Pacific Financial (PFLC) AI Stock Analysis

• Market Cap: $135.27M
• Dividend Yield: 4.37%
• Average Volume (3M): 1.84K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.24
• Revenue Growth: 3.67%
• EPS Growth: 6.83%
• Country: US
• Employees: 234
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.31
• Shares Outstanding: 10,329,557
• 10 Day Avg. Volume: 1,139
• 30 Day Avg. Volume: 1,839
• PEG Ratio: -0.39
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 2.53
• P/FCF Ratio: 24.54
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 0.88
• Enterprise Value/Ebitda: 3.61
• 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: 71 Outperform
• Price Target: $14.50 ▲(12.67% Upside)

Pacific Financial's overall stock score is driven by solid technical analysis and valuation metrics. The stock shows bullish momentum and is fairly valued with an attractive dividend yield. However, financial performance indicates challenges with declining profitability and limited cash flow data, which slightly dampens the overall score.

Positive Factors

Fee-based, diversified revenue model

A diversified, fee-based business model (management, performance, advisory fees and planning) creates recurring revenue tied to AUM and client relationships. This structural mix tends to smooth cycles, supports predictable cash flow and scalable margins over the medium term.

Low leverage and strong balance sheet

Very low debt-to-equity provides durable financial flexibility: it reduces solvency and interest-rate risk, preserves borrowing capacity for strategic investments or client initiatives, and supports capital return or dividend policy through economic cycles.

Stable shareholder equity presence

A stable equity ratio implies a steady capital cushion and regulatory resilience. That structural stability supports client confidence and enables the firm to absorb moderate asset shocks while continuing to fund operations and strategic growth initiatives over months.

Negative Factors

Declining revenue and margins

Multi-year revenue decline and falling net/EBIT margins indicate persistent pressure on pricing, client flows, or cost control. This erosion undermines sustainable earnings power and may require strategic product or distribution changes to restore long-term profitability.

Falling return on equity

A meaningful ROE decline signals reduced effectiveness in converting equity into profits. Persistently lower ROE can constrain shareholder returns and suggests the firm may need to improve asset allocation, pricing or operational efficiency to restore capital productivity.

Limited cash flow transparency

Missing 2024 operating cash flow and FCF metrics hinder assessment of true cash-generation and liquidity. This opacity raises durable uncertainty about the sustainability of dividends, funding for growth or debt service until clearer cash metrics are provided.

Pacific Financial Business Overview & Revenue Model

Company Description

Pacific Financial Corporation operates as the bank holding company for Bank of the Pacific that provides various banking products and services in Washington and Oregon. The company offers personal and business checking, and savings accounts; certificates of deposit, individual retirement accounts, and other investment options; home loans; and auto and recreation loans, credit cards, and home equity line of credit. It also provides business and commercial loans, commercial real estate loans, and SBA guaranteed loans, as well as inventory, equipment, and working capital loans; Visa business cards; and cash/treasury management, merchant, and online and mobile banking services. The company operates fourteen branches in the communities of Grays Harbor, Pacific, Whatcom, Clark, Skagit, and Wahkiakum counties in the state of Washington; and two branches in Clatsop County, Oregon. It also operates three loan production offices in the communities of Burlington, Washington and Salem and Eugene, Oregon. The company was founded in 1971 and is headquartered in Aberdeen, Washington.

How the Company Makes Money

Pacific Financial generates revenue through multiple key streams. Primarily, the company earns money from management fees charged on the assets it manages for clients in its asset management and investment advisory services. These fees are typically a percentage of the assets under management (AUM) and can vary based on the investment strategy employed. Additionally, PFLC may earn performance fees based on the investment returns exceeding a specified benchmark or target, providing an incentive for the company to achieve superior performance for its clients. The company also generates income through financial planning services, where clients pay for comprehensive financial assessments and ongoing advisory support. Strategic partnerships with financial institutions and technology providers further enhance PFLC’s offerings and may lead to additional revenue through joint ventures or referral fees. Overall, PFLC's diverse revenue model, coupled with its focus on client-centric solutions, positions it well for sustained earnings growth.

Pacific Financial Financial Statement Overview

Summary

Pacific Financial's financials present a mixed picture. The income statement reveals declining revenue and profitability margins, suggesting potential challenges in maintaining profit levels. The balance sheet remains strong with low leverage and good equity ratios, but the decline in return on equity is concerning. Limited cash flow data for 2024 constrains a full analysis of liquidity and cash management. Overall, while the company maintains a stable financial position, there are signs of pressure on profitability and operational efficiency.

Income Statement

Pacific Financial has shown a declining trend in revenue over the past three years, with a notable decrease from $55.37M in 2023 to $50.92M in 2024. The gross profit margin remained strong at 100%, as expected for a bank due to the absence of cost of goods sold. However, the net profit margin declined from 26.37% in 2023 to 18.72% in 2024, indicating decreasing profitability. The EBIT margin also dropped from 42.52% in 2023 to 30.47% in 2024. Overall, profitability metrics have weakened, which affects the income statement score.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.12 in 2024, reflecting low leverage and a stable financial position. The equity ratio remained stable at around 9.87%, indicating a steady shareholder equity presence in total assets. However, the return on equity decreased to 8.37% in 2024 from 12.73% in 2023, pointing to reduced efficiency in generating profits from equity.

Cash Flow

Cash flow analysis indicates challenges, as the operating cash flow was not reported for 2024, and free cash flow data was unavailable. In 2023, free cash flow was $14.47M, but no growth rate can be calculated for 2024. The lack of comprehensive cash flow metrics for 2024 limits the assessment of the company's liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.07M	50.92M	61.65M	49.38M	53.89M	59.72M
Gross Profit	51.06M	50.92M	54.85M	48.17M	56.28M	53.84M
EBITDA	12.40M	11.74M	19.33M	16.56M	18.64M	14.25M
Net Income	9.80M	9.53M	14.61M	10.89M	12.70M	11.38M
Balance Sheet
Total Assets	1.22B	1.15B	1.15B	1.31B	1.32B	1.17B
Cash, Cash Equivalents and Short-Term Investments	376.67M	18.14M	346.20M	545.27M	571.68M	320.04M
Total Debt	13.40M	17.44M	15.97M	14.55M	15.29M	15.90M
Total Liabilities	1.10B	1.04B	1.03B	1.20B	1.20B	1.05B
Stockholders Equity	118.94M	113.86M	114.69M	103.16M	117.64M	114.19M
Cash Flow
Free Cash Flow	0.00	5.26M	14.47M	24.20M	38.05M	-8.07M
Operating Cash Flow	0.00	6.73M	15.82M	25.37M	38.65M	-7.38M
Investing Cash Flow	0.00	-30.62M	-46.67M	-93.14M	-22.15M	-66.31M
Financing Cash Flow	0.00	-3.78M	-177.03M	-4.36M	144.24M	221.37M

Pacific Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.87
• 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 PFLC, the sentiment is Positive. The current price of 12.87 is below the 20-day moving average (MA) of 12.91, above the 50-day MA of 12.48, and above the 200-day MA of 11.29, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 65.34 is Neutral, neither overbought nor oversold. The STOCH value of 76.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFLC.

Pacific Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBFG	75 Outperform	$143.80M	10.42	10.12%	2.69%	10.78%	21.72%
PFLC	71 Outperform	$135.27M	11.29	8.38%	4.37%	3.67%	6.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRBK	67 Neutral	$129.32M	45.90	1.57%	0.88%	9.43%	166.36%
AFBI	64 Neutral	$124.40M	15.66	5.95%	―	5.18%	36.12%
SFBC	64 Neutral	$112.65M	15.85	6.52%	1.75%	2.85%	73.41%
BSBK	48 Neutral	$109.59M	223.56	0.35%	―	-15.09%	―