📊 OVLY Key Takeaways
Is Oak Valley Bancorp (OVLY) a Good Investment?
Oak Valley Bancorp exhibits strong operational execution with 17.8% revenue growth, fortress balance sheet (zero debt, $201.6M cash), and exceptional operating margins (30.6%). However, critically weak return metrics—ROE of 2.6% and ROA of 0.3%—indicate severe capital inefficiency unacceptable for shareholder returns, while declining EPS despite revenue growth signals deteriorating profitability quality.
Oak Valley Bancorp shows resilient core profitability with 17.8% revenue growth, solid margins, and healthy ROA/ROE, supported by a debt‑free capital structure and ample liquidity. The modest EPS decline suggests margin compression and/or higher credit provisioning, but strong free cash flow and capital levels provide capacity to navigate funding and credit cycles.
Oak Valley Bancorp Key Strengths (OVLY)
- Zero long-term debt with pristine balance sheet providing maximum financial flexibility
- Strong revenue growth (+17.8% YoY) demonstrating market demand and business expansion
- Excellent free cash flow generation (35.3% FCF margin, $7.8M FCF) with minimal capital requirements
- High operating margins (30.6%) showing operational cost control
- Double-digit revenue growth with strong operating and net margins
- Solid profitability (ROA 1.2%, ROE 11.5%) and healthy capital base
- No long-term debt, ample cash, and robust free cash flow
OVLY Stock Risks: Oak Valley Bancorp Investment Risks
- Critically low ROE (2.6%) and ROA (0.3%) indicate poor capital deployment efficiency and returns far below acceptable investment thresholds
- EPS declining (-4.6% YoY) despite revenue growth signals dilution, expense increases, or margin compression undermining profitability quality
- Interest coverage ratio of 2.5x is adequate but leaves limited buffer for earnings stress or rate environment changes
- Net interest margin compression from rising deposit costs or rate shifts
- Credit quality deterioration in the loan book (e.g., CRE/SMB) increasing provisions
- Deposit competition or concentration impacting funding stability
Key Metrics to Watch
- Return on Equity (ROE) trend—must move toward 10%+ to justify capital employed
- Earnings per share growth relative to revenue growth—monitor for further dilution signals
- Net interest margin and loan yield trends—critical for banking profitability recovery
- Asset efficiency improvements—watch for margin expansion or asset reduction strategies
- Net interest margin (NIM)
- Nonperforming assets and net charge-offs
Oak Valley Bancorp (OVLY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 35.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
OVLY Profit Margin, ROE & Profitability Analysis
OVLY vs Finance Sector: How Oak Valley Bancorp Compares
How Oak Valley Bancorp compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Oak Valley Bancorp Stock Overvalued? OVLY Valuation Analysis 2026
Based on fundamental analysis, Oak Valley Bancorp has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Oak Valley Bancorp Balance Sheet: OVLY Debt, Cash & Liquidity
OVLY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Oak Valley Bancorp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.02 reflects profitable operations.
OVLY Revenue Growth, EPS Growth & YoY Performance
Oak Valley Bancorp Dividends, Buybacks & Capital Allocation
OVLY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Oak Valley Bancorp (CIK: 0001431567)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OVLY
What is the AI rating for OVLY?
Oak Valley Bancorp (OVLY) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OVLY's key strengths?
Claude: Zero long-term debt with pristine balance sheet providing maximum financial flexibility. Strong revenue growth (+17.8% YoY) demonstrating market demand and business expansion. ChatGPT: Double-digit revenue growth with strong operating and net margins. Solid profitability (ROA 1.2%, ROE 11.5%) and healthy capital base.
What are the risks of investing in OVLY?
Claude: Critically low ROE (2.6%) and ROA (0.3%) indicate poor capital deployment efficiency and returns far below acceptable investment thresholds. EPS declining (-4.6% YoY) despite revenue growth signals dilution, expense increases, or margin compression undermining profitability quality. ChatGPT: Net interest margin compression from rising deposit costs or rate shifts. Credit quality deterioration in the loan book (e.g., CRE/SMB) increasing provisions.
What is OVLY's revenue and growth?
Oak Valley Bancorp reported revenue of $22.2M.
Does OVLY pay dividends?
Oak Valley Bancorp pays dividends, with $3.1M distributed to shareholders in the trailing twelve months.
Where can I find OVLY SEC filings?
Official SEC filings for Oak Valley Bancorp (CIK: 0001431567) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OVLY's EPS?
Oak Valley Bancorp has a diluted EPS of $0.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is OVLY's fundamental grade?
Based on our AI fundamental analysis in May 2026, Oak Valley Bancorp has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is OVLY stock overvalued or undervalued?
Valuation metrics for OVLY: ROE of 2.6% (sector avg: 12%), net margin of 23.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is OVLY's AI grade for 2026?
Our dual AI analysis gives Oak Valley Bancorp a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OVLY's free cash flow?
Oak Valley Bancorp's operating cash flow is $8.1M, with capital expenditures of $212.0K. FCF margin is 35.3%.
How does OVLY compare to other Finance stocks?
Vs Finance sector averages: Net margin 23.9% (avg: 25%), ROE 2.6% (avg: 12%), current ratio N/A (avg: 1.2).