Ohio Valley Banc Corp (NASDAQ: OVBC)

Sector: Financial Services Industry: Banks - Regional CIK: 0000894671
Market Cap 188.34 Mn
P/B 1.15
P/E 13.30
P/S 2.93
ROIC (Qtr) 6.81
Div Yield % 2.86
Rev 1y % (Qtr) 4.95
Total Debt (Qtr) 45.50 Mn
Debt/Equity (Qtr) 0.28

About

Ohio Valley Banc Corp., often recognized by its stock symbol OVBC, is a financial holding company with its headquarters in Gallipolis, Ohio. The company's primary business revolves around community banking, with its banking subsidiary, The Ohio Valley Bank Company, managing 17 branches across Ohio and West Virginia. The company's main business activities are centered around its banking segment, which contributes significantly to its revenue generation. This segment offers a spectrum of financial services and products, including commercial and retail...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 1.56B provides 34.35x coverage of total debt 45.49M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 11.64M exceeds capital expenditure of 1.04M by 11.18x, indicating strong organic growth funding capability.
  • Retained earnings of 130.13M represent substantial 0.79x of equity 164.42M, indicating strong internal capital generation.
  • Retained earnings of 130.13M provide strong 17.78x coverage of intangibles 7.32M, indicating quality earnings retention.
  • Free cash flow of 11.64M provides solid 1.02x coverage of operating expenses 11.44M, showing operational efficiency.

Bear case

  • Operating cash flow of 12.68M barely covers its investment activities of (67.51M), with a coverage ratio of -0.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 12.68M provides thin coverage of dividend payments of (4.24M) with a -2.99 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 11.64M represents just -2.39x of debt issuance (4.86M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 12.68M barely covers operating expenses of 11.44M with a 1.11 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of 130.13M provide limited buffer against comprehensive income items of (4.84M), which is -26.90x, 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 0.11 0.14
EV to Cash from Ops. EV/CFO 14.22 7.21
EV to Debt EV to Debt 3.96 5.20
EV to EBIT EV/EBIT 10.28 14.98
EV to EBITDA EV/EBITDA 9.35 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 15.50 8.87
EV to Market Cap EV to Market Cap 0.96 1.04
EV to Revenue EV/Rev 2.81 -3.76
Price to Book Value [P/B] P/B 1.15 1.17
Price to Earnings [P/E] P/E 13.30 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.34 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 30.00 35.28
Dividend per Basic Share Div per Share (Qtr) 0.91 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 36.84 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 45.35 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 8.65 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 3.41 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 20.96 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 21.67 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 23.46 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 23.46 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 21.46 76.34
FCF Growth (1y) % FCF 1y % (Qtr) -24.45 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.98 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) 0.31 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) 0.28 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) 30.00 147.97
EBIT Margin % EBIT Margin % (Qtr) 27.33 155.41
EBT Margin % EBT Margin % (Qtr) 27.33 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 22.10 115.63