Acnb Corp (NASDAQ: ACNB)

Sector: Financial Services Industry: Banks - Regional CIK: 0000715579
Market Cap 483.13 Mn
P/B 1.18
P/E 14.71
P/S 3.53
ROIC (Qtr) 4.51
Div Yield % 3.51
Rev 1y % (Qtr) 49.26
Total Debt (Qtr) 340.53 Mn
Debt/Equity (Qtr) 0.83

About

ACNB Corporation, known by its ticker symbol ACNB, operates in the financial services industry, with its subsidiaries ACNB Bank and ACNB Insurance Services. The company was established in 1857 and has its headquarters in Gettysburg, Pennsylvania. ACNB Bank is a full-service commercial bank that provides a variety of financial services, including loans, deposit accounts, and investment products, to individual clients, businesses, and institutions. The bank manages a total of $2.4 billion in assets, $1.6 billion in loans, and $1.9 billion in deposits,...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 3.16B provides 9.29x coverage of total debt 340.53M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 46.59M provides strong 32.52x coverage of stock compensation 1.43M, indicating sustainable incentive practices.
  • Robust free cash flow of 45.32M exceeds capital expenditure of 1.28M by 35.49x, indicating strong organic growth funding capability.
  • Retained earnings of 250.41M represent substantial 0.61x of equity 408.64M, indicating strong internal capital generation.
  • Retained earnings of 250.41M provide strong 2.85x coverage of intangibles 88.01M, indicating quality earnings retention.

Bear case

  • Operating cash flow of 46.59M barely covers its investment activities of 83.16M, with a coverage ratio of 0.56, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 46.59M provides thin coverage of dividend payments of (13.18M) with a -3.53 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 250.41M provide limited buffer against comprehensive income items of (28.58M), which is -8.76x, indicating elevated exposure to market risks.
  • Operating cash flow of 46.59M is outpaced by equity issuance of (8.11M) (-5.75 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 66.15M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.21 0.14
EV to Cash from Ops. EV/CFO 14.67 7.21
EV to Debt EV to Debt 2.01 5.20
EV to EBIT EV/EBIT 16.46 14.98
EV to EBITDA EV/EBITDA 14.46 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 15.08 8.87
EV to Market Cap EV to Market Cap 1.41 1.04
EV to Revenue EV/Rev 4.99 -3.76
Price to Book Value [P/B] P/B 1.18 1.17
Price to Earnings [P/E] P/E 14.71 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.49 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 40.10 35.28
Dividend per Basic Share Div per Share (Qtr) 1.32 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 30.35 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 19.23 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 75.82 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 6.45 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 11.90 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.12 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 12.40 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 12.40 61.37
EPS Growth (1y) % EPS 1y % (Qtr) -4.64 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 10.24 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 28.72 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.28 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.83 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 34.50 147.97
EBIT Margin % EBIT Margin % (Qtr) 30.31 155.41
EBT Margin % EBT Margin % (Qtr) 30.31 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 24.00 115.63