FIDELITY D & D BANCORP INC (FDBC) Stock Analysis
FIDELITY D & D BANCORP INC (FDBC) Stock Analysis
Overall Grade: F (Concerning)
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FIDELITY D & D BANCORP INC faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 39.7% | Above industry average |
| FCF Margin | 29.4% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 39.7% suggests durable competitive advantages and efficient capital allocation.
What is FIDELITY D & D BANCORP INC's Profitability and ROIC?
FIDELITY D & D BANCORP INC generates strong returns on invested capital at 39.7%, indicating efficient capital allocation and competitive advantages. Gross margin of 100.0% with operating margin at 35.3% reflects the company's strong market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 39.7% | Excellent | Strong capital efficiency |
| Return on Equity (ROE) | 12.5% | Adequate | Moderate equity returns |
| Gross Margin | 100.0% | Excellent | Strong pricing power |
| Operating Margin | 35.3% | Excellent | Efficient operations |
How Strong is FIDELITY D & D BANCORP INC's Cash Flow Quality?
FIDELITY D & D BANCORP INC generated $26.5M in free cash flow over the trailing twelve months, representing a 29.4% margin. Cash earnings quality is strong, with operating cash flow exceeding net income by 1.5x.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 29.4% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $26.5M | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is FIDELITY D & D BANCORP INC's Financial Health?
FIDELITY D & D BANCORP INC maintains a net cash position of $142.1M, providing significant financial flexibility.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
| Net Cash Position | $142.1M | Excellent | Net cash positive |
Is FIDELITY D & D BANCORP INC Stock Overvalued or Undervalued?
FIDELITY D & D BANCORP INC trades at a P/E of 9.5x, representing a premium to the sector median of N/A. Free cash flow yield of 10.5% offers attractive cash returns.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 9.5x | Adequate | Reasonable valuation |
| EV/Sales | 1.3x | Excellent | Attractive revenue multiple |
| FCF Yield | 10.5% | Excellent | Attractive cash return |
| Dividend Yield | 3.7% | Adequate | Meaningful income |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 39.7% | Top 25% | 4.3x above |
| Free Cash Flow Margin | 29.4% | Top 50% | 1.3x above |
| Gross Margin | 100.0% | Top 50% | 1.0x at |
| Operating Margin | 35.3% | Top 50% | 1.2x above |
| Return on Equity (ROE) | 12.5% | Top 50% | 1.2x above |
| P/E Ratio | 9.5x | N/A | - |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 39.7% (Excellent - Top 25% of sector (median: 9.2%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 29.4% (Excellent - Top 50% of sector (median: 22.2%))
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 100.0% (Excellent - Top 50% of sector (median: 100.0%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 0.0% (Excellent)
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 952.8% (Adequate)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 10.5% (Excellent)
Frequently Asked Questions
Q: What is FIDELITY D & D BANCORP INC's Return on Invested Capital (ROIC)?
FIDELITY D & D BANCORP INC (FDBC) has a trailing twelve-month Return on Invested Capital (ROIC) of 39.7%. This compares above the sector median of 9.2%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is FIDELITY D & D BANCORP INC's Free Cash Flow Margin?
FIDELITY D & D BANCORP INC (FDBC) has a free cash flow margin of 29.4%, generating $26.5 million in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is FIDELITY D & D BANCORP INC stock overvalued or undervalued?
FIDELITY D & D BANCORP INC (FDBC) trades at a P/E ratio of 9.5x, which is above the sector median of N/A. The EV/Sales multiple is 1.3x. Free cash flow yield is 10.5%, which represents an attractive cash return to investors.
Q: Does FIDELITY D & D BANCORP INC pay a dividend?
FIDELITY D & D BANCORP INC (FDBC) currently pays a dividend yield of 3.7%. Including share buybacks, the total shareholder yield is 3.7%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is FIDELITY D & D BANCORP INC's revenue and earnings growth?
FIDELITY D & D BANCORP INC (FDBC) grew revenue by 24.0% year-over-year. Earnings per share increased by 70.9% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does FIDELITY D & D BANCORP INC compare to competitors in Financials?
Compared to other companies in Financials, FIDELITY D & D BANCORP INC (FDBC) shows: ROIC of 39.7% is above the sector median of 9.2% (Top 18%). FCF margin of 29.4% exceeds the sector median of 22.2% (Top 34% of sector). Gross margin at 100.0% is 0 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with FIDELITY D & D BANCORP INC?
FIDELITY D & D BANCORP INC (FDBC) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-07. TTM metrics as of Q3 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.