Eagle Bancorp Montana, Inc. (NASDAQ: EBMT)

Sector: Financial Services Industry: Banks - Regional CIK: 0001478454
Market Cap 155.23 Mn
P/B 0.83
P/E 11.47
P/S 1.77
ROIC (Qtr) 3.54
Div Yield % 3.58
Rev 1y % (Qtr) 13.82
Total Debt (Qtr) 138.43 Mn
Debt/Equity (Qtr) 0.74

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 2.08B provides 15.04x coverage of total debt 138.43M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 28.15M provides strong 26.96x coverage of stock compensation 1.04M, indicating sustainable incentive practices.
  • Robust free cash flow of 20.98M exceeds capital expenditure of 7.17M by 2.92x, indicating strong organic growth funding capability.
  • Retained earnings of 107.95M represent substantial 0.58x of equity 186.49M, indicating strong internal capital generation.
  • Operating cash flow of 28.15M provides strong 2.38x coverage of operating expenses 11.81M, showing operational efficiency.

Bear case

  • Operating cash flow of 28.15M provides thin coverage of dividend payments of (4.57M) with a -6.16 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 16.52M show weak coverage of depreciation charges of 8.79M, with a 1.88 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 20.98M represents just -0.15x of debt issuance (140M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 107.95M provide limited buffer against comprehensive income items of (14.77M), which is -7.31x, indicating elevated exposure to market risks.
  • Operating cash flow of 28.15M is outpaced by equity issuance of (1.58M) (-17.79 ratio), indicating concerning reliance on equity markets for funding operations.

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 0.14 0.14
EV to Cash from Ops. EV/CFO 10.90 7.21
EV to Debt EV to Debt 2.22 5.20
EV to EBIT EV/EBIT 18.58 14.98
EV to EBITDA EV/EBITDA 12.13 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 14.63 8.87
EV to Market Cap EV to Market Cap 1.98 1.04
EV to Revenue EV/Rev 3.51 -3.76
Price to Book Value [P/B] P/B 0.83 1.17
Price to Earnings [P/E] P/E 11.47 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.96 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 32.80 35.28
Dividend per Basic Share Div per Share (Qtr) 0.57 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 21.61 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 45.87 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -30.04 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 35.07 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 59.11 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 39.02 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 73.18 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 73.18 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 59.63 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 75.95 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.36 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) 0.13 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) 0.74 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) 28.90 147.97
EBIT Margin % EBIT Margin % (Qtr) 18.87 155.41
EBT Margin % EBT Margin % (Qtr) 18.87 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 15.50 115.63