Company Overview
Farmers National Banc Corp. operates as a bank holding company that facilitates the Farmers National Bank of Canfield, engaging in a diverse range of financial activities including banking, trust, retirement consulting, insurance, and financial management. The institution provides commercial and retail banking services, offering checking, savings, and time deposit accounts to its clientele. This entity functions within the Financial Services sector, specifically classified under the Banks - Regional industry, which implies a focus on localized lending and deposit gathering rather than national or global operations. The company's scale is defined by a market capitalization of $761.24M, annual revenue of $181.50M, and an employee base of 706 individuals. These valuation and revenue figures indicate that Farmers National Banc Corp. holds a mid-sized position within the regional banking landscape, balancing sufficient asset generation to support its operational costs while maintaining a manageable scale relative to the broader regional bank sector.
Financial Health
The company reported revenue of $181.50M and net income of $54.59M over the trailing twelve months, while EBITDA is not available for this specific reporting period. The significant gap between the reported revenue and the net income reveals a cost structure where operating expenses consume approximately 70% of total revenue, which is typical for banking institutions where the bulk of costs relate to personnel, technology, and regulatory compliance rather than direct cost of goods sold. Although free cash flow is not disclosed in the available data, the company maintains a cash position of $93.34M, which suggests a baseline level of financial flexibility available for liquidity management or strategic initiatives. The firm's margins are characterized by a gross margin of 0.0%, an operating margin of 50.0%, and a profit margin of 30.1%, illustrating that banking services are inherently low-cost-to-produce but rely heavily on efficient expense management to drive profitability. On the liability side, the company holds $93.34M in cash against total debt of $376.88M, while the debt-to-equity ratio is not available for direct comparison. The balance sheet appears leveraged given the substantial debt figure relative to the cash reserves, which is standard for regulated financial institutions that borrow to fund loans. The current ratio is not available, preventing a direct assessment of short-term liquidity coverage using that specific metric, though the cash position provides immediate liquidity. Return on Equity stands at 12.2% and Return on Assets is 1.1%, metrics that reveal management's effectiveness in generating shareholder value and utilizing total assets respectively.
Valuation Assessment
The stock carries a trailing P/E ratio of 8.88 and a forward P/E of 7.01, where the difference between these two metrics implies that the market expects earnings growth to outpace current levels, leading to a lower multiple for future earnings. The price-to-book ratio is exactly 1.00, indicating that the market values the company's equity precisely at its book value without applying a significant premium or discount. Alternative valuation metrics such as the price-to-sales ratio of 4.19 and an EV/EBITDA of N/A offer different perspectives on the company's pricing relative to its revenue generation and earnings before interest and taxes. The stock has traded between a 52-week high of $15.50 and a 52-week low of $11.58, providing a historical range for price volatility analysis. While the current trading price is not explicitly calculated here, the range suggests the stock has experienced a trading spread of $3.92 over the last year. The beta value is 0.81, which indicates that the stock's price volatility is lower than the broader market, suggesting a defensive characteristic often found in regional banking stocks.
Growth & Income
Farmers National Banc Corp. has demonstrated revenue growth of 6.7% year-over-year and earnings growth of 3.4% year-over-year, indicating that earnings are growing at a slower pace than revenue. This divergence implies that while top-line expansion is being achieved, the company may be facing margin compression or that cost increases are offsetting the full benefit of new revenue streams. As a dividend payer, the company offers a dividend yield of 5.3% and maintains a payout ratio of 46.9%, which suggests the dividend is sustainable given that the payout ratio is well below 100% of earnings. The overall growth and income profile presents a balanced approach where modest organic growth in revenue is supported by a consistent and relatively high-yielding dividend return for shareholders.