Ohio Valley Banc Corp (OVBC) stock analysis

P/E above its 5-year median

Ohio Valley Banc's P/E of 16.4 is above its own 5-year median of 11.0.

P/E above the industry

Ohio Valley Banc's P/E of 16.4 is above the Commercial Banks median of 12.1.

P/S below the industry

Ohio Valley Banc's price-to-sales of 3.36 is below the Commercial Banks median of 3.60.

P/B above the industry

Ohio Valley Banc's price-to-book of 1.34 is above the Commercial Banks median of 1.29.

Trading above fair value

The share price of $49.38 is above our fair value estimate of $38.13.

Margin of safety under 20%

The price is 29.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 6.7% 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 not accelerating

Net income grew 2.6% over the last twelve months, against a 5-year average of 8.7% a year.

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 8.5% over the last twelve months and averaged 8.9% 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

Ohio Valley Banc's return on equity of 8.5% is below the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 8.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 20.5% over the last twelve months, against a 5-year average of 22.0%.

Net margin below the industry

Ohio Valley Banc's net margin of 20.5% is below the Commercial Banks median of 30.3%.

Well capitalized

Equity is 10.4% 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 64.8% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 10.3% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Ohio Valley Banc paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% 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; Ohio Valley Banc yields 2.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Covered by earnings

Dividends take 31.2% of net income.

Covered by free cash flow

Dividends take 22.5% of free cash flow.