National Capital Bank of Washington (NACB) AI Stock Analysis

• Market Cap: $76.02M
• Dividend Yield: 1.23%
• Average Volume (3M): 12.00
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.38
• Revenue Growth: 19.25%
• EPS Growth: 46.26%
• Country: US
• Employees: 63
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.44
• Shares Outstanding: 1,152,000
• 10 Day Avg. Volume: 38
• 30 Day Avg. Volume: 12
• PEG Ratio: 0.24
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 7.37
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: 10.68
• 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: 68 Neutral
• Price Target: $72.00 ▲(8.60% Upside)
• Action: Downgraded Date: 12/30/25
• Date: Action: Downgraded 12/30/25

The score is driven primarily by improved profitability and materially stronger cash flow in 2024, tempered by a sharp revenue decline and volatility in operating profitability and leverage. Technical signals are neutral-to-slightly positive, while valuation (P/E ~12.26 with a ~1.23% yield) provides additional support.

Positive Factors

Revenue Growth

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

Cash Flow Improvement

Significant cash flow improvement enhances financial flexibility, allowing for reinvestment in growth opportunities and risk management.

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and interest expenses, providing a solid foundation for sustainable growth.

Negative Factors

Low Equity Ratio

A relatively low equity ratio could pose leverage risks if liabilities increase, potentially impacting financial stability.

Absence of EBITDA Data

Lack of EBITDA data hinders full assessment of operational efficiency and profitability, affecting investor confidence in financial health.

Limited Employee Information

Lack of employee data may indicate challenges in assessing workforce management and operational capacity, impacting strategic planning.

National Capital Bank of Washington Business Overview & Revenue Model

Company Description

National Capital Bancorp, Inc. operates as the bank holding for The National Capital Bank of Washington that provides various banking products and services to individuals and businesses in Washington. It offers savings and checking accounts. The company also provides personal loans; home equity lines of credit; residential mortgages; paycheck protection program loans; commercial lines of credit; term loans; commercial mortgages; construction finance; equipment financing and leasing; loans for nonprofit organizations; letters of credit; SBA loans; and debit and credit cards. In addition, it offers cash management, disbursement services, online and mobile banking services, mobile deposits, escrow management, automated clearing house, remote deposit capture, lockbox services, merchant card processing, safe deposit boxes, and wealth management services. The company was founded in 1889 and is based in Washington, the District of Columbia.

How the Company Makes Money

National Capital Bank of Washington generates revenue primarily through interest income from loans and mortgages offered to individuals and businesses. It also earns money from service charges on deposit accounts, transaction fees, and other banking services. Additionally, NACB may invest in various securities to generate investment income. The bank's earnings are further supported by partnerships with local businesses and community organizations, enhancing its service offerings and customer base.

National Capital Bank of Washington Financial Statement Overview

Summary

Improving 2024 profitability and stronger cash generation (operating cash flow and free cash flow up sharply) support a solid financial profile. Offsetting this are the sharp 2024 revenue decline and inconsistent operating-profit metrics across periods, plus year-to-year leverage/funding variability.

Income Statement

Revenue has been broadly stable over the past several years but declined sharply in 2024 (down ~17.6% year over year). Profitability improved meaningfully in 2024, with net income rising to ~$6.4M from ~$4.4M in 2023 and net margin expanding to ~23.3% (from ~17.5%). The key weakness is volatility/inconsistency in operating profitability metrics (e.g., EBIT margin is inconsistent across years, including negative readings in multiple periods), which reduces confidence in the underlying earnings trend despite the strong 2024 net margin.

Balance Sheet

The balance sheet shows a solid equity base (~$59.2M equity vs. ~$714.3M assets in 2024) and reasonable leverage for the period, with debt-to-equity at ~0.39 in 2024. Returns improved, with return on equity rising to ~10.8% in 2024 from ~8.2% in 2023. A notable risk is leverage variability year to year (total debt swings materially, including a much higher 2023 debt level), which can indicate funding mix volatility and adds balance sheet uncertainty.

Cash Flow

Cash generation strengthened substantially in 2024: operating cash flow rose to ~$10.2M (vs. ~$4.2M in 2023) and free cash flow increased to ~$9.8M (vs. ~$4.0M). Free cash flow closely tracks earnings, with free cash flow at ~97% of net income in 2024 (and similarly high in prior years), supporting earnings quality. The main weakness is uneven free cash flow growth over time (including declines in 2020 and 2023), indicating cash conversion can fluctuate by year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.13M	38.99M	32.82M	25.77M	24.93M	23.88M
Gross Profit	27.04M	27.38M	25.15M	23.74M	23.89M	22.23M
EBITDA	4.97M	9.26M	-279.00K	6.73M	6.78M	3.95M
Net Income	7.40M	6.38M	4.36M	4.59M	4.65M	2.65M
Balance Sheet
Total Assets	702.60M	714.34M	703.05M	645.06M	735.69M	616.98M
Cash, Cash Equivalents and Short-Term Investments	0.00	44.93M	43.73M	36.95M	138.61M	31.01M
Total Debt	23.82M	23.03M	66.01M	21.35M	20.56M	26.20M
Total Liabilities	639.32M	655.13M	649.68M	596.73M	680.84M	563.54M
Stockholders Equity	63.28M	59.21M	53.37M	48.33M	54.85M	53.45M
Cash Flow
Free Cash Flow	0.00	9.84M	3.97M	7.12M	5.51M	1.93M
Operating Cash Flow	0.00	10.15M	4.21M	7.41M	5.88M	5.05M
Investing Cash Flow	0.00	-12.58M	-50.36M	-23.95M	-16.66M	-80.29M
Financing Cash Flow	0.00	3.62M	52.93M	-85.11M	118.38M	85.81M

National Capital Bank of Washington Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NACB, the sentiment is Negative. The current price of 66.3 is above the 20-day moving average (MA) of 66.05, below the 50-day MA of 66.32, and below the 200-day MA of 66.35, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 43.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NACB.

National Capital Bank of Washington Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOTJ	73 Outperform	$90.50M	10.03	10.86%	2.18%	6.17%	-6.13%
FUSB	72 Outperform	$88.12M	15.28	5.50%	2.08%	1.03%	-35.72%
UBCP	69 Neutral	$86.03M	10.56	10.91%	6.51%	6.31%	-5.00%
NACB	68 Neutral	$76.02M	10.79	―	1.23%	19.25%	46.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BYFC	54 Neutral	$71.15M	-2.50	0.22%	―	2.54%	-174.74%
FNWB	46 Neutral	$87.71M	-19.09	-4.68%	2.88%	8.02%	21.36%