Company Overview
Oak Valley Bancorp functions as the bank holding company for Oak Valley Community Bank, which delivers a comprehensive suite of commercial banking services tailored to individuals and small to medium-sized businesses within the Central Valley and the Eastern Sierras regions. The company operates within the Financial Services sector, specifically classified under the Banks - Regional industry, positioning it as a community-focused financial institution rather than a large-scale national entity. The scale of the organization is reflected in a market capitalization of $267.63M, an annual revenue of $80.92M, and a workforce comprising 217 employees. These valuation and revenue figures indicate that Oak Valley Bancorp maintains a modest but stable footprint, serving a localized market without the massive scale of a national bank, yet it sustains profitability sufficient to support its operations and capital structure.
Financial Health
The company reported revenue of $80.92M and net income of $23.91M for the trailing twelve months, while EBITDA data is not disclosed in the available records. The substantial gap between the total revenue figure and the net income reveals a cost structure heavily influenced by the nature of banking operations, where gross margins are typically negligible or zero, meaning operating expenses such as personnel and overhead are the primary drivers of profitability rather than the cost of goods sold. Free cash flow figures are not available in the provided data, which limits the ability to assess immediate cash generation flexibility through that specific lens, though the presence of $56.19M in cash on hand suggests significant liquidity reserves. The company reports a gross margin of 0.0%, an operating margin of 41.3%, and a profit margin of 29.5%, illustrating that while the bank does not generate revenue from trading or selling goods, its core lending and deposit operations yield high efficiency after covering operating costs. The balance sheet demonstrates a conservative posture with $56.19M in cash compared to only $7.62M in debt, indicating a highly leveraged asset side relative to liabilities but with ample liquidity to meet obligations. Although the debt-to-equity ratio and current ratio are listed as N/A and thus omitted from the analysis, the absolute debt level remains low relative to the cash position. Return on equity stands at 12.2% and return on assets at 1.2%, metrics that collectively reveal management's effectiveness in generating returns from shareholder capital and utilizing the institution's total asset base to produce earnings.
Valuation Assessment
The trailing twelve-month P/E ratio is 11.05, whereas the forward P/E ratio is not available in the current data set, implying that analysts may not have a consensus on the immediate earnings trajectory or that the forward earnings estimate is not yet established for this stock. The price-to-book ratio is 1.26, indicating that the market values the company at a slight premium over its tangible book value, which is typical for regional banks with stable asset quality. The price-to-sales ratio is 3.31, and the EV/EBITDA metric is N/A; these alternative valuation metrics suggest that investors are pricing the stock based on revenue generation and earnings power relative to sales rather than enterprise value multiples often used in industrial sectors. The 52-week high is $34.16 and the 52-week low is $22.70, providing a clear range of volatility over the past year. Without a specific current share price provided in the facts to calculate the exact percentage, the stock's position relative to this range remains within the established historical bounds observed over the last year. The beta is 0.23, a figure that signifies the stock exhibits significantly lower price volatility relative to the broader market, making it behave more like a defensive asset during periods of market fluctuation.
Growth & Income
Revenue growth for the year over year is 5.9%, while earnings growth is 5.5%, indicating that earnings are growing at a rate nearly identical to revenue, which implies that the company is maintaining its profit margins without significant cost pressures or efficiency gains that would cause earnings to outpace sales. As a dividend payer, the company offers a dividend yield of 2.4% with a payout ratio of 20.8%, a level that is highly sustainable given the company's earnings generation, as retaining the majority of earnings provides ample capital for lending and reserve requirements. The low payout ratio further suggests that the company reinvests the bulk of its earnings into the business rather than distributing them entirely to shareholders. Overall, the growth and income profile presents a balanced picture of steady double-digit percentage returns on equity supported by consistent mid-single-digit growth in both revenue and earnings alongside a reliable dividend stream.