Paragon Financial Solutions, Inc. (PGNN) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Paragon Financial Solutions, Inc. (PGNN) trades at $14.49 with AI Score 53/100 (Grade B). Paragon Financial Solutions, Inc. Market cap: $65.4M, Sector: Financial services.
Price as of Aug 20, 2026 · Last analyzed: Mar 15, 2026Analyst Coverage for PGNN: PGNN does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates PGNN against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
PGNN: the 2 scored disciplines are evenly split. Dominant signal: Ray Dalio bullish.
How is this calculated? →Why this analysis is different
- A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
Paragon Financial Solutions, Inc. (PGNN) Financial Services Profile
Paragon Financial Solutions, Inc., via Paragon Bank, serves individuals and SMEs with diverse banking products and services, including commercial and mortgage loans, private banking, and wealth management solutions. Operating primarily in the Memphis metro area, Paragon distinguishes itself through personalized service and a comprehensive suite of financial offerings, reflected in its 13.4% profit margin.
What Is the Investment Thesis for PGNN?
Paragon Financial Solutions, Inc. presents a focused regional banking model with a market capitalization of $65.4M and a P/E ratio of 7.17. The company's 13.4% profit margin and 62.7% gross margin indicate efficient operations. Growth catalysts include expanding its loan portfolio and increasing its wealth management services. Potential risks include competition from larger regional and national banks and sensitivity to interest rate fluctuations. The company's beta of 0.28 suggests lower volatility compared to the broader market. Investors should monitor loan growth, deposit levels, and regulatory changes.
Based on FMP financials and quantitative analysis
PGNN Key Highlights
Market capitalization of $65.4M indicates a small-cap regional bank.
- P/E ratio of 7.17 suggests a potentially undervalued stock compared to its earnings.
- Profit margin of 13.4% reflects efficient operations and profitability.
- Gross margin of 62.7% indicates strong revenue management.
- Beta of 0.28 suggests lower volatility compared to the broader market.
Who Are PGNN's Competitors?
PGNN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CBAF CITBA Financial Corporation | $43.50 | +1.28% | $66.2M | 55 |
| CCBC Chino Commercial Bancorp | $18.05 | -0.82% | $69.6M | 48 |
| CEFC Commercial National Financial Corporation | $15.80 | +0.19% | $62.2M | 50 |
| FMFG Farmers and Merchants Bancshares, Inc. | $19.12 | +0.54% | $61.9M | 48 |
| FRSB First Resource Bancorp Inc. | $25.50 | +0.00% | $78.7M | 66 |
| HWBK Hawthorn Bancshares, Inc. | $39.44 | +0.19% | $272M | 92 |
| FRAF Franklin Financial Services Corporation | $62.10 | +0.40% | $279M | 92 |
| FUNC First United Corporation | $43.35 | -0.55% | $280M | 92 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PGNN's Key Strengths?
Strong local presence in the Memphis metro area.
- Comprehensive suite of financial products and services.
- Experienced management team.
- Personalized customer service.
What Are PGNN's Weaknesses?
Limited geographic reach.
- Smaller size compared to national banks.
- Dependence on local economy.
- OTC market listing.
What Could Drive PGNN Stock Higher?
Expansion of commercial lending activities targeting small and mid-sized businesses.
- Growth in wealth management services by offering a wider range of investment products.
- Strategic partnerships with local businesses and organizations to expand reach.
- Enhancements to digital banking technologies to improve customer experience.
- Targeted marketing campaigns to increase brand awareness and attract new customers.
What Are the Key Risks for PGNN?
Financial-distress signal — its Altman Z-Score of 0.13 sits in the distress zone (elevated bankruptcy risk).
- Competition from larger regional and national banks.
- Economic downturn in the Memphis metro area affecting loan demand.
- Increasing regulatory scrutiny and compliance costs.
- Interest rate fluctuations impacting net interest margin.
- Limited liquidity due to OTC market listing.
What Are the Growth Opportunities for PGNN?
- Expansion of Commercial Lending: Paragon can expand its commercial loan portfolio by targeting small and mid-sized businesses in the Memphis metro area and surrounding regions. The commercial lending market is estimated to be worth billions of dollars, offering substantial growth potential. By offering competitive rates and personalized service, Paragon can attract new clients and increase its market share. Timeline: Ongoing.
- Growth in Wealth Management Services: Paragon can increase its wealth management services by offering a wider range of investment products and services to its existing and new clients. The wealth management market is growing rapidly, driven by an aging population and increasing affluence. By providing personalized financial advice and tailored investment solutions, Paragon can attract high-net-worth individuals and families. Timeline: Ongoing.
- Strategic Partnerships: Forming strategic partnerships with local businesses and organizations can expand Paragon's reach and customer base. Collaborating with real estate developers, insurance agencies, and other financial service providers can create referral opportunities and cross-selling potential. These partnerships can drive customer acquisition and revenue growth. Timeline: Ongoing.
- Digital Banking Enhancements: Investing in digital banking technologies can improve customer experience and operational efficiency. Enhancing mobile and online banking platforms with new features and functionalities can attract tech-savvy customers and reduce operating costs. Digital banking enhancements can also enable Paragon to expand its geographic reach beyond the Memphis metro area. Timeline: Ongoing.
- Targeted Marketing Campaigns: Implementing targeted marketing campaigns can increase brand awareness and attract new customers. Utilizing digital marketing channels, social media, and local advertising can effectively reach potential clients. Targeted campaigns can focus on specific products and services, such as commercial loans, mortgages, or wealth management solutions. Timeline: Ongoing.
What Are PGNN's Competitive Advantages?
- Strong local presence in the Memphis metro area.
- Personalized service and relationship-based banking.
- Comprehensive suite of financial products and services.
- Experienced management team with deep industry knowledge.
What Does PGNN Do?
Founded in 2004 and headquartered in Memphis, Tennessee, Paragon Financial Solutions, Inc., operates through its subsidiary, Paragon Bank, providing a comprehensive suite of banking products and services. The bank caters to individuals, and small and mid-sized businesses across the United States. Paragon's offerings encompass a wide array of deposit products, including checking, savings, money market, and certificate of deposit accounts, as well as IRAs. The company distinguishes itself with a strong focus on commercial lending, providing working capital loans, equipment financing, and commercial real estate loans. Mortgage solutions include purchase, refinance, and home equity loans. Beyond traditional banking, Paragon offers private banking services, cash management solutions, and wealth management services, including equities, mutual funds, and bonds. The company further diversifies its service offerings with insurance solutions, covering property, liability, and employee benefits. Paragon operates approximately 150 ATM locations in the Memphis metro area, enhancing its accessibility. The bank leverages mobile, online, and phone banking platforms to provide convenient access to its services. Paragon's commitment to personalized service and comprehensive financial solutions positions it as a key player in the regional banking sector.
What Products and Services Does PGNN Offer?
- Provides checking and savings accounts to individuals and businesses.
- Offers commercial loans, including working capital and equipment financing.
- Provides mortgage loans for purchase and refinance.
- Offers private banking services for high-net-worth individuals.
- Provides cash management solutions for businesses.
- Offers wealth management services, including investment advice and portfolio management.
- Provides insurance solutions, including property, liability, and employee benefits.
- Operates approximately 150 ATM locations in the Memphis metro area.
How Does PGNN Make Money?
- Generates revenue from interest earned on loans.
- Generates revenue from fees charged for services, such as cash management and wealth management.
- Generates revenue from insurance commissions.
- Attracts deposits through competitive interest rates and convenient banking services.
What Industry Does PGNN Operate In?
Paragon Financial Solutions, Inc. operates within the regional banking sector, which is characterized by intense competition and increasing regulatory scrutiny. The industry is influenced by factors such as interest rate changes, economic growth, and technological advancements. Competitors range from large national banks to smaller community banks. Paragon's focus on personalized service and comprehensive financial solutions positions it to compete effectively within its market. The regional banking sector is expected to grow modestly, driven by increased demand for loans and wealth management services.
Who Are PGNN's Key Customers?
- Individuals seeking personal banking services.
- Small and mid-sized businesses seeking commercial loans and cash management solutions.
- High-net-worth individuals seeking private banking and wealth management services.
- Businesses seeking insurance solutions for property, liability, and employee benefits.
Paragon Financial Solutions, Inc. (PGNN) Valuation Context
Valued at $65.4M, PGNN is classified as a micro-cap stock. Relative to its peer group, PGNN's quantitative score of 53/100 is roughly in line with the peer average of 53/100.
PGNN Revenue & Earnings Trend
In Q1 2026, PGNN generated $14.4M in top-line revenue, marking a sequential decrease of 0.0%. The company recorded net income of $2.0M, with diluted EPS of $0.43. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Financial Services. Across the four most recent quarters, PGNN averaged $0.43 in diluted EPS.
Company Profile
Paragon Financial Solutions, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Memphis, US. The company is led by CEO Robert S. Shaw Jr.. PGNN has traded publicly since 2007.
Key Financial Metrics
Return on equity for Paragon Financial Solutions, Inc. stands at 11.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.9%, showing how much profit it generates from its asset base. PGNN trades at a trailing price-to-earnings ratio of 7.65, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.40 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 13.1%, the inverse of the P/E and a quick read on earnings relative to price.
Financial Health
Paragon Financial Solutions, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.13 places it in the distress zone, a signal of elevated financial risk.
PGNN Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in Paragon's future, indicating that leadership believes in the company's growth potential.
- Community sentiment has shifted positively, with discussions highlighting the company's innovative financial solutions and customer satisfaction.
- Analysts have noted an increase in demand for Paragon's services, reflecting a robust market position amid economic recovery.
- Recent partnerships have expanded Paragon's reach, positioning it well for future revenue growth.
Bear Case
- Some investors express concerns about the company's ability to scale its operations effectively, especially in a competitive landscape.
- Market sentiment shows skepticism regarding Paragon's long-term profitability, with some community members questioning its business model.
- Recent regulatory changes in the financial sector may pose challenges for Paragon, leading to uncertainty among investors.
- There is a perception that the stock may be overvalued based on current market conditions, causing bearish sentiment among traders.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $14M | $2M | $0.43 |
| Q4 2025 | $14M | $2M | $0.44 |
| Q3 2025 | $14M | $2M | $0.42 |
| Q2 2025 | $15M | $2M | $0.42 |
Based on FMP financials and quantitative analysis
PGNN Latest News
No recent news available for PGNN.
PGNN Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PGNN.
Price Targets
Wall Street price target analysis for PGNN.
PGNN MoonshotScore
What does this score mean?
The MoonshotScore rates PGNN 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: Robert S. Shaw Jr.
CEO
Robert S. Shaw Jr. serves as the CEO of Paragon Financial Solutions, Inc. His career reflects a deep understanding of the financial services sector, particularly in community banking. He has held various leadership positions within the banking industry, focusing on strategic growth, risk management, and customer relationship management. Shaw's experience includes overseeing commercial lending, retail banking, and wealth management operations. He is actively involved in community development initiatives and holds board positions in local organizations. His leadership is characterized by a commitment to sustainable growth and customer satisfaction.
Track Record: Under Robert S. Shaw Jr.'s leadership, Paragon Financial Solutions, Inc. has focused on expanding its commercial loan portfolio and enhancing its wealth management services. He has overseen the implementation of new digital banking technologies to improve customer experience and operational efficiency. Shaw has also led efforts to strengthen the bank's risk management framework and ensure compliance with regulatory requirements. His tenure has been marked by a commitment to sustainable growth and community engagement.
PGNN OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that Paragon Financial Solutions, Inc. may not meet the minimum financial standards or reporting requirements of higher tiers like OTCQX or OTCQB. Companies in this tier may have limited financial disclosure, making it more difficult for investors to assess their financial health and performance compared to companies listed on major exchanges like the NYSE or NASDAQ. This tier often includes companies with higher risk profiles and less liquidity.
- OTC Tier: OTC Other
- Limited financial disclosure due to the OTC Other tier.
- Lower liquidity and wider bid-ask spreads.
- Potential for price volatility due to thin trading volume.
- Higher risk of fraud or manipulation compared to exchange-listed stocks.
- Limited regulatory oversight compared to major exchanges.
- Verify the company's financial statements and SEC filings (if any).
- Research the company's management team and their track record.
- Assess the company's business model and competitive landscape.
- Evaluate the company's risk factors and potential liabilities.
- Check for any regulatory actions or legal disputes involving the company.
- Monitor trading volume and price movements for unusual activity.
- Consult with a financial advisor before investing.
- Established banking operations through Paragon Bank.
- Physical presence with ATM locations in the Memphis metro area.
- Provision of a range of banking products and services.
- Existence of a management team and board of directors.
- Operating history since 2004.
What Investors Ask About Paragon Financial Solutions, Inc. (PGNN) — Financial Services
What does the AI Score mean for PGNN?
PGNN holds an AI Score of 53/100 (Grade: B). This is an educational research signal, not a buy or sell recommendation. Paragon Financial Solutions, Inc., operating through Paragon Bank, provides banking products and services to individuals and small to mid-sized businesses in the United States. The company offers a …
What does Paragon Financial Solutions, Inc. do?
Paragon Financial Solutions, Inc., through its subsidiary Paragon Bank, provides a range of banking products and services to individuals and small to mid-sized businesses. These include deposit accounts like checking, savings, and CDs, as well as commercial and mortgage loans. The company also offers private banking, cash management, wealth management, and insurance solutions.
What are the main risks for PGNN?
The main risks for Paragon Financial Solutions, Inc. include competition from larger regional and national banks, which have greater resources and broader market reach. Economic downturns in the Memphis metro area could negatively impact loan demand and asset quality. Increasing regulatory scrutiny and compliance costs pose a challenge. Interest rate fluctuations can affect the company's net interest margin. The OTC market listing presents liquidity risks and limited financial disclosure.
What are the key factors to evaluate for PGNN?
Paragon Financial Solutions, Inc. (PGNN) holds an AI score of 53/100 (moderate). presents a focused regional banking model with a market capitalization of $65.4M and a P/E ratio of 7.17. Not financial advice.
How frequently does PGNN data refresh on this page?
PGNN's price was last updated on Aug 20, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven PGNN's recent stock price performance?
Paragon Financial Solutions, Inc. (PGNN) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong local presence in the Memphis metro area. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider PGNN overvalued or undervalued right now?
Paragon Financial Solutions, Inc. (PGNN) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research PGNN before investing?
Before investing in Paragon Financial Solutions, Inc. (PGNN), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding PGNN to a portfolio?
Key strength of Paragon Financial Solutions, Inc. (PGNN): Strong local presence in the Memphis metro area. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for PGNN.
- OTC market listing presents liquidity and disclosure risks.