Bank of Princeton (BPRN) AI Stock Analysis

• Market Cap: $207.97M
• Dividend Yield: 3.89%
• Average Volume (3M): 10.25K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 0.83
• Revenue Growth: 16.39%
• EPS Growth: -72.87%
• Country: US
• Employees: 242
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.10
• Shares Outstanding: 6,747,923
• 10 Day Avg. Volume: 11,108
• 30 Day Avg. Volume: 10,252
• PEG Ratio: -0.36
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 17.03
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 3.23
• Enterprise Value/Ebitda: 19.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $33.00 ▲(7.07% Upside)

The overall stock score for BPRN is primarily influenced by its stable balance sheet and moderate financial performance, despite challenges in profitability and cash flow. The technical analysis suggests a neutral to slightly bearish outlook, while the high P/E ratio indicates potential overvaluation. The dividend yield provides some support for income-focused investors.

Bank of Princeton Business Overview & Revenue Model

Company Description

Princeton Bancorp, Inc. operates as a bank holding company. It is a full-service financial institution that provides business and personal banking. It offers traditional retail banking services, one-to-four-family residential mortgage loans, multi-family and commercial mortgage loans, construction loans, commercial business loans, and consumer loans, including home equity loans and lines of credit. The company was founded in 2017 and is headquartered in Princeton, NJ.

How the Company Makes Money

Bank of Princeton generates revenue through various channels, primarily through interest income from loans and mortgages, which constitutes a significant portion of its earnings. The bank lends money to consumers and businesses, charging interest on these loans, which provides a steady income stream. Additionally, BPRN earns money through fees associated with account services, such as overdraft fees, ATM fees, and maintenance fees on accounts. The bank may also generate revenue from investment services and wealth management fees. Strategic partnerships with local businesses and community organizations can enhance customer acquisition and retention, further contributing to its revenue base. Overall, the bank's focus on community banking allows it to cultivate loyal customer relationships, which is essential for its long-term profitability.

Bank of Princeton Financial Statement Overview

Summary

The Bank of Princeton demonstrates strong financial health with consistent revenue growth, solid profitability margins, and a stable balance sheet with low leverage. However, there are concerns about operating efficiency and fluctuations in free cash flow growth.

Income Statement

The Bank of Princeton's income statement reflects a solid performance with strong revenue growth over the years. The TTM revenue growth rate is approximately 4.12%, indicating a steady upward trend. The gross profit margin stands at 53.5%, showcasing efficient cost management. Net profit margin improved to 8.26%, reflecting increased profitability. However, the EBIT margin has slightly declined to 10.47%, suggesting some pressure on operating efficiency. Overall, the bank demonstrates robust income generation and profitability.

Balance Sheet

The balance sheet of the Bank of Princeton presents a stable financial position. The debt-to-equity ratio is low at 0.08, indicating conservative leverage and prudent financial management. Return on Equity (ROE) is healthy at 4.22%, suggesting effective use of equity capital. The equity ratio is strong at 11.52%, highlighting a solid capital base. However, the slight decline in stockholders' equity compared to liabilities may pose a potential risk if not managed carefully.

Cash Flow

The cash flow statement reveals a positive trajectory, with a free cash flow growth rate of -28.3% on an annual basis, which is a concern. However, the operating cash flow to net income ratio is 0.99, indicating efficient cash generation from operations. The free cash flow to net income ratio is 0.84, demonstrating adequate free cash flow relative to earnings. Overall, the bank maintains a healthy cash flow position, albeit with some fluctuations in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	140.02M	131.10M	105.40M	78.94M	73.94M	66.48M
Gross Profit	68.94M	69.58M	69.33M	72.94M	63.64M	48.43M
EBITDA	11.30M	15.10M	32.31M	36.10M	31.14M	19.18M
Net Income	6.84M	10.24M	25.77M	26.49M	22.49M	13.81M
Balance Sheet
Total Assets	2.24B	2.34B	1.92B	1.60B	1.69B	1.60B
Cash, Cash Equivalents and Short-Term Investments	206.27M	227.59M	125.88M	106.64M	113.18M	143.06M
Total Debt	31.50M	22.94M	24.28M	26.77M	18.56M	18.99M
Total Liabilities	1.98B	2.08B	1.68B	1.38B	1.47B	1.39B
Stockholders Equity	261.95M	262.04M	240.21M	219.60M	216.58M	208.82M
Cash Flow
Free Cash Flow	8.46M	13.21M	21.40M	23.38M	11.71M	15.00M
Operating Cash Flow	9.99M	14.73M	23.11M	23.99M	12.90M	18.10M
Investing Cash Flow	-88.29M	-154.05M	-5.76M	-26.46M	3.54M	-140.25M
Financing Cash Flow	-51.91M	106.11M	79.85M	-102.89M	64.84M	126.98M

Bank of Princeton Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BPRN, the sentiment is Neutral. The current price of 30.82 is above the 20-day moving average (MA) of 30.78, below the 50-day MA of 32.02, and below the 200-day MA of 31.02, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 71.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BPRN.

Bank of Princeton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFFI	74 Outperform	$223.18M	8.52	10.88%	2.64%	8.53%	42.73%
LCNB	72 Outperform	$221.14M	9.36	8.98%	5.64%	5.07%	228.95%
FRAF	68 Neutral	$207.76M	14.21	9.88%	2.80%	15.18%	5.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OPBK	67 Neutral	$203.04M	8.68	10.99%	3.52%	9.12%	12.36%
HWBK	66 Neutral	$208.49M	10.20	14.00%	2.58%	2.03%	390.32%
BPRN	57 Neutral	$207.97M	32.70	2.70%	3.89%	16.39%	-72.87%