US Metro Bank (USMT) AI Stock Analysis

• Market Cap: $9.44M
• Dividend Yield: 2.52%
• Average Volume (3M): 241.00
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.27
• Revenue Growth: 11.62%
• EPS Growth: 0.31%
• Country: US
• Employees: 151
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.18
• Shares Outstanding: 1,980,000
• 10 Day Avg. Volume: 514
• 30 Day Avg. Volume: 241
• PEG Ratio: -0.23
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 9.52
• Enterprise Value/Market Cap: 8.91
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: 8.28
• 1Y Price Target: $5.50
• Price Target Upside: 15.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $5.50 ▲(15.30% Upside)

US Metro Bank's overall stock score is driven by strong technical analysis and attractive valuation. Despite challenges in profitability and cash flow, the stock's positive momentum and low valuation relative to earnings make it appealing. The absence of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Revenue Growth

The strong revenue growth indicates a positive trend in expanding market reach and customer base, which is crucial for long-term business sustainability.

Stable Balance Sheet

A stable balance sheet with improved debt-to-equity ratio suggests prudent financial management, enhancing the bank's ability to withstand economic fluctuations.

Strong Capital Structure

A strong capital structure provides financial stability and flexibility, enabling the bank to pursue growth opportunities and manage risks effectively.

Negative Factors

Profitability Challenges

Declining profit margins indicate increased costs or reduced pricing power, which could impact long-term profitability and competitive positioning.

Cash Flow Efficiency

Low cash flow efficiency can constrain the bank's ability to invest in growth and meet financial obligations, affecting long-term operational resilience.

Reduced Operational Efficiency

Decreased operational efficiency suggests challenges in cost management and productivity, potentially impacting the bank's ability to maintain competitive advantage.

US Metro Bank Business Overview & Revenue Model

Company Description

US Metro Bancorp, Inc. operates as the bank holding company for US Metro Bank that provides various banking services to commercial business and individual consumers. The company's deposit products include checking, savings, money market, and certificate of deposit accounts, as well as treasury management services. It also offers real estate, business term and lines of credit, and small business administration loans, as well as construction and warehouse lending services. In addition, the company provides online and mobile banking, ATM, telebanc, and wire transfer services, as well as safe deposit box and debit card services. As of August 24, 2021, it operated five branches in Southern California; and loan production offices in Dallas, Seattle, New York, and Atlanta. The company was founded in 2006 and is headquartered in Garden Grove, California.

How the Company Makes Money

US Metro Bank generates revenue through various key streams. Primarily, the bank earns interest income from loans issued to customers, including personal loans, home mortgages, and business loans. This interest income forms the bulk of its earnings. Additionally, USMT collects fees from account maintenance, overdrafts, and transaction services which contribute to non-interest income. The bank may also generate revenue through investment services and wealth management offerings. Significant partnerships with financial technology firms and local businesses enhance its service offerings and customer base, further driving revenue growth.

US Metro Bank Financial Statement Overview

Summary

US Metro Bank demonstrates strong profitability in terms of margins, despite a declining revenue trend. The balance sheet is stable but highlights a relatively low equity ratio, which could pose future risks if liabilities grow. Cash flow management appears to be under pressure with declining operational cash flows. Overall, the bank maintains profitability but faces challenges in revenue growth and cash flow stability.

Income Statement

US Metro Bank shows a mixed financial performance with a decline in total revenue from $50.89M in 2022 to $45.60M in 2023, reflecting a negative revenue growth rate of -10.26%. However, the net profit margin remains robust at 23.28% in 2023, indicating efficient cost management. The gross profit margin is exceptionally high due to the discrepancy between reported revenue and gross profit. The EBIT margin is 44.68%, and EBITDA margin is 33.75%, both demonstrating healthy operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial structure with a debt-to-equity ratio of 0.53, indicating moderate leverage. The return on equity (ROE) stands at 11.15%, suggesting decent profitability relative to shareholder equity. The equity ratio of 7.77% points to a low level of equity financing relative to total assets, which could be a potential risk if liabilities increase.

Cash Flow

The cash flow analysis indicates a decline in operating cash flow from $24.43M in 2022 to $14.94M in 2023, reflecting operational challenges. The free cash flow to net income ratio is 1.24, suggesting adequate conversion of income into free cash flow. However, the free cash flow growth rate is negative at -44.27%, which might affect liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.84M	93.65M	45.60M	50.89M	46.66M	27.19M
Gross Profit	71.51M	45.34M	46.10M	50.89M	46.66M	27.19M
EBITDA	10.16M	12.07M	15.39M	23.92M	22.17M	7.40M
Net Income	9.55M	8.44M	10.62M	16.85M	15.70M	4.63M
Balance Sheet
Total Assets	1.42B	1.40B	1.23B	1.12B	968.42M	766.70M
Cash, Cash Equivalents and Short-Term Investments	26.06M	168.36M	183.19M	172.58M	186.60M	163.81M
Total Debt	35.00M	50.68M	50.63M	50.57M	25.51M	30.43M
Total Liabilities	1.29B	1.30B	1.13B	50.57M	25.51M	30.43M
Stockholders Equity	127.24M	101.00M	95.23M	84.88M	76.66M	62.79M
Cash Flow
Free Cash Flow	0.00	7.05M	13.21M	23.71M	20.22M	7.22M
Operating Cash Flow	0.00	8.08M	14.94M	24.43M	20.46M	7.62M
Investing Cash Flow	0.00	-150.27M	-88.98M	-166.87M	-250.84M	-202.99M
Financing Cash Flow	0.00	162.22M	85.32M	143.36M	183.87M	220.33M

US Metro Bank Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USMT, the sentiment is Neutral. The current price of 4.77 is below the 20-day moving average (MA) of 4.79, above the 50-day MA of 4.76, and above the 200-day MA of 3.96, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 6.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for USMT.

US Metro Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USMT	73 Outperform	$9.44M	7.88	7.78%	2.52%	11.62%	0.31%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
CARV	―	$11.22M	―	-37.16%	―	―	―
KFFB	52 Neutral	$27.82M	―	-2.21%	3.03%	22.56%	-78.84%
GLBZ	51 Neutral	$13.40M	431.77	0.17%	2.26%	8.99%	-94.06%
PBBK	―	$49.57M	20.73	4.53%	―	―	―
SHFS	46 Neutral	$12.01M	2.00	-515.18%	―	-35.31%	-1227.86%