Company Overview
ConnectOne Bancorp, Inc. functions as the bank holding company for ConnectOne Bank, which delivers a comprehensive suite of commercial banking products and services tailored for small and mid-sized businesses, local professionals, and individual consumers across the United States. The company operates within the Financial Services sector, specifically classified under the Banks - Regional industry, positioning it as a key player in providing localized financial solutions rather than competing in the national banking arena. With a market capitalization of $1.31B, an annual revenue of $334.71M, and a workforce of 750 employees, the entity demonstrates a significant operational footprint within its specific geographic markets. The market cap and revenue figures collectively indicate that the company maintains a substantial asset base and generates meaningful income, reflecting its established presence and ability to serve a diverse customer base of individuals and organizations.
Financial Health
ConnectOne Bancorp, Inc. reported revenue of $334.71M and net income of $74.23M over the trailing twelve months, while EBITDA data is not available in the provided records for this specific reporting period. The substantial gap between the $334.71M in revenue and the $74.23M in net income reveals a cost structure where operating expenses, including loan loss provisions and overhead, consume a significant portion of top-line earnings before arriving at the bottom line. Free cash flow is not disclosed in the available data, which limits the immediate assessment of the company's financial flexibility regarding capital expenditures and liquidity generation from operations. The gross margin stands at 0.0%, a standard characteristic for banking institutions where the primary cost of funds offsets interest income, while the operating margin of 52.2% and profit margin of 24.0% indicate efficient cost management relative to revenue generation. Total cash holdings amount to $396.49M, which is less than the total debt of $1.14B, suggesting the balance sheet is leveraged rather than conservative, a typical state for regional banks relying on deposits to fund lending activities. The debt-to-equity ratio is not available in the provided facts, and similarly, the current ratio is not disclosed, meaning specific details regarding short-term liquidity relative to current liabilities cannot be quantified from the current dataset. Return on Equity is recorded at 5.7% and Return on Assets at 0.7%, metrics that reveal management's effectiveness in generating returns on shareholder capital and utilizing total assets to produce income, respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 15.97, whereas the forward P/E is 7.29, implying that the market expects a significant acceleration in earnings growth in the future relative to current performance levels. The price-to-book ratio is 0.89, indicating that the market values the company's equity at a discount to its book value, which often reflects the conservative accounting of banking assets or expectations of lower future growth compared to peers. The price-to-sales ratio stands at 3.91, and since EV/EBITDA is not available, these alternative valuation metrics suggest the market is pricing the stock based on revenue efficiency rather than earnings multiples or enterprise value adjustments. The 52-week high is $29.28 and the 52-week low is $20.61, placing the current price trajectory within a defined historical range that reflects recent market volatility for the stock. The beta value is 1.11, which means the stock exhibits slightly higher price volatility relative to the broader market, moving more aggressively than the average financial services sector index during periods of market fluctuation.
Growth & Income
ConnectOne Bancorp, Inc. demonstrated robust expansion with revenue growth of 59.7% and earnings growth of 53.1% year over year, indicating that earnings are growing at a pace nearly equal to revenue, which implies that cost controls are keeping pace with top-line expansion. As a dividend payer, the company offers a dividend yield of 2.8% with a payout ratio of 44.2%, suggesting that the dividend is well-covered by earnings and appears sustainable given the current profitability levels. The earnings growth rate of 53.1% outpaces the revenue growth rate of 59.7% only slightly, but the magnitude of both figures highlights a period of rapid scaling for the regional institution. Overall, the company presents a profile characterized by double-digit growth in both revenue and earnings alongside a sustainable dividend yield, positioning it as a growth-oriented regional bank with consistent income distribution capabilities.