Virginia National Bankshares Corp (NASDAQ: VABK)

Sector: Financial Services Industry: Banks - Regional CIK: 0001572334
Market Cap 117.02 Mn
P/B 1.96
P/E 18.02
P/S 3.64
ROIC (Qtr) 7.82
Div Yield % 1.47
Rev 1y % (Qtr) 3.69
Total Debt (Qtr) 40.08 Mn
Debt/Equity (Qtr) 0.23

About

Virginia National Bankshares Corp, also known as VABK, operates in the banking and financial services industry. The company's main business activities involve providing a comprehensive range of banking services to individuals, businesses, and charitable organizations within its trade areas. VABK's services extend to various products and offerings, including checking accounts, NOW accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, CDARS, ICS, and other depository services. The company also provides ATMs,...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 18.17M provides robust 0.45x coverage of total debt 40.08M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 1.60B provides 39.81x coverage of total debt 40.08M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 18.17M provides strong 17.71x coverage of stock compensation 1.03M, indicating sustainable incentive practices.
  • Retained earnings of 90.15M represent substantial 0.51x of equity 177.36M, indicating strong internal capital generation.
  • Retained earnings of 90.15M provide strong 8.42x coverage of intangibles 10.71M, indicating quality earnings retention.

Bear case

  • Operating cash flow of 18.17M provides thin coverage of dividend payments of (7.43M) with a -2.44 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 20.81M provides weak coverage of capital expenditures of (2.65M), with a -7.87 ratio suggesting additional external financing needs for growth initiatives.
  • Free cash flow of 20.81M represents just -0.83x of debt issuance (25.02M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 90.15M provide limited buffer against comprehensive income items of (33.18M), which is -2.72x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 24.22M, 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 PNC Pnc Financial Services Group, Inc. 116.04 Bn 32.12 7.88 62.34 Bn
2 USB Us Bancorp \De\ 92.41 Bn 16.38 4.66 77.98 Bn
3 NU Nu Holdings Ltd. 81.91 Bn 32.39 5.82 4.49 Bn
4 NWG NatWest Group plc 65.96 Bn 9.79 3.02 169.04 Bn
5 TFC Truist Financial Corp 65.29 Bn -29.96 6.01 71.11 Bn
6 FITB Fifth Third Bancorp 34.56 Bn 14.24 4.21 18.94 Bn
7 RF Regions Financial Corp 34.00 Bn -44.56 11.28 6.09 Bn
8 CFG Citizens Financial Group Inc/Ri 33.38 Bn 38.59 7.16 10.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.03 0.13
EV to Cash from Ops. EV/CFO 6.58 10.77
EV to Debt EV to Debt 1.34 6.49
EV to EBIT EV/EBIT 5.70 6.25
EV to EBITDA EV/EBITDA 5.07 192.10
EV to Free Cash Flow [EV/FCF] EV/FCF 7.16 4.75
EV to Market Cap EV to Market Cap 0.46 1.03
EV to Revenue EV/Rev 1.67 5.61
Price to Book Value [P/B] P/B 1.96 1.83
Price to Earnings [P/E] P/E 18.02 26.60
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.40 273.23
Dividend Payout Ratio % Div Payout % (Qtr) 41.60 34.77
Dividend per Basic Share Div per Share (Qtr) 1.38 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 35.75 33.82
Interest Coverage Interest Coverage 0.00 -0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 454.22 -74.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 20.51 16.02
Dividend Growth (1y) % Div 1y % (Qtr) 4.55 5.29
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 14.71 111.43
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.33 39.20
EBIT Growth (1y) % EBIT 1y % (Qtr) 18.56 61.65
EBT Growth (1y) % EBT 1y % (Qtr) 18.56 61.56
EPS Growth (1y) % EPS 1y % (Qtr) 14.09 76.44
FCF Growth (1y) % FCF 1y % (Qtr) 44.63 162.62
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.62 14.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.48 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) 0.23 0.53
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) 44.40 148.90
EBIT Margin % EBIT Margin % (Qtr) 39.18 156.32
EBT Margin % EBT Margin % (Qtr) 39.18 155.57
Gross Margin % Gross Margin % (Qtr) 100.00 97.81
Net Profit Margin % Net Margin % (Qtr) 31.30 116.30