Pinnacle Bankshares (PPBN) AI Stock Analysis

• Market Cap: $81.86M
• Dividend Yield: 2.74%
• Average Volume (3M): 716.00
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.20
• Revenue Growth: 10.43%
• EPS Growth: 4.34%
• Country: US
• Employees: 183
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.21
• Shares Outstanding: 2,171,235
• 10 Day Avg. Volume: 182
• 30 Day Avg. Volume: 716
• PEG Ratio: -1.12
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 5.79
• Enterprise Value/Market Cap: -0.38
• Enterprise Value/Revenue: -0.53
• Enterprise Value/Gross Profit: -0.68
• Enterprise Value/Ebitda: -2.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ―

Pinnacle Bankshares demonstrates strong financial performance with robust revenue growth and profitability, although cash flow management should be improved. The technical indicators suggest a positive trend, but caution is advised due to potential overbought conditions. The valuation is attractive with a low P/E ratio and a solid dividend yield, making it appealing for both growth and income investors.

Pinnacle Bankshares Business Overview & Revenue Model

Company Description

Pinnacle Bankshares Corporation operates as the bank holding company for First National Bank that provides a range of commercial and retail banking products and services. The company accepts checking accounts, savings and time deposits, individual retirement accounts, certificates of deposit, and money market accounts. Its loan products include residential and commercial mortgage loans, home equity loans, consumer installment loans, agricultural loans, investment loans, small business loans, commercial lines of credit, and letters of credit. The company also provides credit cards; insurance products, including property and casualty, life, and health; investment and annuity products; and overdraft protection, merchant bankcard processing, cash management, remote deposit capture, night drop, safe deposit boxes, and notary services, as well as telephone, mobile, and online banking services. It operates eighteen branches including one in the town of Amherst in Amherst County; two in Bedford County; two located in the town of Altavista in Campbell County; three in Campbell County; three in Pittsylvania County; three in the city of Danville; three in the city of Lynchburg; and one in the city of Charlottesville. The company was founded in 1908 and is headquartered in Altavista, Virginia.

How the Company Makes Money

Pinnacle Bankshares generates revenue primarily through interest income from its lending activities, including personal, commercial, and mortgage loans. Additionally, the company earns non-interest income from fees and charges associated with its deposit accounts, credit card services, and other financial products. Key revenue streams also include service charges, trust and investment management fees, and gains on the sale of securities. The company's profitability is influenced by factors such as interest rate fluctuations, loan demand, and economic conditions within its operational regions.

Pinnacle Bankshares Financial Statement Overview

Summary

Pinnacle Bankshares displays robust financial health with strong revenue growth and profitability levels. The balance sheet is solid with low leverage, but cash flow management poses some concerns, particularly in sustaining free cash flow growth. Continuous improvement in operational efficiencies and cash flow generation will be key to sustaining long-term growth.

Income Statement

Pinnacle Bankshares shows a strong revenue growth trajectory with an impressive revenue growth rate of 10.27% from 2022 to 2023. The gross profit margin is robust, indicating effective cost management. Net profit margin increased to 24.02% in 2023, showcasing enhanced profitability. However, the EBIT and EBITDA margins suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio due to minimal debt. The equity ratio is moderate, indicating a balanced asset financing structure. Return on equity is healthy at 14.27%, reflecting effective use of shareholder funds, yet there's potential for increased equity base to support growth.

Cash Flow

Operating cash flow coverage of net income is strong, suggesting good cash generation relative to earnings. Free cash flow growth is negative, highlighting challenges in maintaining positive cash flow after capital expenditures. The ratio of free cash flow to net income suggests limited free cash flow available for reinvestment or distribution.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.77M	55.62M	41.07M	37.27M	32.04M	24.00M
Gross Profit	45.12M	42.58M	40.65M	36.67M	32.04M	24.00M
EBITDA	11.95M	11.16M	13.02M	11.28M	6.46M	5.06M
Net Income	9.84M	9.18M	9.76M	8.24M	4.38M	3.06M
Balance Sheet
Total Assets	1.04B	1.04B	1.02B	969.93M	1.02B	860.83M
Cash, Cash Equivalents and Short-Term Investments	263.11M	0.00	87.59M	277.94M	419.55M	211.06M
Total Debt	10.00M	11.27M	10.00M	10.00M	10.00M	10.00M
Total Liabilities	956.10M	965.61M	948.12M	912.92M	953.50M	800.16M
Stockholders Equity	84.46M	78.39M	68.41M	57.01M	62.37M	58.33M
Cash Flow
Free Cash Flow	0.00	11.92M	3.48M	8.26M	2.17M	-216.00K
Operating Cash Flow	0.00	14.40M	4.31M	8.66M	3.20M	2.05M
Investing Cash Flow	0.00	-10.04M	15.41M	-230.56M	-70.97M	48.14M
Financing Cash Flow	0.00	16.26M	31.34M	-40.17M	155.56M	127.73M

Pinnacle Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPBN, the sentiment is Positive. The current price of 37.5 is below the 20-day moving average (MA) of 37.68, above the 50-day MA of 37.35, and above the 200-day MA of 32.99, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 77.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPBN.

Pinnacle Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPBN	77 Outperform	$81.86M	8.50	13.27%	2.74%	10.43%	4.34%
IROQ	69 Neutral	$85.80M	18.74	5.53%	1.58%	6.61%	139.05%
AUBN	68 Neutral	$87.67M	13.17	8.25%	4.14%	27.65%	996.66%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UBCP	62 Neutral	$74.61M	10.30	11.79%	7.09%	5.73%	-13.97%
SSBI	49 Neutral	$79.32M	10.38	-1.64%	0.34%	-0.03%	-126.57%
FNWB	45 Neutral	$73.37M	―	-6.59%	3.54%	10.23%	-110.17%