Value
9.1/10data confidence 67%| Component | Sub-score |
|---|---|
| P/E | 9.0 |
| P/S | 7.2 |
| Fwd P/E | 9.5 |
| PEG | 10.0 |
- ▸Forward P/E: 8.3x
- ▸PEG: 0.30
- ▸Attractively valued
NBN · Why this verdict
Why Northeast Bank (NBN) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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VerdictHOLD
Overall score6.8/10
ConfidenceHIGH
MacroRISK_OFF
TrendMatrix Research · core thesis
Engine thesis — one sentence
Northeast Bank combines superior ROE, best-in-class margins, and a cheap forward multiple with a solid earnings beat streak, though the stock has already run to its analyst price target, capping near-term upside.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
The stock trades at a forward P/E of 9.3x with a very low PEG of 0.16, screening as attractively valued given its growth. Valuation breakdown | The forward multiple should re-rate higher toward peer averages over the next 12 months. | →Stable |
| CounterThe stock has already reached its analyst price target (-13.7% upside flag), suggesting the market has priced in much of the near-term value case. | ||
Northeast Bank posted 35% YoY growth and ranks with superior ROE and best-in-class margins versus peers. Peer-rank breakdown | Growth should remain in double digits and ROE ranking should stay top-tier versus peers over the next 12 months. | ↑Improving |
| CounterSuperior ROE at a small regional bank can reflect elevated leverage or a concentrated loan book rather than durable operating excellence. | ||
The bank posts strong margins of 43%, a key driver of its quality profile. Quality breakdown | Margins should hold at or above 40% over the next 12 months. | ↑Improving |
| CounterBank margins can compress quickly in a shifting rate environment, and 43% may not be sustainable through a full credit cycle. | ||
The bank has beaten earnings estimates in 3 of its last 4 reported quarters, with an average surprise of 8.8%. Earnings | The beat streak should continue over the next 4 reported quarters. | ↑Improving |
| CounterOne of the last four quarters was a miss, showing the streak is not unbroken and could reverse. | ||
The stock has already reached its analyst price target, with the engine flagging -13.7% upside remaining and a negative asymmetry ratio. Engine gate (failed) | Analyst price targets should be raised, restoring positive implied upside, over the next 12 months. | ↑Improving |
| CounterA stale, un-refreshed target doesn't preclude further gains if growth continues to outpace expectations. | ||
The stock trades at a forward P/E of 9.3x with a very low PEG of 0.16, screening as attractively valued given its growth.
→StableValuation breakdown
- Expectation
- The forward multiple should re-rate higher toward peer averages over the next 12 months.
CounterThe stock has already reached its analyst price target (-13.7% upside flag), suggesting the market has priced in much of the near-term value case.
Northeast Bank posted 35% YoY growth and ranks with superior ROE and best-in-class margins versus peers.
↑ImprovingPeer-rank breakdown
- Expectation
- Growth should remain in double digits and ROE ranking should stay top-tier versus peers over the next 12 months.
CounterSuperior ROE at a small regional bank can reflect elevated leverage or a concentrated loan book rather than durable operating excellence.
The bank posts strong margins of 43%, a key driver of its quality profile.
↑ImprovingQuality breakdown
- Expectation
- Margins should hold at or above 40% over the next 12 months.
CounterBank margins can compress quickly in a shifting rate environment, and 43% may not be sustainable through a full credit cycle.
The bank has beaten earnings estimates in 3 of its last 4 reported quarters, with an average surprise of 8.8%.
↑ImprovingEarnings
- Expectation
- The beat streak should continue over the next 4 reported quarters.
CounterOne of the last four quarters was a miss, showing the streak is not unbroken and could reverse.
The stock has already reached its analyst price target, with the engine flagging -13.7% upside remaining and a negative asymmetry ratio.
↑ImprovingEngine gate (failed)
- Expectation
- Analyst price targets should be raised, restoring positive implied upside, over the next 12 months.
CounterA stale, un-refreshed target doesn't preclude further gains if growth continues to outpace expectations.
Per-dimension breakdown
Quality
6.0/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 6.7 |
| ROA | 1.6 |
| Gross margin | 0.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Moat | 5.9 |
| Piotroski F | 7.8 |
- ▸Strong margins: 46%
- ▸Strong Piotroski F-Score: 7/9
Growth
7.4/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 7.3 |
| EPS growth | 7.6 |
Momentum
8.4/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 10.0 |
| OBV | 10.0 |
| MA position | 9.0 |
| Volume | 7.9 |
- ▸Volume accumulation (rising OBV)
- ▸Above 200-day MA
Sentiment
5.5/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 4.0 |
| Analyst rating | 5.9 |
| Price target | 6.6 |
- ▸Light analyst coverage (2.0) — signal dampened
Insider
5.0/10data confidence 50%Peer rank
6.6/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 5.1 |
| quality rank | 9.5 |
| growth rank | 6.8 |
- ▸Attractive P/E vs peers
- ▸Superior ROE vs peers
Technical
3.9/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 0.9 |
| support resistance | 2.5 |
| 52w position | 8.4 |
Risk (lower is worse)
6.6/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 6.5 |
| days to cover | 5.8 |
| volatility | 6.2 |
| beta | 9.4 |
| news risk | 5.0 |
Catalyst
6.6/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 7.3 |
| dividend safety | 5.5 |
| news activity | 7.0 |
- ▸Strong earnings: 3B/0M
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (6)
- MOMENTUM:8.4>=5.5
- INSIDER:OK
- 8K:CLEAN
- EARNINGS_PROXIMITY:88d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:-0.7=NEGATIVE
Warning (0)
none
Reward-to-Risk
-0.68
Upside
-5.6%
Downside
8.2%
Sizing output
AVOID
SetupBreakout — Golden cross, above all MAs, RSI 63, MACD bullish
EdgeInst Constrain — Small cap ($1.1B) below institutional reach
SuitabilityAggressive — MCap $1.1B<$5B
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: MOMENTUM:8.4>=5.5. Top dim: Value at 9.1; weakest: Technical at 3.9. No conviction either direction.
The strongest dimensions are Value at 9.1, Momentum at 8.4, and Growth at 7.4; the weakest are Technical at 3.9, Insider at 5.0, and Sentiment at 5.5. The V9 engine flagged 1 failed gate, producing an asymmetric reward-to-risk of -0.68 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Strong Growth And Superior Roe
Trip ifQuality peer-rank score for ROE falls below 5.0, reversing the current superior-ROE read.
- P2Cheap Forward Multiple
Trip ifForward P/E rises above 15x from the current 9.3x.
- P3Strong Margin Profile
Trip ifNet margin falls below 30% from the current 43%.
- P4Earnings Beat Streak
Trip ifEarnings beat rate falls below 50% over the next 4 reported quarters.
- P5Limited Upside At Stale Target
Trip ifAnalyst-implied upside rises above 10% from the current -13.7%.