Investment Thesis
Auburn National Bancorporation exhibits severely depressed profitability metrics with ROE of 2.4% and ROA of 0.2%, indicating poor capital efficiency for a bank entity. The dangerously low interest coverage ratio of 1.1x suggests minimal cushion to service obligations, offsetting the positive aspects of zero leverage and strong cash reserves.
Strengths
- Zero long-term debt and conservative balance sheet leverage (Debt/Equity: 0.00x)
- Strong liquidity position with 146.2M cash equivalents representing ~14.6% of total assets
- Net income growth of 13.4% YoY demonstrates year-over-year earnings improvement
Risks
- Extremely low interest coverage ratio of 1.1x indicates minimal buffer for adverse conditions or loan losses
- Weak profitability metrics with ROE of 2.4% and ROA of 0.2% far below banking industry standards
- Significant revenue decline of -98.5% YoY suggests underlying operational or business model challenges
- Operating cash flow of 2.5M relative to 1.0B asset base indicates poor cash generation efficiency
Key Metrics to Watch
- Interest coverage ratio trend and loan loss provisions relative to asset quality
- Return on Equity trajectory toward competitive banking industry benchmarks (>8-10%)
- Net interest margin sustainability and fee income diversification
Financial Metrics
Revenue
153.0K
Net Income
2.2M
EPS (Diluted)
$0.63
Free Cash Flow
1.1M
Total Assets
1.0B
Cash
146.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
1,830.7%
Net Margin
1,436.6%
ROE
2.4%
ROA
0.2%
FCF Margin
686.3%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
90.9%
Interest Coverage
1.07x
Long-term Debt
0.0
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-14T06:20:09.895150 |
Data as of: 2026-03-31 |
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