Peoples Financial (PFBX) AI Stock Analysis

• Market Cap: $93.50M
• Dividend Yield: 1.78%
• Average Volume (3M): 613.00
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.23
• Revenue Growth: -7.99%
• EPS Growth: -78.22%
• Country: US
• Employees: 131
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.27
• Shares Outstanding: 4,617,466
• 10 Day Avg. Volume: 158
• 30 Day Avg. Volume: 613
• PEG Ratio: 0.03
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 2.83
• P/FCF Ratio: 17.15
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: 9.77
• 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: 74 Outperform
• Price Target: ―

Peoples Financial (PFBX) exhibits strong financial health with a robust balance sheet and high profitability margins. The stock benefits from positive technical indicators, suggesting upward momentum, while its low P/E ratio indicates attractive valuation. Although revenue growth has been inconsistent, the company's stable cash flow and solid financials provide a strong foundation. The combination of these factors results in a favorable overall stock score.

Positive Factors

Balance Sheet Health

A strong balance sheet with zero debt enhances financial stability and reduces risk, providing a solid foundation for future growth and resilience against economic downturns.

Profitability Margins

High profitability margins indicate efficient operations and strong revenue retention, contributing to sustained earnings and competitive positioning in the banking sector.

Cash Flow Management

Efficient cash flow management ensures liquidity and operational flexibility, supporting the company's ability to invest in growth opportunities and weather financial challenges.

Negative Factors

Revenue Growth Variability

Inconsistent revenue growth can signal challenges in market expansion or product demand, potentially impacting long-term profitability and strategic planning.

Free Cash Flow Volatility

Volatility in free cash flow generation may indicate challenges in maintaining consistent liquidity, which could affect the company's ability to fund operations and growth initiatives.

Limited Leverage for Growth

While a debt-free balance sheet reduces risk, it may also limit the company's ability to leverage financing for expansion, potentially constraining growth opportunities in competitive markets.

Peoples Financial Business Overview & Revenue Model

Company Description

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. It accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). The company also offers business, commercial, real estate, construction, personal, and instalment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, it provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, the company offers various other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and internet banking services. As of December 31, 2021, the company operated through 17 branches located in Harrison, Hancock, Jackson, and Stone counties. It also has 28 automated teller machines at its branch locations, as well as other off-site and non-proprietary locations. The company was founded in 1896 and is headquartered in Biloxi, Mississippi.

How the Company Makes Money

Peoples Financial Corporation generates revenue primarily through the interest income earned from its loan portfolio and investment securities. The company makes money by offering various loan products, including commercial, residential, and consumer loans, where the interest paid by borrowers constitutes a significant portion of its income. Additionally, the bank earns non-interest income from service charges, fees for banking services such as checking account maintenance, overdrafts, and wire transfers, as well as gains from the sale of investment securities. Peoples Bank's financial performance is also influenced by its strategic focus on maintaining strong customer relationships and prudent risk management practices, which help to stabilize and grow its earnings.

Peoples Financial Financial Statement Overview

Summary

Peoples Financial demonstrates solid financial strength with a strong balance sheet and consistent profitability. While revenue growth has been variable, the company maintains excellent gross and net profit margins, contributing to overall stability. Cash flow management is generally effective, though minor fluctuations in free cash flow growth suggest areas for attention. Overall, the company is well-positioned in the banking industry with room for strategic leveraging to enhance growth.

Income Statement

Peoples Financial shows strong gross profit margins, consistently above 100% due to high revenue retention. The net profit margin saw a significant increase from the previous year, driven by reduced expenses. However, the revenue growth rate has been inconsistent, with a recent decline. The EBIT and EBITDA margins are not applicable for the most recent period, highlighting a potential area for improvement in operational efficiency.

Balance Sheet

The company exhibits a robust balance sheet with zero total debt in the latest report, enhancing financial stability. The equity ratio is solid, indicating strong equity financing relative to assets. Return on Equity (ROE) has significantly improved, reflecting higher profitability relative to equity. These factors suggest strong financial health, although the absence of leverage could limit potential growth.

Cash Flow

Peoples Financial has maintained positive free cash flow, though with some fluctuations in growth. The operating cash flow to net income ratio is healthy, indicating efficient cash management. However, the free cash flow to net income ratio has varied, suggesting potential volatility in cash generation relative to profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.87M	39.45M	38.90M	30.10M	26.41M	25.90M
Gross Profit	27.71M	29.97M	33.02M	27.86M	31.25M	18.32M
EBITDA	7.57M	10.12M	12.90M	8.20M	10.65M	-747.00K
Net Income	4.72M	21.70M	9.17M	8.94M	8.91M	-2.56M
Balance Sheet
Total Assets	758.07M	831.85M	797.74M	861.64M	818.95M	668.03M
Cash, Cash Equivalents and Short-Term Investments	354.36M	416.39M	22.79M	383.00M	426.79M	271.67M
Total Debt	0.00	0.00	18.50M	0.00	889.00K	969.00K
Total Liabilities	658.06M	741.85M	728.46M	806.45M	727.22M	573.16M
Stockholders Equity	100.01M	90.00M	69.28M	55.19M	91.73M	94.87M
Cash Flow
Free Cash Flow	4.66M	5.06M	6.51M	5.74M	2.64M	5.48M
Operating Cash Flow	4.98M	6.03M	9.05M	7.91M	4.58M	5.92M
Investing Cash Flow	56.00M	68.01M	62.38M	-104.23M	-196.25M	-14.77M
Financing Cash Flow	-61.33M	10.91M	-81.47M	79.16M	150.11M	70.97M

Peoples Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFBX, the sentiment is Positive. The current price of 20.25 is below the 20-day moving average (MA) of 20.26, below the 50-day MA of 20.25, and above the 200-day MA of 19.71, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 21.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFBX.

Peoples Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFBX	74 Outperform	$93.50M	19.80	4.81%	1.78%	-7.99%	-78.22%
AUBN	72 Outperform	$90.45M	12.65	8.22%	4.01%	24.17%	739.42%
LSBK	68 Neutral	$115.61M	16.74	5.94%	2.09%	2.27%	66.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IROQ	66 Neutral	$87.31M	16.63	6.20%	1.52%	1.93%	157.35%
CFSB	54 Neutral	―	―	-0.35%	―	11.64%	-913.46%
PBHC	49 Neutral	$93.33M	84.38	2.26%	2.69%	0.84%	―