Investment Thesis
PCB Bancorp exhibits critical operational stress with interest coverage of 0.7x, indicating inability to cover debt service from operations. ROE of 2.7% and ROA of 0.3% demonstrate severe asset underutilization, though significant data quality anomalies (implausible 1930% margins, revenue misreporting) limit confidence in the broader analysis.
Strengths
- Capital structure intact with $396.7M stockholders equity and zero long-term debt
- Positive operating cash flow of $20.7M provides cash generation despite profitability questions
- Net income growth of 47.8% YoY suggests recovery from depressed prior-year performance
Risks
- Interest coverage of 0.7x is unsustainable—operating income cannot cover interest obligations, indicating severe debt servicing stress
- ROE of 2.7% represents massive shareholder value destruction versus 8-12% industry standard for healthy community banks
- Critical data quality issues (1930% operating margin, 772K revenue for $3.4B bank) suggest fundamental reporting errors or accounting irregularities requiring immediate clarification
- ROA of 0.3% is critically low, indicating $3.4B asset base is not generating acceptable returns
Key Metrics to Watch
- Interest coverage ratio (must exceed 1.5x to indicate sustainability)
- Return on Equity (target 8%+ for viability)
- Net interest margin and verified revenue composition (resolve reporting anomalies)
Financial Metrics
Revenue
772.0K
Net Income
10.7M
EPS (Diluted)
$0.74
Free Cash Flow
20.6M
Total Assets
3.4B
Cash
267.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
1,930.4%
Net Margin
1,379.9%
ROE
2.7%
ROA
0.3%
FCF Margin
2,674.6%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
88.3%
Interest Coverage
0.66x
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: 2026-05-08T06:38:18.453823 |
Data as of: 2026-03-31 |
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