Patriot National Bancorp, Inc.: Strong price momentum but will it sustain?

Patriot National Bancorp, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 39.

Our analysis is based on comparing Patriot National Bancorp, Inc. with the following peers – Washington Trust Bancorp, Inc., First Bancorp, Inc., Salisbury Bancorp, Inc., Camden National Corporation, Bankwell Financial Group, Inc., Independent Bank Corp., Union Bankshares, Inc., Webster Financial Corporation, Enterprise Bancorp, Inc. and Boston Private Financial Holdings, Inc. (WASH-US, FNLC-US, SAL-US, CAC-US, BWFG-US, INDB-US, UNB-US, WBS-US, EBTC-US and BPFH-US).

Patriot National Bancorp, Inc. has shown good performance overall, both over the last one year (at 31.48%) as well as over the last month (at 8.02%). Share price performance over the last month, though has been lower than that over the last year. But Patriot National Bancorp, Inc.’s stock has done better than its overall peer group whose performance was 3.14% over the last month.

Company Snapshot

  • From a peer analysis perspective, relative outperformance last month is up from a median performance last year.
  • It trades at a lower Price/Book multiple (1.06) than its peer median (1.64).
  • The market expects PNBK-US‘s earnings to grow at about the same rate as its chosen peers and also does not seem to expect much improvement in its below peer median returns.
  • PNBK-US has relatively low profit margins and median capital efficiency.
  • 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.
  • PNBK-US‘s return on equity currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • While the company’s lending operations show some differentitation with a relative pricing advantage its margins suggest relatively high operating costs.
  • PNBK-US‘s revenue growth in recent years and current P/E ratio are both around their respective peer medians suggesting that historical performance and long-term growth expectations for the company are largely in sync.
  • The company’s level of equity capital investment seems appropriate to support the company’s growth.
  • Our analysis rates Patriot National Bancorp, Inc. as UNDERVALUED relative to its peers.

Share Price Performance

From a peer analysis perspective, relative outperformance last month is up from a median performance last year.

While PNBK-US‘s change in share price of 31.48% for the last 12 months is in line with its peer median, its more recent 30-day share price performance of 8.02% is above the peer median. This suggests the company’s performance has improved more recently relative to peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Patriot National Bancorp, Inc.’s price of USD 17.500 is lower than CapitalCube’s implied price of USD 20.32. CapitalCube believes that at these levels, Patriot National Bancorp, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 12.80 and USD 17.500.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Patriot National Bancorp, Inc. operates as a bank holding company. The company offers consumer and commercial banking services to individuals, government and nonprofit entities, small and medium-sized businesses and professionals. Its deposit products include checking accounts, negotiable order of withdrawal accounts, time certificates of deposit, savings accounts, individual retirement accounts and health savings accounts. The company’s lending portfolio comprises of commercial mortgage and construction loans; working capital loans; equipment loans; real estate loans; and other personal loans. Patriot National Bancorp was founded in 1999 and is headquartered in Stamford, CT.

Disclaimer

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