Company Overview
Ohio Valley Banc Corp. functions as a bank holding company that oversees The Ohio Valley Bank Company, providing a comprehensive suite of commercial and retail banking products and services to its customer base. Within the financial services sector, specifically the banks - regional industry, the entity manages various deposit products such as checking, savings, time, and money market accounts, alongside individual retirement accounts. The company operates with a market capitalization of $198.85M, generating annual revenue of $63.66M while employing a workforce of 269 individuals. These valuation and revenue figures indicate that Ohio Valley Banc Corp. maintains a moderate scale typical of regional banking institutions, positioning it as a specialized player focused on localized financial needs rather than a national or global conglomerate.
Financial Health
The company reports a trailing twelve-month revenue of $63.66M and a corresponding net income of $15.60M, while EBITDA data is not available for this reporting period. The substantial gap between the $63.66M in revenue and the $15.60M in net income reveals a cost structure where operating expenses and provisions for loan losses consume a significant portion of top-line earnings before reaching the bottom line. Although free cash flow figures are not disclosed, the reported cash balance stands at $16.39M, suggesting the company holds liquid assets to meet immediate obligations despite the lack of explicit free cash flow transparency. Margin analysis shows a gross margin of 0.0%, which is standard for banking services where revenue is recognized net of interest expenses, an operating margin of 32.5%, and a profit margin of 24.5%. The high operating and profit margins indicate effective cost management and pricing power relative to the costs of funds and operational overheads. When comparing total cash of $16.39M against total debt of $55.02M, the balance sheet appears leveraged, a common characteristic for banks utilizing debt to fund lending operations, though the debt-to-equity ratio is not provided for specific comparison. The current ratio is not available, which limits the ability to quantify short-term liquidity relative to current liabilities using this specific metric. Return on equity stands at 9.7% and return on assets at 1.0%, metrics that reveal management effectiveness in generating shareholder returns relative to equity invested and utilizing the total asset base to produce profit.
Valuation Assessment
The trailing twelve-month P/E ratio is 12.75, while the forward P/E is not available, implying that analysts may not have a consensus on future earnings growth or that the data required to project forward multiples is currently insufficient. The price-to-book ratio is 1.17, indicating that the market values the company slightly above its tangible book value, suggesting a modest premium over the net assets of the institution. Alternative valuation metrics include a price-to-sales ratio of 3.12, while the EV/EBITDA multiple is not available, offering a view of valuation based on sales generation rather than earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week high of $44.80 and a 52-week low of $25.75, providing a historical range within which the current trading price can be contextualized against recent volatility. The beta value is -0.04, a highly unusual negative figure that suggests the stock price moves inversely to the broader market or possesses negligible correlation to general market trends, significantly differing from the standard positive beta expected in financial equities.
Growth & Income
Year-over-year revenue growth has contracted by -3.4%, whereas earnings growth has surged by 57.3%, indicating that earnings are growing significantly faster than revenue, likely due to cost reductions, improved efficiency, or a change in the composition of the loan portfolio. The company offers a dividend yield of 2.2% with a payout ratio of 27.5%, and this relatively low payout ratio suggests that the dividend is sustainable given the robust earnings growth and the company's ability to retain most of its profits for reinvestment. The data does not explicitly confirm non-dividend payer status, but rather presents a payer profile where the company retains the majority of earnings rather than distributing them entirely. Overall, the growth and income profile reflects a company experiencing a sharp decoupling of earnings from revenue alongside a consistent, albeit conservative, approach to dividend distribution.