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NSTS Bancorp Inc

NSTS

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NSTS Bancorp Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-24

Snapshot

  • Trading at 0.75x book value (16.08/share) despite 35.4M cash (59% of market cap) - deep discount to tangible assets[Price to Book Ratio]
  • FCF of 10.0M TTM vs -567K net income - operating cash generation masks accounting losses[Free Cash Flow TTM]
  • EPS declined 21% 3Y CAGR while revenue grew 14% 3Y CAGR - margin compression from rising interest expense (3.7M TTM)[EPS Growth 3Y]

Watch Triggers

  • Net Income TTM: Turns positive for 2 consecutive quartersProfitability inflection would justify re-rating toward book value
  • Interest Expense TTM: Falls below 3.0M (20% reduction)Rate relief or debt paydown could flip margin to positive
  • Cash and Equivalents: Drops below 25MCash cushion erosion would remove key downside protection

Bull Case

Cash of 35.4M plus FCF of 10.0M TTM covers entire market cap (59.4M) in 2.4 years - asset-backed downside protection

Cash and EquivalentsFree Cash Flow TTMMarket Cap TTM

Debt/equity of 0.32 with tangible book of 78.9M (1.3x market cap) provides acquisition or liquidation floor

Debt to EquityTangible Book ValueP/B Ratio

Bear Case

Negative net income (-567K TTM) with interest expense (3.7M) consuming 39% of revenue - structurally unprofitable

Net Income TTMInterest Expense TTMNet Margin TTM

Micro-cap (59M) with 4.9M shares - illiquidity risk and limited institutional interest

Market Cap TTMShares Outstanding

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
40%

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Forward Thesis

Book value discount likely persists until net income turns positive or strategic action occurs

1-3ymed
  • Negative ROE (-0.7% TTM) deters value investors
  • Interest expense (3.7M) exceeds total revenue growth capacity
  • No dividend signals limited shareholder return focus
Net margin -6.1% TTM vs industry median 0%ROE -0.7% vs industry median 1.7%P/B 0.75x indicates market skepticism

Valuation Context

Caveats

Public Strategies Rankings

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Fundamental company data provided by Morningstar, updated daily.

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