QNB (QNBC) AI Stock Analysis

• Market Cap: $131.86M
• Dividend Yield: 4.26%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 10.2
• Beta (1Y): -0.13
• Revenue Growth: 20.01%
• EPS Growth: 48.47%
• Country: US
• Employees: 193
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.04
• Shares Outstanding: 3,721,138
• 10 Day Avg. Volume: 623
• 30 Day Avg. Volume: 1,008
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 2.88
• Enterprise Value/Gross Profit: 5.32
• Enterprise Value/Ebitda: 12.47
• 1Y Price Target: $37.00
• Price Target Upside: 4.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $37.00 ▲(4.40% Upside)

QNBC's strong financial performance, characterized by solid revenue growth and improved profitability, is the primary driver of its stock score. The stock is reasonably valued with a good dividend yield, enhancing its investment appeal. Technical indicators point to a neutral to slightly positive trend, but weak momentum suggests cautious optimism.

QNB Business Overview & Revenue Model

Company Description

QNB Corp. operates as the bank holding company for QNB Bank that provides commercial and retail banking products and services. It offers various deposit products, which include demand and savings accounts, such as money market, interest-bearing demand, club, traditional statement savings, and online savings accounts; and time deposits comprising certificates of deposit and individual retirement accounts. The company also provides commercial and industrial loans, commercial and residential real estate loans, construction and land development loans, indirect lease financing, 1-4 family residential mortgage loans, home equity loans and lines of credit, and consumer loans. In addition, it offers retail brokerage and advisory services; credit cards and insurance products; merchant services; ATM and debit card services; and internet and mobile-banking, electronic bill pay, and remote deposit capture services. As of December 31, 2021, the company twelve full-service community banking offices in Bucks, Montgomery, and Lehigh counties in southeastern Pennsylvania. QNB Corp. was founded in 1877 and is based in Quakertown, Pennsylvania.

How the Company Makes Money

QNB generates revenue primarily through interest income from loans and advances to customers, which forms a significant portion of its earnings. The bank also earns fees and commissions from various services, including account management, transaction processing, and financial advisory. Additionally, QNB benefits from investment income generated through its asset management and treasury operations. Strategic partnerships with other financial institutions and businesses further enhance its revenue streams, allowing the bank to offer a broader range of services and tap into new markets.

QNB Financial Statement Overview

Summary

QNBC shows strong revenue growth and improved profitability with higher net profit margins and return on equity. The reduction in leverage enhances financial stability, although the low equity ratio indicates potential risk. Cash flow generation is improving, but the negative investing cash flow should be monitored.

Income Statement

QNB's revenue growth has been steady, with a 8.58% increase from 2023 to 2024, indicating a solid upward trajectory. The gross profit margin remains high at 100%, which is typical for the banking industry. However, the absence of EBIT and EBITDA in 2024 suggests increased operational expenses, potentially impacting operational efficiency. The net profit margin improved to 22.99% in 2024 from 20.69% in 2023, reflecting good control over costs and an increase in profitability.

Balance Sheet

QNB maintains a stable equity base, with a slight increase in stockholders' equity from 2023 to 2024. The debt-to-equity ratio improved to approximately 0.81 in 2024 from 1.26 in 2023, suggesting reduced leverage and lower risk. Return on equity increased to 11.08% in 2024, showing enhanced profitability with efficient capital use. However, the equity ratio decreased to 5.52% in 2024, which is relatively low, indicating high leverage and potential risk in asset financing.

Cash Flow

QNB's operating cash flow improved by 12.16% from 2023 to 2024, demonstrating better cash generation capability. Free cash flow also increased, reflecting improved liquidity. However, the free cash flow to net income ratio is constant at 1.42 in 2024, indicating stable conversion of earnings to cash. The investing cash flow remains negative, suggesting ongoing investments, which could either mean growth opportunities or high capital expenditure.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.35M	90.98M	45.84M	50.23M	51.91M	44.85M
Gross Profit	40.26M	49.77M	73.67M	50.23M	51.91M	44.85M
EBITDA	17.17M	16.14M	13.44M	21.38M	22.40M	16.84M
Net Income	12.85M	11.45M	9.48M	15.92M	16.49M	12.08M
Balance Sheet
Total Assets	1.88B	1.87B	1.71B	1.67B	1.67B	1.44B
Cash, Cash Equivalents and Short-Term Investments	374.03M	11.37M	62.66M	563.67M	705.75M	474.98M
Total Debt	106.63M	83.84M	114.09M	10.00M	10.00M	68.84M
Total Liabilities	1.77B	1.77B	1.62B	1.60B	1.54B	1.31B
Stockholders Equity	113.27M	103.35M	90.82M	70.96M	136.49M	134.44M
Cash Flow
Free Cash Flow	15.96M	12.70M	13.69M	16.28M	27.21M	6.88M
Operating Cash Flow	16.61M	16.22M	14.46M	16.84M	30.39M	7.60M
Investing Cash Flow	-128.60M	-173.33M	23.04M	-71.65M	-282.49M	-185.13M
Financing Cash Flow	102.86M	145.16M	9.26M	57.32M	226.16M	199.25M

QNB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.44
• 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 QNBC, the sentiment is Positive. The current price of 35.44 is above the 20-day moving average (MA) of 35.23, above the 50-day MA of 34.61, and above the 200-day MA of 33.66, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 72.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QNBC.

QNB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UBFO	75 Outperform	170.05M	15.18	8.32%	4.93%	-1.42%	-37.11%
UNB	74 Outperform	118.15M	12.99	13.18%	5.55%	11.90%	-8.37%
CZWI	73 Outperform	162.66M	13.43	7.68%	2.18%	-0.96%	-7.38%
QNBC	68 Neutral	$131.86M	10.21	12.23%	4.26%	20.01%	48.47%
CFBK	67 Neutral	157.51M	8.78	10.13%	1.19%	3.76%	38.14%
SFBC	64 Neutral	117.96M	19.35	4.48%	1.65%	7.86%	59.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

QNB Corporate Events

QNB Corp. Presents Strategic and Financial Overview

On June 3, 2025, QNB Corp. distributed a slide presentation to analysts and prospective investors, detailing the company’s operating and growth strategies along with its financial performance. This presentation, part of a Current Report on Form 8-K, is intended to provide insights into QNB Corp.’s strategic direction and financial health, although it is not considered filed under the Securities Exchange Act of 1934.

QNB Shareholders Approve Key Governance Proposals

On May 20, 2025, QNB held its Annual Meeting of Shareholders, where various proposals were voted on by shareholders. These included the election of Class I Directors, approval of executive compensation, frequency of future advisory votes on executive compensation, ratification of Baker Tilly US, LLP as the independent registered public accounting firm, and approval of the 2025 Equity Incentive Plan. The results of these votes will influence the company’s governance and compensation strategies.