Seneca Financial Corp. operates as the holding company for Seneca Federal Savings and Loan Association, a community-oriented savings and loan institution, which primarily accepts deposits from customers within its market area and invests those funds in residential mortgage loans.
The last earnings update was 6 days ago.
Discounted Cash Flow Calculation for OTCPK:SNNF using Excess Returns Model Model
The calculations below outline how an intrinsic value for Seneca Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Seneca Financial's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Seneca Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Mortgage industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Seneca Financial's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Seneca Financial's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Seneca Financial's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Seneca Financial is high growth as no earnings estimate data is available.
Unable to determine if Seneca Financial is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Seneca Financial's filings and announcements here.
Seneca Financial's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
Seneca Financial's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Joseph G. Vitale serves as President, Chief Executive Officer and Director of Seneca Savings (MHC) (“Seneca”) since October 2013. Mr. Vitale has served as President, Chief Executive Officer and Director of Seneca Financial Corp. (MHC). Before joining Seneca in 2013, Mr. Vitale served as Executive Vice President and in other various senior management and employee positions at Savannah Bank, NA from 1996 until 2013. Mr. Vitale also served as a Credit Analyst at Cayuga Savings Bank from 1993 until 1996. Mr. Vitale is a 2012 Stonier School of Banking graduate and has received the Wharton Leadership Certificate in 2014.
Joseph's compensation has been consistent with company performance over the past year, both up more than 20%.
Joseph's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Seneca Financial management team is about average.
VP & Controller
Assistant Vice President Lending
Assistant Vice President of Lending
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Seneca Financial board of directors is about average.
Board of Directors
William Le Beau
Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Seneca Financial Corp. operates as the holding company for Seneca Federal Savings and Loan Association, a community-oriented savings and loan institution, which primarily accepts deposits from customers within its market area and invests those funds in residential mortgage loans. It provides demand, NOW, savings, money market, and certificate of deposit accounts; and one-to-four family first lien residential, residential construction, home equity loans and lines of credit, and commercial real estate mortgage loans, as well as commercial and industrial, and consumer loans. The company also offers asset management, financial planning, and investment advisory services; and sells various insurance and investment products through broker networks. It operates two branches in Liverpool and North Syracuse, New York. The company is headquartered in Baldwinsville, New York. Seneca Financial Corp. is a subsidiary of Seneca Financial MHC.
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