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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 58GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.0%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.13%
Trailing Yield
$2.13
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
24%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Oak Valley Bancorp (OVLY) receives a "Buy" rating with a composite score of 56.4/100, ranked #26 out of 4446 stocks. Key factor scores: Quality 58/100, Value 73/100, Momentum 57/100. This is quantitative analysis only — not investment advice.
Oak Valley Bancorp (OVLY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Oak Valley Bancorp Do?
Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides a range of commercial banking services to individuals and small to medium-sized businesses in the Central Valley and the Eastern Sierras. The company's deposits products include checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans consisting of automobile loans, home mortgage loans, revolving lines of credit, and other personal loans. In addition, the company provides online banking, remote deposit capture, mobile banking, merchant, night depository, extended hours, wire transfer of funds, and note collection services, as well as automated teller machines. As of December 31, 2021, it operated through seventeen full-service branch offices in Oakdale, Sonora, Bridgeport, Bishop, Mammoth Lakes, Modesto, Manteca, Patterson, Turlock, Tracy, Ripon, Stockton, Escalon, California, and Sacramento. The company was incorporated in 1990 and is headquartered in Oakdale, California. Oak Valley Bancorp (OVLY) is classified as a micro-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Christopher M. Courtney and employs approximately 200 people, headquartered in OAKDALE, California. With a market capitalization of $277M, OVLY is one of the notable companies in the Financials sector.
Oak Valley Bancorp (OVLY) Stock Rating — Buy (April 2026)
As of April 2026, Oak Valley Bancorp receives a Buy rating with a composite score of 56.4/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.OVLY ranks #26 out of 4,446 stocks in our coverage universe. Within the Financials sector, Oak Valley Bancorp ranks #16 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
OVLY Stock Price and 52-Week Range
Oak Valley Bancorp (OVLY) currently trades at $34.41. The stock lost $0.15 (0.4%) in the most recent trading session. The 52-week high for OVLY is $34.16, which means the stock is currently trading 0.7% from its annual peak. The 52-week low is $22.70, putting the stock 51.6% above its annual trough. Recent trading volume was 26K shares, suggesting relatively thin trading activity.
Is OVLY Overvalued or Undervalued? — Valuation Analysis
Oak Valley Bancorp (OVLY) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.20x, compared to the Financials sector average of 14.88x — a discount of 25%. The price-to-book ratio stands at 1.34x, versus the sector average of 1.22x. The price-to-sales ratio is 3.30x, compared to 0.90x for the average Financials stock. On an enterprise value basis, OVLY trades at 8.53x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, Oak Valley Bancorp appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Oak Valley Bancorp Profitability — ROE, Margins, and Quality Score
Oak Valley Bancorp (OVLY) earns a quality factor score of 58/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.0%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.2% versus the sector average of 1.2%.
On a margin basis, Oak Valley Bancorp reports gross margins of 0.0%. The operating margin is 38.8% (sector: 21.8%). Net profit margin stands at 29.4%, versus 17.7% for the average Financials stock. Revenue growth is running at 11.2% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
OVLY Debt, Balance Sheet, and Financial Health
Oak Valley Bancorp has a debt-to-equity ratio of 873.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.11x, suggesting adequate working capital coverage. Total debt on the balance sheet is $0. Cash and equivalents stand at $225M.
OVLY has a beta of 0.73, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Oak Valley Bancorp is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Oak Valley Bancorp Revenue and Earnings History — Quarterly Trend
In TTM 2026, Oak Valley Bancorp reported revenue of $85M and earnings per share (EPS) of $2.90. Net income for the quarter was $25M. Gross margin was 0.0%. Operating income came in at $27M.
In FY 2025, Oak Valley Bancorp reported revenue of $88M and earnings per share (EPS) of $2.90. Net income for the quarter was $24M. Revenue grew 6.1% year-over-year compared to FY 2024. Operating income came in at $31M.
In Q3 2025, Oak Valley Bancorp reported revenue of $23M and earnings per share (EPS) of $0.81. Net income for the quarter was $7M. Revenue grew 6.5% year-over-year compared to Q3 2024. Operating income came in at $9M.
In Q2 2025, Oak Valley Bancorp reported revenue of $20M and earnings per share (EPS) of $0.68. Net income for the quarter was $6M. Gross margin was 91.4%. Revenue grew -1.9% year-over-year compared to Q2 2024. Operating income came in at $2M.
Over the past 8 quarters, Oak Valley Bancorp has demonstrated a growth trajectory, with revenue expanding from $20M to $85M. Investors analyzing OVLY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
OVLY Dividend Yield and Income Analysis
Oak Valley Bancorp (OVLY) currently pays a dividend yield of 2.1%. At this yield, a $10,000 investment in OVLY stock would generate approximately $$213.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning OVLY yields less than the typical sector peer. With a net margin of 29.4%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
OVLY Momentum and Technical Analysis Profile
Oak Valley Bancorp (OVLY) has a momentum factor score of 57/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 26/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
OVLY vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing OVLY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full OVLY vs S&P 500 (SPY) comparison to assess how Oak Valley Bancorp stacks up against the broader market across all factor dimensions.
OVLY Next Earnings Date
No upcoming earnings date has been announced for Oak Valley Bancorp (OVLY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy OVLY? — Investment Thesis Summary
The bull case for Oak Valley Bancorp rests on several quantitative strengths. The value score of 73/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 82/100) reduces downside risk.
In summary, Oak Valley Bancorp (OVLY) earns a Buy rating with a composite score of 56.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on OVLY stock.
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Institutional Research Dossier
Oak Valley Bancorp (OVLY) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
Oak Valley Bancorp (OVLY) receives a Hold rating, driven by a valuation that appears stretched relative to its growth prospects and sector peers, despite demonstrating strong profitability metrics. While the bank exhibits solid operational efficiency and stability, the current price does not offer a compelling entry point given the potential headwinds in the regional banking sector and the company's relatively modest investment profile.
The primary concern revolves around OVLY's high P/E ratio compared to the sector average, suggesting that the market has already priced in much of the company's future growth. Investors should remain cautious and monitor the bank's ability to sustain its profitability and navigate the evolving regulatory landscape before considering a more aggressive position.
Business Strategy & Overview
Oak Valley Bancorp operates as a community bank, focusing on providing traditional banking services to individuals and small to medium-sized businesses in California's Central Valley and Eastern Sierras. The bank's core strategy centers around relationship banking, aiming to build long-term connections with its customers by offering personalized service and tailored financial solutions. This approach is particularly important in the competitive community banking landscape, where larger institutions often struggle to provide the same level of individualized attention.
OVLY generates revenue primarily through net interest income, derived from the spread between interest earned on loans and interest paid on deposits. The bank also earns fee income from services such as online banking, wire transfers, and merchant services. Its deposit products include a range of checking, savings, and money market accounts, catering to diverse customer needs. On the lending side, OVLY offers commercial real estate loans, commercial business lending, SBA lending, and consumer loans, diversifying its loan portfolio across various sectors.
A key aspect of OVLY's strategy is its branch network, strategically located in growing communities within its target market. These branches serve as hubs for customer interaction and relationship building, complementing the bank's online and mobile banking platforms. The company's focus on technology allows it to offer convenient and efficient services while maintaining a personal touch through its branch network.
OVLY's strategic positioning within the community banking sector emphasizes local market knowledge and responsiveness to customer needs. By focusing on relationship banking and providing a comprehensive suite of financial services, the bank aims to attract and retain customers, fostering sustainable growth and profitability. However, the bank's reliance on a specific geographic region also exposes it to regional economic fluctuations and competitive pressures.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
11.2%
Sector: 9.4%
+20% VS SCTR
Economic Moat Analysis
Oak Valley Bancorp likely possesses a Narrow economic moat, primarily derived from its established relationships within its local communities and the inherent switching costs associated with banking services. While the bank doesn't have a dominant market share or unique proprietary technology, its deep roots in the Central Valley and Eastern Sierras provide a competitive advantage.
The switching costs for banking customers, particularly small businesses, can be significant. Changing banks involves administrative burdens, potential disruptions to cash flow, and the need to establish new relationships with bank personnel. This inertia provides OVLY with a degree of customer retention, even if competitors offer slightly better rates or services.
OVLY's focus on relationship banking further strengthens its moat. By building personal connections with customers and understanding their specific financial needs, the bank creates a level of trust and loyalty that is difficult for larger, more impersonal institutions to replicate. This personalized service is a key differentiator in the competitive community banking landscape.
However, the moat is narrow due to the relatively low barriers to entry in the banking industry. New banks can emerge, and larger institutions can expand into OVLY's market. Moreover, the increasing prevalence of online banking and fintech solutions is eroding the importance of physical branches and local relationships. While OVLY has adapted to these trends by offering online and mobile banking services, it still faces competition from digital-first players.
The bank's brand reputation within its local communities also contributes to its moat. Positive word-of-mouth and a track record of community involvement can attract new customers and reinforce existing relationships. However, this reputation is vulnerable to negative publicity or service failures.
Financial Health & Profitability
Oak Valley Bancorp demonstrates a mixed financial profile. The company exhibits strong profitability metrics, with a TTM Net Margin of 29.4% and an Operating Margin of 38.8%, significantly exceeding sector averages of 17.8% and 22.0%, respectively. The Return on Equity (ROE) of 12.6% also surpasses the sector average of 8.5%, indicating efficient use of shareholder equity. However, the TTM Free Cash Flow is negative at $-6.19M, which warrants further investigation into the bank's capital expenditures and working capital management.
Analyzing the quarterly financial history reveals some volatility in revenue and net income. While the most recent quarter (Q3 FY2025) shows revenue of $22.52M and net income of $6.69M, previous quarters have exhibited fluctuations. Notably, Q2 FY2025 had a significantly lower Operating Margin of 8.6% compared to other quarters, suggesting potential cost pressures or revenue declines during that period. The full-year FY2024 results show revenue of $82.89M and net income of $24.95M, indicating consistent profitability over the past year.
OVLY's balance sheet appears relatively strong, with $225.47M in total cash and no debt. The Current Ratio of 1.11 indicates sufficient liquidity to meet short-term obligations. The absence of debt provides the bank with financial flexibility to pursue growth opportunities or weather economic downturns. However, the high D/E ratio of 906.00 compared to the sector average of 115.00 is concerning and requires clarification. It is possible this is a data error, as a bank with no debt should have a D/E of 0.00.
The bank's revenue growth of 11.2% exceeds the sector average of 9.3%, indicating a healthy expansion of its business. However, it's crucial to assess the sustainability of this growth rate and its impact on profitability. Overall, OVLY's financial health is characterized by strong profitability and a solid balance sheet, but the negative free cash flow and potentially erroneous D/E ratio warrant further scrutiny.
Valuation Assessment
Oak Valley Bancorp's valuation presents a mixed picture. The company's P/E ratio of 38.0x is significantly higher than the sector average of 15.5x, suggesting that the stock is trading at a premium to its peers. This premium could be justified by OVLY's superior profitability metrics, such as its higher ROE and Net Margin. However, it also implies that the market has high expectations for the company's future growth.
The EV/EBITDA multiple of 7.6x is also higher than the sector average of 3.5x, further supporting the notion that OVLY is relatively expensive. This multiple takes into account the company's enterprise value, which includes its market capitalization and debt (net of cash). Given OVLY's lack of debt and substantial cash holdings, the EV/EBITDA multiple is primarily driven by its market capitalization.
The negative Free Cash Flow makes it difficult to assess the company's valuation using traditional FCF-based metrics. A positive and consistent FCF is generally preferred, as it indicates the company's ability to generate cash after accounting for capital expenditures. The negative FCF could be due to various factors, such as increased investments in growth initiatives or changes in working capital.
Considering OVLY's strong profitability and revenue growth, the premium valuation may be partially justified. However, the high P/E and EV/EBITDA multiples suggest that the stock is already pricing in much of the company's future potential. Investors should carefully consider the risks associated with this valuation, particularly if the company's growth rate slows down or its profitability declines.
A more conservative valuation approach might involve comparing OVLY to other community banks with similar characteristics and growth prospects. This would provide a more nuanced perspective on whether the stock is truly overvalued or if its premium is warranted. Additionally, monitoring the company's future earnings and cash flow generation will be crucial in determining whether the current valuation is sustainable.
Risk & Uncertainty
Oak Valley Bancorp faces several risks and uncertainties that could impact its future performance. One significant risk is the concentration of its operations in California's Central Valley and Eastern Sierras. Economic downturns or adverse events in these regions could disproportionately affect the bank's loan portfolio and deposit base. Diversification into new geographic markets could mitigate this risk, but it would also require significant investments and expertise.
Competition from larger banks and credit unions poses another challenge. These institutions often have greater resources and economies of scale, allowing them to offer more competitive rates and services. OVLY must continue to differentiate itself through personalized service and local market knowledge to maintain its competitive edge. The rise of fintech companies also presents a competitive threat, as these firms offer innovative financial solutions that could disrupt traditional banking models.
Regulatory compliance is a constant concern for banks. Changes in banking regulations could increase OVLY's compliance costs and limit its ability to generate revenue. The bank must invest in robust compliance programs and stay abreast of evolving regulatory requirements. Interest rate risk is another significant factor. Fluctuations in interest rates could impact OVLY's net interest margin, which is a key driver of its profitability. The bank must effectively manage its asset and liability mix to mitigate this risk.
Credit risk is inherent in the banking business. OVLY's loan portfolio is exposed to the risk of borrowers defaulting on their loans. The bank must maintain sound underwriting standards and monitor its loan portfolio closely to minimize credit losses. Furthermore, cybersecurity threats pose a growing risk to banks. OVLY must invest in robust cybersecurity measures to protect its systems and data from cyberattacks.
Bulls Say / Bears Say
The Bull Case
BULL VIEWOak Valley Bancorp's strong profitability metrics, including high ROE and net margins, justify its premium valuation compared to sector peers.
BULL VIEWOVLY's focus on relationship banking and local market knowledge provides a sustainable competitive advantage in the community banking sector, leading to continued growth.
BULL VIEWThe bank's debt-free balance sheet and substantial cash reserves provide financial flexibility to pursue strategic acquisitions or weather economic downturns.
The Bear Case
BEAR VIEWOak Valley Bancorp's high P/E ratio suggests that the stock is overvalued, and future growth may not justify the current price.
BEAR VIEWThe negative free cash flow raises concerns about the bank's ability to generate cash after accounting for capital expenditures and working capital needs.
BEAR VIEWOVLY's concentration in California's Central Valley and Eastern Sierras exposes it to regional economic risks and competitive pressures from larger institutions.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score OVLY and 4,400+ other equities.
Oak Valley Bancorp exhibits a 103% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.2%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
38.8%
Sector: 21.8%
Net Margin
Bottom-line profitability
29.4%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-14%
Income Projection audit
A $10,000 investment would generate approximately $213 annually in dividends at the current trailing rate.
