Important note

This AI stock analysis for Bank7 is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Bank7 - AI Stock Analysis

Analysis generated October 10, 2024

Bank7 Corp. (NASDAQ: BSVN) is a full-service commercial bank operating in the United States. The company focuses on providing a broad array of financial services to individuals and businesses. Headquartered in Oklahoma City, Bank7 operates across various sectors, making it a significant regional player. Their continued growth in revenue and net income indicates a positive performance trend.

Fundamental Analysis

When evaluating Bank7's financial health, their revenue for the latest quarter stands at $27 million, which is an increase of 3.05% from the previous quarter and an impressive 17.92% up from the same period last year. Such revenue growth is an excellent sign of the company's increasing financial strength and capacity to generate more income.

The net income for the last quarter was reported at $12 million, an increase of 2.09% compared to the previous quarter, and an 18.24% rise year-over-year. Growth in net income suggests operational efficiency and profit maximization, which is crucial for investor confidence.

Bank7's EBITDA for the last quarter was $340,000. While this figure reflects a 12.95% increase from the previous quarter, it shows a significant decline of 102.60% from the same quarter last year. This drastic Year-over-Year (YoY) decrease is a potential red flag that warrants closer analysis to determine the underlying causes.

The Price-to-Earnings (P/E) ratio of 10.97 can be considered low, suggesting that Bank7's stock might be undervalued. This can be attractive for investors looking for growth at a bargain price. However, insider selling activity observed over the past couple of months could be a bearish indicator as it might imply that insiders believe the stock has reached its near-term peak.

Technical Analysis

The current stock price is $37.50, which is a 2.47% decrease compared to a month ago, causing some concern for short-term investors. However, the stock has appreciated by 71.86% compared to a year ago, showcasing a robust long-term positive trend.

The trend remains bullish, with the 10-day Simple Moving Average (SMA10) at 37.22. This is slightly higher and consistent with previous SMA10 values, reinforcing the potential for continued upward momentum. Moreover, the Relative Strength Index (RSI) stands at 25.4, indicating that the stock is oversold. An oversold RSI condition often suggests that a bullish reversal may be on the horizon.

Alternative Data Analysis

An analysis of job postings and employee sentiment shows that Bank7 currently has zero open positions, a number that has remained stable for the past few months. This may indicate organizational stability, an essential factor for long-term business operations.

On the customer acquisition front, Bank7's website received approximately 18,000 visitors, although this figure has declined by 10% over recent months. This drop could signal a reduction in customer interest or engagement, potentially impacting future revenues.

Regarding customer engagement through social media, Bank7 remains static with 820 Instagram followers and 180 Twitter followers. The lack of growth in these numbers could indicate stagnant customer interest and limited online presence.

Moreover, AltIndex's AI score, which leverages fundamental, technical, and alternative data, gives Bank7 a score of 60. This stands as a "hold" recommendation, suggesting that the current price is fairly valued based on the available data.

Conclusion and Recommendation

To summarize, Bank7 shows robust fundamentals with significant revenue and net income growth over the past year. However, the year-over-year drop in EBITDA is a concern and needs further investigation. Technically, the stock has experienced a solid long-term upward trend, although short-term performance has seen minor setbacks. The oversold RSI condition may present a buying opportunity.

Alternative data presents a mixed view: organizational stability is offset by declining website traffic and stagnant social media engagement. The AI score recommending a "hold" suggests that while there is potential for growth, the current price may be fairly valued.

Considering all these factors, the recommendation for Bank7 is to "Hold." Investors should keep a close watch on the company's EBITDA performance, insider activity, and customer acquisition metrics before making any buying decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.