LCNB Story

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LCNB -- USA Stock  

USD 13.81  0.75  5.15%

As many investors are getting excited about financial services space, it is fair to go over LCNB Corporation. Why are we still confident in anticipation of a complete recovery. Is current the firm value sustainable? We will go over LCNB valuation drivers to give you a better outlook on taking a position in it.
Published over a month ago
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Is LCNB (NASDAQ:LCNB) valuation viable?
The company currently holds 39.56 M in liabilities with Debt to Equity (D/E) ratio of 8.14, indicating LCNB may have difficulties to generate enough cash to satisfy its financial obligations. Our investment recommendation tool can cross-verify current analyst consensus on LCNB Corporation and to analyze the company potential to grow for few more years.
We determine the current worth of LCNB Corporation using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of LCNB based exclusively on its fundamental and basic technical indicators. By analyzing LCNB's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of LCNB's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of LCNB. We calculate exposure to LCNB's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to LCNB's related companies.

LCNB Investment Alerts

LCNB investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring LCNB Corporation performance across your portfolios.Please check all investment alerts for LCNB

LCNB Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare LCNB value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across LCNB competition to find correlations between indicators driving the intrinsic value of LCNB.

How LCNB utilizes its cash?

To perform a cash flow analysis of LCNB, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash LCNB is receiving and how much cash it distributes out in a given period. The LCNB cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. LCNB Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 21.97 Million

Purchase by Mary Bradford of 1800 shares of LCNB

Legal trades by LCNB insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
LCNB insider trading alert for perchase of lcnb corp common stock by Mary Bradford, the corporate stakeholder, on 17th of August 2020. This event was filed by Lcnb Corp with SEC on 2020-08-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down LCNB Indicators

LCNB reported the previous year's revenue of 67.89 M. Net Income was 19.61 M with profit before overhead, payroll, taxes, and interest of 66.55 M.
 2017 2018 2019 2020 (projected)
Cash and Equivalents25.39 M21.04 M20.77 M20.83 M
Total Assets1.3 B1.64 B1.64 B1.51 B

Margins Breakdown

LCNB profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or LCNB itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of LCNB profit margins.
0.3
Profit Margin
0.38
EBITDA Margin
EBITDA Margin0.38
Gross Margin0.89
Profit Margin0.3


LCNB Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The previous year's value of LCNB Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 23,910,474. LCNB Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment. Furthermore, LCNB Average Assets is increasing over the last 8 years. The previous year's value of LCNB Average Assets was 1,504,812,566. LCNB Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. LCNB Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment. Furthermore, LCNB Average Assets is increasing over the last 8 years. The previous year's value of LCNB Average Assets was 1,504,812,566.

Will LCNB growth be trustworthy after the build-up?

The jensen alpha is down to -0.39 as of today. LCNB Corporation exhibits very low volatility with skewness of 0.33 and kurtosis of -0.04. However, we advise investors to further study LCNB Corporation technical indicators to make sure all market info is available and is reliable.

The Bottom Line

Whereas some other companies in the banks?regional industry are either recovering or due for a correction, LCNB may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 1st of August 2020, our primary 30 days Buy-Hold-Sell recommendation on the company is Cautious Hold. We believe LCNB is currently undervalued with below average probability of bankruptcy for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of LCNB Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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