TowneBank (TOWN) AI Stock Analysis

• Market Cap: $2.48B
• Dividend Yield: 3.07%
• Average Volume (3M): 312.52K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.95
• Revenue Growth: 7.16%
• EPS Growth: 17.97%
• Country: US
• Employees: 2,720
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 2.36
• Shares Outstanding: 75,152,570
• 10 Day Avg. Volume: 302,942
• 30 Day Avg. Volume: 312,517
• PEG Ratio: 0.78
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.83
• Price to Cash Flow (P/CF): -27.30
• P/FCF Ratio: 12.70
• 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: $40.00
• Price Target Upside: 21.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

TowneBank shows strong financial fundamentals with consistent revenue growth and effective cost management. However, technical indicators suggest a bearish trend with potential oversold conditions. The stock offers a reasonable valuation with a fair P/E ratio and an attractive dividend yield. The overall score reflects a stable but cautious outlook, emphasizing the need to monitor technical trends and cash flow generation.

TowneBank Business Overview & Revenue Model

Company Description

TowneBank (TOWN) is a regional banking and financial services company headquartered in Portsmouth, Virginia. Founded in 1999, TowneBank operates primarily in the southeastern United States, offering a comprehensive range of banking products and services. Its core offerings include personal and business banking, mortgage banking, insurance, investment services, and wealth management. TowneBank aims to provide personalized financial solutions and exceptional customer service to its members, fostering strong community relationships.

How the Company Makes Money

TowneBank generates revenue through a diverse set of financial services. The primary source of income for the company is interest income, which is derived from loans and credit facilities extended to individuals and businesses. This includes commercial loans, consumer loans, and residential mortgages. Additionally, TowneBank earns non-interest income through fees and service charges associated with deposit accounts, transaction processing, and other banking services. The company also benefits from its insurance and investment services divisions, which provide revenue through insurance premiums, investment advisory fees, and brokerage commissions. Significant partnerships with local businesses and community initiatives further bolster its earnings by enhancing its market presence and customer base.

TowneBank Financial Statement Overview

Summary

TowneBank demonstrates solid financial health with steady revenue growth and effective cost management. The balance sheet is strong with low leverage, yet attention should be paid to the increasing liabilities. Although cash flow generation has weakened, the company remains cash efficient.

Income Statement

TowneBank has shown consistent revenue growth, with a notable increase from the previous year. The gross profit margin remains strong, as total revenue equals gross profit, indicating effective cost management. However, the lack of reported EBIT and EBITDA in the latest year limits the complete assessment of operating efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, indicating prudent financial management and low leverage. The equity ratio reflects strong capitalization, supporting its stability. However, the slight increase in total liabilities warrants monitoring.

Cash Flow

Operating cash flow remains positive, but has decreased compared to previous years, suggesting potential challenges in sustaining cash generation. The free cash flow has also declined, impacting overall liquidity. Nevertheless, the company maintains a positive free cash flow to net income ratio, showing adequate cash efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
692.51M	675.44M	686.38M	679.00M	662.23M
	Gross Profit
692.51M	941.58M	677.14M	679.00M	662.23M
	EBIT
0.00	283.85M	206.87M	270.18M	177.44M
	EBITDA
0.00	220.44M	265.75M	310.96M	230.39M
	Net Income Common Stockholders
161.76M	153.72M	188.99M	215.38M	145.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.69B	189.00M	152.63M	5.10B	3.23B
	Total Assets
17.25B	16.84B	15.85B	16.36B	14.63B
	Total Debt
263.22M	459.75M	277.09M	405.02M	705.09M
	Net Debt
-1.08B	-668.60M	-875.74M	-2.89B	-1.16B
	Total Liabilities
15.09B	14.78B	252.09M	405.02M	705.09M
	Stockholders Equity
2.14B	2.04B	1.87B	1.90B	1.77B
Cash Flow		Free Cash Flow
81.09M	117.17M	363.22M	487.62M	82.10M
	Operating Cash Flow
138.36M	161.30M	415.50M	518.82M	127.89M
	Investing Cash Flow
-202.77M	-335.68M	-2.05B	-547.36M	-1.12B
	Financing Cash Flow
275.53M	149.90M	-512.10M	1.46B	2.41B

TowneBank Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOWN, the sentiment is Neutral. The current price of 33.01 is above the 20-day moving average (MA) of 32.06, below the 50-day MA of 33.99, and below the 200-day MA of 33.54, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TOWN.

TowneBank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDB	73 Outperform	$2.31B	12.02	6.38%	3.94%	4.24%	-14.27%
CVBF	70 Outperform	$2.63B	13.15	22.34%	4.26%	-1.39%	-3.84%
BKU	68 Neutral	$2.22B	9.62	9.90%	3.52%	3.42%	30.07%
TOWN	63 Neutral	$2.48B	13.98	8.19%	3.07%	7.16%	17.97%
PRK	63 Neutral	$2.40B	15.96	12.68%	2.87%	14.38%	19.61%
Sector *	63 Neutral	$12.33B	9.59	8.02%	79.26%	12.87%	-4.61%
SFNC	58 Neutral	$2.35B	16.05	4.20%	5.81%	2.90%	-12.63%