Oak Valley Bancorp (OVLY) stock analysis

P/E above its 5-year median

Oak Valley Bancorp's P/E of 12.5 is above its own 5-year median of 9.2.

P/E above the industry

Oak Valley Bancorp's P/E of 12.5 is above the Commercial Banks median of 12.1.

P/S below the industry

Oak Valley Bancorp's price-to-sales of 3.45 is below the Commercial Banks median of 3.60.

P/B above the industry

Oak Valley Bancorp's price-to-book of 1.52 is above the Commercial Banks median of 1.29.

Trading above fair value

The share price of $34.62 is above our fair value estimate of $29.37.

Margin of safety under 20%

The price is 17.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 1.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -1.6% over the last twelve months, against a 5-year average of 11.8% a year.

Growing slower than the industry

Revenue grew 5.8% 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 under 15%

Return on equity was 11.9% over the last twelve months and averaged 15.3% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.2%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Oak Valley Bancorp's return on equity of 11.9% is above the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 11.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 27.5% over the last twelve months, against a 5-year average of 32.8%.

Net margin below the industry

Oak Valley Bancorp's net margin of 27.5% is below the Commercial Banks median of 30.3%.

Well capitalized

Equity is 9.7% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 64.7% of deposits, so lending is funded by customer deposits.

Thin loan-loss reserve

The allowance for credit losses is 1.0% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 63.9% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 0.7% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Oak Valley Bancorp paid dividends worth 2.2% of the share price over the last twelve months.

Yield below Treasuries

The 2.2% 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; Oak Valley Bancorp yields 2.2%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 8 fiscal years.

Covered by earnings

Dividends take 27.2% of net income.

Covered by free cash flow

Dividends take 23.1% of free cash flow.