American Business Bank (AMBZ) AI Stock Analysis

• Market Cap: $498.68M
• Dividend Yield: 1.36%
• Average Volume (3M): 16.39K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.05
• Revenue Growth: 10.16%
• EPS Growth: 16.03%
• Country: US
• Employees: 252
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.42
• Shares Outstanding: 9,100,023
• 10 Day Avg. Volume: 25,755
• 30 Day Avg. Volume: 16,389
• PEG Ratio: -4.09
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 7.28
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 1.90
• Enterprise Value/Ebitda: 3.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ―

American Business Bank's overall stock score reflects a solid financial foundation with stable profitability and cash flow, balanced against challenges such as a slight decline in revenue growth and increased leverage. The technical indicators suggest a neutral trend, while valuation metrics point to reasonable pricing. The absence of dividend yield slightly detracts from its attractiveness, but overall, it remains a stable investment within the banking industry.

American Business Bank Business Overview & Revenue Model

Company Description

American Business Bank, a California-chartered bank, provides banking products and services to small and medium-sized firms, non-profits, business executives, and professionals in Southern California. The company offers credit and depository; treasury management; asset-based lending; SBA lending; international banking comprising money transfers, import and export commercial letters of credit, standby letters of credit, documentary and clean collections, and foreign currency exchange services; and consulting and referral services. It operates seven regional loan production offices located in North Orange County, Orange County, South Bay, San Fernando Valley, Riverside County, Inland Empire, and Long Beach. The company was incorporated in 1998 and is headquartered in Los Angeles, California.

How the Company Makes Money

American Business Bank generates revenue through a variety of financial services primarily targeted at medium-sized businesses. The primary revenue streams include interest income from commercial loans and lines of credit, which constitute a significant portion of the bank's earnings. In addition, AMBZ earns non-interest income from treasury management services, such as cash management and payment processing, and from fees associated with deposit accounts. The bank also benefits from strategic partnerships with financial service providers to enhance its product offerings and expand its customer base. These partnerships, along with a focus on maintaining a diversified loan portfolio, contribute to the bank's financial stability and growth.

American Business Bank Financial Statement Overview

Summary

Overall, American Business Bank demonstrates a sound financial position with stable profitability and solid cash flow generation. While there are strengths in equity stability and profit margins, the slight decline in revenue growth and increased leverage warrant attention. Continued focus on operational efficiency and cash management will be crucial to sustain financial health in a competitive banking industry.

Income Statement

American Business Bank shows a stable financial performance with a strong gross profit margin indicative of effective cost management. However, the revenue growth rate has slightly declined recently, suggesting challenges in expanding its top line. The net profit margin remains healthy, reflecting consistent profitability, but a slight decrease in EBIT margin indicates potential pressure on operational efficiency.

Balance Sheet

The company maintains a solid equity ratio, suggesting a conservative financial structure with good asset coverage by equity. A noticeable improvement in return on equity indicates enhanced shareholder value creation. However, the debt-to-equity ratio has increased, pointing towards a rise in leverage that could pose financial risks if not monitored closely.

Cash Flow

The cash flow position is robust, with strong free cash flow generation and positive operating cash flow to net income ratio, indicating healthy cash conversion. The free cash flow growth has been positive, but the decline in operating cash flow year-over-year suggests a need for enhanced cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.44M	183.26M	127.36M	131.78M	113.59M	95.92M
Gross Profit	148.76M	131.01M	167.98M	131.78M	113.59M	95.92M
EBITDA	86.74M	60.18M	62.27M	69.82M	57.10M	42.36M
Net Income	44.67M	43.28M	43.97M	48.56M	39.16M	28.77M
Balance Sheet
Total Assets	4.17B	4.04B	3.90B	3.84B	3.91B	3.45B
Cash, Cash Equivalents and Short-Term Investments	700.99M	0.00	654.36M	715.92M	1.47B	1.19B
Total Debt	0.00	16.67M	55.00M	161.50M	8.45M	14.77M
Total Liabilities	3.81B	3.69B	3.59B	3.59B	35.57M	34.01M
Stockholders Equity	368.22M	354.78M	314.05M	254.45M	278.55M	247.84M
Cash Flow
Free Cash Flow	0.00	56.03M	57.17M	64.53M	59.40M	46.33M
Operating Cash Flow	0.00	57.87M	57.72M	65.33M	59.89M	47.02M
Investing Cash Flow	0.00	-90.56M	-51.23M	-212.35M	-503.05M	-885.13M
Financing Cash Flow	0.00	91.15M	94.98K	-45.28M	425.97M	1.01B

American Business Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMBZ, the sentiment is Positive. The current price of 54.8 is above the 20-day moving average (MA) of 54.30, above the 50-day MA of 50.99, and above the 200-day MA of 45.21, indicating a bullish trend. The MACD of 1.20 indicates Positive momentum. The RSI at 77.42 is Negative, neither overbought nor oversold. The STOCH value of 54.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMBZ.

American Business Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBX	79 Outperform	546.27M	13.13	11.46%	―	10.44%	62.82%
FBIZ	76 Outperform	432.15M	9.15	13.79%	2.16%	8.45%	21.74%
NRIM	72 Outperform	488.20M	11.17	15.46%	5.05%	27.34%	39.43%
AMBZ	69 Neutral	$498.68M	10.61	13.74%	1.36%	10.16%	16.03%
COFS	62 Neutral	440.69M	23.73	3.27%	3.82%	38.01%	-58.08%
FFWM	51 Neutral	472.90M	-4.07	-9.24%	―	-1.29%	-1023.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%