South Atlantic Bancshares (SABK) AI Stock Analysis

• Market Cap: $150.98M
• Dividend Yield: 0.5%
• Average Volume (3M): 3.04K
• Price to Earnings (P/E): 10.5
• Beta (1Y): -0.06
• Revenue Growth: 13.91%
• EPS Growth: 61.66%
• Country: US
• Employees: 164
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.57
• Shares Outstanding: 7,568,111
• 10 Day Avg. Volume: 2,518
• 30 Day Avg. Volume: 3,043
• PEG Ratio: 0.00
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 16.55
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: -5.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ―

South Atlantic Bancshares scores 75, reflecting a solid but cautious outlook. Strong technical indicators and a potentially undervalued stock offer positive prospects. However, financial performance concerns, particularly in revenue and cash flow consistency, along with increased leverage, suggest careful management is needed. The absence of significant earnings call and corporate events data leaves these areas unassessed.

South Atlantic Bancshares Business Overview & Revenue Model

Company Description

South Atlantic Bancshares, Inc. (SABK) is a bank holding company headquartered in Myrtle Beach, South Carolina. It operates through its subsidiary, South Atlantic Bank, providing a range of banking products and services to individuals, businesses, and government entities. The bank offers traditional deposit products, commercial and residential loans, and various other financial services tailored to meet the needs of its community-focused customer base.

How the Company Makes Money

South Atlantic Bancshares makes money primarily through interest income generated from its lending activities, including commercial and residential mortgage loans, personal loans, and lines of credit. The bank earns interest on the loans it provides, which is a major component of its revenue. Additionally, the bank generates non-interest income through fees and service charges related to deposit accounts, loan servicing, and other financial services. The bank's financial performance is also influenced by its ability to manage interest rate spreads, maintain low loan default rates, and expand its customer base through strategic partnerships and community engagement.

South Atlantic Bancshares Financial Statement Overview

Summary

South Atlantic Bancshares presents a stable financial position with strong operational efficiency. However, challenges exist in revenue and cash flow consistency, and increasing leverage poses risks. Improvements in profitability and cash flow generation are needed.

Income Statement

South Atlantic Bancshares has shown a mixed performance in its income statement over recent years. The Gross Profit Margin improved significantly from 2019 to 2023, indicating better cost management or increased pricing power. However, the Net Profit has been fluctuating, with a decline in the most recent year. Revenue Growth Rate has been inconsistent, with a decline in the latest year, suggesting challenges in sustaining growth. The EBIT and EBITDA Margins remain healthy, indicating strong operational efficiency.

Balance Sheet

The balance sheet of South Atlantic Bancshares reflects a growing asset base, which is a positive indicator for expansion. However, the Debt-to-Equity Ratio has increased, signaling rising leverage which could pose risks if not managed properly. The Return on Equity (ROE) has been positive, though there's been a slight decline recently, reflecting challenges in profit generation relative to equity. The Equity Ratio has decreased, implying higher financial risk due to increased liabilities.

Cash Flow

Cash flow analysis shows South Atlantic Bancshares had fluctuating Free Cash Flow and a significant drop in Free Cash Flow in recent years, raising concerns about cash generation. The Operating Cash Flow to Net Income Ratio indicates that operating cash generation is about in line with net income, but the Free Cash Flow to Net Income Ratio has been inconsistent, potentially impacting growth investments. The Free Cash Flow Growth Rate is negative, highlighting challenges in sustaining cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.84M	93.28M	46.68M	53.77M	47.83M	41.57M
Gross Profit	54.27M	48.79M	46.68M	47.63M	44.30M	36.32M
EBITDA	-30.79M	12.98M	15.06M	16.23M	15.06M	9.84M
Net Income	12.79M	10.06M	10.02M	12.09M	10.85M	7.20M
Balance Sheet
Total Assets	1.87B	1.79B	1.62B	1.41B	1.23B	946.54M
Cash, Cash Equivalents and Short-Term Investments	65.94M	0.00	235.76M	236.79M	398.52M	150.05M
Total Debt	109.83M	199.06M	213.46M	93.25M	37.78M	7.87M
Total Liabilities	1.75B	1.68B	1.52B	1.32B	1.13B	848.72M
Stockholders Equity	121.06M	113.77M	102.95M	90.54M	105.51M	97.82M
Cash Flow
Free Cash Flow	0.00	7.31M	5.79M	24.60M	36.67M	-23.65M
Operating Cash Flow	0.00	14.00M	10.11M	25.86M	37.39M	-22.74M
Investing Cash Flow	0.00	-140.22M	-183.44M	-296.22M	-260.31M	-167.83M
Financing Cash Flow	0.00	150.38M	195.16M	190.83M	277.61M	217.55M

South Atlantic Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SABK, the sentiment is Positive. The current price of 19.92 is above the 20-day moving average (MA) of 18.24, above the 50-day MA of 17.72, and above the 200-day MA of 16.15, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 80.64 is Negative, neither overbought nor oversold. The STOCH value of 61.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SABK.

South Atlantic Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SABK	75 Outperform	$150.98M	10.53	11.22%	0.50%	13.91%	61.66%
SBFG	73 Outperform	$136.36M	10.24	10.12%	2.73%	10.78%	21.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EBMT	64 Neutral	$130.65M	9.53	7.43%	3.43%	6.10%	59.32%
AFBI	62 Neutral	$118.42M	16.28	5.95%	―	5.18%	36.12%
FGBI	47 Neutral	$87.49M	―	-24.07%	0.69%	1.34%	-593.24%
RBKB	43 Neutral	$108.50M	21.36	3.95%	―	22.30%	―