TOWN Stock Analysis: Towne Bank | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 3.306m USD | 12M Return: 6.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 22.1M
EPS Trend: 68.4%
Qual. Beats: 0
Rev. Trend: 96.3%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
TowneBank is a regional U.S. bank holding company that delivers retail and commercial banking services through four operating segments: Banking, Mortgage, Resort Vacation Management, and Insurance. Its deposit franchise spans checking, savings, money market, certificates of deposit, and retirement accounts, supported by treasury management, safe deposit boxes, and digital banking channels. On the lending side, the company offers consumer loans (auto, home improvement, education) alongside commercial products such as working capital, equipment financing, commercial mortgages, and real estate acquisition, development, and construction loans.
In addition to core banking, TowneBank provides mortgage origination, property and casualty/life/health insurance, and a differentiated resort vacation management business. It also operates as a qualified intermediary for tax-deferred exchanges and offers financial, retirement, and estate planning along with brokerage-related investment services. The company is headquartered in Portsmouth, Virginia, and trades on NASDAQ as a mid-cap stock within the regional banks sub-industry of the financials sector, reflecting its community-bank model with diversified non-interest-income businesses.
- Net interest margin compresses as deposit costs outpace loan repricing
- Commercial real estate loan portfolio faces office sector headwinds
- Mortgage origination volume slows amid sustained higher rate environment
| Net Income: 159.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.36 > 1.0 |
| NWC/Revenue: -1.24k% < 20% (prev -1.28k%; Δ 44.53% < -1%) |
| CFO/TA 0.01 > 3% & CFO 180.0m > Net Income 159.4m |
| Net Debt (417.0m) to EBITDA (245.5m): 1.70 < 3 |
| Current Ratio: 0.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (90.8m) vs 12m ago 20.19% < -2% |
| Gross Margin: 71.05% > 18% (prev 69.07%; Δ 1.98% > 0.5%) |
| Asset Turnover: 5.42% > 50% (prev 5.91%; Δ -0.49% > 0%) |
| Interest Coverage Ratio: 0.69 > 6 (EBIT TTM 200.7m / Interest Expense TTM 291.0m) |
| A: -0.60 (Total Current Assets 95.5m - Total Current Liabilities 13.5b) / Total Assets 22.4b |
| B: 0.05 (Retained Earnings 1.10b / Total Assets 22.4b) |
| C: 0.01 (EBIT TTM 200.7m / Avg Total Assets 19.9b) |
| D: 0.15 (Book Value of Equity 2.95b / Total Liabilities 19.4b) |
| Altman-Z'' = -3.54 = D |
As of July 08, 2026, the stock is trading at USD 36.06 with a total of 549,845 shares traded. Over the past week, the price has changed by -0.55%, over one month by +6.57%, over three months by +8.89% and over the past year by +6.65%.
Current recommended Stop Loss: 35.10 (which is 2.7% or 1.4 ATR below the current price).
Towne Bank has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy TOWN.
- StrongBuy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 39.3 | 8.8% |
P/E Trailing = 17.4087
P/E Forward = 12.5471
P/S = 3.7937
P/B = 1.1511
Revenue TTM = 1.08b USD
EBIT TTM = 200.7m USD
EBITDA TTM = 245.5m USD
Long Term Debt = 481.5m USD (from longTermDebt, last quarter)
Short Term Debt = 31.0m USD (from shortTermDebt, last quarter)
Debt = 512.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 417.0m USD (calculated: Debt 512.5m - CCE 95.5m)
Enterprise Value = 3.72b USD (3.31b + Debt 512.5m - CCE 95.5m)
Interest Coverage Ratio = 0.69 (Ebit TTM 200.7m / Interest Expense TTM 291.0m)
EV/FCF = 29.11x (Enterprise Value 3.72b / FCF TTM 127.9m)
FCF Yield = 3.44% (FCF TTM 127.9m / Enterprise Value 3.72b)
FCF Margin = 11.84% (FCF TTM 127.9m / Revenue TTM 1.08b)
Net Margin = 14.75% (Net Income TTM 159.4m / Revenue TTM 1.08b)
Gross Margin = 71.05% ((Revenue TTM 1.08b - Cost of Revenue TTM 312.8m) / Revenue TTM)
Gross Margin QoQ = 70.14% (prev 71.96%)
Tobins Q-Ratio = 0.17 (Enterprise Value 3.72b / Total Assets 22.4b)
Interest Expense / Debt = 56.78% (Interest Expense 291.0m / Debt 512.5m)
Taxrate = 20.03% (40.2m / 200.7m)
NOPAT = 160.5m (EBIT 200.7m * (1 - 20.03%))
Current Ratio = 0.01 (Total Current Assets 95.5m / Total Current Liabilities 13.5b)
Debt / Equity = 0.17 (Debt 512.5m / totalStockholderEquity, last quarter 2.95b)
Debt / EBITDA = 1.70 (Net Debt 417.0m / EBITDA 245.5m)
Debt / FCF = 3.26 (Net Debt 417.0m / FCF TTM 127.9m)
Total Stockholder Equity = 2.50b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.80% (Net Income 159.4m / Total Assets 22.4b)
RoE = 6.38% (Net Income TTM 159.4m / Total Stockholder Equity 2.50b)
RoCE = 6.73% (EBIT 200.7m / Capital Employed (Equity 2.50b + L.T.Debt 481.5m))
RoIC = 0.72% (NOPAT 160.5m / Invested Capital 22.3b)
WACC = 6.96% (E(3.31b)/V(3.82b) * Re(8.04%) + (debt cost/tax rate unavailable))
Discount Rate = 8.04% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 8.99%
[DCF] Terminal Value 73.10% ; FCFF base≈142.2m ; Y1≈124.7m ; Y5≈100.7m
[DCF] Fair Price = 13.14 (EV 1.62b - Net Debt 417.0m = Equity 1.20b / Shares 91.3m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 68.39 | EPS CAGR: 12.18% | SUE: -0.36 | # QB: 0
Revenue Correlation: 96.31 | Revenue CAGR: 8.21% | SUE: 0.08 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.79 | Chg30d=-0.63% | Revisions=-50% | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.82 | Chg30d=-0.30% | Revisions=-50% | Analysts=4
EPS current Year (2026-12-31): EPS=3.17 | Chg30d=-0.24% | Revisions=-57% | GrowthEPS=+5.0% | GrowthRev=+26.9%
EPS next Year (2027-12-31): EPS=3.48 | Chg30d=+0.00% | Revisions=-50% | GrowthEPS=+9.9% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: -81% (up=0, down=13)