Chain Bridge Bancorp Inc (NYSE: CBNA)

Sector: Financial Services Industry: Banks - Regional CIK: 0001392272
Market Cap 238.81 Mn
P/B 1.46
P/E 12.82
P/S 4.50
ROIC (Qtr) 11.65
Div Yield % 0.00
Rev 1y % (Qtr) -21.53
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Robust free cash flow of 10.59M exceeds capital expenditure of 2.93M by 3.62x, indicating strong organic growth funding capability.
  • Operating cash flow of 13.52M provides strong 3.07x coverage of operating expenses 4.40M, showing operational efficiency.
  • Retained earnings of 92.53M represent substantial 0.57x of equity 163.10M, indicating strong internal capital generation.
  • Free cash flow of 10.59M provides solid 2.41x coverage of operating expenses 4.40M, showing operational efficiency.
  • Operating cash flow of 13.52M provides strong 4.62x coverage of capital expenditure 2.93M, enabling organic growth.

Bear case

  • Operating cash flow of 13.52M barely covers its investment activities of (214.80M), with a coverage ratio of -0.06, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 10.59M represents just -1.06x of debt issuance (10M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 92.53M provide limited buffer against comprehensive income items of (4.29M), which is -21.58x, indicating elevated exposure to market risks.
  • Operating cash flow of 13.52M is outpaced by equity issuance of 36.53M (0.37 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 25.32M, 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 -0.09 0.14
EV to Cash from Ops. EV/CFO -10.24 7.21
EV to Debt EV to Debt 0.00 5.20
EV to EBIT EV/EBIT -5.92 14.98
EV to EBITDA EV/EBITDA -5.80 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF -13.07 8.87
EV to Market Cap EV to Market Cap -0.58 1.04
EV to Revenue EV/Rev -2.61 -3.76
Price to Book Value [P/B] P/B 1.46 1.17
Price to Earnings [P/E] P/E 12.82 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 35.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -741.09 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -38.15 15.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -9.21 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.57 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) -9.24 61.46
EBT Growth (1y) % EBT 1y % (Qtr) -9.24 61.37
EPS Growth (1y) % EPS 1y % (Qtr) -40.53 76.34
FCF Growth (1y) % FCF 1y % (Qtr) -53.29 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.26 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) 0.00 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) 0.00 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) 44.90 147.97
EBIT Margin % EBIT Margin % (Qtr) 44.03 155.41
EBT Margin % EBT Margin % (Qtr) 44.03 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 35.10 115.63