Intangible Valuation
Value, contrarian, coat tail rider, idiosyncratic research

Cardinal Financial Is Expensive

Cardinal Financial Corporation (NASDAQ:CFNL) made a big push into the mortgage origination market in 2012 - but they lost money on the segment in 2013. We believe this is a harbinger of stagnant earnings at the corporation. If we extrapolate away the company's mortgage business, the adjusted earnings at the corporation would fall significantly.

The current share price of the corporation appears to assume the mortgage origination business will remain strong - otherwise, I would argue, the corporation is likely overpriced.

This bank has many other things going for it: (1) strong deposit growth over the last ten years; (2) conservative lending practices have kept nonperforming loans to levels significantly lower than its peers; (3) it recently completed...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details