Embassy Bancorp (EMYB) AI Stock Analysis

• Market Cap: $132.87M
• Dividend Yield: 2.77%
• Average Volume (3M): 10.15K
• Price to Earnings (P/E): 11.3
• Beta (1Y): -0.02
• Revenue Growth: 13.45%
• EPS Growth: 7.82%
• Country: US
• Employees: 112
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.45
• Shares Outstanding: 7,645,249
• 10 Day Avg. Volume: 2,112
• 30 Day Avg. Volume: 10,154
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: 7.45
• 1Y Price Target: $18.50
• Price Target Upside: 6.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: $18.50 ▲(6.63% Upside)

Embassy Bancorp's strong financial performance and positive corporate events are the most significant factors contributing to its high stock score. The company's solid balance sheet, consistent revenue growth, and recent dividend increase underscore its financial stability and growth potential. Technical analysis supports a bullish outlook, while valuation metrics indicate a fair price with a reasonable dividend yield.

Embassy Bancorp Business Overview & Revenue Model

Company Description

Embassy Bancorp, Inc. operates as the bank holding company for the Embassy Bank for the Lehigh Valley that provides traditional banking and related financial services to individual, business, and government customers in Pennsylvania. Its deposit products include savings, money market, individual retirement, and NOW accounts; demand and time deposits; and certificates of deposit. The company's loan portfolio comprises secured fixed and variable rate loans; business loans; consumer loans, including mortgages, secured home equity loans, lines of credit, auto, and unsecured personal loans, as well as mortgage escrow services; residential mortgage loans; and commercial mortgage/construction loans. In addition, it offers various other services, such as treasurer and certified check, wire transfer, credit/debit card merchant processing, direct deposit/ACH, ACH origination, fraud detection, cash and escrow management, safe deposit box, remote deposit capture, mobile banking, night depository, bank by mail, savings bond redemptions, person to person payment, positive pay, automated teller machine, and online banking and bill pay services, as well as gift, commercial credit, and ATM and debit cards. The company has branch offices in South Whitehall Township, Lower Macungie Township, the City of Bethlehem, Salisbury Township, Lower Saucon Township, Lower Nazareth Township, Borough of Nazareth, and Borough of Macungie, as well as in Lehigh and Northampton Counties in Pennsylvania. Embassy Bancorp, Inc. was founded in 2001 and is headquartered in Bethlehem, Pennsylvania.

How the Company Makes Money

Embassy Bancorp generates revenue through multiple channels, primarily from interest income on loans provided to customers, including personal, commercial, and mortgage loans. Additionally, the bank earns non-interest income from fees associated with account maintenance, transaction services, and wealth management services. The company's revenue model is bolstered by its ability to attract deposits, which serve as a primary funding source for its lending activities. Strategic partnerships with local businesses and community organizations also enhance its customer base, contributing to increased loan origination and deposit growth, thereby impacting overall earnings positively.

Embassy Bancorp Financial Statement Overview

Summary

Embassy Bancorp exhibits a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet is well-managed with low leverage, and the cash flow remains positive despite some fluctuations in operating cash flow. The company is well-positioned in the regional banking sector, with opportunities for further growth and profitability improvements. However, attention should be given to maintaining operating cash flow levels to support future operations and investments.

Income Statement

Embassy Bancorp has demonstrated a strong revenue growth trajectory, with a notable increase from $35.43M in 2019 to $67.91M in 2024. The gross profit margin remains robust, consistently above 50%, indicating effective cost management. However, there is a slight decline in net income from $12.66M in 2023 to $10.44M in 2024, impacting the net profit margin. Despite this, the EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The balance sheet of Embassy Bancorp is solid, with a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is stable, showcasing a strong equity base relative to total assets. Return on equity has slightly decreased but remains competitive, reflecting the company's ability to generate returns for shareholders. The overall financial stability is reinforced by a substantial increase in cash and short-term investments.

Cash Flow

The cash flow statement reveals a decline in operating cash flow from $19.50M in 2023 to $9.94M in 2024, which could pose a risk if not addressed. However, the free cash flow remains positive, indicating the company's ability to generate cash after capital expenditures. The free cash flow to net income ratio is healthy, suggesting efficient cash conversion. The financing activities have provided additional liquidity, supporting overall cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.44M	67.91M	59.57M	47.73M	45.59M	40.06M
Gross Profit	42.05M	39.56M	41.63M	48.41M	45.59M	40.06M
EBITDA	15.26M	13.66M	16.37M	21.99M	21.72M	16.49M
Net Income	11.74M	10.44M	12.66M	17.70M	16.79M	12.81M
Balance Sheet
Total Assets	1.76B	1.70B	1.66B	1.64B	1.63B	1.44B
Cash, Cash Equivalents and Short-Term Investments	274.71M	297.23M	78.92M	383.29M	478.96M	261.85M
Total Debt	7.93M	20.52M	35.00M	20.72M	14.65M	14.65M
Total Liabilities	1.65B	1.60B	1.55B	1.55B	1.51B	1.33B
Stockholders Equity	114.31M	106.48M	105.66M	88.28M	122.52M	112.17M
Cash Flow
Free Cash Flow	12.08M	9.21M	18.69M	19.19M	13.74M	11.65M
Operating Cash Flow	12.79M	9.94M	19.50M	19.91M	15.25M	13.63M
Investing Cash Flow	-84.62M	-36.15M	3.25M	-161.32M	-156.21M	-173.77M
Financing Cash Flow	27.75M	43.81M	-11.13M	39.01M	178.75M	252.06M

Embassy Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMYB, the sentiment is Positive. The current price of 17.35 is above the 20-day moving average (MA) of 17.33, above the 50-day MA of 16.62, and above the 200-day MA of 15.60, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 85.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EMYB.

Embassy Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMYB	79 Outperform	$132.87M	11.30	10.82%	2.77%	13.45%	7.82%
AFBI	76 Outperform	123.77M	18.33	5.69%	―	6.51%	28.94%
SBFG	73 Outperform	128.77M	11.14	9.00%	2.87%	9.87%	2.62%
RVSB	61 Neutral	108.51M	21.11	3.06%	1.55%	10.30%	170.86%
MNSB	52 Neutral	162.59M	-14.41	-4.80%	1.91%	4.08%	-172.13%
RBKB	49 Neutral	129.04M	-21.68	-7.08%	―	-17.56%	-233.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Embassy Bancorp Corporate Events

Embassy Bancorp Announces 14% Dividend Increase

On June 18, 2025, Embassy Bancorp, Inc. announced a 14% increase in its annual cash dividend to $0.48 per share, payable on July 15, 2025. This marks the 16th consecutive year of dividend payments, highlighting the company’s financial stability and commitment to shareholder value. Embassy Bancorp has received several accolades, including being named the ‘Reader’s Choice Best Bank’ for the 10th consecutive year and earning a 5-star rating from Bauer Financial. These recognitions underscore the bank’s focus on customer service and community engagement, positioning it well for future growth.

Embassy Bancorp Holds Annual Shareholder Meeting

On June 18, 2025, Embassy Bancorp, Inc. held its Annual Meeting of Shareholders, presenting financial and other information to stakeholders. The meeting included the election of directors, approval of executive compensation resolutions, and ratification of the company’s accounting firm. The company highlighted its community involvement, with significant donations to local charities and a strong presence in community events. Embassy Bancorp has shown consistent growth over the past five years, maintaining a high customer satisfaction rate and receiving accolades for its banking services.