Riverview Bancorp Inc (NASDAQ: RVSB)

Sector: Financial Services Industry: Banks - Regional CIK: 0001041368
Market Cap 116.87 Mn
P/B 1.44
P/E 26.70
P/S 2.99
ROIC (Qtr) 1.94
Div Yield % 0.37
Rev 1y % (Qtr) 9.58
Total Debt (Qtr) 90.01 Mn
Debt/Equity (Qtr) 0.55
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About

Riverview Bancorp, Inc., a Washington corporation, also known as RVSB, is a community-oriented financial services company that operates through its subsidiaries, Riverview Trust Company and Riverview Services, Inc. The company's primary business involves attracting deposits from the general public and using those funds to originate commercial business, commercial real estate, multi-family real estate, land, real estate construction, and other consumer loans. With total assets of $1.52 billion, total deposits of $1.23 billion, and total shareholders'...

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Investment thesis

Bull case

  • Operating cash flow of 15.41M provides strong 28.44x coverage of stock compensation 542000, indicating sustainable incentive practices.
  • Strong tangible asset base of 1.49B provides 16.50x coverage of total debt 90.01M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 14.69M exceeds capital expenditure of 725000 by 20.26x, indicating strong organic growth funding capability.
  • Cash reserves of 28.64M provide ample 115.49x coverage of acquisition spending 248000, enabling strategic growth opportunities.
  • Strong free cash flow of 14.69M provides 59.23x coverage of acquisition spending 248000, indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of 15.41M provides thin coverage of dividend payments of (1.68M) with a -9.19 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 6.14M show weak coverage of depreciation charges of 3.43M, with a 1.79 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 14.69M represents just -0.62x of debt issuance (23.78M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 122.17M provide limited buffer against comprehensive income items of (10.01M), which is -12.21x, indicating elevated exposure to market risks.
  • Operating cash flow of 15.41M barely covers operating expenses of 14.45M with a 1.07 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 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 0.02 0.13
EV to Cash from Ops. EV/CFO 3.96 13.53
EV to Debt EV to Debt 0.31 7.69
EV to EBIT EV/EBIT 6.39 24.25
EV to EBITDA EV/EBITDA 4.54 12.10
EV to Free Cash Flow [EV/FCF] EV/FCF 1.75 6.13
EV to Market Cap EV to Market Cap 0.24 1.08
EV to Revenue EV/Rev 0.72 6.13
Price to Book Value [P/B] P/B 1.44 1.91
Price to Earnings [P/E] P/E 26.70 10.51
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.89 276.83
Dividend Payout Ratio % Div Payout % (Qtr) 34.80 34.36
Dividend per Basic Share Div per Share (Qtr) 0.08 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 11.32 24.01
Interest Coverage Interest Coverage 0.00 -0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 83.28 -73.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.99 18.43
Dividend Growth (1y) % Div 1y % (Qtr) -33.33 5.56
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 516.14 117.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 140.24 36.31
EBIT Growth (1y) % EBIT 1y % (Qtr) 761.71 61.65
EBT Growth (1y) % EBT 1y % (Qtr) 761.71 61.55
EPS Growth (1y) % EPS 1y % (Qtr) 475.00 65.85
FCF Growth (1y) % FCF 1y % (Qtr) 487.24 186.92
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.20 12.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.10 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) 0.55 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) 17.80 150.40
EBIT Margin % EBIT Margin % (Qtr) 11.43 157.97
EBT Margin % EBT Margin % (Qtr) 11.43 157.21
Gross Margin % Gross Margin % (Qtr) 100.00 97.97
Net Profit Margin % Net Margin % (Qtr) 9.00 117.48