Riverview Bancorp Inc (NASDAQ: RVSB)

Sector: Financial Services Industry: Banks - Regional CIK: 0001041368
Market Cap 107.34 Mn
P/B 0.66
P/E 22.82
P/S 2.04
ROIC (Qtr) 1.74
Div Yield % 1.99
Rev 1y % (Qtr) 7.40
Total Debt (Qtr) 82.35 Mn
Debt/Equity (Qtr) 0.50

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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Price action

Investment thesis

Bull case

  • Operating cash flow of 18.13M provides strong 27.89x coverage of stock compensation 650000, indicating sustainable incentive practices.
  • Robust free cash flow of 17.33M exceeds capital expenditure of 799000 by 21.69x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 1.48B provides 18x coverage of total debt 82.35M, indicating robust asset backing and low credit risk.
  • Cash reserves of 32.81M provide ample 132.29x coverage of acquisition spending 248000, enabling strategic growth opportunities.
  • Strong free cash flow of 17.33M provides 69.88x coverage of acquisition spending 248000, indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of 18.13M barely covers its investment activities of 39.36M, with a coverage ratio of 0.46, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 18.13M provides thin coverage of dividend payments of (1.68M) with a -10.77 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 5.98M show weak coverage of depreciation charges of 3.45M, with a 1.73 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 17.33M represents just -0.35x of debt issuance (50.07M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 121.20M provide limited buffer against comprehensive income items of (10.77M), which is -11.25x, 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 0.14 0.14
EV to Cash from Ops. EV/CFO 11.33 7.21
EV to Debt EV to Debt 2.49 5.20
EV to EBIT EV/EBIT 34.36 14.98
EV to EBITDA EV/EBITDA 21.78 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 11.85 8.87
EV to Market Cap EV to Market Cap 1.91 1.04
EV to Revenue EV/Rev 3.91 -3.76
Price to Book Value [P/B] P/B 0.66 1.17
Price to Earnings [P/E] P/E 22.82 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.80 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 36.40 35.28
Dividend per Basic Share Div per Share (Qtr) 0.08 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 9.67 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 81.74 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.97 15.78
Dividend Growth (1y) % Div 1y % (Qtr) -50.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 367.13 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 133.76 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 518.30 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 518.30 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 340.00 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 329.04 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.43 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) 0.09 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) 0.50 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) 18.00 147.97
EBIT Margin % EBIT Margin % (Qtr) 11.38 155.41
EBT Margin % EBT Margin % (Qtr) 11.38 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 9.00 115.63