Malaga Financial (MLGF) AI Stock Analysis

• Market Cap: $217.69M
• Dividend Yield: 4.61%
• Average Volume (3M): 5.02K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.07
• Revenue Growth: -2.21%
• EPS Growth: -2.69%
• Country: US
• Employees: 70
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.44
• Shares Outstanding: 9,894,988
• 10 Day Avg. Volume: 5,684
• 30 Day Avg. Volume: 5,022
• PEG Ratio: -7.58
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 3.03
• P/FCF Ratio: 10.16
• Enterprise Value/Market Cap: 2.19
• Enterprise Value/Revenue: 10.30
• Enterprise Value/Gross Profit: 10.30
• Enterprise Value/Ebitda: 14.66
• 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: 75 Outperform
• Price Target: $26.00 ▲(17.12% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by solid fundamentals (strong profitability and improved leverage) and attractive valuation (low P/E and strong dividend yield). Technicals add support due to positive trend signals, but the very high RSI and the recent slowdown in revenue and free cash flow growth meaningfully limit the upside in the near term.

Positive Factors

Strong Profit Margins

High profit margins indicate efficient operations and pricing power, supporting long-term profitability and competitive positioning.

Revenue Generation

A diverse revenue stream from lending activities provides stability and growth potential, enhancing the company's financial resilience.

Efficient Cash Conversion

Efficient cash conversion supports liquidity and financial flexibility, enabling reinvestment and debt servicing capabilities.

Negative Factors

High Leverage

High leverage can increase financial risk and limit strategic flexibility, potentially impacting long-term sustainability.

Declining Margins

Declining margins suggest rising costs or inefficiencies, which could pressure profitability and require strategic adjustments.

Cash Flow Challenges

Decreasing free cash flow may constrain the company's ability to invest in growth opportunities and manage debt effectively.

Malaga Financial Business Overview & Revenue Model

Company Description

Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. It offers checking, savings, NOW, and money market accounts, certificates of deposits, and demand deposits. The company also provides commercial real estate, land, business banking, consumer, and personal loans, as well as single and multi-family residential mortgage loans. In addition, it offers coupon redemption, direct deposit, overdraft lines of credit, telephone transfers, U.S. savings bond redemption, and wire transfer services; and ATM and VISA debit cards, bank by mail, medallion signature guarantee, night depository, notary, safe deposit boxes, and trust deed note collection services. Further, the company provides online banking services, including bill payer, e-statements, and mobile banking services. As of December 31, 2021, it operated five branch offices in Palos Verdes Estates, Rolling Hills Estates, Torrance, and San Pedro, California. The company was founded in 2002 and is headquartered in Palos Verdes Estates, California.

How the Company Makes Money

Malaga Financial generates revenue primarily through interest income from its lending activities, which includes residential and commercial mortgages. The company earns fees from loan origination, servicing, and processing, contributing to its overall revenue. Additionally, Malaga Financial may engage in real estate investments, generating income through property appreciation and rental income. Partnerships with local real estate firms and financial institutions enhance its lending capabilities, allowing for a broader reach in its target markets and increasing its potential earnings.

Malaga Financial Financial Statement Overview

Summary

Strong and consistent profitability (high net and EBIT margins) and improving leverage (debt-to-equity trending down) support fundamentals. The score is tempered by uneven revenue growth (notably a decline in 2023 and only modest growth in 2024) and recent negative free cash flow growth (down in 2023 and 2024).

Income Statement

Profitability is strong and consistent, with net margins remaining high (about 33%–49% across 2019–2024) and 2024 showing solid operating performance (EBIT margin ~46%). Revenue growth has been uneven—strong in 2019 and 2022, a meaningful decline in 2023, and only modest growth in 2024 (~1%)—which tempers the overall outlook despite healthy earnings.

Balance Sheet

Leverage has improved, with debt-to-equity declining from ~2.01 (2019) to ~1.23 (2024), and equity building steadily over time—both positives for resilience. That said, debt remains sizable relative to equity, and return on equity has been stable but not expanding meaningfully (generally ~10.6%–11.7%), suggesting limited acceleration in balance-sheet-driven returns.

Cash Flow

Cash generation appears reliable with operating cash flow consistently positive, and free cash flow broadly tracking net income well (free cash flow roughly 88%–100% of net income historically; ~92% in 2024). The main weakness is decelerating momentum: free cash flow growth is negative in recent years (down ~7% in both 2023 and 2024), indicating softer cash flow trajectory despite stable profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.35M	69.62M	68.75M	53.76M	49.20M	49.09M
Gross Profit	46.35M	45.26M	46.91M	43.73M	40.42M	38.42M
EBITDA	32.57M	32.62M	33.29M	31.10M	28.57M	26.33M
Net Income	32.35M	22.65M	22.98M	21.35M	19.60M	18.34M
Balance Sheet
Total Assets	0.00	1.41B	1.48B	1.51B	1.47B	1.31B
Cash, Cash Equivalents and Short-Term Investments	-330.00M	11.17M	173.42M	227.39M	9.90M	11.68M
Total Debt	330.00M	271.06M	337.00M	303.40M	278.40M	293.40M
Total Liabilities	330.00M	1.20B	1.28B	1.33B	1.30B	1.16B
Stockholders Equity	0.00	210.74M	197.07M	182.64M	168.95M	156.38M
Cash Flow
Free Cash Flow	0.00	20.78M	22.33M	23.92M	21.41M	17.34M
Operating Cash Flow	0.00	22.48M	22.41M	27.26M	21.51M	17.41M
Investing Cash Flow	0.00	27.67M	-20.08M	-9.98M	-53.38M	-53.89M
Financing Cash Flow	0.00	-84.20M	-56.30M	9.90M	141.27M	48.12M

Malaga Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.20
• 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 MLGF, the sentiment is Positive. The current price of 22.2 is above the 20-day moving average (MA) of 21.71, above the 50-day MA of 21.62, and above the 200-day MA of 20.04, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.98 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MLGF.

Malaga Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLGF	75 Outperform	$217.69M	10.09	―	4.61%	-2.21%	-2.69%
OPBK	70 Outperform	$197.68M	7.72	10.99%	3.32%	9.10%	12.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EFSI	67 Neutral	$199.89M	23.38	6.63%	3.11%	-1.45%	-31.32%
FRAF	67 Neutral	$231.95M	10.93	9.91%	2.51%	12.06%	10.38%
FXNC	66 Neutral	$239.96M	13.59	7.36%	2.49%	48.94%	11.61%
INBK	51 Neutral	$174.21M	-5.14	-8.99%	1.07%	2.49%	-248.43%