Oak Valley Bancorp [Ca] (OVLY) AI Stock Analysis

• Market Cap: $221.20M
• Dividend Yield: 2.06%
• Average Volume (3M): 7.36K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.66
• Revenue Growth: 0.40%
• EPS Growth: -10.62%
• Country: US
• Employees: 225
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.64
• Shares Outstanding: 8,382,062
• 10 Day Avg. Volume: 5,046
• 30 Day Avg. Volume: 7,357
• PEG Ratio: -4.33
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.94
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 2.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ―

Oak Valley Bancorp demonstrates solid financial performance with no debt and strong profit margins, which are major strengths. The stock is undervalued, offering a decent dividend yield. However, technical indicators and recent income declines suggest caution, balancing the overall score.

Oak Valley Bancorp [Ca] Business Overview & Revenue Model

Company Description

Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides a range of commercial banking services to individuals and small to medium-sized businesses in the Central Valley and the Eastern Sierras. The company's deposits products include checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans consisting of automobile loans, home mortgage loans, revolving lines of credit, and other personal loans. In addition, the company provides online banking, remote deposit capture, mobile banking, merchant, night depository, extended hours, wire transfer of funds, and note collection services, as well as automated teller machines. As of December 31, 2021, it operated through seventeen full-service branch offices in Oakdale, Sonora, Bridgeport, Bishop, Mammoth Lakes, Modesto, Manteca, Patterson, Turlock, Tracy, Ripon, Stockton, Escalon, California, and Sacramento. The company was incorporated in 1990 and is headquartered in Oakdale, California.

How the Company Makes Money

Oak Valley Bancorp generates revenue primarily through interest income from loans and investment securities. The bank earns money by providing loans to individuals and businesses, charging interest on these loans, and managing the spread between the interest rates it pays on deposits and the rates it earns on loans. Additionally, the company earns non-interest income through service charges, fees on deposit accounts, transaction fees, and other financial services. This includes fees from payment processing, online banking services, and other ancillary financial services. The bank's revenue is further supported by its relationships with local businesses and residents, as well as its strategic location in economically active regions of California.

Oak Valley Bancorp [Ca] Financial Statement Overview

Summary

Oak Valley Bancorp displays robust financial health with significant revenue and profit growth and no debt, which contributes to its stability. The income statement reflects strong profitability, but the cash flow statement indicates some variability in cash generation.

Income Statement

Oak Valley Bancorp has demonstrated strong revenue growth over the years, with a notable increase from $49.77 million in 2020 to $80.67 million in 2023. The company maintains impressive gross and net profit margins, reflecting efficient cost management and profitability. However, the EBIT margin shows some volatility, indicating potential variations in operational efficiency.

Balance Sheet

The company's balance sheet is characterized by zero total debt, which significantly reduces financial risk. The equity ratio has been strong, indicating a solid capital base. However, fluctuations in stockholders' equity suggest potential instability in retained earnings or capital contributions.

Cash Flow

The cash flow analysis shows a generally positive free cash flow over the years, with a peak in 2023. However, the operating cash flow to net income ratio is inconsistent, suggesting variability in cash generation relative to profits. The company needs to ensure stable cash flows to support future growth and investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
78.21M	80.67M	65.65M	54.26M	49.77M
	Gross Profit
78.21M	73.91M	58.80M	47.99M	43.91M
	EBIT
78.21M	40.31M	30.81M	21.68M	17.74M
	EBITDA
0.00	0.00	30.84M	22.82M	18.94M
	Net Income Common Stockholders
24.95M	30.85M	22.90M	16.34M	13.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
75.07M	69.19M	943.24M	998.22M	410.74M
	Total Assets
1.90B	1.84B	1.97B	1.96B	1.51B
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-138.48M	-180.07M	-415.80M	-735.33M	-193.57M
	Total Liabilities
1.72B	1.68B	1.84B	14.90M	13.97M
	Stockholders Equity
183.44M	166.09M	126.63M	142.61M	129.69M
Cash Flow		Free Cash Flow
23.86M	31.16M	22.13M	10.29M	17.50M
	Operating Cash Flow
25.64M	33.06M	23.32M	11.27M	19.24M
	Investing Cash Flow
-114.70M	-79.50M	-376.69M	103.68M	-285.65M
	Financing Cash Flow
41.25M	-166.62M	4.74M	436.66M	345.47M

Oak Valley Bancorp [Ca] Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.84
• 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 OVLY, the sentiment is Negative. The current price of 24.84 is below the 20-day moving average (MA) of 25.63, below the 50-day MA of 24.92, and below the 200-day MA of 26.51, indicating a bearish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 35.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OVLY.

Oak Valley Bancorp [Ca] Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JMSB	76 Outperform	$249.87M	14.08	7.25%	1.43%	25.96%	484.74%
OVLY	72 Outperform	$221.20M	8.90	13.99%	2.06%	0.40%	-10.62%
INBK	71 Outperform	$214.82M	10.27	5.58%	0.97%	22.97%	27.73%
Sector *	64 Neutral	$12.66B	9.79	7.67%	17015.07%	12.23%	-6.06%
HMST	52 Neutral	$233.48M	―	-30.45%	0.98%	-22.63%	-251.47%
MVBF	52 Neutral	$250.54M	13.22	6.38%	3.60%	-8.32%	-22.46%
FRST	50 Neutral	$233.38M	58.85	1.06%	4.31%	5.36%	-2.23%

Oak Valley Bancorp [Ca] Corporate Events

Oak Valley Bancorp Reports Q1 2025 Income Decline

Oak Valley Bancorp reported a decrease in net income for the first quarter of 2025, with earnings of $5.3 million compared to $6 million in the previous quarter, primarily due to increased operating expenses. Despite a Federal Open Market Committee rate cut in December 2024, the net interest margin improved slightly, and the company’s liquidity position remained strong with significant cash reserves. The company maintained zero non-performing assets and a stable credit quality, reflecting a conservative approach to risk management.

Spark’s Take on OVLY Stock

According to Spark, TipRanks’ AI Analyst, OVLY is a Outperform.

Oak Valley Bancorp exhibits solid financial performance with no debt and strong profit margins, which are major strengths. The stock appears undervalued and offers a reasonable dividend yield, enhancing its attractiveness. However, recent income declines and technical indicators suggest caution, balancing the overall score.

To see Spark’s full report on OVLY stock, click here.