Park National Corp /Oh/ (NYSE: PRK)

Sector: Financial Services Industry: Banks - Regional CIK: 0000805676
Market Cap 2.48 Bn
P/B 1.86
P/E 14.06
P/S 4.62
ROIC (Qtr) 11.62
Div Yield % 4.62
Rev 1y % (Qtr) 3.95
Total Debt (Qtr) 95.41 Mn
Debt/Equity (Qtr) 0.07

About

Park National Corp (PRK) is a financial holding company that operates in the banking industry, providing a range of financial services to its customers. The company's operations are primarily based in the United States, with its subsidiary, Park National Bank, operating as a community bank in its market area. Park National Corp's main business activities revolve around its banking, investment, wealth management, and insurance segments. The banking segment is the company's core business, generating the majority of its revenue through deposit-taking,...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 189.33M provides robust 1.98x coverage of total debt 95.41M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 9.70B provides 101.67x coverage of total debt 95.41M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 189.33M provides strong 22.78x coverage of stock compensation 8.31M, indicating sustainable incentive practices.
  • Robust free cash flow of 183.35M exceeds capital expenditure of 5.98M by 30.64x, indicating strong organic growth funding capability.
  • Operating cash flow of 189.33M provides strong 12.11x coverage of operating expenses 15.64M, showing operational efficiency.

Bear case

  • Operating cash flow of 189.33M provides thin coverage of dividend payments of (77.82M) with a -2.43 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 183.35M represents just -0.80x of debt issuance (229.32M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 189.33M is outpaced by equity issuance of (20.13M) (-9.40 ratio), indicating concerning reliance on equity markets for funding operations.
  • Retained earnings of 1.06B provide limited buffer against comprehensive income items of (25.70M), which is -41.35x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 299.35M, indicating potential underinvestment in innovation relative to administrative overhead.

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 0.26 0.14
EV to Cash from Ops. EV/CFO 13.65 7.21
EV to Debt EV to Debt 27.10 5.20
EV to EBIT EV/EBIT 11.71 14.98
EV to EBITDA EV/EBITDA 11.12 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 14.10 8.87
EV to Market Cap EV to Market Cap 1.04 1.04
EV to Revenue EV/Rev 4.82 -3.76
Price to Book Value [P/B] P/B 1.86 1.17
Price to Earnings [P/E] P/E 14.06 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.26 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 43.70 35.28
Dividend per Basic Share Div per Share (Qtr) 4.77 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 41.81 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 32.19 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 8.54 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 12.77 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 28.24 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 26.26 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 28.66 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 28.66 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 28.20 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 5.03 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.65 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.05 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.40 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) 0.07 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) 43.40 147.97
EBIT Margin % EBIT Margin % (Qtr) 41.22 155.41
EBT Margin % EBT Margin % (Qtr) 41.22 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 32.90 115.63