Northpointe Bancshares Inc (NYSE: NPB)

Sector: Financial Services Industry: Banks - Regional CIK: 0001336706
Market Cap 582.28 Mn
P/B 0.93
P/E 9.38
P/S 2.67
ROIC (Qtr) 3.60
Div Yield % 0.00
Rev 1y % (Qtr) 17.69
Total Debt (Qtr) 1.40 Bn
Debt/Equity (Qtr) 2.24
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About

Investment thesis

Bull case

  • Strong tangible asset base of 6.84B provides 4.89x coverage of total debt 1.40B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 80.82M exceeds capital expenditure of 2.35M by 34.44x, indicating strong organic growth funding capability.
  • Operating cash flow of 83.17M provides strong 3.10x coverage of operating expenses 26.84M, showing operational efficiency.
  • Operating cash flow of 83.17M provides strong 31.37x coverage of tax liabilities 2.65M, showing excellent fiscal position.
  • Retained earnings of 346.83M represent substantial 0.56x of equity 623.52M, indicating strong internal capital generation.

Bear case

  • Operating cash flow of 83.17M barely covers its investment activities of (1.49B), 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.
  • Operating cash flow of 83.17M provides thin coverage of dividend payments of (3M) with a -27.70 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 346.83M provide limited buffer against comprehensive income items of (189000), which is -1835.07x, indicating elevated exposure to market risks.
  • Operating cash flow of 83.17M is outpaced by equity issuance of 114.26M (0.73 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tax assets of 0 provide limited offset against tax liabilities of 2.65M, which is 0x, indicating potential future cash flow pressure from tax obligations.

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. 99.49 Bn 13.81 5.85 62.34 Bn
2 USB Us Bancorp \De\ 87.84 Bn 19.01 4.52 77.98 Bn
3 NU Nu Holdings Ltd. 81.18 Bn 32.10 5.77 4.49 Bn
4 NWG NatWest Group plc 63.11 Bn 9.11 2.81 168.56 Bn
5 RF Regions Financial Corp 39.59 Bn 38.18 7.68 6.09 Bn
6 TFC Truist Financial Corp 39.02 Bn 20.15 4.25 71.11 Bn
7 FITB Fifth Third Bancorp 34.49 Bn -132.65 9.50 18.94 Bn
8 MTB M&T Bank Corp 33.34 Bn 20.67 5.83 14.99 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.22 0.13
EV to Cash from Ops. EV/CFO 17.68 13.53
EV to Debt EV to Debt 1.05 7.69
EV to EBIT EV/EBIT 15.80 24.25
EV to EBITDA EV/EBITDA 15.27 12.10
EV to Free Cash Flow [EV/FCF] EV/FCF 18.20 6.13
EV to Market Cap EV to Market Cap 2.53 1.08
EV to Revenue EV/Rev 6.75 6.13
Price to Book Value [P/B] P/B 0.93 1.91
Price to Earnings [P/E] P/E 9.38 10.51
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 5.31 276.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 34.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 24.01
Interest Coverage Interest Coverage 0.00 -0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -76.47 -73.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.90 18.43
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.56
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 54.39 117.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 49.57 36.31
EBIT Growth (1y) % EBIT 1y % (Qtr) 53.73 61.65
EBT Growth (1y) % EBT 1y % (Qtr) 53.73 61.55
EPS Growth (1y) % EPS 1y % (Qtr) 32.88 65.85
FCF Growth (1y) % FCF 1y % (Qtr) -35.94 186.92
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 24.15 12.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.04 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) 2.24 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) 44.20 150.40
EBIT Margin % EBIT Margin % (Qtr) 42.70 157.97
EBT Margin % EBT Margin % (Qtr) 42.70 157.21
Gross Margin % Gross Margin % (Qtr) 100.00 97.97
Net Profit Margin % Net Margin % (Qtr) 28.50 117.48