Community Bancorp (CMTV) stock analysis

P/E above its 5-year median

Community Bancorp's P/E of 15.4 is above its own 5-year median of 8.1.

P/E above the industry

Community Bancorp's P/E of 15.4 is above the Commercial Banks median of 12.0.

P/S above the industry

Community Bancorp's price-to-sales of 5.43 is above the Commercial Banks median of 3.61.

P/B above the industry

Community Bancorp's price-to-book of 2.35 is above the Commercial Banks median of 1.28.

Trading above fair value

The share price of $48.95 is above our fair value estimate of $29.14.

Margin of safety under 20%

The price is 68.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 32.3% over the last twelve months, against a 5-year average of 9.5% a year.

Growing faster than the industry

Revenue grew 17.8% 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 over 15%

Return on equity was 16.2% over the last twelve months and averaged 15.9% over five years.

Return on assets over 1%

Return on assets was 1.5%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Community Bancorp's return on equity of 16.2% is above the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 9.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 35.3% over the last twelve months, against a 5-year average of 33.3%.

Net margin above the industry

Community Bancorp's net margin of 35.3% is above the Commercial Banks median of 30.3%.

Well capitalized

Equity is 9.5% 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.

Efficient operations

Non-interest expense takes 54.6% 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

Community Bancorp paid dividends worth 2.6% of the share price over the last twelve months.

Yield below Treasuries

The 2.6% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Community Bancorp yields 2.6%.

Dividend not cut

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

Covered by earnings

Dividends take 22.5% of net income.

Covered by free cash flow

Dividends take 21.1% of free cash flow.