Skyline Bankshares (SLBK) AI Stock Analysis

• Market Cap: $135.36M
• Dividend Yield: 2.76%
• Average Volume (3M): 2.54K
• Price to Earnings (P/E): 6.7
• Beta (1Y): <0.01
• Revenue Growth: 26.33%
• EPS Growth: 96.43%
• Country: US
• Employees: 248
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.79
• Shares Outstanding: 5,651,704
• 10 Day Avg. Volume: 538
• 30 Day Avg. Volume: 2,537
• PEG Ratio: -0.40
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 7.49
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: 6.64
• 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: 76 Outperform
• Price Target: $22.00 ▲(14.29% Upside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is driven primarily by improving profitability and returns in TTM alongside moderate leverage, plus a supportive technical uptrend. A low P/E and solid dividend yield further lift the rating, while weaker recent free-cash-flow conversion is the main factor tempering the overall score.

Positive Factors

Cash Flow Management

Effective cash flow management ensures Skyline Bankshares can sustain operations and invest in growth opportunities, enhancing long-term stability.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility and resilience against economic downturns, supporting long-term growth.

Dividend Commitment

The consistent dividend declaration reflects a commitment to shareholder returns, which can enhance investor confidence and support stock stability.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates difficulty in expanding market share or product adoption, which could impact long-term profitability and competitiveness.

Decreased Profitability

A decrease in net profit margin suggests reduced efficiency or higher costs, which could strain future earnings and limit reinvestment capacity.

Return on Equity Decline

Declining ROE can indicate less effective use of equity capital, potentially affecting investor perceptions and the company's ability to attract investment.

Skyline Bankshares Business Overview & Revenue Model

Company Description

Skyline Bankshares, Inc. operates as the holding company for the Skyline National Bank that provides various banking and financial services to individuals, and small and medium sized businesses in the United States. Its deposit products include savings, demand, NOW, and money market deposits; individual retirement accounts; and certificates of deposit. The company also provides single and multi-family housing loans, farm loans, residential and commercial construction loans, loans for commercial real estate, commercial and agricultural production loans, commercial lines of credit, and mortgage loans, as well as consumer loans, such as loans for household expenditures, car loans, and other loans. The company was formerly known as Parkway Acquisition Corp. The company was founded in 1900 and is headquartered in Floyd, Virginia.

How the Company Makes Money

Skyline Bankshares generates revenue primarily through the interest earned on loans provided to customers, which is a significant portion of its earnings. The bank charges interest on various types of loans, including personal loans, mortgages, and commercial loans. Additionally, it earns revenue from service fees associated with deposit accounts, such as checking and savings accounts, as well as transaction fees. Investment income from the bank's portfolio, including securities, also contributes to its revenue. Significant partnerships with local businesses and real estate developers can enhance its lending opportunities, while a focus on community engagement helps attract and retain a loyal customer base, further bolstering its earnings potential.

Skyline Bankshares Financial Statement Overview

Summary

Income statement trends are strong in TTM, with revenue up 10.9% versus the most recent annual period and net margin improving to ~19.4% (from ~12.2% in 2024). Balance sheet leverage remains moderate with improving debt-to-equity (~0.26) and ROE rebounding to ~14.6%. The main drag is weaker cash conversion: free cash flow fell ~21.5% in TTM and covers only ~0.51x of net income, indicating less efficient cash generation despite improved earnings.

Income Statement

Results have strengthened meaningfully in TTM (Trailing-Twelve-Months): revenue grew 10.9% versus the most recent annual period, while profitability also improved with net margin rising to ~19.4% (from ~12.2% in 2024). Operating profitability is solid (EBIT margin ~24.4% and EBITDA margin ~28.4% in TTM). The main weakness is volatility in margins across the last few years (peak levels in 2021–2022, a step-down in 2024, then a rebound in TTM), which suggests earnings can be rate/credit-cycle sensitive.

Balance Sheet

Leverage looks manageable for a regional bank, with debt-to-equity improving to ~0.26 in TTM (down from ~0.33 in 2023). Equity has grown over time (to ~$101.9M in TTM from ~$72.9M in 2022), supporting balance sheet capacity as assets expanded. Returns on equity improved to ~14.6% in TTM (from ~8.4% in 2024), a clear positive. Key watch item: total debt increased from $0 in 2022 to ~$26.5M in TTM, so while leverage remains moderate, the direction is higher versus the 2022 baseline.

Cash Flow

Cash generation is positive, with operating cash flow rising to ~$18.9M in TTM and free cash flow at ~$9.7M. However, free cash flow declined ~21.5% in TTM, and free cash flow covers only about half of net income in TTM (~0.51), down from stronger conversion in 2023–2024 (~0.75 and ~0.71). This indicates less efficient cash conversion recently, even as reported earnings improved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.77M	60.82M	50.34M	42.82M	41.32M	37.04M
Gross Profit	55.49M	45.64M	42.62M	40.29M	38.17M	32.41M
EBITDA	20.37M	11.88M	14.33M	14.97M	13.99M	9.39M
Net Income	13.95M	7.42M	9.70M	10.28M	9.48M	5.87M
Balance Sheet
Total Assets	1.31B	1.22B	1.05B	997.73M	995.85M	855.39M
Cash, Cash Equivalents and Short-Term Investments	61.74M	23.73M	149.01M	165.25M	150.05M	128.38M
Total Debt	26.50M	32.00M	25.00M	1.32M	8.20M	10.00M
Total Liabilities	1.20B	1.13B	962.96M	924.80M	910.65M	770.28M
Stockholders Equity	101.88M	88.67M	82.88M	72.94M	85.19M	85.11M
Cash Flow
Free Cash Flow	9.74M	9.04M	8.50M	6.83M	3.73M	2.04M
Operating Cash Flow	18.91M	12.74M	11.34M	10.63M	9.55M	6.56M
Investing Cash Flow	-80.31M	-44.36M	-53.38M	-107.22M	-122.67M	-97.17M
Financing Cash Flow	82.77M	28.98M	33.07M	12.00M	133.07M	141.91M

Skyline Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.25
• 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 SLBK, the sentiment is Positive. The current price of 19.25 is below the 20-day moving average (MA) of 23.42, below the 50-day MA of 21.01, and above the 200-day MA of 17.83, indicating a bullish trend. The MACD of 0.84 indicates Positive momentum. The RSI at 68.21 is Neutral, neither overbought nor oversold. The STOCH value of 27.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLBK.

Skyline Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LSBK	78 Outperform	$119.65M	15.00	6.28%	2.12%	2.27%	66.15%
SLBK	76 Outperform	$135.36M	6.70	11.99%	2.76%	26.33%	96.43%
PROV	69 Neutral	$103.34M	17.90	4.68%	3.50%	0.99%	-16.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RVSB	57 Neutral	$111.22M	18.92	2.90%	1.51%	8.77%	369.81%
PBHC	54 Neutral	$83.73M	-25.99	2.26%	2.86%	0.84%	―