Affinity Bancshares (AFBI) AI Stock Analysis

• Market Cap: $116.53M
• Dividend Yield: N/A
• Average Volume (3M): 20.65K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.20
• Revenue Growth: 10.68%
• EPS Growth: -14.77%
• Country: US
• Employees: 88
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.83
• Shares Outstanding: 6,329,715
• 10 Day Avg. Volume: 10,861
• 30 Day Avg. Volume: 20,648
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.75
• Price to Cash Flow (P/CF): 7.10
• P/FCF Ratio: 4.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Affinity Bancshares shows strong revenue growth and a stable asset base, but increased leverage and fluctuating margins raise concerns. Technical indicators suggest short-term stability but possible longer-term bearish trends. The high P/E ratio without a dividend yield points to potential overvaluation, making the stock less appealing to value investors.

Affinity Bancshares Business Overview & Revenue Model

Company Description

Affinity Bancshares, Inc. (AFBI) is a financial services company primarily operating in the banking sector. The company offers a range of banking products and services, including personal and business banking solutions, loans, mortgages, and deposit accounts. Affinity Bancshares serves individuals, small businesses, and commercial clients, focusing on providing personalized financial solutions and customer service.

How the Company Makes Money

Affinity Bancshares generates revenue through various streams typical of a banking institution. The primary sources of income include interest income from loans and mortgages, where the company earns money by charging interest on the funds borrowed by customers. Additionally, AFBI earns non-interest income from fees for services such as account maintenance, transaction processing, and financial advisory. The company may also generate revenue through investment services and partnerships that enhance its product offerings. Key factors contributing to earnings include the interest rate environment, the volume of loans and deposits, and the economic conditions affecting borrowers' ability to repay loans.

Affinity Bancshares Financial Statement Overview

Summary

Affinity Bancshares demonstrates solid revenue growth and a robust asset base, indicative of a resilient market position in the banking sector. However, increased leverage and fluctuating profitability margins could pose risks if not managed carefully. The cash flow inconsistencies highlight areas for improvement in operational efficiency and cash management strategies.

Income Statement

Affinity Bancshares has shown a consistent revenue growth trend from 2019 to 2024, with a significant increase in EBIT and net income margins over the years. However, the net profit margin has seen fluctuations, indicating some instability in profitability. The gross profit margin remains robust at 100%, reflecting strong revenue generation capabilities.

Balance Sheet

The balance sheet indicates a healthy equity base with a stable equity ratio, but the debt-to-equity ratio has increased, suggesting higher leverage levels. Return on equity shows a fluctuating trend, which might be a concern for investors seeking stable returns. The company maintains a strong asset base, contributing to its financial stability.

Cash Flow

The cash flow statement reveals a mixed picture with inconsistent free cash flow growth and zero reported free cash flow in the most recent year. Operating cash flow to net income ratios have shown variability, indicating potential challenges in cash conversion. Despite this, the company has managed its investing and financing activities to maintain liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
30.61M	29.66M	32.16M	32.08M	27.01M
	Gross Profit
30.61M	29.71M	32.16M	32.08M	27.01M
	EBIT
10.88M	8.39M	11.37M	9.91M	3.88M
	EBITDA
0.00	0.00	9.66M	10.59M	4.58M
	Net Income Common Stockholders
5.44M	6.45M	7.13M	7.57M	3.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.42M	50.02M	99.05M	160.33M	202.26M
	Total Assets
866.82M	843.26M	791.28M	788.09M	850.63M
	Total Debt
58.81M	40.00M	10.03M	48.99M	24.12M
	Net Debt
17.39M	-10.03M	-16.30M	-62.79M	-154.14M
	Total Liabilities
737.70M	721.74M	674.18M	667.12M	769.84M
	Stockholders Equity
129.12M	121.52M	117.10M	120.97M	80.78M
Cash Flow		Free Cash Flow
6.37M	7.34M	6.17M	11.02M	920.00K
	Operating Cash Flow
-1.94M	7.87M	7.57M	11.85M	1.37M
	Investing Cash Flow
0.00	-28.14M	-93.72M	-9.62M	-110.38M
	Financing Cash Flow
0.00	43.97M	701.00K	-68.70M	239.15M

Affinity Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFBI, the sentiment is Positive. The current price of 18.61 is above the 20-day moving average (MA) of 17.87, above the 50-day MA of 17.80, and below the 200-day MA of 18.87, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 64.72 is Neutral, neither overbought nor oversold. The STOCH value of 89.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFBI.

Affinity Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFBI	64 Neutral	$116.53M	22.50	4.34%	―	10.68%	-14.77%
SRBK	63 Neutral	$108.86M	168.73	0.21%	0.38%	―	―
Sector *	63 Neutral	$12.06B	9.31	8.10%	79.51%	12.80%	-4.67%
RVSB	60 Neutral	$122.08M	155.20	0.50%	2.03%	1.27%	-91.84%
RBKB	51 Neutral	$112.83M	―	-7.32%	―	-18.28%	-296.52%
BSBK	41 Neutral	$91.81M	―	-1.58%	―	-11.26%	-460.04%

Affinity Bancshares Corporate Events

Affinity Bancshares Ends Acquisition Deal with APCU

Affinity Bancshares, Inc., the parent company of Affinity Bank, and Atlanta Postal Credit Union (APCU) mutually agreed to terminate their previously planned purchase agreement where APCU would have acquired Affinity Bank. Following discussions with regulatory agencies, APCU decided to withdraw its application for the transaction, leading to the mutual termination. No termination fees will be incurred, and both parties are released from any related liabilities, indicating a careful reevaluation of strategic plans and regulatory compliance considerations.