Embassy Bancorp (EMYB) AI Stock Analysis

20 Followers

Top Page

Embassy Bancorp

(OTC:EMYB)

68Neutral

Embassy Bancorp shows strong financial performance with robust revenue growth and effective cash flow management. However, the technical analysis points to bearish momentum, with the stock trading below key moving averages and indicators suggesting potential further downside. Despite this, the stock's valuation remains attractive with a low P/E ratio and decent dividend yield, which partially offsets the negative technical outlook.

Embassy Bancorp (EMYB) vs. S&P 500 (SPY)

Market Cap

$113.90M

Dividend Yield2.81%

Average Volume (3M)2.08K

Price to Earnings (P/E)10.5

Beta (1Y)0.13

Revenue Growth14.14%

EPS Growth-5.64%

CountryUS

Employees112

SectorFinancial

Sector Strength84

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.38

Shares Outstanding7,644,142

10 Day Avg. Volume5,462

30 Day Avg. Volume2,076

Financial Highlights & Ratios

PEG Ratio-7.55

Price to Book (P/B)1.07

Price to Sales (P/S)0.00

P/FCF Ratio650.41

Enterprise Value/Market Cap0.30

Enterprise Value/Revenue0.15

Enterprise Value/Gross Profit0.66

Enterprise Value/Ebitda0.89

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Embassy Bancorp Business Overview & Revenue Model

Company DescriptionEmbassy Bancorp (EMYB) is a financial holding company serving as the parent entity to Embassy Bank for the Lehigh Valley. The company operates primarily in the banking sector, providing a range of financial products and services to individual and business clients. Its core offerings include personal and business banking services, such as checking and savings accounts, loans, mortgages, credit cards, and wealth management solutions, aimed at delivering tailored financial solutions to its customers.

How the Company Makes MoneyEmbassy Bancorp generates revenue through a combination of interest income and non-interest income. Interest income is primarily derived from the interest charged on loans and mortgages offered to individuals and businesses, which constitutes a significant portion of the company's earnings. Non-interest income includes fees and service charges from various banking services, such as account maintenance fees, transaction fees, and wealth management services. Additionally, Embassy Bancorp may engage in investment activities, earning income from securities and other financial instruments. The company's financial performance and revenue generation are also influenced by its strategic partnerships, customer base, and regional economic conditions.

Embassy Bancorp Financial Statement Overview

Summary

Embassy Bancorp presents a strong financial position with robust revenue growth and effective cash flow management. The balance sheet shows solid leverage control, although there is a need to improve return on equity and manage profit margins. The banking sector's inherent financial dynamics are well managed, but attention to profitability ratios and cash flow sustainability is advised to maintain growth.

Income Statement

Very Positive

Embassy Bancorp demonstrates robust revenue growth, with a notable increase from $35.43 million in 2019 to $64.97 million in 2024. The gross profit margin has consistently been at 100% due to the nature of the banking industry, which is reflected in the EBIT margins that have improved significantly over the period. However, net profit margin slightly dipped in 2024, indicating increased expenses or other financial pressures.

Balance Sheet

Positive

The company's balance sheet reflects strong equity with a healthy equity ratio, though it slightly decreased from 2023 to 2024. The debt-to-equity ratio improved markedly, indicating better leverage management. However, the return on equity declined in 2024, suggesting that the company was less efficient in generating profits from its equity base during the year.

Cash Flow

Very Positive

Embassy Bancorp has shown effective cash flow management with positive operating and free cash flows throughout the period. Despite a decrease in free cash flow from 2023 to 2024, the company maintains a positive operating cash flow to net income ratio, which suggests operational efficiency. The decline in cash flow growth rate should be monitored.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
39.13M	57.16M	48.41M	45.59M	40.06M
	Gross Profit
39.13M	57.16M	48.41M	45.59M	40.06M
	EBIT
12.51M	15.46M	26.10M	20.85M	15.73M
	EBITDA
0.00	16.37M	22.88M	21.72M	16.49M
	Net Income Common Stockholders
10.44M	12.66M	17.70M	16.79M	12.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
297.23M	78.92M	383.29M	478.96M	261.85M
	Total Assets
1.70B	1.66B	1.64B	1.63B	1.44B
	Total Debt
15.63M	35.00M	20.72M	14.65M	14.65M
	Net Debt
-774.00K	-42.92M	-45.57M	-154.04M	-116.26M
	Total Liabilities
1.60B	1.55B	1.55B	1.51B	1.33B
	Stockholders Equity
106.48M	105.66M	88.28M	122.52M	112.17M
Cash Flow		Free Cash Flow
9.21M	18.69M	19.19M	13.74M	11.65M
	Operating Cash Flow
9.94M	19.50M	19.91M	15.25M	13.63M
	Investing Cash Flow
-36.15M	3.25M	-161.32M	-156.21M	-173.77M
	Financing Cash Flow
43.81M	-11.13M	39.01M	178.75M	252.06M

Embassy Bancorp Technical Analysis

Technical Analysis Sentiment

Negative

Last Price14.90

Price Trends

50DMA

15.12

Negative

100DMA

15.58

Negative

200DMA

15.63

Negative

Market Momentum

MACD

-0.04

Negative

RSI

48.74

Neutral

STOCH

81.54

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMYB, the sentiment is Negative. The current price of 14.9 is above the 20-day moving average (MA) of 14.83, below the 50-day MA of 15.12, and below the 200-day MA of 15.63, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 81.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EMYB.

Embassy Bancorp Risk Analysis

Embassy Bancorp disclosed 31 risk factors in its most recent earnings report. Embassy Bancorp 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

Embassy Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBFG	72 Outperform	$125.93M	11.77	8.80%	2.86%	7.38%	-3.85%
EMYB	68 Neutral	$113.90M	10.53	9.98%	2.81%	14.14%	-5.64%
AFBI	64 Neutral	$116.97M	20.53	4.84%	―	8.74%	-1.73%
Sector *	64 Neutral	$12.83B	9.83	7.64%	16985.66%	12.34%	-5.73%
MNSB	61 Neutral	$149.38M	14.43	-5.01%	2.04%	5.38%	-165.79%
RVSB	60 Neutral	$128.37M	26.29	3.11%	1.31%	9.61%	29.84%
RBKB	51 Neutral	$121.53M	―	-6.20%	―	-17.91%	-257.99%

* Financial Sector Average

Performance Comparison

EMYB

Embassy Bancorp

14.90

1.78

13.57%

RVSB

Riverview Bancorp

6.10

2.17

55.22%

SBFG

SB Financial Group

19.30

6.05

45.66%

AFBI

Affinity Bancshares

18.52

2.79

17.74%

RBKB

Rhinebeck Bancorp

10.95

3.27

42.58%

MNSB

MainStreet Bancshares

19.39

1.94

11.12%

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.