QNB (QNBC) AI Stock Analysis

• Market Cap: $145.23M
• Dividend Yield: 4.33%
• Average Volume (3M): 2.55K
• Price to Earnings (P/E): 9.2
• Beta (1Y): -0.19
• Revenue Growth: 17.10%
• EPS Growth: 36.53%
• Country: US
• Employees: 193
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.06
• Shares Outstanding: 3,761,481
• 10 Day Avg. Volume: 658
• 30 Day Avg. Volume: 2,551
• PEG Ratio: 0.42
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 7.82
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 2.57
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 12.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $39.00 ▲(10.64% Upside)
• Action: Downgraded Date: 03/17/26
• Date: Action: Downgraded 03/17/26

The score is driven primarily by moderate financial performance, where improving cash-flow quality and normalized leverage are offset by the sharp 2025 revenue contraction and reduced margins. Valuation is a clear positive (low P/E and healthy yield), technicals are neutral-to-mixed, and the approved merger adds a supportive corporate catalyst.

Positive Factors

Strategic M&A / Scale

Approved merger creates a structurally larger regional bank with complementary footprints in Bucks, Lehigh, Montgomery and Berks counties. Enhanced scale and product breadth should support more diversified lending, cross-sell opportunities and improved market positioning over the medium term.

Improving Balance Sheet Leverage

Debt-to-equity falling back below 1.0 and equity growth since 2022 materially reduce solvency risk and increase capital flexibility. A steadier capital base supports lending capacity and regulatory resilience, improving the firm's ability to pursue growth or absorb shocks.

Cash Generation and FCF Quality

Rising operating cash flow and FCF that tracks net income (~1x) indicate improving cash conversion and earnings quality. Stronger, more predictable cash generation supports dividends, organic growth and integration spending post-merger, enhancing long-term financial stability.

Negative Factors

Top-line Volatility

A ~45% revenue drop in 2025 signals material instability in core business volumes or pricing. Persistent revenue volatility undermines planning, weakens scale economies and raises execution risk for strategic initiatives like the merger unless revenue trends normalize sustainably.

Margin Compression vs Prior Peaks

Significantly lower margins relative to 2021–2022 reduce the firm's buffer to absorb losses and fund investment. If profit margins remain structurally compressed, return on capital and internal reinvestment capacity could be impaired, limiting long-term earnings resilience.

Inconsistent Capital Structure / Rising Debt

Historic swings in leverage and a year-over-year rise in debt in 2025 point to inconsistent capital management. That inconsistency raises refinancing, funding-cost and regulatory risks, which could constrain strategic flexibility during integration or adverse cycles.

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

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QNB Financial Statement Overview

Summary

Decent profitability and improving cash-flow quality, but business stability is a concern: 2025 revenue fell sharply (~-45%) and margins are well below 2021–2022 levels. Balance sheet leverage is more manageable than the 2022 spike, though debt rose in 2025 and leverage has been inconsistent year-to-year.

Income Statement

Revenue expanded strongly from 2021–2024, but 2025 saw a sharp decline (about -45%), signaling meaningful volatility in the top line. Profitability remains positive, with 2025 net margin around 14% and EBIT margin around 18%, but both are well below the unusually high margins posted in 2021–2022. Net income recovered versus 2023–2024, yet the earnings profile looks less stable given the revenue drop and margin compression versus earlier years.

Balance Sheet

Leverage has improved substantially versus 2022, when debt-to-equity was extremely elevated, and is now under 1.0 in 2024–2025 (about 0.8–0.9), which is more manageable. Equity has grown since 2022, supporting the balance sheet, and return on equity has stayed around 10–11% in 2023–2025 (down from the 2022 spike). However, debt levels rose in 2025 versus 2024, and the historical leverage swings suggest the capital structure has been somewhat inconsistent.

Cash Flow

Cash generation is generally solid and improving: operating cash flow increased from 2023 to 2025, and free cash flow rebounded in 2025 after weaker growth in 2022–2024. Free cash flow tracked net income well (near 1x in multiple years, including 2025), which supports earnings quality. The main drawback is uneven free cash flow growth over time (several negative years) and a low operating cash flow-to-revenue level in 2023–2025 (roughly low-single-digit to ~20% based on provided coverage figures), indicating cash conversion has not been consistently strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	97.32M	90.98M	73.92M	58.15M	56.55M
Gross Profit	55.46M	49.84M	45.84M	51.08M	51.45M
EBITDA	17.93M	16.14M	13.50M	21.38M	22.40M
Net Income	14.09M	11.45M	9.48M	15.92M	16.49M
Balance Sheet
Total Assets	1.90B	1.87B	1.71B	1.67B	1.67B
Cash, Cash Equivalents and Short-Term Investments	618.35M	11.37M	62.66M	562.42M	705.75M
Total Debt	119.87M	83.84M	114.09M	332.65M	78.48M
Total Liabilities	1.78B	1.77B	1.62B	1.60B	1.54B
Stockholders Equity	129.56M	103.35M	90.82M	70.96M	136.49M
Cash Flow
Free Cash Flow	16.62M	12.70M	13.69M	16.28M	27.21M
Operating Cash Flow	16.62M	16.22M	14.46M	16.84M	30.39M
Investing Cash Flow	-23.38M	-173.33M	23.04M	-71.65M	-282.49M
Financing Cash Flow	6.34M	145.16M	9.26M	57.32M	226.16M

QNB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.25
• 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 QNBC, the sentiment is Positive. The current price of 35.25 is below the 20-day moving average (MA) of 36.94, below the 50-day MA of 36.54, and above the 200-day MA of 34.57, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 67.08 is Neutral, neither overbought nor oversold. The STOCH value of 62.21 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
FNWD	73 Outperform	$166.16M	18.59	5.01%	0.97%	-7.20%	-29.17%
EBMT	70 Outperform	$162.02M	10.47	7.43%	2.93%	6.10%	59.32%
RBKB	68 Neutral	$172.56M	13.95	7.66%	―	22.30%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QNBC	66 Neutral	$145.23M	9.22	11.93%	4.33%	17.10%	36.53%
FGBI	61 Neutral	$124.51M	-1.34	-23.30%	0.84%	1.33%	-593.24%

QNB Corporate Events

QNB Shareholders Approve Merger with Victory Bancorp

On February 19, 2026, shareholders of QNB Corp. and The Victory Bancorp, Inc. voted to approve their previously announced merger, with QNB investors backing the Agreement and Plan of Merger first signed on September 23, 2025. At QNB’s special meeting, 2,211,803 votes were cast in favor of the deal out of 3,733,073 eligible shares, eliminating the need to consider a contingency proposal to adjourn and solicit additional proxies.

The merger will see Victory merge into QNB, with QNB as the surviving entity, further consolidating two Pennsylvania community banking franchises with complementary footprints in Bucks, Lehigh, Montgomery and Berks Counties. The deal, already cleared by the Pennsylvania Department of Banking and Securities, is expected to close in the second quarter, positioning the combined company to expand its regional scale, product set and business lending capabilities, subject to remaining customary regulatory approvals and closing conditions.

The most recent analyst rating on (QNBC) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on QNB stock, see the QNBC Stock Forecast page.