Northeast Bancorp (NBN) AI Stock Analysis

• Market Cap: $878.74M
• Dividend Yield: 0.04%
• Average Volume (3M): 82.56K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.82
• Revenue Growth: 33.02%
• EPS Growth: 33.76%
• Country: US
• Employees: 194
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 3.00
• Shares Outstanding: 7,977,690
• 10 Day Avg. Volume: 63,566
• 30 Day Avg. Volume: 82,561
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 9.57
• 1Y Price Target: $100.00
• Price Target Upside: -9.21% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: $115.00 ▲(4.40% Upside)

Northeast Bancorp's strong financial performance and positive earnings call are significant contributors to its high stock score. Technical indicators support a positive outlook, though the stock is nearing overbought levels. Valuation metrics suggest the stock is undervalued, making it an attractive investment opportunity with potential growth. While there are some potential risks noted in the earnings call, the overall financial health and market position are strong.

Positive Factors

Revenue Growth

Northeast Bancorp's strong revenue growth reflects its ability to expand its market presence and enhance its service offerings, supporting long-term business sustainability.

Profitability

High profitability margins suggest effective cost management and operational efficiency, which are critical for maintaining competitive advantage and financial health.

Loan Activity

Robust loan activity indicates strong demand for Northeast Bancorp's financial products, contributing to revenue growth and market expansion.

Negative Factors

SBA Volume Decline

A decline in SBA lending volume due to regulatory changes could impact revenue streams and growth prospects in the short to medium term.

Increased Noninterest Expense

Rising noninterest expenses can erode profit margins and reduce overall profitability, posing a challenge to maintaining cost efficiency.

Competition in Loan Purchases

Increased competition in the loan purchase market may pressure margins and limit growth opportunities, affecting long-term competitiveness.

Northeast Bancorp Business Overview & Revenue Model

Company Description

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. It operates a network of nine branches in Western, Central, and Southern Maine. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.

How the Company Makes Money

Northeast Bancorp makes money primarily through its banking operations, which generate revenue from interest income and non-interest income sources. Interest income is derived from the interest charged on loans and advances made to individuals, businesses, and municipalities. This includes commercial real estate loans, residential real estate loans, and consumer loans. Non-interest income is generated from fees and service charges related to deposit accounts, loan servicing fees, and other financial services. The company also invests in securities and other financial instruments to earn interest and dividends. Significant partnerships with local businesses and an emphasis on community banking further bolster its income by attracting and retaining a loyal customer base.

Northeast Bancorp Financial Statement Overview

Summary

Northeast Bancorp exhibits strong financial health with impressive revenue and profit growth, efficient operations, and stable leverage levels. Income metrics show robust performance, though cash flow from operations is an area for potential improvement.

Income Statement

Northeast Bancorp shows a strong income statement with impressive growth. The TTM (Trailing-Twelve-Months) Gross Profit Margin is 56.52%, and the Net Profit Margin is 23.30%, indicating efficient cost management and strong profitability. Revenue growth from 2024 to TTM is notable at 20.82%, showcasing robust top-line growth. EBIT and EBITDA margins are solid at 35.06% and 36.03% respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet of Northeast Bancorp reflects a stable financial position. The Debt-to-Equity Ratio is 0.85, suggesting a moderate level of leverage. Return on Equity (ROE) is strong at 15.69%, indicating effective use of equity in generating profits. The Equity Ratio stands at 11.05%, which is relatively low, but typical for the banking industry, indicating reliance on liabilities for asset financing.

Cash Flow

The cash flow statement presents a mixed picture. The Free Cash Flow growth is significant, and the Operating Cash Flow to Net Income Ratio is 0.05, indicating some conversion of income to cash but not robustly. The Free Cash Flow to Net Income Ratio is 0.04, suggesting limited free cash flow relative to net income. Investment in future growth is evident, but cash flow from operations needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	314.71M	260.51M	179.91M	109.78M	146.89M	94.81M
Gross Profit	177.86M	149.43M	119.24M	107.13M	137.25M	71.61M
EBITDA	113.39M	91.18M	68.43M	64.15M	103.69M	36.23M
Net Income	73.37M	58.23M	44.19M	42.16M	71.50M	22.74M
Balance Sheet
Total Assets	4.23B	3.13B	2.87B	1.58B	2.17B	1.26B
Cash, Cash Equivalents and Short-Term Investments	361.51M	291.04M	251.31M	226.99M	1.07B	208.57M
Total Debt	398.01M	365.44M	584.53M	34.45M	36.11M	59.32M
Total Liabilities	3.76B	2.76B	2.57B	1.33B	1.94B	1.09B
Stockholders Equity	467.52M	376.63M	296.66M	248.32M	232.39M	164.74M
Cash Flow
Free Cash Flow	3.05M	111.00K	57.64M	29.44M	7.08M	15.15M
Operating Cash Flow	3.82M	2.56M	60.11M	30.50M	8.34M	16.31M
Investing Cash Flow	-995.48M	-158.25M	-1.23B	-248.95M	27.46M	1.50M
Financing Cash Flow	1.13B	199.94M	1.20B	-619.96M	831.03M	68.94M

Northeast Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 110.15
• 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 NBN, the sentiment is Positive. The current price of 110.15 is above the 20-day moving average (MA) of 108.45, above the 50-day MA of 101.67, and above the 200-day MA of 94.68, indicating a bullish trend. The MACD of 2.87 indicates Positive momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 64.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBN.

Northeast Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSBC	81 Outperform	$949.81M	9.85	12.51%	1.31%	2.02%	-2.80%
NBN	79 Outperform	$878.74M	10.93	19.16%	0.04%	33.02%	33.76%
HBT	79 Outperform	$802.50M	10.51	14.08%	3.22%	4.86%	7.89%
CPF	77 Outperform	$822.93M	13.66	11.16%	3.49%	2.81%	6.88%
FCBC	74 Outperform	$678.93M	13.61	9.91%	8.93%	0.89%	-2.22%
MCBS	73 Outperform	$742.13M	11.30	15.67%	3.23%	4.92%	20.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%