Parke Bancorp (PKBK) AI Stock Analysis

• Market Cap: $227.39M
• Dividend Yield: 3.75%
• Average Volume (3M): 16.75K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.78
• Revenue Growth: 9.76%
• EPS Growth: 24.43%
• Country: US
• Employees: 99
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.65
• Shares Outstanding: 11,843,328
• 10 Day Avg. Volume: 20,345
• 30 Day Avg. Volume: 16,746
• PEG Ratio: 2.53
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.71
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: 2.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ―

Parke Bancorp's strong financial performance, characterized by significant revenue growth and a solid balance sheet with zero debt, is a major strength. The stock's low P/E ratio and attractive dividend yield further enhance its investment potential. However, technical indicators reveal bearish momentum, suggesting caution. Overall, the stock presents a promising investment opportunity, albeit with some caution due to recent technical weaknesses.

Parke Bancorp Business Overview & Revenue Model

Company Description

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. It operates through 7 branch offices in Galloway Township, Northfield, Washington Township, and Collingswood, New Jersey; and Philadelphia, Pennsylvania. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.

How the Company Makes Money

Parke Bancorp generates revenue primarily through interest income from its lending activities. The company earns interest by providing various types of loans, including commercial real estate loans, residential mortgages, and construction loans. In addition to interest income, Parke Bank generates revenue from fees related to its banking services, such as account maintenance fees, transaction fees, and loan origination fees. The bank also invests in securities, earning additional income from interest and dividends on these investments. Overall, Parke Bancorp's earnings are influenced by factors such as interest rate fluctuations, loan demand, and economic conditions impacting its operating regions.

Parke Bancorp Financial Statement Overview

Summary

Parke Bancorp exhibits strong revenue growth and an improving balance sheet with zero debt, enhancing its financial stability. However, declining net profit margins and operating cash flow suggest potential challenges in maintaining profitability and cash conversion efficiency. The company's robust equity position and effective liquidity management provide a solid foundation for future growth despite these challenges.

Income Statement

Parke Bancorp has demonstrated strong revenue growth over the years, with a significant increase from $66.83 million in 2020 to $125.11 million in 2024. The company maintained healthy gross profit margins at 100% due to its banking operations. However, the net profit margin showed a decline from 53.4% in 2022 to 22% in 2024, indicating pressure on net income despite revenue growth. The EBIT margin was not calculated for 2024 due to missing data; however, previous years showed strong margins above 50%.

Balance Sheet

Parke Bancorp's balance sheet reflects solid equity growth with stockholders' equity rising from $177.61 million in 2019 to $300.07 million in 2024. The debt-to-equity ratio improved significantly as the company eliminated its debt by 2024, enhancing financial stability. The equity ratio improved to 14% in 2024, indicating a stable capital structure. Return on equity showed a strong performance in past years but saw a decline due to lower net income growth in the latest period.

Cash Flow

The company's operating cash flow remained positive, though it decreased from $43.45 million in 2022 to $12.19 million in 2024. Free cash flow followed a similar trend, decreasing while remaining positive, indicating effective capital expenditure management. The operating cash flow to net income ratio reduced, reflecting lower cash conversion efficiency. The free cash flow to net income ratio showed stability, highlighting effective liquidity management despite fluctuations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
63.01M	72.96M	81.71M	77.92M	66.83M
	Gross Profit
63.01M	72.96M	81.71M	77.92M	66.83M
	EBIT
36.30M	37.69M	70.23M	54.70M	38.44M
	EBITDA
0.00	0.00	56.72M	55.41M	39.38M
	Net Income Common Stockholders
27.51M	28.46M	41.82M	40.76M	28.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.18M	180.38M	191.52M	609.90M	478.48M
	Total Assets
2.14B	2.02B	1.98B	2.14B	2.08B
	Total Debt
188.30M	168.11M	126.07M	120.88M	267.22M
	Net Debt
-33.23M	-12.27M	-56.08M	-475.67M	-191.38M
	Total Liabilities
1.84B	1.74B	1.72B	1.90B	1.87B
	Stockholders Equity
300.07M	284.32M	266.03M	232.36M	200.93M
Cash Flow		Free Cash Flow
35.04M	23.02M	43.30M	38.58M	36.27M
	Operating Cash Flow
35.13M	23.02M	43.45M	38.64M	36.52M
	Investing Cash Flow
-80.05M	-34.89M	-262.94M	79.19M	-133.79M
	Financing Cash Flow
86.06M	10.10M	-194.91M	20.12M	364.26M

Parke Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKBK, the sentiment is Negative. The current price of 19.2 is below the 20-day moving average (MA) of 19.51, above the 50-day MA of 19.01, and below the 200-day MA of 19.98, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PKBK.

Parke Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JMSB	73 Outperform	$248.87M	13.74	7.25%	1.43%	25.96%	484.74%
PKBK	72 Outperform	$227.39M	7.98	9.81%	3.75%	9.76%	24.43%
OVLY	72 Outperform	$216.01M	8.69	13.99%	2.33%	0.40%	-10.62%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
FFNW	55 Neutral	$208.18M	194.65	0.66%	2.30%	2.28%	-83.17%
NWFL	55 Neutral	$240.13M	290.49	0.59%	4.89%	-3.66%	-95.41%
MVBF	52 Neutral	$266.39M	13.96	6.38%	3.34%	-8.32%	-22.46%