NBN

Northeast Bank

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/05/26

Business Summary

Northeast Bank operates as a regional banking institution generating revenue primarily through net interest income—borrowing at lower rates and lending at higher spreads—alongside fee-based services. Its moat is localized relationship banking, underwriting expertise in niche lending markets, and the ability to deploy capital at high incremental returns, as evidenced by a 21.60% ROIC. The bank converts deposits into earning assets and relies on disciplined credit selection to protect spreads and maintain its 16.30% operating margin. The durability of the franchise depends less on brand and more on credit discipline, funding stability, and balance sheet management across economic cycles.

 


Analyze NBN on TradingView

VALUATION

P/E

12

Market Cap ($M USD)

$1,060

Forward P/E

8.9

PEG

0.4

PRICE TO SALES

5

PRICE TO BOOK

2

EV / EBITDA

-

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

0.00%

Annual Payout

$0.04

Payout Ratio

0.40%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

0.00%

Financial Health & Profitability

Earnings Per Share

$10.57

Next Year EPS Growth Estimate

$13.90

Next Year Revenue Growth Estimate

18.80%

Return on Equity (ROE)

16.30%

FREE CASH FLOW

Operating Margin

65.00%

Debt-to-Equity

1

Piotroski F-Score

2

Altman Z-Score

0.4

Return on Invested Capital (ROIC)

21.60%

Current Ratio

-

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Analyze NBN on TradingView

Gainseekers Quantitative Analysis

Summary

At 12x earnings and just 8.9x forward earnings, the market is pricing Northeast Bank like a no-growth regional lender despite a 0.4 forward PEG that implies significant earnings acceleration relative to valuation. A 21.60% ROIC and 18.80% ROE suggest the core franchise is highly profitable, yet the Altman Z-Score of 0.4 is a flashing red light indicating severe balance sheet fragility. This is a classic deep value setup where the income statement looks compelling but the balance sheet risk could overwhelm equity holders if conditions tighten. The valuation signals upside, but the Z-Score suggests this is not a “safe” compounder—it’s a leveraged bet on stability holding.

AI Exposure / Tech Reliance

As a regional bank in the Financial Services sector, its adaptability to AI is primarily operational rather than disruptive, focusing on underwriting analytics, fraud detection, and cost efficiencies. Banks that successfully integrate automation into credit risk and compliance can expand operating margins beyond the current 16.30%. The competitive edge will not come from inventing AI products, but from using technology to lower marginal costs and improve loan performance.

The Bull Case

A GARP or deep value investor buys this because the profitability metrics are elite relative to valuation. A 21.60% ROIC against a 12x P/E and 8.9x forward P/E is a mismatch that suggests the market is underpricing capital efficiency. Return on Equity at 18.80% combined with a 16.30% operating margin shows a bank that knows how to extract spread income effectively. If the $10.57 EPS estimate materializes and sales growth next year hits 13.90, the 0.4 PEG ratio implies substantial earnings growth relative to price. On pure capital productivity metrics, this screens as statistically cheap.

The Bear Case

The red flags are severe and cannot be ignored. A Debt/Equity ratio of 65.00% combined with an Altman Z-Score of 0.4 signals structural balance sheet stress that could become existential in a credit downturn. The Piotroski F-Score of 2 indicates weak fundamental momentum and deteriorating financial quality. Institutional Ownership listed at $126.50 and a Mean Consensus Target Price of 2 suggest either data inconsistencies or lack of credible market sponsorship, and a Short % of Float at 0.00% implies either complacency or illiquidity rather than conviction. This is a leveraged financial institution with fragile financial health metrics masked by attractive surface-level valuation ratios.

Market Sentiment & Smart Money

Short Interest %

5.60%

Analyst Consensus

2

Average Analyst Price Target

$126.50

Institutional Ownership %

69.30%

1-Year Beta

1.1

Insider Buying % (6 Mo)

13.30%%

Distance to 52-Week High

98.10%

Distance to 52-Week Low

156.70%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.