Marathon Bancorp, Inc. /MD/ (NASDAQ: MBBC)

Sector: Financial Services Industry: Banks - Regional CIK: 0001835385
Market Cap 34.58 Mn
P/B 0.75
P/E 110.91
P/S 4.74
ROIC (Qtr) 0.46
Div Yield % 0.00
Rev 1y % (Qtr) 23.43
Total Debt (Qtr) 15.00 Mn
Debt/Equity (Qtr) 0.32

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 245.99M provides 16.40x coverage of total debt 15M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 804527 exceeds capital expenditure of 162705 by 4.94x, indicating strong organic growth funding capability.
  • Cash reserves of 15.46M provide ample 154.60x coverage of acquisition spending 100000, enabling strategic growth opportunities.
  • Strong free cash flow of 804527 provides 8.05x coverage of acquisition spending 100000, indicating disciplined M&A strategy.
  • Strong tangible asset base of 245.99M provides 2459.88x coverage of acquisition spending 100000, enabling strategic growth.

Bear case

  • Operating cash flow of 967232 barely covers its investment activities of (28.92M), with a coverage ratio of -0.03, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of 967232 shows concerning coverage of stock compensation expenses of 242393, with a 3.99 ratio indicating potential earnings quality issues.
  • Operating earnings of 342703 show weak coverage of depreciation charges of 294879, with a 1.16 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of 26.01M provide limited buffer against comprehensive income items of (432968), which is -60.07x, indicating elevated exposure to market risks.
  • Operating cash flow of 967232 barely covers operating expenses of 2.20M with a 0.44 ratio, suggesting thin operational efficiency margins and limited flexibility.

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 36.15 7.21
EV to Debt EV to Debt 2.33 5.20
EV to EBIT EV/EBIT 102.02 14.98
EV to EBITDA EV/EBITDA 54.84 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 43.46 8.87
EV to Market Cap EV to Market Cap 1.01 1.04
EV to Revenue EV/Rev 4.79 -3.76
Price to Book Value [P/B] P/B 0.75 1.17
Price to Earnings [P/E] P/E 110.91 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) 74.61 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.78 15.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 417.28 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1,426.22 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 207.68 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 207.68 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 283.33 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 127.14 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.77 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) 0.32 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) 8.70 147.97
EBIT Margin % EBIT Margin % (Qtr) 4.69 155.41
EBT Margin % EBT Margin % (Qtr) 4.69 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 4.30 115.63