Mid Penn Bancorp Inc (NASDAQ: MPB)

Sector: Financial Services Industry: Banks - Regional CIK: 0000879635
Market Cap 635.73 Mn
P/B 0.80
P/E 12.71
P/S 3.04
ROIC (Qtr) 5.64
Div Yield % 3.28
Rev 1y % (Qtr) 38.85
Total Debt (Qtr) 76.38 Mn
Debt/Equity (Qtr) 0.10

About

Mid Penn Bancorp, Inc., often referred to as Mid Penn, operates in the financial industry and is a holding company based in Pennsylvania, with the ticker symbol "MPB" on the NASDAQ stock exchange. The company's primary business involves overseeing and coordinating the activities of its wholly-owned bank and nonbank subsidiaries, providing them with the necessary capital and resources to fulfill their respective missions. Mid Penn's main business activities revolve around its banking segment, which is managed as a single business unit. The bank...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 70.87M provides robust 0.93x coverage of total debt 76.38M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 6.12B provides 80.06x coverage of total debt 76.38M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 70.87M provides strong 42.19x coverage of stock compensation 1.68M, indicating sustainable incentive practices.
  • Robust free cash flow of 58.32M exceeds capital expenditure of 12.55M by 4.65x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 6.12B provides 28.04x coverage of acquisition spending 218.11M, enabling strategic growth.

Bear case

  • Operating cash flow of 70.87M barely covers its investment activities of 84.25M, with a coverage ratio of 0.84, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 70.87M provides thin coverage of dividend payments of (16.95M) with a -4.18 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 257.17M provide limited coverage of acquisition spending of 218.11M, which is 1.18x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 58.32M represents just -0.48x of debt issuance (122.69M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 205.32M provide limited buffer against comprehensive income items of (8.91M), which is -23.05x, 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 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 0.06 0.14
EV to Cash from Ops. EV/CFO 5.29 7.21
EV to Debt EV to Debt 4.91 5.20
EV to EBIT EV/EBIT 6.09 14.98
EV to EBITDA EV/EBITDA 5.02 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 6.43 8.87
EV to Market Cap EV to Market Cap 0.59 1.04
EV to Revenue EV/Rev 1.79 -3.76
Price to Book Value [P/B] P/B 0.80 1.17
Price to Earnings [P/E] P/E 12.71 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.95 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 32.70 35.28
Dividend per Basic Share Div per Share (Qtr) 0.80 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 31.56 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -1,879.50 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 78.10 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3.58 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 7.53 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 5.65 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 5.65 61.37
EPS Growth (1y) % EPS 1y % (Qtr) -15.81 76.34
FCF Growth (1y) % FCF 1y % (Qtr) -4.86 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 20.50 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) 0.20 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) 0.10 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) 34.30 147.97
EBIT Margin % EBIT Margin % (Qtr) 29.46 155.41
EBT Margin % EBT Margin % (Qtr) 29.46 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 24.00 115.63