First National of Nebraska, Inc. – Value Analysis (US OTC:FINN) : October 23, 2017

Capitalcube gives First National of Nebraska, Inc. a score of 67.

Our analysis is based on comparing First National of Nebraska, Inc. with the following peers – Mid Penn Bancorp, Inc., MidWestOne Financial Group, Inc., MainStreet Bancshares, Inc. and Marquette National Corporation (MPB-US, MOFG-US, MNSB-US and MNAT-US).

Fundamental Overview

First National of Nebraska, Inc. has a fundamental score of 67 and has a relative valuation of UNDERVALUED.

Fundamental Score

Company Overview

  • It’s current Price/Book of 1.12 is about median in its peer group.
  • We classify FINN-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • FINN-US‘s median net profit margins and relatively high capital efficiency give it some operating leverage.
  • Changes in annual revenues are in line with its chosen peers but lags in terms of earnings suggesting that the company is less cost conscious and may be spending for growth.
  • FINN-US‘s return on equity currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • While FINN-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
  • The company’s level of equity capital investment seems appropriate to support the company’s growth.
  • FINN-US currently does not have any debt.

Drivers of Margin

  • The company’s comparatively healthy proportion of fee based income (i.e. non interest income/total revenues) of 32.34% versus peer median of 22.13% — suggests that FINN-US‘s operating margins are likely to be less volatile. In addition, FINN-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 57.25x is around peer median — suggesting no cost advantage on fee-based overhead operations.

Company Profile

First National of Nebraska, Inc. is a multi-state holding company, which engages in the provision of baking and financial services. It operates through its subsidiaries in different states which also operates and provides baking and financial services. The company was founded on August 27, 1968 and is headquartered in Omaha, NE.