Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. It accepts various deposits, such as interest and non-interest bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). The company also offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, it provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, the company offers various other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and internet banking services. The company operates through 18 branches located in Harrison, Hancock, Jackson, and Stone counties. It also has 30 automated teller machines at its branch locations, as well as other off-site and non-proprietary locations. The company was founded in 1896 and is headquartered in Biloxi, Mississippi.
PFBX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PFBX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Peoples Financial Corp ranked in the 42th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for PFBX, they are:
As a business, PFBX is generating more cash flow than only 3.32% of positive cash flow stocks in the Financial Services.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than only 8.07% of the free cash flow producing stocks we're observing.
Peoples Financial Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.16. This coverage rate is greater than that of only 10.82% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PFBX, try FSAM, DFIN, LPLA, AMRK, and HMN.
Peoples Financial Corporation (OTCQX Best Market: PFBX), parent of The Peoples Bank, presented financial donations to ten local food pantries this week, supporting the needs of South Mississippi residents.
Peoples Financial Corporation (OTCQX Best Market: PFBX), parent of The Peoples Bank, announced earnings for the first quarter ending March 31, 2020. Additionally, the company declared a cash dividend of $0.02 per common share, payable May 8, 2020 to shareholders of record as of May 4, 2020.