Park National Corporation (XNYS:PRK) In-Depth Stock/Fundamental/Options Analysis Today

Primary Facts

PRK

Name:

PARK NATIONAL CORPORATION (XNYS:PRK)

Sector:

26.22M

Industry:

Banks�Regional

CEO:

Mr. David Trautman

Total Employees:

1,685

Our Technological Advancement Rating

Our Rating:

A+

Technological advancement compared to industry is 390.75% higher

ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF PARK NATIONAL CORPORATION(PRK) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BANKS�REGIONAL INDUSTRY. DATE: 07/09/2022

Primary Targets/Price Insights

Previous Close ($) :

131.69

One Month Price Target:

$132.23

Six Month Price Target :

$134.95

Likely Price in One Year's Time:

Ticker:

$138.2

Likely Trading Range Today Under (Normal Volatility)

$131.19

Price Upper limit ($) :

$132.38

Price Lower limit ($) :

Crash Risk Prep/Key Price Levels (High Volatility/Risk)

Price, as per data analysis, isn't likely to fall below:

Today:

$124.62

This week:

$115.89

This month :

$100.09

Other Primary facts

Market Cap:

2.11B

Market Cap Classification:

Mid Cap

Number of Shares

IPO Date:

16.25M

Best/Worst Daily Performance (Last 3+ Years)

Highest Daily Appreciation:

24.33%

-9.64%

Worst Daily Decline:

Our Options Trading Entry Points

Iron Condor entry points for options expiring in 1 week's time

Low risk (<2%) entry points

Buy Call:

Sell Call:

Buy Put:

Sell Put:

$164.47

$149.36

$98.91

$114.02

Medium risk (<10%) entry points

Buy Call

Sell Call

$144.44

Buy Put:

Sell Put:

$141.21

$118.90

$122.17

These entry points can be used for other strategies, such as butterflies, straddles, etc.

Risk-Adjusted returns (Sharpe Ratio) of

PRK

Sharpe Ratio:

2.37%

Comparison:

PRK, is amongst the top 40% stocks with highest risk-adjusted returns

Sharpe ratio is 93.22% higher than the industry

& ratio is 4.14% higher than the market/S&P 500 average

Average Returns/Yield of

PRK

Daily returns:

0.07%

Weekly returns:

0.36%

Monthly returns:

1.43%

Yearly returns:

10.91%

Comparison of returns:

Average annual returns/yield (last 3 years) is 57.70% above industry average

Classification:

PRK, is amongst the top 40% highest yielding stocks in terms of daily returns

Results of T-Test of Returns:

0.66

Statistical test of Returns:

PRK has yielded returns statistically similar to the market

Volatility (measured by Standard Deviation)

Daily Volatility:

2.65%

Weekly Volatility:

5.92%

Monthly Volatility:

11.84%

Yearly Volatility:

41.02%

Volitlilty of last five days (Measured by Standard Deviation)

Average Volatility of this Week:

0.89%

Volatility in last five trading days has been -66.34% below long-term volatility

Value at Risk Analysis (VaR)

Daily VaR:

-5.37%

Weekly VaR:

-12.00%

Monthly VaR:

-24.00%

How Much Can the price of

PRK

Decline in a Recession?

Likely price decline in a recession:

Base case (decline):

-20%

Worst case (decline):

-83.13%

This translates to price declining to:

$104.83

This translates to price declining to:

$22.22

Severe Crash Probability

Risk of crash in next 6/12 months: High (50-70%)

What is Value at Risk (VaR)?

Risk Fundamentals

PRK is a 69.37% riskier investment compared to the market/S&P 500 & is 45.10% riskier than Nasdaq (IXIC)

Risk (measured by volatility) is -7.31% below industry average

Overall, it is amongst the top 50% most risky stocks

Beta Examination of

PRK

Beta in relation to market/S&P 500--0.74

Expected beta in 1 year's time:

0.587

Expected beta in 3 year's time:

0.83

Unlevered (debt free) Beta:

0.638

Beta in relation to Nasdaq (XNAS):

0.584

Beta in relation to all global stocks::

0.719

Beta Comparison & Analysis

Beta of competitors/peers::

0.884

Beta is -16.73% lower than peers

Average Industry Beta:

0.964

Beta is -23.62% below industry average

Sustainable Growth Rate Analysis

Sustainable growth rate for this stock/firm:

9.37%

Sustainable growth rate is 2.59% above industry average

Alpha provided | Alpha Analysis

Alpha provided:

0.090

Alpha is 677.04% above industry average alpha yield

Alpha is 574% higher than market/& is unsustainably high

Analysis of Cost of Capital of

PRK

Equity cost of capital:

0.082

Equity cost of capital is -15.99% below industry mean WACC

Unlevered (without debt) cost of capital:

7.10%

Before-tax cost of debt:

3.67%

After-tax cost of debt:

2.90%

Overall debt rating:

Upper medium A grade (third highest grade),CO8<=0.0429,"Medium BBB grade (Fourth highest grade)

Weighted average cost of capital (WACC):

2.90%

WACC is -30.66% below industry mean WACC

Key Per-Share Metrics & Analysis

Revenue per share:

$27.95

Revenue growth rate per share of (3Y):

1.99

Annual revenue growth rate is -37.00% below industry average

EPS:

$9.15

Expected Annual growth rate of EPS (3Y):

14.25%

Expected future EPS growth rate is 18.55% higher than the Banks�Regional industry

Free cash flow (FCF) per share:

$7.88

Balance sheet equity growth per share: 11.96%

Equity growth rate per share is -69.12% lower than the industry

Debt per share

$12.42

EBITDA per share

$13.01

Valuation Analysis Today of

PRK

P/E Ratio:

14.85

P/E Ratio of Competitors/Peers:

12.3

P/E ratio is 20.70% higher than main peers & is 19.66% higher than the industry

Stock price/value with industry average P/E ratio: $113.54

PRK is 15.99% overvalued if valued using industry average P/E ratio

P/S (Price to Sales ratio):

4.71

Price to sales ratio is 10.16% above the industry mean

P/B (Price to book value ratio):

1.99

Price to free cash flow: 16.71

Price to free cash flow ratio is -37.96% lower than the industry

Net income growth rate (3Y):

32.41%

Net income growth rate is -41.16% lower than the industry average net income growth rate

Dividend Analysis

Dividend payout rate: 11.41%

Dividend yeild: 3.14%

Previous Dividend: $1.04

Previous adjusted dividend: $1.04

Previous Dividend: $4.14

Expected next dividend best case: $1.32

Expected next dividend worst case: $0.76

Average dividend payment (long-term): $0.88

Average dividend increase/decrease (growth rate) % per period: 66.54%

Expected next dividend payment date: 09/08/2022

Expected next dividend record date: 18/08/2022

Expected next dividend declaration date: 21/07/2022

Previous dividend payment date: 06/10/2022

Previous dividend record date: 20/05/2022

Previous dividend declaration date: 22/04/2022

Dividend History:

2022-05-19--$1.04

2021-11-18--$0.20

2021-05-20--$1.03

2022-02-17--$1.04

2021-08-19--$1.03

2021-02-18--$0.20

Dividend growth rate is 182.47% higher than the average industry

In-depth Debt & Leverage Analysis

Debt to equity ratio:

18.76%

Net debt to equity ratio:

14.95%

Debt to assets ratio:

2.11%

Net debt to assets ratio:

1.68%

Debt-to-asset ratio is -98.73% below industry average

Ability to repay debt:

Interest coverage ratio:

14.12

Interest coverage ratio is 1603.47% more than industry average

Looking forward:

Debt growth rate:

63.40%

Annual debt growth is 19918% higher than industry average debt growth rate

Debt repayment rate in last quarter: 14.00%

Analysis of Key Statistics

Correlation of price movement with the market:

0.525

Statistical significance of correlation:

PRK has a statistically significant correlation with the market

Average Correlation of the industry with the market:

0.501

Stock price is 4.81% more correlated with the market, compared to the industry average correlation

R Squared (percentage of price movement explained by movement of the market):

0.501

Correlation of price movement with Nasdaq (^IXIC):

0.027

Covariance of price movement with the market:

0.041

Kurtosis

12.38

Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns

Skewness of returns:

1.425

Returns are right (positive) skewed; mean returns are greater than median and mode returns

Fundamental Analysis & Dupont Analysis of

PRK

Gross Profit Margin Ratio:

100%

Operating Profit Margin Ratio:

0.00%

Net Profit Margin Ratio:

100%

Effective Tax Rate:

18.04%

Effective tax rate is -16.29% lower than the industry

Dupont Method

Net Profit Margin

Return on Equity Ratio (ROE):

ROA

13.93%

Return on equity (ROE) is 16.81% higher than the industry

Financial Leverage

Asset Turnover Ratio (ROA):

1.57%

Return on assets (ROA) is -32.04% lower than the industry

Financial Leverage:

1.0x

Current Ratio:

Cash Conversion Cycle (days):

The remaining useful life of property plant & equipment is: 0.7 years

Stock based compensation to net income ratio:

1.32%

In-depth Efficiency Analysis

Revenue generated per employee:

269.6K

Each employee generates -29% less revenue than industry average revenue per employee

EBITDA generated per employee:

125.5K

Each employee generates -44% less EBITDA than industry average revenue per employee

Profit generated per employee:

89.0K

Each employee generates -37% less net income/profit than industry average revenue per employee

Free cash flow (FCF) generated per employee:

15.6K

Each employee generates -81% less free cash flow than industry average revenue per employee

Assets/Capital per employee

1.3M

Each employee generates -81% less free cash flow than industry average revenue per employee

Research & Development (R&D) Analysis

Competitors/Peer firms of

PRK

Reaves Utility Income (XNYS:UTG)

Eaton Vance Ltd Dur Inc (XNYS:EVV)

TOMPKINS FINANCIAL CORPORATION (XNYS:TMP)

Central Securities Corp (XNYS:CET)

Eaton Vance Muni Bd (XNYS:EIM)

Cornerstone Strat Value (XNYS:CLM)

GAMCO Gl Gld NR & Inc (XNYS:GGN)

Invesco Adv Muni II (XNYS:VKI)

Allspring Income Oppty (XNYS:EAD)

Current Analyst Ratings

Strong buy�0%

Buy�0%

RISK CONCERN

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