Camden National Corp (NASDAQ: CAC)

Sector: Financial Services Industry: Banks - Regional CIK: 0000750686
Market Cap 712.58 Mn
P/B 1.05
P/E 12.44
P/S 3.31
ROIC (Qtr) 3.93
Div Yield % 4.79
Rev 1y % (Qtr) 39.48
Total Debt (Qtr) 810.93 Mn
Debt/Equity (Qtr) 1.20

About

Camden National Corporation (CAC) is a bank holding company with a rich history dating back to 1875, operating predominantly in Northern New England. The company's primary business involves attracting deposits from and extending loans to a diverse clientele, which includes consumers, institutions, municipalities, non-profit organizations, and commercial entities. Camden National Corporation's revenue is primarily derived from net interest income, accounting for 81%, 78%, and 73% of its total revenues for the years ended December 31, 2023, 2022,...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 6.79B provides 8.37x coverage of total debt 810.93M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 86.35M provides strong 25.93x coverage of stock compensation 3.33M, indicating sustainable incentive practices.
  • Robust free cash flow of 83.57M exceeds capital expenditure of 2.78M by 30.04x, indicating strong organic growth funding capability.
  • Retained earnings of 529.72M represent substantial 0.78x of equity 676.44M, indicating strong internal capital generation.
  • Operating cash flow of 86.35M provides strong 2.21x coverage of operating expenses 39.02M, showing operational efficiency.

Bear case

  • Operating cash flow of 86.35M barely covers its investment activities of (76.80M), with a coverage ratio of -1.12, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 86.35M provides thin coverage of dividend payments of (27.48M) with a -3.14 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 529.72M provide limited buffer against comprehensive income items of (68.42M), which is -7.74x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 107.32M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Fixed assets of 50.59M showing 7.57x ratio to depreciation of 6.68M indicates aging infrastructure requiring significant near-term capital investment.

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 0.18 0.14
EV to Cash from Ops. EV/CFO 14.59 7.21
EV to Debt EV to Debt 1.55 5.20
EV to EBIT EV/EBIT 18.30 14.98
EV to EBITDA EV/EBITDA 16.68 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 15.07 8.87
EV to Market Cap EV to Market Cap 1.77 1.04
EV to Revenue EV/Rev 5.85 -3.76
Price to Book Value [P/B] P/B 1.05 1.17
Price to Earnings [P/E] P/E 12.44 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.08 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 47.70 35.28
Dividend per Basic Share Div per Share (Qtr) 1.68 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 34.01 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 37.29 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -29.15 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 22.32 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 24.40 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 20.05 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 20.05 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 9.32 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 4,053.48 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 27.50 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.31 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) 1.20 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) 35.10 147.97
EBIT Margin % EBIT Margin % (Qtr) 31.99 155.41
EBT Margin % EBT Margin % (Qtr) 31.99 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 26.60 115.63