MeritValue

QNB CORP.

QNBCdata completeness 88%16 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

QNB CORP. earns about 22% on invested capital, but has diluted owners by 5% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $39.15 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$46.8M1$52.4M2$69.1M3$84.1M3$92.6M3
Net income$16.5M4$15.9M5$9.48M6$11.4M6$14.1M6
Operating cash flow$30.4M7$16.8M8$14.5M9$16.2M9$16.6M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$78.5M10$171.3M11$114.1M12$83.8M13$80.6M13
Cash & equivalents$13.4M14$15.9M15$62.7M16$50.7M17$50.3M17
Diluted shares3.6M3.6M3.6M3.7M3.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$347.42
your share of equity
Profit it earned you last year
$37.78
Free cash flow it threw off
—
Debt you’d be carrying
$216.13

10 shares is a claim on $347.42 of net worth that earned you $37.78 last year, against $216.13 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
22% avg · 5y
FY21 10%FY22 10%FY23 23%FY24 33%FY25 34%

It earned an average 22% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+5% shares · 5y

Share count is up 5% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$39.15
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$14.1M
  • growthAssumed0.0%
Graham Number
$54.36
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-24-031946 (InterestAndDividendIncomeOperating)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-25-040857 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2023-12-31 · accession 0001193125-26-107482 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2021-12-31 · accession 0000950170-24-031946 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000950170-25-040857 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001193125-26-107482 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000950170-24-031946 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000950170-25-040857 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001193125-26-107482 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001564590-23-003539 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0000950170-24-031946 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0000950170-25-040857 (LongTermDebt)
  13. 10-K · period ending 2024-12-31 · accession 0001193125-26-107482 (LongTermDebt)
  14. 10-K · period ending 2021-12-31 · accession 0001564590-23-003539 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0000950170-24-031946 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0000950170-25-040857 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0001193125-26-107482 (CashAndCashEquivalentsAtCarryingValue)