Freedom Bank of Virginia (FDVA) AI Stock Analysis

• Market Cap: $75.76M
• Dividend Yield: N/A
• Average Volume (3M): 949.00
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.09
• Revenue Growth: 1.45%
• EPS Growth: 70.87%
• Country: US
• Employees: 28
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.16
• Shares Outstanding: 6,646,006
• 10 Day Avg. Volume: 1,939
• 30 Day Avg. Volume: 949
• PEG Ratio: 0.15
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 175.22
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 4.37
• Enterprise Value/Ebitda: 25.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ―

Freedom Bank of Virginia's stock scores 67, driven by stable balance sheet management but challenged by declining revenues and profit margins. Technical indicators show positive momentum, though caution is advised due to potential overbought conditions. The valuation is fair, but the lack of dividends might deter some investors. Overall, the stock might appeal to those seeking moderate growth potential with manageable risk.

Freedom Bank of Virginia Business Overview & Revenue Model

Company Description

Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest-bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, wire transfer, and fraud prevention services; business valuation, bank-at-work, and merchant services; and prestige banking services. It operates branch offices in Vienna, Fairfax, Chantilly, Reston, and Manassas, Virginia. The company was founded in 2001 and is based in Fairfax, Virginia.

How the Company Makes Money

Freedom Bank of Virginia generates revenue through various streams typical of community banking institutions. The primary source of income is the interest earned on loans and mortgages issued to individuals and businesses. Additionally, the bank earns revenue from fees associated with its banking services, such as account maintenance fees, transaction fees, and charges for overdrafts and insufficient funds. FDVA also benefits from interest on investments and securities. The bank may engage in partnerships with financial service providers to offer additional products, such as credit card services and investment products, contributing further to its revenue.

Freedom Bank of Virginia Financial Statement Overview

Summary

Freedom Bank of Virginia shows a mixed financial profile. The income statement reflects declining revenues and profit margins, posing operational challenges. The balance sheet is stable with manageable leverage but has low equity financing. The cash flow statement indicates potential liquidity issues due to declining free cash flow. Improvement in revenue generation and cost management is necessary for enhanced profitability and cash flow.

Income Statement

The company's income statement shows a declining revenue trend with a significant drop from 2022 to 2023. The gross profit margin is low at 3.63% in 2023, indicating higher cost structures. However, the net profit margin improved to 7.54% in 2023 from 28.61% in 2022, which suggests some control over expenses. EBIT and EBITDA margins also reflect a decrease in profitability compared to previous years, highlighting potential challenges in operational efficiency.

Balance Sheet

The balance sheet portrays a stable equity base with a debt-to-equity ratio of 0.93 in 2023, indicating manageable leverage levels. The equity ratio of 7.12% shows a lower proportion of assets financed by equity, which could be a risk. Return on Equity (ROE) stands at 3.00% in 2023, indicating modest returns to shareholders. Overall, the balance sheet maintains stability, but there are concerns over low equity financing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow from 2022 to 2023, indicating challenges in generating cash. The operating cash flow to net income ratio is strong at 1.72 in 2023, reflecting good cash conversion from profits. However, the free cash flow to net income ratio is 1.70, showing reduced capacity to generate cash after capital expenditures. This suggests potential liquidity concerns if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.90M	66.41M	60.42M	36.03M	37.40M	33.42M
Gross Profit	29.96M	30.68M	25.35M	35.68M	36.26M	31.47M
EBITDA	5.10M	5.60M	2.32M	13.42M	13.44M	10.19M
Net Income	4.32M	4.71M	2.32M	10.56M	10.73M	7.36M
Balance Sheet
Total Assets	1.07B	1.09B	1.08B	990.63M	876.67M	767.04M
Cash, Cash Equivalents and Short-Term Investments	253.40M	0.00	235.51M	216.33M	205.77M	124.52M
Total Debt	61.72M	86.86M	71.95M	46.54M	51.48M	33.42M
Total Liabilities	987.96M	1.01B	1.01B	915.69M	792.51M	693.59M
Stockholders Equity	84.12M	81.44M	77.23M	74.95M	84.16M	73.46M
Cash Flow
Free Cash Flow	0.00	428.23K	3.94M	32.80M	46.39M	-25.09M
Operating Cash Flow	0.00	428.23K	3.98M	32.80M	46.42M	-24.99M
Investing Cash Flow	0.00	1.22M	-105.44M	-147.12M	-141.60M	-223.07M
Financing Cash Flow	0.00	2.79M	90.93M	114.86M	102.08M	249.73M

Freedom Bank of Virginia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDVA, the sentiment is Positive. The current price of 11.47 is above the 20-day moving average (MA) of 11.45, below the 50-day MA of 11.57, and above the 200-day MA of 10.96, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDVA.

Freedom Bank of Virginia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUSB	―	$72.28M	13.52	5.50%	2.23%	1.28%	-35.83%
BOTJ	―	$77.46M	9.79	10.86%	2.35%	6.17%	-6.13%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FDVA	―	$75.76M	19.18	5.29%	―	1.45%	70.87%
UBCP	―	$75.50M	10.28	11.79%	6.96%	5.73%	-13.97%
FNWB	―	$85.42M	-10.97	-4.68%	3.09%	8.02%	21.26%
SSBI	―	$72.85M	-51.61	-1.41%	―	-0.80%	-129.22%