TowneBank (TOWN) AI Stock Analysis

• Market Cap: $2.67B
• Dividend Yield: 3.04%
• Average Volume (3M): 250.71K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.93
• Revenue Growth: 8.59%
• EPS Growth: 17.97%
• Country: US
• Employees: 2,704
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): 0.68
• Shares Outstanding: 75,152,570
• 10 Day Avg. Volume: 225,796
• 30 Day Avg. Volume: 250,712
• PEG Ratio: -0.95
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.16
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 4.68
• 1Y Price Target: $42.00
• Price Target Upside: 18.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $37.00 ▲(4.23%Upside)

TowneBank's strong financial performance, characterized by robust profit margins and effective cash management, is the most significant factor contributing to its score. The reasonable valuation and stable dividend yield also support its attractiveness, although technical indicators suggest a neutral market sentiment.

TowneBank Business Overview & Revenue Model

Company Description

TowneBank (TOWN) is a community-focused financial institution offering a wide range of banking services primarily in Virginia and North Carolina. Established in 1998, TowneBank provides personal and business banking solutions, including deposit accounts, loans, credit cards, wealth management, and insurance services. The company is committed to fostering economic development and supporting the communities it serves through personalized financial services and a relationship-driven approach.

How the Company Makes Money

TowneBank generates revenue primarily through interest income from loans and credit services, including mortgages, commercial loans, and personal loans. Additionally, the bank earns non-interest income through fees and service charges associated with deposit accounts, transaction processing, and other banking services. Its wealth management and insurance divisions also contribute to revenue through advisory fees, investment management, and premium income. TowneBank's strategic partnerships with local businesses and community organizations, along with its focus on personalized customer service, play a significant role in attracting and retaining clients, thereby supporting its earnings.

TowneBank Financial Statement Overview

Summary

TowneBank demonstrates solid financial health with steady revenue growth and effective cost management. The balance sheet is strong with low leverage, yet attention should be paid to the increasing liabilities. Although cash flow generation has weakened, the company remains cash efficient. Overall, TowneBank presents a stable financial standing with room for improvement in cash flow generation.

Income Statement

TowneBank has shown consistent revenue growth, with a notable increase from the previous year. The gross profit margin remains strong, as total revenue equals gross profit, indicating effective cost management. However, the lack of reported EBIT and EBITDA in the latest year limits the complete assessment of operating efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, indicating prudent financial management and low leverage. The equity ratio reflects strong capitalization, supporting its stability. However, the slight increase in total liabilities warrants monitoring.

Cash Flow

Operating cash flow remains positive, but has decreased compared to previous years, suggesting potential challenges in sustaining cash generation. The free cash flow has also declined, impacting overall liquidity. Nevertheless, the company maintains a positive free cash flow to net income ratio, showing adequate cash efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	692.51M	675.44M	686.38M	679.00M	662.23M
Gross Profit	692.51M	941.58M	677.14M	679.00M	662.23M
EBITDA	225.55M	220.44M	265.75M	310.96M	230.39M
Net Income	161.76M	153.72M	188.99M	215.38M	145.53M
Balance Sheet
Total Assets	17.25B	16.84B	15.85B	16.36B	14.63B
Cash, Cash Equivalents and Short-Term Investments	3.69B	189.00M	152.63M	5.10B	3.23B
Total Debt	263.22M	459.75M	277.09M	405.02M	705.09M
Total Liabilities	15.09B	14.78B	252.09M	405.02M	705.09M
Stockholders Equity	2.14B	2.04B	1.87B	1.90B	1.77B
Cash Flow
Free Cash Flow	81.09M	117.17M	363.22M	487.62M	82.10M
Operating Cash Flow	138.36M	161.30M	415.50M	518.82M	127.89M
Investing Cash Flow	-202.77M	-335.68M	-2.05B	-547.36M	-1.12B
Financing Cash Flow	275.53M	149.90M	-512.10M	1.46B	2.41B

TowneBank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.50
• 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 TOWN, the sentiment is Positive. The current price of 35.5 is above the 20-day moving average (MA) of 34.60, above the 50-day MA of 34.25, and above the 200-day MA of 33.99, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 56.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOWN.

TowneBank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVBF	78 Outperform	$2.83B	14.12	9.35%	3.86%	-1.39%	-4.00%
PRK	78 Outperform	$2.74B	17.38	12.98%	2.53%	11.80%	23.34%
INDB	77 Outperform	$3.21B	14.80	6.38%	3.68%	4.22%	-14.27%
BKU	71 Outperform	$2.73B	11.31	8.63%	3.41%	-0.61%	39.49%
SFNC	71 Outperform	$2.45B	16.76	4.20%	4.36%	2.91%	-12.82%
TOWN	70 Outperform	$2.67B	15.35	8.36%	3.04%	8.59%	17.97%
Sector *	68 Neutral	$16.73B	11.75	9.79%	3.76%	11.87%	-7.97%