of 30.13, and above the 200-day MA of 26.68, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 64.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KTHN.

Katahdin Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LSBK	78 Outperform	$119.31M	15.96	6.28%	2.12%	2.27%	66.15%
KTHN	74 Outperform	$107.06M	9.34	9.55%	2.80%	7.63%	8.12%
AUBN	69 Neutral	$84.20M	11.61	8.22%	4.16%	24.17%	739.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IROQ	62 Neutral	$93.00M	17.37	6.20%	1.48%	1.93%	157.35%
PBHC	54 Neutral	$81.07M	-13.78	2.26%	2.86%	0.84%	―