PATRIOT NATIONAL BANCORP INC (PNBK) Stock Analysis
PATRIOT NATIONAL BANCORP INC
▾ What's in the 68/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend, DCF applicability). See the Financial Health section for the full balance-sheet read.
How to read PNBK (bank / insurer)
Banks and insurers are valued on what they earn on their capital, not on free cash flow — a normal DCF misleads here.
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Bank / Insurance lens (P/TBV + ROE) ↓
Price-to-tangible-book versus return-on-equity is how analysts actually judge a bank cheap or rich.
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Financial-health screens ↓
Watch the trend in profitability and asset quality, not the (not-applicable) bankruptcy score.
Is now a good time to buy PNBK?
Macro: Neutral / mid-cyclePNBK trades at $0.98 vs an estimated intrinsic value of $0.58 — a +69.6% premium to model IV.
Not investment advice. The model can be wrong. Verify the assumptions in the sections below and consider consulting a licensed advisor for significant decisions.
What return would PNBK pay as a bond?
Not measurable here. Banks and insurers have no owner-earnings coupon in the operating sense — their deposits and float are the business. The bank lens (book value + return on equity) is the comparable read. See the cross-company ranking →
Riskier than 92% of the stocks we cover
A model trained on every US filing since 2012 — including the 823 companies that went bankrupt or stopped trading under a dollar — ranks each covered stock by its chance of failing in the next year. This is a position among peers, not a prediction about this company alone. Below is what happened to stocks that sat in the same position in past years.
▾ Every band, and what happened to the stocks in it
| Rank band | went bankrupt within 12 months | fell 80% or more (or failed) within 12 months | fell 50% or more (or failed) within 6 months |
|---|---|---|---|
| All covered stocks (average) | 0.59% | 4.21% | 8.51% |
| Finance (sector average) | 0.13% | 1.25% | 3.09% |
| riskiest 1% | 16.4% of 1,749 | 33.0% of 1,998 | 45.5% of 2,239 |
| next 2% (97-99) | 5.9% of 3,360 | 24.9% of 3,985 | 38.2% of 4,461 |
| next 2% (95-97) | 3.4% of 3,409 | 21.2% of 3,984 | 33.8% of 4,462 |
| next 5% (90-95) ← this stock | 1.6% of 8,443 | 15.1% of 9,965 | 27.3% of 11,155 |
| next 15% (75-90) | 0.8% of 25,328 | 8.5% of 29,884 | 17.8% of 33,459 |
| next 25% (50-75) | 0.2% of 36,310 | 2.7% of 49,810 | 6.2% of 55,771 |
| safest half | <0.1% of 92,256 | 0.5% of 99,617 | 2.1% of 111,538 |
Counts are stock-quarters 2012–2025, scored each year by a model that had not seen that year. The rank is recomputed from each company's latest filing (this one: 2026-05-18); table generated 2026-09-17. Calibrated one-year odds for this stock alone: bankruptcy 1.2%, 80%+ fall 7.9%, 50%+ fall in six months 11.6% — treat these as rougher than the band counts; the model overstates the middle of the range.
What this is not. It is not a trade. We tested shorting these names and buying puts on them at real option prices (2010–2025): every version lost money, because the market already prices the distress and the survivors squeeze. A high rank is a reason to read the filings and to size a position for the chance of a total loss — not a reason to bet against the company. A low rank says the balance sheet and the market are calm; it says nothing about whether the price is sensible.
Football field: where does the price sit?
Different valuation methods produce different fair-value ranges depending on assumptions. Plotting them together lets you see at a glance whether the current price is reasonable across approaches, or only one specific lens.
Industry multiples sourced from: industry: Banks. See the Peer Basket section below for the peer comparison and its limited-comparables caveat.
How does PNBK stack up against its closest peers?
We take the 8 same-industry companies most similar to PNBK (similar size) and check what investors are paying for each dollar of their revenue (or profits). If PNBK is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, FCF yield (in the table) is usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 8 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|
| UBCP | UNITED BANCORP INC /OH/ | Banks | $90M | — | 9.1% |
| SFBC | Sound Financial Bancorp, Inc. | Banks | $107M | — | 6.7% |
| UNB | UNION BANKSHARES INC | Banks | $108M | — | 10.3% |
| TCBS | Texas Community Bancshares, Inc. | Banks | $48M | — | 5.9% |
| WSBK | Winchester Bancorp, Inc./MD/ | Banks | $121M | — | — |
| SBFG | SB FINANCIAL GROUP, INC. | Banks | $136M | — | 10.1% |
| SRBK | SR Bancorp, Inc. | Banks | $152M | — | 3.2% |
| VABK | Virginia National Bankshares Corp | Banks | $258M | — | 7.5% |
How to value a bank (not a DCF question)
A bank's economic engine is the shareholder equity on its balance sheet — what the accountants say is left over after all loans, deposits, and liabilities are netted out. The bank earns a percentage on that equity each year (its ROE). So the two questions are: (1) what are you paying per dollar of equity (Price / Book)? and (2) how much is that equity actually earning (ROE)? Free cash flow doesn't work here — banks lend out their cash for a living.
Why it matters: For banks and insurers, book value is the regulatory capital they earn returns on. P/B is the cleanest comparison: 1.0× means buying the bank at the same price the accountants say it's worth.
Reference: 0.8–1.2× = fair for average bank · 1.5–2.0× = solid franchise · >2.5× = premium · <0.8× = potentially cheap or distress
Full explanation →
Below $1 = you're paying less than the equity is "worth" on paper.
Why it matters: For a bank, ROE is the engine. A bank earning 15% on equity will compound book value at ~15%/year if it retains earnings. Combined with P/B, ROE tells you whether a premium price is supported by returns.
Reference: <8% = weak · 10–12% = solid · 15%+ = excellent · >20% sustained = exceptional franchise
Full explanation →
Why it matters: For banks especially, ROA isolates underwriting and operating efficiency from leverage. Two banks with identical ROE may have very different ROAs — one earning it cleanly, one earning it on borrowed money.
Reference: <0.8% = weak · 1.0–1.2% = solid · >1.5% = excellent (very rare for big banks)
Full explanation →
ROA differs from ROE because banks borrow ~10× their equity. Big asset base, smaller equity sliver.
Note: this lens skips Altman Z-Score and Piotroski F-Score (validated on industrial companies, not banks). For deeper bank-specific health analysis: check the 10-K's Tier 1 capital ratio, Non-Performing Loan ratio, and CET1 — these are what regulators actually monitor.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Altman Z was calibrated on industrial firms and doesn't apply to banks or insurers — their balance sheets are dominated by loans/securities, not working capital. See the Bank Valuation Lens above for P/B, ROE and ROA — the metrics regulators and analysts actually use to assess bank solvency.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
Piotroski F was built for non-financial firms (gross margin, asset turnover, current ratio all assume an industrial cost structure). For banks, the equivalent quality signals are efficiency ratio, net interest margin, and provision coverage — see the Bank Valuation Lens above.
Plain English: the company holds about $207M in cash and is burning roughly $14M/year in operations. At that pace, the cash lasts 14.6 yrs before it must raise capital (diluting shareholders), take on debt, or cut spending.
Assumes constant burn and ignores financing/asset sales. For pre-profit biotech and growth companies, this matters more than a DCF — a great drug pipeline is worthless if they run out of money before approval.
PNBK is deeply overvalued, trading at a premium of +93.8% to the model's intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation →. The market appears to be paying up for the company's recent reduction in long-term debt, despite its negative net income and operating cash flow. The number one quantifiable risk is the negative latest operating cash flow of $-0.1655 per share.
As of 3 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Return to positive net income in upcoming quarters
- Positive operating cash flow trend
- Further reduction in non-performing assets
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Still unprofitable at -$12.7M — loss narrowing.
- Free cash flow is negative at -$19.6M — the cash burn widened vs last year.
Management & Leadership
Patriot National Bancorp Inc. is led by its President and CEO, Richard A. J. Pinto, Jr., who has been with the company for several years. The executive team focuses on community banking services within its operational footprint.
What They Make
Patriot National Bancorp Inc. operates as a bank holding company, providing a range of commercial and retail banking services to individuals and businesses.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
The market prices PNBK at a premium of +93.8% to its intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation →, likely due to the significant reduction in long-term debt from $121M to $16M. This deleveraging may be perceived by investors as a positive step towards financial stability, despite the company's negative net income and operating cash flow in the latest period, which are weak health signals.
Three Scenarios, Weighted
| Scenario | IV | Upside from today's price | Weight |
|---|---|---|---|
| Conservative | $0.57 | -41.9% | 40% |
| Base | $0.58 | -41.0% | 35% |
| Optimistic | $0.58 | -41.0% | 25% |
| Weighted | $0.58 | -41.0% | 100% |
Reading the last column: it is the move from today's price to each value (IV ÷ price − 1). The headline "premium/discount to model IV" measures the same gap from the value's side (price ÷ IV − 1), so the two percentages differ in size and sign by construction — e.g. a price 8% above value is a value 7.4% below price.
Business Model & Valuation
How They Make Money
The company funds itself primarily through deposits and has reduced its long-term debt from $121M to $16M, indicating a focus on balance sheet improvement rather than dividends or buybacks.
Residual Income High
Balance-sheet financial (Banks): residual income model - book value is meaningful anchor.
Show advanced inputs
| Sector Default | 8.0% |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project net interest income and fee-income lines independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Net income has been negative in the latest period, being profitable only 2 out of the last 5 years.
Geography & Markets
Patriot National Bancorp Inc. primarily operates in the United States, focusing on local communities within its branch network. Specific geographic mix percentages are not available from current data sources.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)47.6NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BullishLine above signalThe fast trend is above the slow trend — short-term momentum is currently upward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (3 notes — click to expand/collapse)
Guardrail Notes (3)
- Financial sector: using residual income model. IV = Book Value + PV(excess earnings).
- Terminal growth (3%) capped to 1.6% (80% of near-term growth 2%).
- Illiquidity discount 15% applied (small/micro-cap — harder to exit, demand a margin).
FINANCIALS
Financial Statements (5-year tables — click to expand)
From PATRIOT NATIONAL BANCORP INC's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | — | -12.7M | $-0.17 |
| 2024 | — | -39.9M | $-10.03 |
| 2023 | — | -4.2M | $-1.05 |
| 2022 | — | 6.2M | $1.55 |
| 2021 | — | 5.1M | $1.29 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | -14.2M | 172,000 | 5.2M | -19.6M |
| 2024 | 2.7M | 55,000 | 184,000 | 2.4M |
| 2023 | -10.7M | 412,000 | 105,000 | -11.2M |
| 2022 | 7.0M | 414,000 | 86,000 | 6.5M |
| 2021 | 7.6M | 430,000 | 150,000 | 7.0M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: -14.2M − 172,000 − 5.2M (SBC & adj.) = -19.6M. This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a EPS basis (residual-income model), not this single year.
Balance Sheet
| Total Assets | 1.1B |
| Total Liabilities | 993.2M |
| Equity | 94.7M |
| Total Debt | 16.4M |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.