Park National (PRK) AI Stock Analysis

• Market Cap: $2.32B
• Dividend Yield: 2.96%
• Average Volume (3M): 64.25K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.88
• Revenue Growth: 14.38%
• EPS Growth: 19.61%
• Country: US
• Employees: 1,620
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 9.32
• Shares Outstanding: 16,158,981
• 10 Day Avg. Volume: 71,845
• 30 Day Avg. Volume: 64,255
• PEG Ratio: 0.79
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.91
• Price to Cash Flow (P/CF): 12.60
• P/FCF Ratio: 5.00
• 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: $181.75
• Price Target Upside: 27.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Park National's overall stock score reflects a balanced view of its strengths and weaknesses. The strong balance sheet and attractive valuation are offset by operational challenges indicated by the income statement and weak technical indicators. Positive corporate events and strategic initiatives offer potential for future growth, but addressing revenue generation remains critical.

Park National Business Overview & Revenue Model

Company Description

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services for individual customers. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; consumer loans, such as automobile loans and leases; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing and asset management services. As of December 31, 2021, it operated 96 financial service offices and a network of 116 automated teller machines in 26 Ohio counties, 1 Kentucky county, 3 North Carolina counties, and 4 South Carolina counties. The company was founded in 1908 and is headquartered in Newark, Ohio.

How the Company Makes Money

Park National Corporation generates revenue primarily through its banking operations. The key revenue streams include interest income from loans extended to consumers and businesses, as well as from its investment securities portfolio. The company also earns non-interest income through service charges on deposit accounts, fees from trust and investment management services, and transaction fees from its ATM and electronic banking services. Additionally, mortgage banking activities contribute to revenue through origination and servicing fees. Strategic partnerships with other financial service providers and a focus on expanding its digital banking capabilities also play a role in its earnings generation.

Park National Financial Statement Overview

Summary

Park National shows a mixed financial picture. Despite strong balance sheet fundamentals with no debt and high equity, the income statement signals potential operational issues given the revenue drop in 2024. Cash flows remain generally positive, though there are signs of declining operational cash flow. The company needs to address revenue generation to maintain its solid financial standing.

Income Statement

The income statement reveals a concerning trend in revenue with a significant decline from 2023 to 2024, indicating potential issues in revenue generation or operational challenges. The company recorded a net income for 2024 despite the zero revenue figure, suggesting non-operational income sources. Prior years showed stable gross profit margins, but the recent figures highlight instability.

Balance Sheet

The balance sheet is strong with zero total debt in 2024, and a high equity ratio, suggesting financial stability and low risk from leverage. The company maintains a robust cash position, enhancing liquidity. However, the decrease in total assets from 2023 to 2024 is a point of concern.

Cash Flow

Cash flow analysis indicates effective cash management with consistent free cash flow generation. Operating cash flow to net income ratio is healthy, though a decline in operating cash flow from 2023 to 2024 suggests potential cash flow pressure in core operations. The free cash flow remained positive, reflecting solid cash generation capability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
520.61M	462.84M	482.99M	459.84M	453.29M
	Gross Profit
520.61M	564.30M	482.99M	459.84M	453.29M
	EBIT
-321.86M	179.50M	197.83M	188.24M	154.65M
	EBITDA
0.00	168.93M	194.28M	187.46M	167.71M
	Net Income Common Stockholders
151.42M	126.73M	148.35M	153.94M	127.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
277.81M	218.27M	1.92B	1.97B	1.43B
	Total Assets
9.81B	9.84B	9.85B	9.56B	9.28B
	Total Debt
206.16M	425.75M	416.01M	427.00M	261.33M
	Net Debt
45.59M	207.48M	226.28M	207.82M	-109.15M
	Total Liabilities
207.81M	8.69B	8.79B	8.45B	8.24B
	Stockholders Equity
1.24B	1.15B	1.07B	1.11B	1.04B
Cash Flow		Free Cash Flow
87.08M	142.91M	126.92M	143.24M	83.01M
	Operating Cash Flow
87.08M	150.50M	134.86M	157.33M	111.65M
	Investing Cash Flow
-10.81M	64.16M	-403.70M	-412.14M	-455.90M
	Financing Cash Flow
-80.61M	-186.12M	239.38M	103.52M	554.77M

Park National Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 142.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRK, the sentiment is Negative. The current price of 142.42 is below the 20-day moving average (MA) of 150.03, below the 50-day MA of 157.96, and below the 200-day MA of 167.02, indicating a bearish trend. The MACD of -4.16 indicates Positive momentum. The RSI at 37.97 is Neutral, neither overbought nor oversold. The STOCH value of 26.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRK.

Park National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKU	72 Outperform	$2.22B	9.62	9.90%	3.91%	3.42%	30.07%
INDB	72 Outperform	$2.28B	11.87	6.52%	4.29%	6.21%	-16.59%
TOWN	66 Neutral	$2.30B	14.24	7.74%	3.26%	8.97%	4.82%
SFNC	65 Neutral	$2.24B	14.72	4.39%	5.92%	6.86%	-12.06%
Sector *	63 Neutral	$13.51B	9.48	9.36%	4.87%	16.09%	-8.30%
CVBF	61 Neutral	$2.28B	11.41	9.35%	4.88%	2.84%	-9.63%
PRK	60 Neutral	$2.32B	15.40	12.68%	2.96%	14.38%	19.61%

Park National Corporate Events

Park National Highlights Strong 2024 Financial Performance

Park National Corporation has released an investor presentation highlighting its financial performance and strategic positioning as of December 31, 2024. The presentation underscores the company’s stable operating results, low-cost funding profile, and diversified loan portfolio. Park National’s expansion into new geographic markets with strong population growth and low unemployment rates presents promising opportunities for customer and revenue growth. The company also emphasizes its robust risk management and competitive positioning in the financial services sector.

Park National Announces Leadership Changes and Financial Growth

On January 27, 2025, Park National Corporation announced the upcoming retirement of Mark R. Ramser from its Board of Directors, effective immediately before the 2025 Annual Meeting of Shareholders scheduled for April 28, 2025. This retirement is not due to any disagreement with the company’s operations or policies. Additionally, the Compensation Committee set the 2025 base salaries and incentive compensation for Park’s executive officers, effective March 1, 2025. Park National Corporation reported significant financial growth for the year 2024, with net income for the year increasing by 19.5% to $151.4 million compared to the previous year. The company’s solid loan growth of 4.6% and steady deposits, including a 2.7% rise in off-balance sheet deposits, contributed to its success. The board declared a quarterly cash dividend of $1.07 per common share, payable on March 10, 2025.