Princeton Bancorp, Inc. (BPRN) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E above the industry

Princeton Bancorp's P/E of 14.8 is above the Commercial Banks median of 12.1.

P/S below the industry

Princeton Bancorp's price-to-sales of 3.47 is below the Commercial Banks median of 3.60.

P/B below the industry

Princeton Bancorp's price-to-book of 1.12 is below the Commercial Banks median of 1.29.

Trading above fair value

The share price of $44.29 is above our fair value estimate of $40.48.

Margin of safety under 20%

The price is 9.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -13.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 4.1% over the last twelve months; the Commercial Banks median is 11.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 7.6% over the last twelve months and averaged 9.0% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.9%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Princeton Bancorp's return on equity of 7.6% is below the Commercial Banks median of 11.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 23.5% over the last twelve months, against a 5-year average of 27.4%.

Net margin below the industry

Princeton Bancorp's net margin of 23.5% is below the Commercial Banks median of 30.3%.

Well capitalized

Equity is 11.7% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Adequate loan-loss reserve

The allowance for credit losses is not reported.

High cost base

Non-interest expense takes 61.3% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 3.9% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Princeton Bancorp paid dividends worth 3.3% of the share price over the last twelve months.

Yield below Treasuries

The 3.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Princeton Bancorp yields 3.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Covered by earnings

Dividends take 45.7% of net income.

Covered by free cash flow

Dividends take 36.3% of free cash flow.