TowneBank (TOWN)
Valuation Overview•Is TowneBank Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 52/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
TOWN demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. The company maintains healthy operational efficiency with a 19.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $255.1M | -1.6% | — | — | +11.8% | |
| EBITDA | $53.5M | — | -7.5% | — | — | |
| Net Income | $40.6M | +4.8% | -3.6% | — | +10.5% | |
| EPS (Diluted) | $0.51 | +2.8% | -5.3% | +1.9% | +6.1% | |
| Free Cash Flow | $102.3M | +161.0% | -16.5% | +20.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 71.6% | 69.6% | 79.4% | 82.5% |
| Operating Margin | 19.4% | 19.7% | 26.0% | 26.6% |
| Net Margin | 15.6% | 16.3% | 20.9% | 20.1% |
| FCF Margin | 19.6% | 13.8% | 31.6% | 28.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.74 | $0.74 | +0.0% | ||
| Q1'26 | $0.71 | $0.70 | -1.4% | ||
| Q4'25 | $0.76 | $0.83 | +9.1% | ||
| Q3'25 | $0.69 | $0.81 | +17.4% | ||
| Q2'25 | $0.61 | $0.68 | +11.5% | ||
| Q1'25 | $0.48 | $0.55 | +14.6% | ||
| Q4'24 | $0.56 | $0.58 | +3.6% | ||
| Q3'24 | $0.48 | $0.57 | +18.8% |
Total return is +11.3% (1Y), lagging the benchmark by -13.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +7.4% | -1.9% | — |
| 1Y | +11.3% | -13.7% | +5.4% |
| 3YCAGR | +16.0% | -3.8% | +15.3% |
| 5YCAGR | +6.2% | -7.1% | +18.5% |
| 10YCAGR | +7.2% | -6.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about TowneBank (TOWN) valuation, health, and returns.
TowneBank is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -31.1% downside from DCF intrinsic value of $23.92)
TowneBank has multiple valuation anchors: DCF Intrinsic Value: $23.92 | Peer Relative Fair Value: $31.75. A convergence of these signals offers higher conviction.
TowneBank displays fair financial health with a composite quality score of 52/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 6.0%.
TowneBank pays a 3.0% dividend yield, covered by a 47% payout ratio with 14 years of growth, supplemented by a 0.0% buyback yield.
TowneBank's current growth trajectory is Accelerating. The company achieved -1.6% 1Y revenue growth and +2.8% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 6 analysts, beating EPS expectations in 58% of recent quarters with a -2-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for TowneBank include: -14.9% 1-year max drawdown. Volatility risk is characterized by a beta of 0.65x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.