Community Bancorp /Vt (OTC: CMTV)

Sector: Financial Services Industry: Banks - Regional CIK: 0000718413
Market Cap 182.94 Mn
P/B 1.64
P/E 11.13
P/S 3.99
ROIC (Qtr) 7.61
Div Yield % 0.00
Rev 1y % (Qtr) 20.96
Total Debt (Qtr) 93.34 Mn
Debt/Equity (Qtr) 0.83

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 1.21B provides 13.01x coverage of total debt 93.34M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 14.12M exceeds capital expenditure of 1.13M by 12.45x, indicating strong organic growth funding capability.
  • Retained earnings of 69.84M represent substantial 0.62x of equity 111.88M, indicating strong internal capital generation.
  • Retained earnings of 69.84M provide strong 6.03x coverage of intangibles 11.57M, indicating quality earnings retention.
  • Strong free cash flow of 14.12M provides 0.86x coverage of SG&A expenses 16.43M, indicating efficient cost management.

Bear case

  • Operating cash flow of 15.25M barely covers its investment activities of (32.22M), with a coverage ratio of -0.47, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 15.25M provides thin coverage of dividend payments of (3.91M) with a -3.90 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 14.12M represents just -0.31x of debt issuance (45.98M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 15.25M is outpaced by equity issuance of (701470) (-21.74 ratio), indicating concerning reliance on equity markets for funding operations.
  • Retained earnings of 69.84M provide limited buffer against comprehensive income items of (10.53M), which is -6.63x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PNC Pnc Financial Services Group, Inc. 126.73 Bn 42.27 8.85 62.34 Bn
2 USB Us Bancorp De 92.56 Bn 18.01 3.75 77.98 Bn
3 NU Nu Holdings Ltd. 84.71 Bn 33.49 6.02 4.49 Bn
4 NWG NatWest Group plc 64.34 Bn 9.55 2.95 169.04 Bn
5 MTB M&T Bank Corp 39.39 Bn 13.49 4.22 14.99 Bn
6 FITB Fifth Third Bancorp 38.93 Bn 15.70 4.83 18.94 Bn
7 TFC Truist Financial Corp 38.35 Bn 34.67 5.49 71.11 Bn
8 CFG Citizens Financial Group Inc/Ri 35.99 Bn 40.30 7.81 10.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 0.13
EV to Cash from Ops. EV to Cash from Ops. 0.00 14.51
EV to Debt EV to Debt 0.00 6.80
EV to EBIT EV to EBIT 0.00 15.32
EV to EBITDA EV to EBITDA 0.00 15.64
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 28.62
EV to Market Cap EV to Market Cap 0.00 1.05
EV to Revenue EV to Revenue 0.00 5.87
Price to Book Value [P/B] P/B 1.64 1.92
Price to Earnings [P/E] P/E 11.13 33.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.20 275.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 34.59
Dividend per Basic Share Div per Share (Qtr) 0.00 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.88
Interest Coverage Interest Coverage 0.00 -0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -15.55 -76.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.17 16.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.36
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 34.69 112.22
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 33.16 39.25
EBIT Growth (1y) % EBIT 1y % (Qtr) 35.60 61.93
EBT Growth (1y) % EBT 1y % (Qtr) 35.60 61.84
EPS Growth (1y) % EPS 1y % (Qtr) 33.49 76.92
FCF Growth (1y) % FCF 1y % (Qtr) -0.55 164.96
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.72 14.29
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.24 0.25
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 0.52
Interest Cover Ratio Interest Cover Ratio 0.00 -0.06
Times Interest Earned Times Interest Earned 0.00 -0.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 45.20 150.08
EBIT Margin % EBIT Margin % (Qtr) 42.93 157.64
EBT Margin % EBT Margin % (Qtr) 42.93 156.88
Gross Margin % Gross Margin % (Qtr) 100.00 97.78
Net Profit Margin % Net Margin % (Qtr) 35.80 117.29