Mission Bancorp (MSBC) AI Stock Analysis

• Market Cap: $262.98M
• Dividend Yield: N/A
• Average Volume (3M): 358.00
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.06
• Revenue Growth: 8.86%
• EPS Growth: -12.96%
• Country: US
• Employees: 140
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 3.05
• Shares Outstanding: 2,764,978
• 10 Day Avg. Volume: 561
• 30 Day Avg. Volume: 358
• PEG Ratio: -3.10
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 2.35
• P/FCF Ratio: 7.29
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 3.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $105.00 ▲(10.40% Upside)

Mission Bancorp's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's robust profitability and financial stability are key strengths, although the decline in revenue growth is a concern. Technical analysis supports a positive trend, further enhancing the stock's attractiveness. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Profitability

Strong profitability and financial stability indicate efficient operations and effective cost management, ensuring long-term sustainability.

Balance Sheet Health

Low leverage and a strong equity position enhance financial flexibility, reducing risk and supporting future growth initiatives.

Cash Generation

High cash generation relative to profits ensures liquidity and the ability to reinvest in growth opportunities or return value to shareholders.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth can hinder future profitability and market competitiveness, impacting long-term strategic goals.

Earnings Growth

Negative earnings growth reflects challenges in maintaining profitability, potentially affecting investor confidence and capital allocation.

Cash Conversion Issues

Low cash conversion efficiency may indicate operational inefficiencies, affecting liquidity and the ability to fund future operations or investments.

Mission Bancorp Business Overview & Revenue Model

Company Description

Mission Bancorp operates as the bank holding company for Mission Bank that provides various banking products and services to individual and corporate clients in California. It accepts various checking and savings, NOW, money market, fiduciary, and individual retirement accounts, as well as time deposits and certificates of deposit. The company also provides commercial loans, such as lines of credit, equipment and vehicle financing, permanent working capital or debt refinance, commercial real estate loans, construction financing, and letters of credit; and agricultural loans, including operating/crop lines of credit, cattle loans, equipment loans, real estate loans, and loans for farmer. In addition, it offers SBA loans for owner-occupied commercial real estate purchase and construction, business expansion/acquisition, partner or management buy-out, equipment financing, debt refinance, inventory purchase, furniture, machinery, business startup cost, and working capital; and debit and credit cards. Further, the company provides safe deposit boxes, merchant card processing, online cash management, remote deposit capture, treasury management, and online and mobile banking services; cash vault services; and carries out property exchange transactions. It operates nine full-service facilities, including one located in Shafter, two located in Bakersfield, three located in the Mojave Desert area, one located in Ventura, one located in San Luis Obispo, and one located in Stockton. Mission Bancorp was founded in 1998 and is based in Bakersfield, California.

How the Company Makes Money

Mission Bancorp generates revenue primarily through interest income from loans, which is the largest component of its earnings. The company issues various types of loans, including residential mortgages, commercial real estate loans, and small business loans, which accrue interest over time. Additionally, Mission Bancorp earns non-interest income through service fees related to deposit accounts, transaction services, and other banking services. The institution may also engage in investment activities, earning income from its investment portfolio. Strategic partnerships with local businesses and community organizations can enhance its customer reach and contribute to its revenue growth. Overall, the bank's earnings are influenced by interest rate fluctuations, loan demand, and the overall economic environment.

Mission Bancorp Financial Statement Overview

Summary

Mission Bancorp demonstrates strong profitability and financial stability, with excellent margins and low leverage. However, the significant decline in revenue growth is a key concern that could impact future performance. Cash flow generation is strong, but the conversion of income to cash needs monitoring. The company is well-positioned in terms of equity and debt management, providing a solid foundation for future growth if revenue trends improve.

Income Statement

Mission Bancorp's income statement reveals a strong net profit margin of 38.47% for 2024, indicating efficient cost management. However, the revenue growth rate has significantly declined by 23.98%, which is a concern for future profitability. The EBIT and EBITDA margins are robust, reflecting solid operational performance despite the revenue drop.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.12, indicating low leverage and financial stability. Return on equity is strong at 15.91%, demonstrating effective use of equity to generate profits. The equity ratio is solid, suggesting a stable financial position with a good proportion of assets financed by equity.

Cash Flow

Cash flow analysis highlights a strong free cash flow to net income ratio of 99.19%, indicating excellent cash generation relative to profits. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. The free cash flow growth rate is notably high, but this is due to a low base effect.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.38M	89.91M	64.82M	52.74M	48.16M
Gross Profit	78.36M	74.70M	61.59M	50.45M	46.04M
EBITDA	42.70M	42.71M	34.34M	-242.00	22.00M
Net Income	30.14M	30.47M	24.25M	18.72M	15.69M
Balance Sheet
Total Assets	1.88B	1.65B	1.50B	1.52B	1.28B
Cash, Cash Equivalents and Short-Term Investments	292.44M	147.27M	130.34M	356.44M	282.88M
Total Debt	21.93M	41.86M	21.79M	21.72M	23.97M
Total Liabilities	1.69B	1.50B	1.37B	1.40B	1.18B
Stockholders Equity	189.49M	156.71M	123.78M	120.28M	102.13M
Cash Flow
Free Cash Flow	34.22M	31.65M	26.81M	9.04M	14.04M
Operating Cash Flow	34.50M	32.66M	27.53M	17.28M	14.44M
Investing Cash Flow	-84.24M	-131.82M	-249.45M	-167.68M	-232.68M
Financing Cash Flow	193.42M	117.88M	-3.93M	223.27M	410.11M

Mission Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 95.11
• 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 MSBC, the sentiment is Positive. The current price of 95.11 is above the 20-day moving average (MA) of 94.56, above the 50-day MA of 94.70, and above the 200-day MA of 93.64, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 61.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSBC.

Mission Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSBK	82 Outperform	$284.73M	9.85	11.48%	2.91%	8.17%	21.95%
LNKB	77 Outperform	$317.64M	8.28	13.09%	3.61%	15.66%	―
MSBC	71 Outperform	$262.98M	10.12	13.83%	―	8.86%	-12.96%
PKBK	71 Outperform	$286.99M	8.73	11.15%	2.84%	12.91%	21.72%
JMSB	69 Neutral	$287.34M	14.38	7.97%	1.48%	2.59%	18.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WSBF	63 Neutral	$302.88M	12.37	6.95%	3.59%	-0.09%	83.67%