Company Overview
Magyar Bancorp, Inc. functions as the holding company for Magyar Bank, an entity dedicated to delivering a comprehensive suite of consumer and commercial banking services to individuals, businesses, and nonprofit organizations located in New Jersey and throughout the United States. The institution operates within the Financial Services sector, specifically categorized under the Banks - Regional industry, which defines its operational scope and regulatory environment as a regional lender serving local communities rather than a national or international conglomerate. The company's current market capitalization stands at $113.88M, reflecting its total equity value, while its trailing twelve-month revenue reaches $36.54M and it employs a workforce of 91 individuals to execute its banking operations. These valuation and revenue figures indicate that Magyar Bancorp, Inc. is a mid-sized regional player with a market cap of $113.88M, suggesting a position that balances established operational scale with the agility typical of regional banks, where revenue of $36.54M supports its specific geographic footprint without the massive overhead of larger national institutions.
Financial Health
The bank reported total revenue of $36.54M and net income of $10.81M over the trailing twelve months, whereas EBITDA figures are not available for this specific reporting period. The significant gap between the $36.54M in revenue and the $10.81M in net income reveals a cost structure where operating expenses, including interest on deposits, salaries, and overhead, consume approximately 70.4% of total revenue before arriving at the bottom line. Regarding cash flow metrics, free cash flow data is not reported, which limits the immediate assessment of operational cash generation but does not preclude analysis of balance sheet strength. The company holds $34.91M in cash assets against $51.83M in total debt, creating a net debt position that requires careful management of liquidity sources against obligations. While the debt-to-equity ratio is not disclosed, the presence of $51.83M in debt against $34.91M in cash indicates a leveraged balance sheet where the company must rely on deposit growth or equity issuance to cover its obligations. The current ratio is not provided in the available data, so a direct assessment of short-term liquidity via this specific metric is not possible from the current facts. Management effectiveness is highlighted by a Return on Equity of 9.3% and a Return on Assets of 1.1%, metrics that demonstrate the bank generates returns on shareholders' capital that are higher than its average return on the total asset base, a characteristic common in banking due to the high leverage inherent in the business model.
Valuation Assessment
The trailing twelve-month Price-to-Earnings (P/E) ratio is 10.16, while the forward P/E ratio is not available for comparison. The absence of a forward P/E metric implies that analysts or the market currently lack sufficient consensus on future earnings growth projections to calculate a price based on expected future profits, leaving the trailing P/E as the primary historical valuation anchor. The Price-to-Book ratio stands at 0.94, indicating that the market values the company's equity at 94% of its book value, which suggests the stock is trading at a slight discount to the tangible net assets it holds. Alternative valuation metrics such as the Price-to-Sales ratio of 3.12 and the Enterprise Value-to-EBITDA ratio, which is not available, provide different lenses; the P/S ratio of 3.12 implies the market is willing to pay over three times the company's annual sales to own a share of its future earnings potential. In terms of trading range, the 52-week high is $20.00 and the 52-week low is $13.52, meaning the current price sits between these bounds, with the specific percentage distance from the high dependent on the real-time share price not fixed in the static data but bounded by this $6.48M spread. The stock exhibits a Beta of 0.23, which signifies that the share price is significantly less volatile than the broader market, moving with much lower sensitivity to general market fluctuations compared to the S&P 500.
Growth & Income
Revenue growth over the last year was 16.1%, while earnings growth reached 51.5%, indicating that earnings are expanding at a rate more than three times faster than revenue. This disparity suggests that the bank is benefiting from operational leverage or margin expansion where the cost structure does not increase proportionally with sales, allowing net income to accelerate relative to top-line growth. As a dividend payer, the company offers a dividend yield of 2.3% with a payout ratio of 16.2%, a low payout ratio that indicates a highly sustainable dividend supported by strong earnings retention and the ability to grow dividends over time without jeopardizing financial stability. The low payout ratio further implies that the company reinvests the majority of its earnings back into the business, such as expanding loan portfolios or upgrading technology, rather than distributing them immediately to shareholders. Overall, the combination of double-digit revenue growth, explosive earnings growth, and a sustainable low payout ratio presents a profile of a bank that is expanding its profitability faster than its size while maintaining a reliable income stream for shareholders.