The Bancorp, Inc. Fundamental Analysis (NASDAQ: TBBK)
The Bancorp, Inc. (NASDAQ: TBBK) shows strong financial fundamentals with a PE ratio of 12.46, profit margin of 30.63%, and ROE of 32.32%. The company generates $0.8B in annual revenue with weak year-over-year growth of -2.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TBBK's fundamental strength across five key dimensions:
Efficiency Score
WeakTBBK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTBBK trades at attractive valuation levels.
Growth Score
ModerateTBBK shows steady but slowing expansion.
Financial Health Score
WeakTBBK carries high financial risk with limited liquidity.
Profitability Score
ExcellentTBBK achieves industry-leading margins.
Key Financial Metrics
Is TBBK Expensive or Cheap?
P/E Ratio
TBBK trades at 12.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TBBK's PEG of 0.88 indicates potential undervaluation.
Price to Book
The market values The Bancorp, Inc. at 3.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.93 times EBITDA. This is generally considered low.
How Well Does TBBK Make Money?
Net Profit Margin
For every $100 in sales, The Bancorp, Inc. keeps $30.63 as profit after all expenses.
Operating Margin
Core operations generate 40.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.32 in profit for every $100 of shareholder equity.
ROA
The Bancorp, Inc. generates $2.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Bancorp, Inc. produces operating cash flow of $167.39M, showing steady but balanced cash generation.
Free Cash Flow
The Bancorp, Inc. generates strong free cash flow of $164.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.95 in free cash annually.
FCF Yield
TBBK converts 5.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TBBK Stacks Against Its Sector Peers
| Metric | TBBK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.46 | 21.10 | Better (Cheaper) |
| ROE | 32.32% | 652.00% | Weak |
| Net Margin | 30.63% | -1585.00% (disorted) | Strong |
| Debt/Equity | 1.36 | 0.91 | Weak (High Leverage) |
| Current Ratio | 0.07 | 910.69 | Weak Liquidity |
| ROA | 2.52% | -574.00% (disorted) | Weak |
TBBK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Bancorp, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
193.51%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
257.84%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
175.74%
Industry Style: Value, Dividend, Cyclical
High Growth