Peoples Bancorp of North Carolina Inc. Common Stock (PEBK)

FairStock Score: 66/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 13.4% above cost of capital
• Attractive 2.1% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Peoples Bancorp of North Carolina Inc. Common Stock is a micro-cap financial services company valued at $210 million. Revenue stands at $90 million. From a quality standpoint, Peoples shows distressed Altman Z-Score of 0.2 warrants caution and adequate 13% ROE. On valuation, the stock is attractively valued at 11.0x earnings, with a modest 20% margin of safety vs Graham Number. Growth dynamics show revenue growing at 5.3% and profit growth of 86.4%. The 2.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 66/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Peoples's consistent 13% ROE at just 11x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer