Investment Thesis
Civista Bancshares faces severe financial distress with an interest coverage ratio of 0.4x, indicating inability to cover interest expenses from operating income. Combined with a catastrophic 91% revenue decline and returns on assets of only 0.3%, the company's fundamental viability is critically compromised. The extremely low ROE of 2.7% reflects severe value destruction for shareholders.
Strengths
- Zero long-term debt listed on balance sheet
- Positive free cash flow of 11.0M despite headwinds
- Diluted EPS increased 31.3% year-over-year through apparent share repurchases
Risks
- Interest coverage of 0.4x - cannot cover interest expenses from operating income, indicating insolvency risk
- Revenue collapsed 91% year-over-year - signals severe loss of business or accounting restatement
- ROA of 0.3% and ROE of 2.7% are critically low for a bank, indicating severe profitability deterioration
- Data quality issues suggest unreliable reporting (operating margin 374%, net margin 311.3%)
Key Metrics to Watch
- Interest coverage ratio - currently unsustainable at 0.4x
- Net interest margin trends and loan loss provisions
- Asset quality indicators (NPL ratio, charge-offs)
- Deposit stability and funding composition
Financial Metrics
Revenue
4.8M
Net Income
15.0M
EPS (Diluted)
$0.72
Free Cash Flow
11.0M
Total Assets
4.3B
Cash
83.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
374.0%
Net Margin
311.3%
ROE
2.7%
ROA
0.3%
FCF Margin
228.9%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
87.2%
Interest Coverage
0.40x
Long-term Debt
N/A
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: 2026-05-09T06:25:05.119225 |
Data as of: 2026-03-31 |
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