Park National (PRK) AI Stock Analysis

• Market Cap: $2.55B
• Dividend Yield: 2.72%
• Average Volume (3M): 48.33K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.89
• Revenue Growth: 11.80%
• EPS Growth: 23.34%
• Country: US
• Employees: 1,620
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 2.57
• Shares Outstanding: 16,191,347
• 10 Day Avg. Volume: 44,046
• 30 Day Avg. Volume: 48,334
• PEG Ratio: -1.44
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.29
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 2.33
• 1Y Price Target: $171.50
• Price Target Upside: 8.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: $179.00 ▲(13.70%Upside)

Park National's overall stock score reflects strong financial performance and positive corporate events as key strengths. While technical analysis indicates mixed momentum, the fair valuation offers a balanced investment opportunity. The company's conservative leverage and healthy profitability metrics provide a solid foundation for ongoing stability and potential growth.

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 interest income from loans and investments and non-interest income from service fees and other financial services. The bank collects interest from various loan products, including residential and commercial mortgages, personal loans, and credit lines. It also earns interest income from its investment portfolio, which includes securities and other financial instruments. Non-interest income is derived from service charges on deposit accounts, trust and investment management fees, and other banking-related services. The company's earnings are influenced by factors such as interest rate fluctuations, loan demand, and economic conditions in its operating regions. Additionally, Park National maintains partnerships with other financial institutions to enhance its service offerings and expand its market reach.

Park National Financial Statement Overview

Summary

Park National demonstrates solid financial health with consistent revenue and net income growth, robust profitability metrics, and efficient cash flow management. The slight declines in EBIT margins and ROE highlight areas for improvement but are offset by conservative leverage and strong equity.

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
650.66M	520.61M	564.30M	514.18M	475.80M	453.29M
	Gross Profit
515.79M	506.06M	462.84M	482.99M	471.75M	453.29M
	EBIT
153.32M	184.72M	179.50M	197.83M	188.24M	154.65M
	EBITDA
205.50M	196.92M	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: 157.43
• 50DMA: Positive
• 100DMA: Negative
• 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 157.43 is below the 20-day moving average (MA) of 163.50, above the 50-day MA of 156.08, and below the 200-day MA of 166.10, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 42.36 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
INDB	80 Outperform	$2.70B	14.29	6.38%	3.72%	4.22%	-14.27%
PRK	77 Outperform	$2.55B	16.16	12.98%	2.72%	11.80%	23.34%
CVBF	76 Outperform	$2.55B	12.76	9.35%	4.31%	-1.39%	-4.00%
BKU	74 Outperform	$2.54B	10.50	8.63%	3.67%	-0.61%	39.49%
SFNC	69 Neutral	$2.31B	15.82	4.20%	4.63%	2.91%	-12.82%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
TOWN	64 Neutral	$2.50B	14.09	8.36%	3.01%	8.59%	17.97%

Park National Corporate Events

Park National Releases Investor Presentation on May 19

On May 19, 2025, Park National Corporation released an investor presentation to analysts and investors, highlighting its financial performance and strategic initiatives. The presentation included forward-looking statements about the company’s future financial performance, emphasizing the risks and uncertainties that could impact results. Park National’s diversified loan portfolio and strong deposit base support its stable operating results, while recent geographic expansions present opportunities for growth. The company also provided non-GAAP financial measures to offer additional insights into its performance.

The most recent analyst rating on (PRK) stock is a Hold with a $178.00 price target. To see the full list of analyst forecasts on Park National stock, see the PRK Stock Forecast page.

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.

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.