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

• Market Cap: $255.25M
• Dividend Yield: 1.99%
• Average Volume (3M): 13.12K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.60
• Revenue Growth: 5.50%
• EPS Growth: -5.19%
• Country: US
• Employees: 225
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.81
• Shares Outstanding: 8,388,221
• 10 Day Avg. Volume: 9,026
• 30 Day Avg. Volume: 13,119
• PEG Ratio: -0.50
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 2.69
• P/FCF Ratio: 10.08
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: 3.19
• 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: 75 Outperform
• Price Target: $34.00 ▲(12.55% Upside)

The score is driven primarily by solid financial strength (no reported debt, healthy historical profitability and cash flow) tempered by a sharp TTM revenue decline and questionable TTM margin quality. Technicals are moderately bullish (price above major moving averages; positive MACD), and valuation is supportive with a low P/E and modest dividend yield.

Positive Factors

Zero Debt

Having zero debt enhances financial stability and reduces risk, allowing the company to focus on growth and investment without the burden of interest payments.

Strong Profit Margins

Strong profit margins indicate effective cost control and operational efficiency, which are crucial for sustaining long-term profitability and competitiveness.

Stable Credit Quality

Maintaining stable credit quality and zero non-performing assets demonstrates prudent risk management, ensuring financial resilience and trustworthiness.

Negative Factors

Income Decline

A decline in net income can signal challenges in maintaining profitability, potentially affecting future growth and investment capabilities if not addressed.

Operating Expense Increase

Rising operating expenses can erode profit margins and indicate inefficiencies, necessitating cost management improvements to sustain financial health.

Cash Flow Variability

Inconsistent cash flow generation can hinder the company's ability to fund operations and growth, requiring strategic adjustments to stabilize cash inflows.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.80M	89.45M	87.30M	66.77M	55.23M	50.92M
Gross Profit	58.55M	78.21M	81.46M	67.00M	54.90M	47.61M
EBITDA	22.79M	33.29M	41.40M	30.84M	22.82M	18.94M
Net Income	16.89M	24.95M	30.85M	22.90M	16.34M	13.69M
Balance Sheet
Total Assets	793.04M	1.90B	1.84B	1.97B	1.96B	1.51B
Cash, Cash Equivalents and Short-Term Investments	756.13M	213.55M	698.15M	943.24M	998.22M	410.74M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.80B	1.72B	1.68B	1.84B	1.82B	1.38B
Stockholders Equity	198.28M	183.44M	166.09M	126.63M	142.61M	129.69M
Cash Flow
Free Cash Flow	24.08M	23.86M	31.16M	21.62M	10.21M	17.50M
Operating Cash Flow	24.95M	25.64M	33.06M	22.81M	11.19M	19.24M
Investing Cash Flow	-70.97M	-114.70M	-79.50M	-376.18M	103.76M	-285.65M
Financing Cash Flow	79.28M	41.25M	-166.62M	4.74M	436.66M	345.47M

Oak Valley Bancorp [Ca] Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.21
• 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 OVLY, the sentiment is Positive. The current price of 30.21 is below the 20-day moving average (MA) of 30.30, above the 50-day MA of 29.15, and above the 200-day MA of 27.25, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OVLY.

Oak Valley Bancorp [Ca] Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVLY	75 Outperform	$255.25M	10.69	12.29%	1.99%	5.50%	-5.19%
FVCB	75 Outperform	$254.49M	12.12	8.87%	0.87%	16.68%	322.32%
FUNC	71 Outperform	$247.08M	9.91	13.36%	2.38%	11.72%	55.87%
WNEB	69 Neutral	$262.50M	19.60	5.51%	2.18%	7.37%	27.35%
NWFL	68 Neutral	$308.45M	43.10	3.56%	4.21%	-4.66%	-58.94%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Oak Valley Bancorp [Ca] Corporate Events

Oak Valley Bancorp Opens 19th Branch in Lodi

Oak Valley Bancorp reported its third-quarter financial results for 2025, showing a consolidated net income of $6,693,000, or $0.81 per diluted share, marking an increase from the previous quarter but a decrease from the same period last year. The increase in net income from the prior quarter was driven by earning asset growth and higher loan yields, while the year-over-year decrease was due to the absence of a significant credit loss reversal recorded in 2024 and increased operating expenses. The company also highlighted its strong liquidity position and zero non-performing assets, with a focus on maintaining excellent asset quality and customer relationships as it opened its 19th branch in Lodi on October 2, 2025.