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

• Market Cap: $230.51M
• Dividend Yield: 1.91%
• Average Volume (3M): 20.16K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.72
• Revenue Growth: 0.40%
• EPS Growth: -10.62%
• Country: US
• Employees: 225
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 8,382,062
• 10 Day Avg. Volume: 26,534
• 30 Day Avg. Volume: 20,156
• PEG Ratio: -7.08
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.39
• Enterprise Value/Market Cap: 0.29
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.86
• Enterprise Value/Ebitda: 0.51
• 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 (OVLY) is a bank holding company headquartered in Oakdale, California. It operates through its subsidiary, Oak Valley Community Bank, which provides a range of community banking services primarily in the Central Valley and Eastern Sierra regions of California. The bank offers traditional banking products and services such as checking and savings accounts, personal and commercial loans, and mortgage products. Additionally, it provides online banking, mobile banking, and other financial services tailored to individual and business clients.

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	89.45M	87.30M	66.77M	55.23M	50.92M
Gross Profit	78.21M	81.46M	67.00M	54.90M	47.61M
EBITDA	33.29M	41.40M	30.84M	22.82M	18.94M
Net Income	24.95M	30.85M	22.90M	16.34M	13.69M
Balance Sheet
Total Assets	1.90B	1.84B	1.97B	1.96B	1.51B
Cash, Cash Equivalents and Short-Term Investments	213.55M	698.15M	943.24M	998.22M	410.74M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.72B	1.68B	1.84B	1.82B	1.38B
Stockholders Equity	183.44M	166.09M	126.63M	142.61M	129.69M
Cash Flow
Free Cash Flow	23.86M	31.16M	21.62M	10.29M	17.50M
Operating Cash Flow	25.64M	33.06M	22.81M	11.27M	19.24M
Investing Cash Flow	-114.70M	-79.50M	-376.18M	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: Neutral
• Last Price: 27.50
• 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 Neutral. The current price of 27.5 is below the 20-day moving average (MA) of 27.78, above the 50-day MA of 26.67, and above the 200-day MA of 26.74, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 30.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	80 Outperform	$269.57M	14.87	7.73%	1.59%	23.76%	683.10%
MVBF	78 Outperform	$322.40M	17.01	6.38%	2.74%	-8.20%	-22.46%
OVLY	72 Outperform	$230.51M	9.63	13.54%	1.91%	0.40%	-10.62%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
FRST	66 Neutral	$299.15M	75.44	1.06%	3.31%	5.36%	―
INBK	65 Neutral	$238.13M	11.38	4.06%	0.88%	17.13%	-16.81%
HMST	48 Neutral	$249.57M	―	-30.45%	0.98%	-22.46%	-251.47%

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.