Ottawa Bancorp (OTTW) AI Stock Analysis

• Market Cap: $45.79M
• Dividend Yield: 2.95%
• Average Volume (3M): 554.00
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.12
• Revenue Growth: 12.14%
• EPS Growth: 320.14%
• Country: US
• Employees: 57
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.18
• Shares Outstanding: 3,121,035
• 10 Day Avg. Volume: 721
• 30 Day Avg. Volume: 554
• PEG Ratio: -0.89
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 3.69
• P/FCF Ratio: -41.03
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 3.89
• Enterprise Value/Gross Profit: 5.72
• Enterprise Value/Ebitda: 27.16
• 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: 53 Neutral
• Price Target: $16.00 ▲(8.11% Upside)

Ottawa Bancorp's overall stock score reflects significant financial challenges, particularly in cash flow management and revenue growth. While technical indicators show a slight bullish trend, the valuation is moderate. The absence of earnings call insights and corporate events limits the assessment to financial and technical factors.

Positive Factors

Stable Gross Profit Margin

A stable gross profit margin indicates that Ottawa Bancorp can maintain its pricing power and cost control, which is crucial for long-term profitability despite revenue challenges.

Equity Ratio Stability

A stable equity ratio suggests Ottawa Bancorp has a balanced approach to financing, which can provide resilience against financial volatility and support long-term growth.

Revenue Growth Potential

Despite current challenges, a positive revenue growth trend indicates potential for market expansion and increased service adoption, supporting future business sustainability.

Negative Factors

Declining Revenue

The declining revenue trend reflects a challenging market environment, which could hinder Ottawa Bancorp's ability to invest in growth initiatives and maintain competitive positioning.

Increasing Debt Levels

Rising debt levels increase financial leverage, which can strain cash flow and limit financial flexibility, potentially impacting long-term financial health.

Negative Cash Flow

Negative cash flow raises concerns about liquidity and operational sustainability, potentially limiting Ottawa Bancorp's ability to fund operations and growth without external financing.

Ottawa Bancorp Business Overview & Revenue Model

Company Description

Ottawa Bancorp, Inc. operates as the holding company for Ottawa Savings Bank, a savings bank that provides various financial services to individual and corporate customers in Illinois. The company's deposit products include saving, checking, money market, and interest-bearing accounts, as well as certificate of deposit. Its loan portfolio comprises commercial, non-residential real estate, one-to-four family residential, multi-family residential, consumer direct, and purchased auto loans; motor vehicle, home improvement, share, and personal unsecured loans, as well as home equity and small personal credit lines; and student loans. The company also provides cash management solutions, such as remote deposit capture, automated clearing house/payroll direct deposit, and merchant services, as well as commercial leasing services. In addition, it offers notary, lamination, night depository, document faxing, money gift envelopes, gift and travel cards, and coin counting, as well as debit and credit cards, and digital banking services. The company was formerly known as Ottawa Savings Bancorp, Inc. and changed its name to Ottawa Bancorp, Inc. in October 2016. Ottawa Bancorp, Inc. was founded in 1871 and is based in Ottawa, Illinois.

How the Company Makes Money

Ottawa Bancorp generates revenue through various key streams, including interest income from loans, fees for banking services, and investment income. The company earns significant interest income by extending loans to individuals and businesses, which are repaid with interest over time. Additionally, Ottawa Bancorp collects service fees from account maintenance, transaction processing, and advisory services in wealth management. The bank may also engage in partnerships with other financial institutions to offer specialized products, thereby expanding its service offerings and enhancing revenue potential. Factors contributing to its earnings include effective risk management, interest rate fluctuations, and the overall economic environment which influences lending demand.

Ottawa Bancorp Financial Statement Overview

Summary

Ottawa Bancorp faces challenges in revenue growth, profitability, and cash flow management. The declining revenue and net income, coupled with negative free cash flow, indicate significant financial pressures. The balance sheet remains moderately stable, but increasing debt levels highlight financial risks.

Income Statement

Ottawa Bancorp's revenue has shown a declining trend over the past few years, with a decrease in total revenue from $12.74M in 2022 to $9.69M in 2024. The company has also seen declining net income, reflecting a challenging growth environment. The gross profit margin remains relatively stable, but the declining EBIT and EBITDA margins indicate pressure on operational efficiency.

Balance Sheet

The company's balance sheet reflects a fairly stable equity ratio of around 11% to 13% over the years, indicating a moderate reliance on equity financing. However, the debt-to-equity ratio has increased, signaling higher financial leverage. Ottawa Bancorp has managed to maintain its stockholders' equity, yet consistent increases in total liabilities suggest growing financial obligations.

Cash Flow

Ottawa Bancorp's cash flow position is concerning, with negative free cash flow in 2024 and no reported operating, investing, or financing cash flows. This lack of cash flow visibility raises concerns about liquidity management. Additionally, the historical free cash flow growth has been inconsistent, posing challenges for future cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.95M	9.69M	16.20M	14.55M	14.89M	15.07M
Gross Profit	10.86M	9.69M	10.70M	11.50M	13.20M	11.91M
EBITDA	2.29M	1.08M	2.61M	3.61M	4.33M	3.49M
Net Income	1.63M	778.14K	1.67M	2.38M	2.90M	2.48M
Balance Sheet
Total Assets	346.81M	353.65M	363.92M	357.70M	342.53M	307.59M
Cash, Cash Equivalents and Short-Term Investments	26.61M	17.01M	32.18M	32.01M	39.47M	32.32M
Total Debt	22.81M	23.63M	32.45M	20.85M	16.52M	17.55M
Total Liabilities	305.16M	313.45M	320.59M	314.56M	294.48M	259.35M
Stockholders Equity	41.66M	40.20M	43.33M	43.14M	48.04M	48.23M
Cash Flow
Free Cash Flow	0.00	-872.51K	3.03M	3.49M	2.73M	3.84M
Operating Cash Flow	0.00	-618.32K	3.10M	3.57M	2.98M	3.94M
Investing Cash Flow	0.00	9.79M	-2.32M	-15.22M	-38.93M	-3.32M
Financing Cash Flow	0.00	-10.05M	1.75M	16.00M	32.09M	3.72M

Ottawa Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTTW, the sentiment is Positive. The current price of 14.8 is above the 20-day moving average (MA) of 14.71, above the 50-day MA of 14.80, and below the 200-day MA of 14.93, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 24.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OTTW.

Ottawa Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HFBL	78 Outperform	$56.30M	10.77	8.21%	3.21%	0.32%	37.93%
OPHC	75 Outperform	$54.32M	4.84	15.03%	―	14.91%	0.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CLST	65 Neutral	$63.97M	27.62	2.72%	―	76.66%	―
TCBS	55 Neutral	$48.50M	19.57	4.74%	1.10%	12.12%	―
OTTW	53 Neutral	$45.79M	18.70	4.45%	2.95%	12.14%	320.14%