Peoples Bancorp Of North Carolina (PEBK) AI Stock Analysis

• Market Cap: $199.98M
• Dividend Yield: 2.58%
• Average Volume (3M): 11.36K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.80
• Revenue Growth: 4.52%
• EPS Growth: 3.47%
• Country: US
• Employees: 281
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.21
• Shares Outstanding: 5,459,441
• 10 Day Avg. Volume: 14,555
• 30 Day Avg. Volume: 11,359
• PEG Ratio: 1.38
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 8.29
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 7.44
• 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: 76 Outperform
• Price Target: $41.00 ▲(25.69% Upside)

Peoples Bancorp Of North Carolina scores well due to its strong financial performance and positive technical indicators. The reasonable valuation further supports the stock's attractiveness. However, caution is advised due to potential overbought conditions in the technical analysis.

Positive Factors

Profitability & Margins

Sustained high gross and healthy net margins indicate durable underwriting discipline and fee income mix, enabling the bank to absorb cyclical credit costs. Consistent revenue growth with strong margins supports internal capital generation and long-term dividend capacity.

Conservative Balance Sheet

Very low leverage provides strong loss-absorption capacity and regulatory flexibility, reducing refinancing and liquidity risk. Combined with acceptable ROE, this balance sheet posture supports steady lending growth and capital returns while keeping capital ratios resilient over time.

Cash Generation Quality

High conversion of earnings into free cash flow signals earnings quality and operational efficiency, giving management flexibility to fund loans, invest in operations, and sustain dividends without frequent external financing, strengthening long-term financial resilience.

Negative Factors

Declining Free Cash Flow Growth

A negative free cash flow growth trend suggests the bank's ability to grow internally may be weakening, potentially limiting capacity for balance sheet expansion, loan growth, or increased capital returns. If persistent, it can force reliance on deposits or external funding.

Emerging Margin Pressure

A falling gross margin points to rising funding or operating costs that could compress profitability if unchecked. For a regional bank, sustained cost pressure reduces cushions for credit losses and limits excess return deployment, making earnings more sensitive to rate and expense cycles.

Limited Scale / Regional Footprint

Modest size and regional focus constrain diversification, scale economies, and tech investment versus larger peers. This structural limitation can pressure funding costs, product breadth, and pricing power over time, hampering market share gains in competitive banking markets.

Peoples Bancorp Of North Carolina Business Overview & Revenue Model

Company Description

Peoples Bancorp of North Carolina (PEBK) is a financial holding company headquartered in Newton, North Carolina, primarily engaged in providing a broad range of banking and financial services through its wholly-owned subsidiary, Peoples Bank. The company serves various sectors, including retail banking, commercial banking, and investment services, focusing on the needs of individuals, businesses, and communities. Core products and services include checking and savings accounts, loans, mortgages, and wealth management services, aimed at fostering economic growth and financial well-being within its operational regions.

How the Company Makes Money

Peoples Bancorp of North Carolina generates revenue primarily through interest income from loans and securities. The company earns interest on loans provided to consumers and businesses, which constitutes a significant portion of its earnings. Additionally, it collects fees from various banking services, including account maintenance, transaction fees, and loan origination fees. Non-interest income also comes from wealth management services, investment advisory fees, and other financial services. The bank's strategic partnerships with local businesses and community organizations further enhance its ability to attract deposits and generate lending opportunities, thereby boosting its overall revenue.

Peoples Bancorp Of North Carolina Financial Statement Overview

Summary

Peoples Bancorp Of North Carolina shows strong financial health with consistent revenue and profit growth, efficient cost management, and prudent leverage. The decline in free cash flow growth is a concern but overall financials are robust.

Income Statement

Peoples Bancorp Of North Carolina demonstrates strong profitability with a consistent increase in revenue and net income over the years. The TTM data shows a healthy gross profit margin of 57.92% and a net profit margin of 17.64%, indicating efficient cost management. The revenue growth rate of 7.7% in the TTM period reflects a positive growth trajectory. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.13 in the TTM period, indicating prudent financial leverage. The return on equity stands at 11.91%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a comprehensive assessment of asset financing.

Cash Flow

Cash flow analysis reveals a robust free cash flow to net income ratio of 94.28% in the TTM period, highlighting strong cash generation relative to profits. However, the free cash flow growth rate is negative, indicating a decline in cash generation capacity. The operating cash flow to net income ratio is not available, which restricts a full evaluation of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.47M	97.79M	85.78M	70.72M	63.88M	64.59M
Gross Profit	73.08M	71.42M	67.07M	65.92M	61.84M	56.49M
EBITDA	24.50M	23.82M	23.05M	26.33M	24.50M	18.03M
Net Income	16.76M	16.35M	15.55M	16.12M	15.13M	11.36M
Balance Sheet
Total Assets	1.74B	1.65B	1.64B	1.62B	1.62B	1.42B
Cash, Cash Equivalents and Short-Term Investments	493.88M	293.05M	474.30M	516.99M	684.05M	406.83M
Total Debt	19.26M	19.60M	107.01M	68.34M	57.23M	45.14M
Total Liabilities	1.59B	1.52B	1.51B	1.52B	1.48B	1.28B
Stockholders Equity	149.47M	130.56M	121.02M	105.19M	142.37M	139.90M
Cash Flow
Free Cash Flow	20.02M	19.97M	20.83M	18.05M	26.42M	6.67M
Operating Cash Flow	21.36M	20.56M	22.78M	22.66M	26.90M	9.16M
Investing Cash Flow	-36.88M	-42.62M	-753.00K	-255.98M	-106.14M	-148.97M
Financing Cash Flow	59.37M	-1.04M	-11.25M	27.42M	195.16M	249.00M

Peoples Bancorp Of North Carolina Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.62
• 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 PEBK, the sentiment is Positive. The current price of 32.62 is below the 20-day moving average (MA) of 36.23, below the 50-day MA of 35.25, and above the 200-day MA of 30.61, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 32.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PEBK.

Peoples Bancorp Of North Carolina Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UBFO	78 Outperform	$188.78M	15.34	8.41%	4.66%	-2.00%	-36.25%
PEBK	76 Outperform	$199.98M	10.12	11.73%	2.58%	4.52%	3.47%
OVBC	75 Outperform	$193.86M	12.43	8.95%	2.27%	10.35%	22.05%
MRBK	71 Outperform	$218.03M	10.02	11.39%	2.87%	9.77%	76.75%
HNVR	68 Neutral	$166.14M	23.10	5.60%	1.70%	0.99%	-6.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBFV	66 Neutral	$179.54M	38.95	1.78%	2.90%	-1.39%	-88.66%