Malaga Financial (MLGF) AI Stock Analysis

• Market Cap: $213.88M
• Dividend Yield: 4.35%
• Average Volume (3M): 6.99K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.08
• Revenue Growth: -2.21%
• EPS Growth: -2.69%
• Country: US
• Employees: 70
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 9,423,976
• 10 Day Avg. Volume: 6,698
• 30 Day Avg. Volume: 6,990
• PEG Ratio: -7.58
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 4.66
• P/FCF Ratio: 10.16
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 9.35
• Enterprise Value/Gross Profit: 9.35
• Enterprise Value/Ebitda: 13.31
• 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: 72 Outperform
• Price Target: ―

Malaga Financial presents a solid investment opportunity with strong financial health, no debt, and attractive valuation. However, the recent decline in revenue and free cash flow poses potential challenges, which need monitoring. Technical indicators show mild bullish momentum, supporting a stable outlook.

Positive Factors

Robust Net Profit Margin

A strong net profit margin highlights effective cost control and pricing power, ensuring sustained profitability even in challenging market conditions.

High Return on Equity

A high ROE indicates efficient management and the ability to generate significant profits from shareholders' equity, supporting long-term value creation.

Strong Financial Position

The absence of debt and strong profitability provide Malaga Financial with financial stability and flexibility, reducing risk and enabling investment in growth opportunities.

Negative Factors

Declining EBIT

A decrease in EBIT indicates potential inefficiencies or rising costs, which could erode profitability and hinder the company's ability to sustain its competitive edge.

Decreasing Free Cash Flow

Reduced free cash flow may limit the company's ability to invest in growth initiatives or return capital to shareholders, potentially affecting long-term financial health.

Declining Revenue

A decline in revenue suggests potential challenges in market demand or competitive positioning, which could impact future growth and profitability.

Malaga Financial Business Overview & Revenue Model

Company Description

Malaga Financial (MLGF) is a financial services company specializing in providing a range of banking and lending solutions primarily to small and medium-sized enterprises (SMEs) and individual clients. The company operates in the commercial banking sector, offering products such as commercial real estate loans, construction loans, and other personal and business banking services. With a focus on personalized service and community engagement, Malaga Financial aims to support the financial needs of its clients while fostering economic growth in the regions it serves.

How the Company Makes Money

Malaga Financial generates revenue through several key streams, including interest income from loans, fees associated with its banking services, and investment income from its portfolio of securities. The company primarily earns money by issuing loans to businesses and individuals, charging interest on these loans which constitutes a significant portion of its revenue. Additionally, Malaga Financial collects fees for account maintenance, transaction services, and other banking operations. Strategic partnerships with local businesses and community organizations also enhance its client base and service offerings, further contributing to its earnings.

Malaga Financial Financial Statement Overview

Summary

Malaga Financial is in a solid financial position with strong profitability and no current debt. However, the recent decline in revenue and free cash flow suggests potential future challenges. Continued focus on revenue growth and cash flow management will be essential to maintain its robust financial health.

Income Statement

Malaga Financial shows a consistent revenue stream with a slight decrease over the last year, moving from $46.9M to $45.3M. The gross profit margin remains strong at 100% due to the nature of the financial industry. Net profit margin is robust at around 50%, reflecting efficient cost management. However, the declining EBIT suggests potential challenges in maintaining operational efficiency.

Balance Sheet

The company exhibits a strong equity base with a debt-to-equity ratio of 0, indicating no current debt. Return on Equity is high, around 10.74%, suggesting effective use of equity to generate profits. The equity ratio of 14.9% points to a healthy level of shareholder equity relative to total assets.

Cash Flow

Operating cash flow is stable, though free cash flow has seen a slight decline from $22.3M to $20.8M. The operating cash flow to net income ratio is approximately 0.99, demonstrating good cash generation relative to net earnings. However, the decline in free cash flow indicates potential pressures on liquidity.

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	258.40M	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 below the 20-day moving average (MA) of 22.30, above the 50-day MA of 21.90, and above the 200-day MA of 20.63, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 61.58 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
EFSI	77 Outperform	$191.29M	15.91	6.63%	3.13%	-1.45%	-31.32%
OPBK	74 Outperform	$219.86M	9.40	10.99%	3.25%	9.10%	12.36%
FXNC	73 Outperform	$221.67M	19.69	7.36%	2.45%	48.94%	11.61%
FRAF	73 Outperform	$247.78M	15.79	9.91%	2.37%	12.06%	10.38%
MLGF	72 Outperform	$213.88M	9.84	―	4.35%	-2.21%	-2.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
INBK	48 Neutral	$189.10M	―	-8.99%	1.11%	2.49%	-248.43%