PB Bankshares, Inc. (NASDAQ: PBBK)

Sector: Financial Services Industry: Banks - Regional CIK: 0001849670
Market Cap 50.31 Mn
P/B 0.98
P/E 21.75
P/S 3.61
ROIC (Qtr) 2.25
Div Yield % 0.00
Rev 1y % (Qtr) 18.23
Total Debt (Qtr) 43.59 Mn
Debt/Equity (Qtr) 0.85

About

PB Bankshares, Inc., also known as Presence Bank, operates as a bank holding company for Presence Bank, a stock savings bank, in the financial services industry. The company, headquartered in Coatesville, Pennsylvania, offers a range of products and services to its customers from four offices and two loan production offices in Chester, Lancaster, and Dauphin Counties, Pennsylvania. Presence Bank's main business activities involve attracting retail and commercial deposits from the general public in its market area and investing those deposits in...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 456.44M provides 10.47x coverage of total debt 43.59M, indicating robust asset backing and low credit risk.
  • Retained earnings of 29.96M represent substantial 0.58x of equity 51.35M, indicating strong internal capital generation.
  • Free cash flow of 2.78M provides solid 1.03x coverage of operating expenses 2.71M, showing operational efficiency.

Bear case

  • Operating cash flow of 2.60M barely covers its investment activities of (408000), with a coverage ratio of -6.37, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 2.78M provides weak coverage of capital expenditures of (182000), with a -15.29 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of 2.60M shows concerning coverage of stock compensation expenses of 726000, with a 3.58 ratio indicating potential earnings quality issues.
  • Free cash flow of 2.78M represents just -1.68x of debt issuance (1.66M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 2.60M barely covers operating expenses of 2.71M with a 0.96 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 0.08 0.14
EV to Cash from Ops. EV/CFO 14.72 7.21
EV to Debt EV to Debt 0.88 5.20
EV to EBIT EV/EBIT 12.77 14.98
EV to EBITDA EV/EBITDA 11.18 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 13.76 8.87
EV to Market Cap EV to Market Cap 0.76 1.04
EV to Revenue EV/Rev 2.75 -3.76
Price to Book Value [P/B] P/B 0.98 1.17
Price to Earnings [P/E] P/E 21.75 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) 384.38 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.40 15.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 54.20 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 50.66 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 55.71 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 55.71 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 56.25 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 25.32 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 17.20 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) 0.85 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) 24.60 147.97
EBIT Margin % EBIT Margin % (Qtr) 21.55 155.41
EBT Margin % EBT Margin % (Qtr) 21.55 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 16.60 115.63