Park National (PRK) AI Stock Analysis

• Market Cap: $2.62B
• Dividend Yield: 2.63%
• Average Volume (3M): 53.50K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.90
• Revenue Growth: 11.81%
• EPS Growth: 23.34%
• Country: US
• Employees: 1,620
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 2.57
• Shares Outstanding: 16,191,347
• 10 Day Avg. Volume: 45,511
• 30 Day Avg. Volume: 53,499
• PEG Ratio: 3.56
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $171.50
• Price Target Upside: 6.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ―

Park National's overall stock score of 75 reflects its strong financial performance and reasonable valuation. While the company's profitability and strategic growth initiatives are significant strengths, the mixed technical indicators suggest caution. The attractive dividend yield and solid balance sheet provide additional support, making the stock a moderately appealing investment choice.

Park National Business Overview & Revenue Model

Company Description

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services for individual customers. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; consumer loans, such as automobile loans and leases; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing and asset management services. As of December 31, 2021, it operated 96 financial service offices and a network of 116 automated teller machines in 26 Ohio counties, 1 Kentucky county, 3 North Carolina counties, and 4 South Carolina counties. The company was founded in 1908 and is headquartered in Newark, Ohio.

How the Company Makes Money

Park National Corporation generates revenue primarily through its banking operations. The key revenue streams include interest income from loans extended to consumers and businesses, as well as from its investment securities portfolio. The company also earns non-interest income through service charges on deposit accounts, fees from trust and investment management services, and transaction fees from its ATM and electronic banking services. Additionally, mortgage banking activities contribute to revenue through origination and servicing fees. Strategic partnerships with other financial service providers and a focus on expanding its digital banking capabilities also play a role in its earnings generation.

Park National Financial Statement Overview

Summary

Park National exhibits solid financial health with strong profitability, efficient cash flow management, and a stable balance sheet. Revenue and net income growth trends are positive, although slight declines in EBIT margins and ROE suggest areas for improvement. The company's conservative leverage and robust equity position provide a strong foundation for continued financial stability and potential growth.

Income Statement

Park National has demonstrated consistent revenue growth with a notable increase in TTM revenue by approximately 12.9% compared to the previous year. The gross profit margin remains robust at around 73.1% for TTM, signifying strong cost management. The EBIT margin for TTM is solid at 25.2%, although slightly lower than previous years, indicating stable operational efficiency. Net profit margin for TTM improved to 26.9%, reflecting enhanced profitability. Overall, the company shows strong financial performance with healthy profitability metrics, but slight declines in EBIT margin suggest potential pressures on operating income.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of approximately 0.21 for TTM, indicating conservative leverage. The equity ratio is 12.9%, showing a sufficient equity buffer. However, the return on equity (ROE) for TTM is 12.4%, slightly lower than previous periods, suggesting moderate returns on shareholders' investments. Overall, the balance sheet demonstrates financial strength with low leverage, though there is room for improvement in ROE.

Cash Flow

Park National's cash flow analysis shows a slight reduction in operating cash flow for TTM but maintains a strong free cash flow of $98.98 million. The operating cash flow to net income ratio is 0.73, indicating healthy cash generation relative to earnings. The free cash flow to net income ratio is 0.62, suggesting ample free cash flow. Despite a decline in free cash flow growth compared to the previous year, the company efficiently manages its cash flow, supporting its strong liquidity position.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
587.80M	520.61M	462.84M	482.99M	459.84M	453.29M
	Gross Profit
429.85M	520.61M	564.30M	482.99M	459.84M	453.29M
	EBIT
148.28M	184.72M	179.50M	197.83M	188.24M	154.65M
	EBITDA
102.55M	0.00	168.93M	194.28M	187.46M	167.71M
	Net Income Common Stockholders
158.37M	151.42M	126.73M	148.35M	153.94M	127.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
938.24M	277.81M	218.27M	1.92B	1.97B	1.43B
	Total Assets
9.89B	9.81B	9.84B	9.85B	9.56B	9.28B
	Total Debt
270.76M	206.16M	425.75M	416.01M	427.00M	261.33M
	Net Debt
270.76M	45.59M	207.48M	226.28M	207.82M	-109.15M
	Total Liabilities
8.61B	8.56B	8.69B	8.79B	8.45B	8.24B
	Stockholders Equity
1.28B	1.24B	1.15B	1.07B	1.11B	1.04B
Cash Flow		Free Cash Flow
98.98M	169.66M	142.91M	126.92M	143.24M	83.01M
	Operating Cash Flow
115.49M	179.15M	150.50M	134.86M	157.33M	111.65M
	Investing Cash Flow
-10.38M	-10.81M	64.16M	-403.70M	-412.14M	-455.90M
	Financing Cash Flow
-209.96M	-217.40M	-186.12M	239.38M	103.52M	554.77M

Park National Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.30
• 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 PRK, the sentiment is Negative. The current price of 160.3 is below the 20-day moving average (MA) of 164.22, above the 50-day MA of 154.73, and below the 200-day MA of 166.18, indicating a neutral trend. The MACD of 1.70 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 21.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRK.

Park National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRK	75 Outperform	$2.62B	16.60	12.98%	2.63%	11.81%	23.34%
BKU	75 Outperform	$2.54B	10.49	8.63%	3.50%	-0.60%	39.49%
CVBF	73 Outperform	$2.56B	12.78	9.35%	4.31%	-1.39%	-4.00%
INDB	73 Outperform	$2.59B	13.73	6.38%	3.77%	4.24%	-14.27%
TOWN	71 Outperform	$2.58B	14.55	8.36%	2.91%	8.59%	17.97%
Sector *	64 Neutral	$12.79B	9.71	7.54%	16971.00%	12.07%	-7.53%
SFNC	58 Neutral	$2.33B	15.98	4.20%	5.69%	2.90%	-12.63%

Park National Corporate Events

Park National Highlights Strong Financial Performance

On April 28, 2025, Park National Corporation held its Annual Meeting of Shareholders virtually, where Chairman and CEO David L. Trautman presented the company’s financial performance and strategic outlook. The meeting highlighted Park National’s strong financial metrics, including a net interest margin of 4.62% and a return on average assets of 1.70% as of March 31, 2025. The announcement underscores the company’s robust positioning in the financial sector, with significant growth in net income and shareholder equity, reflecting its resilience and strategic execution in a competitive market.

Spark’s Take on PRK Stock

According to Spark, TipRanks’ AI Analyst, PRK is a Neutral.

Park National receives an overall score of 63. The company’s strong balance sheet and strategic growth initiatives are significant positives, but concerns about declining revenue and mixed technical indicators suggest a cautious outlook. Reasonable valuation and attractive dividends provide support, while recent corporate events highlight positive financial growth, enhancing the overall assessment.

To see Spark’s full report on PRK stock, click here.

Park National Reports Strong Q1 2025 Net Income

Park National Corporation reported a significant increase in net income for the first quarter of 2025, reaching $42.2 million, a 19.8% rise from the same period in 2024. The growth was driven by a 9.2% increase in net interest income, attributed to higher interest income on loans and reduced interest expenses. The company’s total loans and deposits also saw modest growth, contributing to its financial success. The board declared a quarterly cash dividend of $1.07 per common share, reflecting the company’s stable financial position and commitment to shareholder returns.

Spark’s Take on PRK Stock

According to Spark, TipRanks’ AI Analyst, PRK is a Neutral.

Park National’s stock reflects a moderate investment outlook. The strong balance sheet and growth initiatives are significant positives, but concerns over declining revenue and mixed technical signals suggest caution. The reasonable valuation and attractive dividend yield offer some support to investors. Corporate events highlight strategic growth, adding a positive note to the overall assessment.

To see Spark’s full report on PRK stock, click here.

Park National Highlights Strong 2024 Financial Performance

Park National Corporation has released an investor presentation highlighting its financial performance and strategic positioning as of December 31, 2024. The presentation underscores the company’s stable operating results, low-cost funding profile, and diversified loan portfolio. Park National’s expansion into new geographic markets with strong population growth and low unemployment rates presents promising opportunities for customer and revenue growth. The company also emphasizes its robust risk management and competitive positioning in the financial services sector.