Bank7 (BSVN) AI Stock Analysis

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Bank7

(NASDAQ:BSVN)

75Outperform

Bank7's overall stock score is driven by its robust financial performance, characterized by strong profitability and zero debt, positioning it well in the regional banking sector. The stock appears undervalued with a low P/E ratio and reasonable dividend yield. Technical indicators suggest some caution with potential downward trends, while the earnings call reflects prudent management amid macroeconomic uncertainties. Overall, Bank7 is a solid investment with potential for future growth, tempered by current market conditions.

Bank7 (BSVN) vs. S&P 500 (SPY)

Market Cap

$369.14M

Dividend Yield2.38%

Average Volume (3M)34.67K

Price to Earnings (P/E)8.3

Beta (1Y)0.81

Revenue Growth1.20%

EPS Growth46.86%

CountryUS

Employees124

SectorFinancial

Sector Strength87

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.08

Shares Outstanding9,448,237

10 Day Avg. Volume25,853

30 Day Avg. Volume34,667

Financial Highlights & Ratios

PEG Ratio0.28

Price to Book (P/B)1.71

Price to Sales (P/S)0.00

P/FCF Ratio7.42

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$45.75

Price Target Upside16.86% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Bank7 Business Overview & Revenue Model

Company DescriptionBank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit services, including commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising secured and unsecured term loans, and home improvement loans. As of March 8, 2022, it operated through a network of twelve full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp.Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.

How the Company Makes MoneyBank7 makes money through various revenue streams within the banking sector. The primary source of revenue is the interest income earned from loans and credit products offered to customers, which includes personal loans, business loans, and mortgages. Additionally, the bank generates income from service fees associated with account maintenance, transaction services, and other banking activities. Bank7 also earns revenue through investment activities, including the interest and dividends from securities it holds. Partnerships with other financial service providers may contribute to its income through collaborative offerings or referral fees. Overall, the bank's profitability is driven by its ability to manage interest rate spreads, attract and retain customers, and maintain operational efficiency.

Bank7 Financial Statement Overview

Summary

Bank7 exhibits strong financial health with significant revenue and profitability growth, zero debt, and robust cash flow. Highlights include improved net profit margin and equity growth. Some fluctuations in financing activities and the equity funding structure could be optimized further.

Income Statement

Very Positive

Bank7 has shown a consistent growth trajectory in total revenue, with a notable increase from $43.48 million in 2019 to $131.54 million in 2024. Gross profit margin remains strong at 100% due to the nature of banking. The net profit margin improved significantly from 18.87% in 2019 to 34.74% in 2024. The revenue growth rate is also impressive, with a 10.02% increase from 2020 to 2021, further indicating robust performance. EBIT and EBITDA margins are solid, reflecting efficiency in operations. Overall, the income statement demonstrates strong profitability and growth, although the absence of EBITDA in 2024 slightly detracts from the comprehensive analysis.

Balance Sheet

Positive

Bank7's balance sheet is characterized by strong equity growth, with stockholders' equity rising from $100.13 million in 2019 to $213.21 million in 2024. The debt-to-equity ratio is favorable at 0, indicating no debt burden. The equity ratio improved from 11.56% in 2019 to 12.25% in 2024, suggesting a stable financial structure. Return on equity has also increased, showcasing enhanced profitability per equity dollar. While the low leverage is a strength, the relatively low equity ratio may indicate potential room for improving asset funding through equity.

Cash Flow

Positive

The cash flow statement of Bank7 reveals a positive trend in operating cash flow, increasing from $19.18 million in 2019 to $55.05 million in 2024. Free cash flow growth is strong, although capital expenditures are minimal. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation from operations. However, fluctuations in financing cash flow, especially in recent years, highlight potential volatility in external funding activities. Despite this, solid free cash flow indicates good liquidity management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
131.54M	130.79M	72.37M	55.49M	48.83M
	Gross Profit
131.54M	70.64M	72.37M	55.49M	48.83M
	EBIT
130.70M	37.22M	49.39M	30.91M	25.88M
	EBITDA
0.00	38.52M	40.66M	31.95M	26.98M
	Net Income Common Stockholders
45.70M	28.27M	29.64M	23.16M	19.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
294.14M	181.04M	287.75M	283.40M	170.31M
	Total Assets
1.74B	1.77B	1.58B	1.35B	1.02B
	Total Debt
0.00	1.99M	2.08M	0.00	0.00
	Net Debt
-234.20M	-198.72M	-112.51M	-198.60M	-170.31M
	Total Liabilities
1.53B	1.60B	1.44B	5.67M	3.83M
	Stockholders Equity
213.21M	170.33M	144.10M	127.41M	107.32M
Cash Flow		Free Cash Flow
55.05M	46.29M	39.42M	29.36M	24.80M
	Operating Cash Flow
55.05M	49.13M	39.71M	29.95M	25.23M
	Investing Cash Flow
80.16M	-130.86M	-342.77M	-43.49M	-119.61M
	Financing Cash Flow
-82.05M	153.66M	207.32M	64.49M	131.15M

Bank7 Technical Analysis

Technical Analysis Sentiment

Positive

Last Price39.15

Price Trends

50DMA

37.69

Positive

100DMA

40.41

Negative

200DMA

40.70

Negative

Market Momentum

MACD

0.25

Negative

RSI

63.18

Neutral

STOCH

79.96

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSVN, the sentiment is Positive. The current price of 39.15 is above the 20-day moving average (MA) of 36.69, above the 50-day MA of 37.69, and below the 200-day MA of 40.70, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 79.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSVN.

Bank7 Risk Analysis

Bank7 disclosed 11 risk factors in its most recent earnings report. Bank7 reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Bank7 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSVN	75 Outperform	$369.14M	8.29	22.26%	2.38%	1.20%	46.86%
FRBA	74 Outperform	$379.78M	9.77	9.81%	1.64%	18.63%	37.17%
RRBI	65 Neutral	$383.68M	10.63	11.51%	0.71%	10.47%	13.63%
Sector *	64 Neutral	$12.73B	9.82	7.91%	17015.08%	12.18%	-5.69%
CARE	63 Neutral	$364.99M	13.15	7.20%	―	13.73%	111.78%
BMRC	57 Neutral	$346.74M	―	-1.47%	4.77%	-15.92%	-147.11%
MSBI	54 Neutral	$398.50M	12.51	-1.68%	6.84%	3.95%	-135.44%

* Financial Sector Average

Performance Comparison

BSVN

Bank7

39.15

10.57

36.98%

BMRC

Bank Of Marin Bancorp

21.40

6.26

41.35%

MSBI

Midland States Bancrop

18.62

-3.85

-17.13%

FRBA

First Bank

15.11

3.18

26.66%

CARE

Carter Bankshares

15.73

2.86

22.22%

RRBI

Red River Bancshares

56.90

9.88

21.01%

Bank7 Earnings Call Summary

Earnings Call Date:Apr 10, 2025

(Q1-2025)

% Change Since: 5.36%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Positive

Bank7 Corp reported strong financial performance with impressive earnings, loan growth, and capital levels. However, macroeconomic uncertainties, including tariffs and trade wars, pose potential risks to their commercial clients. Despite these challenges, the company's prudent financial management and strong credit quality provide a solid foundation.

Q1-2025 Updates

Positive Updates

Strong Earnings and Capital Levels

Bank7 Corp reported continued strong earnings that rapidly add to their already high levels of capital. They operate without debt while maintaining strong liquidity, and their credit book remains strong with good asset quality.

Loan Growth Surpasses Expectations

The company experienced positive loan growth, particularly in the hospitality and C&I sectors. Despite macroeconomic uncertainties, they enter the second quarter with a strong deal flow and backlog.

Net Interest Margin Stability

Bank7 Corp successfully maintained its net interest margin at 4.60%, attributed to core deposit growth and reduced cost of funds from 2.70% to 2.58%.

Improvement in Non-Performing Assets

The company saw a decrease in non-performing assets for the first quarter, indicating a clean credit book with very low past dues based on historical levels.

Negative Updates

Macro Uncertainty Impact

The company acknowledged the volatile environment due to tariffs, potential trade wars, and economic conditions, which have affected consumer sentiment and capital markets.

Potential Impact of Tariffs and Trade Wars

There is uncertainty regarding how tariffs and trade wars might impact Bank7 Corp's commercial clients, especially in terms of sourcing materials and services.

Share Buyback Strategy on Hold

Due to volatile market conditions and a cautious outlook, the company is not in a rush to perform share buybacks, indicating a focus on maintaining high capital levels.

Company Guidance

During Bank7 Corp's First Quarter 2025 Earnings Call, guidance indicated a cautious yet optimistic outlook amid a volatile economic environment. The call highlighted strong earnings, a robust capital base, and reliable liquidity, which have positioned the bank well despite economic uncertainties, such as potential impacts from tariffs and deficits. The bank reported notable loan growth in the hospitality sector and maintained a strong credit book, underscored by a decrease in non-performing assets. The net interest margin remained steady at around 4.60%, supported by reduced cost of funds and core deposit growth. The management expressed confidence in their underwriting practices, particularly within the energy portfolio, emphasizing sensitivity to commodity price fluctuations. Although the bank is not actively pursuing share buybacks, it is well-capitalized and prepared for potential strategic opportunities. The call underscored the importance of maintaining flexibility and a cautious approach amid changing market conditions.

Bank7 Corporate Events

Financial Disclosures

Bank7 Reports Q1 2025 Financial Results

Neutral

Apr 10, 2025

On April 10, 2025, Bank7 Corp. announced its financial results for the first quarter of 2025, reporting a net income of $10.3 million, a decrease from the previous year’s $11.3 million. Despite the decline in net income and earnings per share, the company maintained strong capital levels, with significant increases in total assets and loans. Bank7 remains well-capitalized, with robust capital ratios, and is prepared to navigate potential economic disruptions while continuing to build capital.

Spark’s Take on BSVN Stock

According to Spark, TipRanks’ AI Analyst, BSVN is a Outperform.

Bank7’s overall score reflects strong financial fundamentals and record performance, tempered by current technical analysis indicating negative momentum. The company’s undervaluation and positive corporate events offer upside potential, albeit with some caution due to market conditions.

To see Spark’s full report on BSVN stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.