Peapack Gladstone Financial Corp

PGC

Commercial Banks, NEC

Mkt Cap

$384.2M

PE

9.82

Debt

$119.5M

Cash

$194.8M

EV

$308.8M

FCF

$46.45M

Market Cap

$384.2M

P/E Ratio

9.82

Debt

$119.5M

Cash

$194.8M

EV

$308.8M

FCF

$46.45M

Charts data: {"Earnings":[{"time":"2014-12-30","value":14890000},{"time":"2015-12-30","value":19972000},{"time":"2016-12-30","value":26477000},{"time":"2017-12-30","value":36497000},{"time":"2018-12-30","value":44170000},{"time":"2019-12-30","value":47434000},{"time":"2020-12-30","value":26192000},{"time":"2021-12-30","value":56622000},{"time":"2022-12-30","value":74246000},{"time":"2023-12-30","value":48854000}],"Sales":[{"time":"2014-12-30","value":88701000},{"time":"2015-12-30","value":108166000},{"time":"2016-12-30","value":125353000},{"time":"2017-12-30","value":145768000},{"time":"2018-12-30","value":159356000},{"time":"2019-12-30","value":174970000},{"time":"2020-12-30","value":189362000},{"time":"2021-12-30","value":210304000},{"time":"2022-12-30","value":242497000},{"time":"2023-12-30","value":229667000}],"Net Margins":[{"time":"2014-12-30","value":0.1678673295678741},{"time":"2015-12-30","value":0.18464212414252168},{"time":"2016-12-30","value":0.21121951608657152},{"time":"2017-12-30","value":0.2503773118928709},{"time":"2018-12-30","value":0.2771781420216371},{"time":"2019-12-30","value":0.271097902497571},{"time":"2020-12-30","value":0.1383170857933482},{"time":"2021-12-30","value":0.26923881618989653},{"time":"2022-12-30","value":0.3061728598704314},{"time":"2023-12-30","value":0.21271667239960465}],"Assets":[{"time":"2014-12-30","value":2702397000},{"time":"2015-12-30","value":3364659000},{"time":"2016-12-30","value":3878633000},{"time":"2017-12-30","value":4260547000},{"time":"2018-12-30","value":4617858000},{"time":"2019-12-30","value":5182879000},{"time":"2020-12-30","value":5890442000},{"time":"2021-12-30","value":6077993000},{"time":"2022-12-30","value":6353593000},{"time":"2023-12-30","value":6476857000}],"Stockholders Equity":[{"time":"2014-12-30","value":242267000},{"time":"2015-12-30","value":275676000},{"time":"2016-12-30","value":324210000},{"time":"2017-12-30","value":403678000},{"time":"2018-12-30","value":469013000},{"time":"2019-12-30","value":503652000},{"time":"2020-12-30","value":527122000},{"time":"2021-12-30","value":546388000},{"time":"2022-12-30","value":532980000},{"time":"2023-12-30","value":583681000}],"ROE":[{"time":"2014-12-30","value":0.061461115215856885},{"time":"2015-12-30","value":0.07244736574819716},{"time":"2016-12-30","value":0.08166620400357792},{"time":"2017-12-30","value":0.09041116929830212},{"time":"2018-12-30","value":0.09417649404174298},{"time":"2019-12-30","value":0.09418010848760652},{"time":"2020-12-30","value":0.04968868686945337},{"time":"2021-12-30","value":0.10362965511687665},{"time":"2022-12-30","value":0.13930353859431874},{"time":"2023-12-30","value":0.08369982918751852}],"ROA":[{"time":"2014-12-30","value":0.01182912799266725},{"time":"2015-12-30","value":0.013918200923184193},{"time":"2016-12-30","value":0.016334105340721848},{"time":"2017-12-30","value":0.019221240840671398},{"time":"2018-12-30","value":0.022140784753450625},{"time":"2019-12-30","value":0.024410757032915488},{"time":"2020-12-30","value":0.011909293054748693},{"time":"2021-12-30","value":0.012777573123233278},{"time":"2022-12-30","value":0.016108050987842626},{"time":"2023-12-30","value":0.010387908826765822}]}

Peapack-Gladstone Financial Corporation operates as the bank holding company for Peapack-Gladstone Bank that provides private banking and wealth management services in the United States. The company operates in two segments, Banking and Peapack Private. It offers checking and savings accounts, money market and interest-bearing checking accounts, certificates of deposit, and individual retirement accounts. The company also provides working capital lines of credit, term loans for fixed asset acquisitions, commercial mortgages, multi-family mortgages, and other forms of asset-based financing services; and residential mortgages, home equity lines of credit, and other second mortgage loans. In addition, it offers corporate and industrial (C&I) and equipment finance, commercial real estate, multifamily, residential, and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; investment management services; personal trust services, including services as executor, trustee, administrator, custodian, and guardian; and other financial planning, tax preparation, and advisory services. Further, the company provides telephone and Internet banking, merchant credit card, and customer support sales services. Its private banking clients include businesses, non-profits, and consumers; and wealth management clients comprise individuals, families, foundations, endowments, trusts, and estates. The company operates its private banking locations in Bedminster, Morristown, Princeton, and Teaneck, New Jersey; and wealth management branches in Somerset, Morris, Hunterdon, and Union counties, as well as operates automated teller machines. Peapack-Gladstone Financial Corporation was founded in 1921 and is headquartered in Bedminster, New Jersey.

Sector

10-Q
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10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Peapack Gladstone Financial Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$46.45M	$52.17M	$58.17M	$64.38M	$70.74M	$77.14M	$83.51M	$89.72M	$95.66M	$101.2M	$106.3M	$1.063B
DCF		$45.37M	$43.98M	$42.33M	$40.44M	$38.35M	$36.1M	$33.73M	$31.27M	$28.77M	$26.27M	$262.7M
Value	$629.3M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 13%

Earnings Stability 70%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	18%	21%	25%	28%	27%	14%	27%	31%	21%	18%
ROA	1.4%	1.6%	1.9%	2.2%	2.4%	1.2%	1.3%	1.6%	1%	0.85%
ROE	7.2%	8.2%	9%	9.4%	9.4%	5%	10%	14%	8.4%	6.7%

What is the average Net Margin?

The average Net Margin over the past 5 years is +24.58%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.25%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +1.63%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.24%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +9.41%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.39%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	1.43	-	0.00	0.00	1.51	0.45	-	3.29	6.04	2.57
Debt Equity	0.15	-	0.00	0.00	0.25	0.03	-	0.71	0.69	0.21
MIN
Graham Stability	-	-	100%	100%	100%	61%	100%	100%	93%	61%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.57.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.09.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.61.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	9%	7.6%	6.6%	-5.3%	-2%
Net Income	9.1%	2%	23%	-34%	-3.1%
Stockholders Equity	8.8%	4.5%	3.5%	9.5%	-2.2%
FCF	7.7%	1.1%	26%	-42%	-1.9%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.58%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -2.04%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +2.04%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -3.11%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +4.47%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -2.18%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +1.12%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -1.9%.