Investment Thesis
Greene County Bancorp demonstrates exceptional profitability with 30.4% net margins and strong 25.7% net income growth, supported by substantial revenue expansion of 95.8% YoY. However, the 0.9% ROA indicates efficiency challenges typical of asset-heavy banking models, and the interest coverage ratio of 0.9x warrants investigation into underlying earnings quality.
Strengths
- Exceptional net margin of 30.4% and operating margin of 34.7% indicates strong cost control and pricing power
- Strong earnings growth with 25.7% net income increase and 26.2% EPS growth YoY
- Conservative balance sheet with zero debt, $267.6M equity, and $139.4M cash position provides financial flexibility
Risks
- ROA of 0.9% is below typical bank benchmarks (1.0-1.5%), indicating suboptimal asset efficiency
- Interest coverage of 0.9x suggests net income may be insufficient relative to interest obligations, signaling earnings quality concerns
- Unexplained 95.8% revenue growth may reflect acquisitions, one-time gains, or accounting changes rather than organic improvement
Key Metrics to Watch
- Return on Assets trend - critical indicator of banking operational efficiency
- Interest coverage ratio drivers and sustainability of current earnings relative to obligations
- Organic revenue growth rate and contribution from M&A activity
Financial Metrics
Revenue
97.7M
Net Income
29.7M
EPS (Diluted)
$1.74
Free Cash Flow
23.4M
Total Assets
3.2B
Cash
139.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
34.7%
Net Margin
30.4%
ROE
11.1%
ROA
0.9%
FCF Margin
24.0%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
91.6%
Interest Coverage
0.89x
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: 2026-05-09T07:12:10.880033 |
Data as of: 2026-03-31 |
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