Park National (PRK) AI Stock Analysis

• Market Cap: $2.61B
• Dividend Yield: 2.9%
• Average Volume (3M): 71.30K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.83
• Revenue Growth: 6.29%
• EPS Growth: 28.28%
• Country: US
• Employees: 1,620
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.87
• Shares Outstanding: 16,078,262
• 10 Day Avg. Volume: 87,967
• 30 Day Avg. Volume: 71,299
• PEG Ratio: 0.93
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 4.29
• P/FCF Ratio: 16.31
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: 11.43
• 1Y Price Target: $178.00
• Price Target Upside: 9.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 11.24
• Revenue Forecast (FY): $554.60M

• Rating: 73 Outperform
• Price Target: $177.00 ▲(9.17% Upside)

Park National's overall stock score is driven by a strong corporate event outlook due to the strategic merger with First Citizens, which is expected to enhance market positioning. The stock's valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, mixed financial performance and potential cash flow challenges slightly offset these positives. Technical analysis supports a moderately positive outlook, though caution is advised due to potential overbought conditions.

Positive Factors

Strategic Merger

The merger with First Citizens is expected to enhance market positioning and bring cost savings, strengthening Park National's competitive edge.

Profitability

A robust net profit margin indicates effective cost management and strong profitability, supporting long-term financial health.

Balance Sheet Health

Low leverage suggests financial stability and flexibility, enabling Park National to invest in growth opportunities and withstand economic downturns.

Negative Factors

Declining Revenue Growth

A declining revenue growth rate can hinder future expansion and market share gains, posing a risk to long-term business prospects.

Cash Flow Challenges

Deteriorating cash flow growth may limit the company's ability to fund operations and investments, affecting its financial sustainability.

Decreasing Stockholders' Equity

A decline in stockholders' equity could indicate potential financial weakness, impacting the company's ability to raise capital and support 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 generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees for various banking services. The company's key revenue streams include interest earned on consumer loans, commercial loans, and mortgages, which are funded by customer deposits. Additionally, PRK earns fees from services such as wealth management, asset management, and transaction services. The bank also benefits from partnerships with local businesses and community organizations, enhancing its customer base and contributing to its overall earnings. The management of non-performing loans and effective cost control further supports the company's profitability.

Park National Financial Statement Overview

Summary

Park National shows a mixed financial performance. While profitability remains strong, as evidenced by solid net profit margins and return on equity, the declining revenue growth and free cash flow are concerning. The balance sheet is stable with low leverage, but cash flow challenges need addressing to ensure long-term sustainability.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 13.5%, which is concerning. However, the company maintains a strong net profit margin of 30.76% in the TTM, indicating good profitability. Historical data shows fluctuating revenue growth, with a peak in 2020. The EBIT and EBITDA margins are relatively stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.06 in the TTM, indicating low leverage. The return on equity is healthy at 13.71%, showing effective use of equity. The equity ratio is strong, suggesting a solid capital structure. However, the decreasing trend in stockholders' equity over the years could be a potential risk.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth by 73% in the TTM. The operating cash flow to net income ratio is low, indicating potential issues in converting income to cash. However, the free cash flow to net income ratio remains strong at 96.37%, suggesting good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	660.83M	645.55M	564.30M	514.18M	475.80M	483.38M
Gross Profit	535.83M	506.06M	462.84M	478.44M	471.75M	441.24M
EBITDA	227.63M	196.92M	167.62M	194.28M	201.50M	165.46M
Net Income	176.06M	151.42M	126.73M	148.35M	153.94M	127.92M
Balance Sheet
Total Assets	9.86B	9.81B	9.84B	9.85B	9.56B	9.28B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.16B	1.55B	1.92B	1.97B	1.43B
Total Debt	95.41M	296.59M	425.75M	435.30M	441.33M	578.56M
Total Liabilities	8.53B	8.56B	8.69B	8.79B	8.45B	8.24B
Stockholders Equity	1.33B	1.24B	1.15B	1.07B	1.11B	1.04B
Cash Flow
Free Cash Flow	183.35M	169.66M	142.91M	126.92M	143.24M	83.01M
Operating Cash Flow	189.33M	178.85M	150.50M	134.86M	157.33M	111.65M
Investing Cash Flow	42.86M	-19.15M	64.16M	-403.70M	-412.14M	-455.90M
Financing Cash Flow	-214.97M	-217.40M	-186.12M	239.38M	103.52M	554.77M

Park National Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 162.13
• 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 PRK, the sentiment is Positive. The current price of 162.13 is above the 20-day moving average (MA) of 159.42, above the 50-day MA of 155.65, and above the 200-day MA of 157.82, indicating a bullish trend. The MACD of 2.62 indicates Negative momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 69.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRK.

Park National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRK	73 Outperform	$2.61B	14.94	13.69%	2.90%	6.29%	28.28%
CVBF	72 Outperform	$2.67B	13.24	9.10%	4.00%	-8.43%	3.75%
BANC	71 Outperform	$3.06B	19.18	5.99%	2.03%	20.64%	―
BOH	71 Outperform	$2.82B	17.36	10.65%	3.95%	3.40%	23.04%
FBK	71 Outperform	$3.04B	26.51	5.85%	1.34%	10.50%	-6.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBCF	62 Neutral	$3.11B	18.89	6.33%	2.29%	6.83%	23.44%

Park National Corporate Events

Park National Announces Merger with First Citizens

Park National Corporation has announced its intention to merge with First Citizens Bancshares, Inc., a move that is expected to bring strategic gains and cost savings. The company plans to file a Registration Statement with the SEC to facilitate the issuance of shares for the proposed transaction, emphasizing the importance for shareholders and investors to review the relevant documents when available.

Park National Announces Merger with First Citizens

On October 27, 2025, Park National Corporation entered into a merger agreement with First Citizens Bancshares, Inc., which will see First Citizens merge into Park, with Park continuing as the surviving corporation. The merger is expected to close in the first quarter of 2026, subject to regulatory approvals and shareholder consent. This strategic move is anticipated to enhance Park’s market positioning by integrating First Citizens’ banking operations. Additionally, Park reported a significant financial performance for the third quarter and first nine months of 2025, with net income increasing by 23.4% and 21.8% respectively, compared to the same periods in 2024. The company also declared a quarterly cash dividend and a special dividend, reflecting its strong financial health and commitment to delivering value to shareholders.