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Fundamental analysis: AmeriServ Financial, Inc. (ASRV)

Awarener score: 8.2

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

• Business has been shrinking. It's been below average when measured against peer companies.
• AmeriServ Financial, Inc. business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 9.0

• ASRV profit margins -on goods and services sold- are usually huge. They stand somewhat better than rival companies.
• Business profit on sales tends to be huge. It's great when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain in a very weak position compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still worse than most similar companies.
• Profits -before income taxes- are usually very good considering total sales, and remain last-in-rank when measured against rivals.
• Total net profit tends to be very good when confronted to sales. Company stands last-in-rank when measured against comparable firms.

Growth score: 2.6

• AmeriServ Financial, Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
• In recent years, earnings growth -on operations- have been almost stagnant, which has been mediocre against comparable firms.
• Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares weak when measured against peer enterprises.
• Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
• In past years, profits -before income taxes- tended to shrink. It was worse than most rivals.
• In the previous years, growth on total net profit has been negative, and substantially worse when measured against peer companies.
• Earnings per share have been shrinking in the past years. It's been in a very weak position compared to industry peers.

Miscellaneous score: 7.0

• ASRV had hardly to pay income taxes in relation to profits made in the past years. It's been somewhat better than peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 5.8

• AmeriServ Financial, Inc. usually gets hardly sufficient returns on the resources it controls. It proves substantially worse when measured against peer firms.
• The company normally gets good proceeds -on the resources directly invested in the business-. They remain in a weak position compared to similar companies.
• There's usually some profitability -in relation to owned resources-. It ranks substantially worse when measured against competitors.
• In the past, got barely sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's substantially worse when measured against comparable enterprises.

Usage of Funds score: 8.0

• ASRV usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands substantially worse when measured against rival firms.
• The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is encouraging in relation to industry peers.
• In the past twelve months it paid very good dividends, considering the current stock price. It came somewhat better than competitors.
• Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved close to average when compared to similar firms.
• Dividend payments usually represent a non-significant portion of genuine funds generation and are likely very safe. Sustainability looks somewhat better than comparable companies.
• The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
• We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
• We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.2

• AmeriServ Financial, Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be almost average when measured against peer companies.
• The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
• Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly better than rival firms.
• Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks last-in-rank when measured against rivals.
• For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's a disappointment compared to peer firms.
• For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is bottom tier against similar enterprises.
• Usually, sales are on a month credit. It still ranks similar to peers.
• Days of inventory outstanding are not known. It comes up as a big question mark against competitors.
• We could not gauge the normal operating cycle of the company. It happens to be a mystery against peers.
• Unfortunately, we had not enough data to estimate the days of payables outstanding. It ranks unknown against industry peers.
• Cash conversion cycle remains unknown, due to not having enough inputs. It's incomparable against similar companies.
• Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
• Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
• Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks rather normal in relation to similar firms.
• Resources exploitation is virtually zero, as the firm hardly reports any sales. It's still better than most peer companies.

Valuation score: 8.5

• AmeriServ Financial, Inc. looks reasonable in relation to profits and financial position. It happens to be weak when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains impressive in relation to peers.
• In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands better than most similar companies.
• The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still great when measured against industry firms.
• In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up close to average when compared to peer ventures.
• The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks worse than most similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks similar to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks impressive in relation to rival firms.
• The stock price is significantly below the accounting book value. Unless profitability is extremely low, the stock may be selling at a large discount. Pay attention to the other key indicators for hints. The company remains top-notch against peer firms.
• In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be almost average when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still close to average when compared to peer companies.

Total score: 6.6

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Awarener score: 8.2

Conclusion

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