TowneBank (TOWN) AI Stock Analysis

• Market Cap: $2.32B
• Dividend Yield: 3.24%
• Average Volume (3M): 250.91K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.99
• Revenue Growth: 8.97%
• EPS Growth: 4.82%
• Country: US
• Employees: 2,720
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 2.15
• Shares Outstanding: 75,152,570
• 10 Day Avg. Volume: 252,174
• 30 Day Avg. Volume: 250,906
• PEG Ratio: 2.97
• 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: $41.50
• Price Target Upside: 34.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

TowneBank has a strong financial foundation with consistent revenue growth and effective cost management, but it faces challenges in cash flow generation. The technical indicators point to a bearish trend, which could impact short-term performance. Valuation metrics suggest the stock is fairly valued with moderate income potential, making it a stable, albeit not standout, investment in the regional banking sector.

TowneBank Business Overview & Revenue Model

Company Description

TowneBank (TOWN) is a premier community bank based in Virginia, United States, offering a comprehensive range of financial services. The bank operates across various sectors, including personal and business banking, real estate finance, insurance, and investment services. TowneBank focuses on delivering personalized customer service with a community-oriented approach, catering to individuals, small businesses, and commercial clients.

How the Company Makes Money

TowneBank generates revenue primarily through interest income from its lending activities, which include personal loans, mortgages, and commercial real estate financing. In addition to interest income, the bank earns non-interest income from service fees associated with deposit accounts, investment advisory fees, and insurance services. TowneBank also benefits from strategic partnerships and mergers that expand its market presence and enhance its service offerings, contributing to its overall earnings. The bank's community-focused model and diverse portfolio of financial products and services enable it to attract a broad customer base, further supporting its revenue streams.

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: Negative
• Last Price: 30.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOWN, the sentiment is Negative. The current price of 30.86 is below the 20-day moving average (MA) of 34.13, below the 50-day MA of 35.26, and below the 200-day MA of 33.17, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 40.27 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TOWN.

TowneBank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOMB	76 Outperform	$5.13B	12.85	10.38%	2.96%	8.83%	3.77%
OZK	76 Outperform	$4.41B	6.33	13.21%	4.16%	23.25%	4.64%
TOWN	66 Neutral	$2.32B	14.34	7.74%	3.24%	8.97%	4.82%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
FULT	62 Neutral	$2.96B	10.33	9.69%	4.25%	21.10%	-4.20%
UBSI	61 Neutral	$4.64B	11.75	7.62%	4.58%	6.80%	1.48%
FFIC	46 Neutral	$393.84M	16.43	-4.49%	7.55%	-3.66%	-196.64%