Freedom Bank of Virginia (FDVA) AI Stock Analysis

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Freedom Bank of Virginia

(Other OTC:FDVA)

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Rating:33Underperform

Price Target:$10.50▼(-10.06% Downside)

Action:reiterated

Date:11/05/26

FDVA scores low primarily because of a sharp deterioration in fundamentals: net income fell roughly 92% year-over-year to just ~$374K, margins have collapsed to near zero, revenue has turned negative, and cash flow generation has nearly dried up. Reduced leverage and a stable ~7.9% equity-to-assets cushion provide some downside protection, but a ~0.4% return on equity undermines that capital base. Technically, the stock sits below all key moving averages with slightly negative MACD and neutral momentum readings, offering no confirmation of a turnaround. Valuation adds little support, with a negative P/E and no dividend to compensate investors while they wait for profitability to recover. The very low beta suggests limited volatility, but the overall profile remains high-risk until management demonstrates progress on restoring margins and earnings.

Positive Factors

Improved LeverageLower debt relative to equity gives Freedom Bank a more resilient capital structure and greater flexibility to absorb operating pressure. This improvement can support continued lending and reduce balance-sheet strain over the next several quarters, even though profitability remains weak.

Negative Factors

Revenue DeclineThe reversal from earlier revenue growth suggests that business momentum weakened in 2025. If the decline persists, a smaller revenue base could constrain operating leverage, reduce resources available for investment, and make recovery in profitability more difficult.

Freedom Bank of Virginia (FDVA) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $82.79M
Dividend Yield: ―
Average Volume (3M): 14.41K
Price to Earnings (P/E): -90.2
Beta (1Y): 0.12
Revenue Growth: -7.07%
EPS Growth: -117.78%
Country: US
Employees: 28
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Freedom Bank of Virginia Business Overview & Revenue Model

Company Description

Freedom Financial Holdings, Inc. serves as the parent company for The Freedom Bank of Virginia, which delivers a comprehensive array of commercial, personal, and mortgage banking solutions. The bank's offerings encompass diverse deposit products, inc...

Freedom Bank of Virginia Financial Statement Overview

Summary

Financial results are weak across the board. Revenue fell ~3.3% to ~$63.6M, breaking a multi-year growth trend, while net income collapsed ~92% to just ~$374K, cutting net margin to ~0.6% from ~7.1% a year earlier. EBIT margin has effectively evaporated to ~0.3%, pointing to severe pressure on the core interest spread or credit-related costs. Cash generation is similarly anemic, with operating cash flow of ~$894K and free cash flow of ~$838K against a ~$1.07B asset base. The balance sheet is the one relative bright spot: total debt declined to ~$63.4M, debt-to-equity improved to ~0.75 from ~1.07, and equity edged up to ~$84.3M (~7.9% of assets), offering a reasonable capital cushion. However, return on equity of ~0.4% shows that capital is generating almost no return for shareholders.

Income Statement

18Very Negative

Balance Sheet

42Neutral

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	60.55M	63.61M	66.41M	60.10M	44.27M	40.14M
Gross Profit	25.20M	24.52M	27.57M	25.03M	35.68M	36.26M
EBITDA	-1.40M	302.27K	5.60M	2.32M	13.42M	13.44M
Net Income	-923.37K	374.20K	4.71M	2.32M	10.56M	10.73M
Balance Sheet
Total Assets	1.06B	1.07B	1.09B	1.08B	990.63M	876.67M
Cash, Cash Equivalents and Short-Term Investments	4.29M	158.83M	238.38M	235.51M	216.33M	205.77M
Total Debt	70.58M	61.60M	86.86M	71.95M	46.54M	51.48M
Total Liabilities	977.64M	981.79M	1.01B	1.01B	915.69M	792.51M
Stockholders Equity	81.40M	84.34M	81.44M	77.23M	74.95M	84.16M
Cash Flow
Free Cash Flow	0	838.10K	428.23K	3.94M	32.80M	46.39M
Operating Cash Flow	0	893.81K	428.23K	3.98M	32.80M	46.42M
Investing Cash Flow	0	67.66M	1.22M	-105.44M	-147.12M	-141.60M
Financing Cash Flow	0	-22.62M	2.79M	90.93M	114.86M	102.08M

Freedom Bank of Virginia Technical Analysis

Technical Analysis SentimentNegative

Last Price11.68

Price Trends

50DMA11.80Negative

100DMA11.91Negative

200DMA11.98Negative

Market Momentum

MACD-0.03Negative

RSI46.55Neutral

STOCH43.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDVA, the sentiment is Negative. The current price of 11.68 is below the 20-day moving average (MA) of 11.70, below the 50-day MA of 11.80, and below the 200-day MA of 11.98, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.55 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDVA.

Freedom Bank of Virginia Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

FDVA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOTJ	72Outperform	$113.04M	9.39	14.94%	1.61%	7.06%	52.33%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FUSB	65Neutral	$85.87M	12.21	7.58%	1.66%	3.74%	43.52%
UBCP	59Neutral	$83.19M	10.87	11.35%	6.52%	6.48%	-0.99%
SSBI	54Neutral	$79.60M	195.92	0.33%	―	-7.24%	―
FNWB	42Neutral	$92.99M	-1051.61	-0.03%	―	-6.23%	99.32%
FDVA	33Underperform	$82.97M	-90.17	-1.10%	―	-7.07%	-117.78%

* Financial Sector Average

Performance Comparison

FDVA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FDVA	Freedom Bank of Virginia	11.68	0.48	4.24%
BOTJ	Bank Of The James Financial Group, Inc.	24.88	8.49	51.78%
SSBI	Summit State Bank	11.76	1.01	9.35%
UBCP	United Bancorp	14.56	2.50	20.74%
FUSB	First Us Bancshares	16.85	3.69	28.04%
FNWB	First Northwest Bancorp	9.78	0.51	5.50%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Date of analysis: Nov 04, 2026

Freedom Bank of Virginia AI Stock Analysis