Community Bancorp (CMTV) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• 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.

Community Bancorp (CMTV) Financial Services Profile

Community Bancorp (CMTV) is a long-established regional bank holding company, founded in 1851, delivering a full spectrum of retail, business, commercial, and municipal banking services. Operating through Community National Bank, it maintains a localized focus, serving residents and entities across northeastern and central Vermont with tailored financial solutions.

What Is the Investment Thesis for CMTV?

Community Bancorp (CMTV) presents an investment profile centered on its established regional banking operations and consistent profitability metrics. The company demonstrates a solid financial foundation with a Profit Margin of 26.0% and a Gross Margin of 68.7%, indicating efficient operations within the financial services sector. Its P/E ratio of 12.31 and a Dividend Yield of 3.05% suggest a potentially stable, income-generating asset. Key value drivers include its deep-rooted presence in Vermont since 1851, fostering strong localized customer relationships, and its comprehensive suite of retail, business, commercial, and municipal banking services. Growth catalysts are anticipated from continued expansion of its digital banking capabilities, catering to evolving customer preferences, and leveraging local economic development in its northeastern and central Vermont service areas to drive demand for commercial and residential lending. The bank's focus on municipal and institutional banking also offers a stable deposit base and specialized lending opportunities. However, investors must consider risks associated with its OTC Other tier trading, including potentially lower liquidity and less stringent disclosure requirements, alongside broader banking sector risks such as interest rate fluctuations, regulatory changes, and credit quality management.

Based on FMP financials and quantitative analysis

CMTV Key Highlights

Market capitalization stands at $227M, reflecting its valuation as a regional bank.

• The company maintains a P/E ratio of 12.31, indicating its earnings multiple relative to its share price.
• Community Bancorp achieved a Profit Margin of 26.0%, demonstrating strong net income generation from its revenues.
• A Gross Margin of 68.7% highlights the efficiency of its core banking operations before operating expenses.
• The company offers a Dividend Yield of 3.05%, providing income to shareholders based on its current share price and dividend payout.

Who Are CMTV's Competitors?

CMTV is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CMTV's Key Strengths?

Long operating history since 1851, establishing strong community trust and brand recognition.

• Comprehensive range of retail, business, commercial, and municipal banking services.
• Localized focus fostering strong customer relationships and understanding of regional needs.
• Diversified loan portfolio across various segments including residential, commercial, and municipal.
• Established branch network across northeastern and central Vermont.

What Are CMTV's Weaknesses?

Smaller institutional size compared to national banks, potentially limiting scalability and capital resources.

• Trading on the OTC Other tier, which implies higher risk due to less stringent listing requirements.
• Limited geographic reach, primarily concentrated in specific regions of Vermont.
• Unknown disclosure status for OTC trading, potentially impacting investor transparency.
• Potentially lower liquidity and wider bid-ask spreads associated with OTC market trading.

What Could Drive CMTV Stock Higher?

Continued expansion and adoption of digital banking services, enhancing customer reach and operational efficiency.

• Local economic development in northeastern and central Vermont driving increased demand for commercial and residential lending.
• Potential shifts in the interest rate environment that could favorably impact the bank's net interest margin and profitability.
• Deepening of relationships within the municipal and institutional banking segment, securing stable deposits and specialized lending opportunities.

What Are the Key Risks for CMTV?

Financial-distress signal — its Altman Z-Score of -0.80 sits in the distress zone (elevated bankruptcy risk).

• Regulatory changes within the financial services sector, potentially increasing compliance costs and operational complexities.
• Fluctuations in interest rates, which can negatively impact the bank's net interest margin and overall profitability.
• Deterioration in the credit quality of the loan portfolio due to regional economic downturns or specific industry challenges.
• Intense competition from larger national banks, credit unions, and emerging financial technology companies.
• Lower liquidity and transparency associated with trading on the OTC Other tier, affecting investor confidence and trading efficiency.

What Are the Growth Opportunities for CMTV?

• **Expansion of Digital Banking Capabilities:** Community Bancorp already provides online, mobile, and telephone banking services. Further investment and enhancement in these digital platforms represent a significant growth opportunity. By improving user experience, adding new features, and increasing the efficiency of digital channels, the bank can attract a younger, digitally-native demographic and retain existing customers who increasingly prefer digital interactions. This strategic focus aligns with industry-wide trends and can expand the bank's reach within its existing Vermont service areas without requiring extensive physical branch expansion, potentially leading to increased customer acquisition and operational cost efficiencies.
• **Deepening Commercial Real Estate Lending:** The company actively engages in commercial real estate lending, providing financing for developers, investors, residential builders, and community development entities. Capitalizing on local economic development and property investment trends within its northeastern and central Vermont service regions offers a robust growth avenue. Leveraging its local expertise, established relationships, and understanding of the regional market, Community Bancorp can strategically identify and finance suitable commercial projects, thereby expanding its loan portfolio and generating higher interest income from this specialized segment.
• **Growth in Municipal and Institutional Banking:** Community Bancorp offers a specialized suite of products and services tailored for state and local governments, schools, charities, and non-profit associations. There is an ongoing opportunity to deepen these relationships by providing customized financial solutions, including deposit accounts, tax-exempt loans, lines of credit, and collateralized secured deposit products. Expanding engagement with these stable, community-centric entities can secure a reliable and often substantial deposit base, while also generating consistent demand for specialized lending, reinforcing the bank's role as a vital financial partner to local public and non-profit sectors.
• **Targeted Retail Credit Expansion:** Beyond its residential mortgage offerings, Community Bancorp provides various retail credit products such as personal, automobile, and boat/recreational vehicle loans. A focused strategy to market these consumer lending options to its existing customer base and new residents within its service areas can drive significant growth. By understanding local consumer demand and offering competitive terms, the bank can diversify its loan portfolio, capture additional interest income, and strengthen overall customer loyalty by meeting a broader range of their financial needs.
• **Enhancing Business Cash Management Services:** The bank's business banking products include essential cash management services, ACH and wire transfer capabilities, and remote deposit capture. Investing in and promoting these services can attract and retain a greater number of business clients. By offering advanced, efficient, and secure cash management solutions, Community Bancorp can help local businesses streamline their financial operations, thereby strengthening core deposit relationships, increasing fee income potential, and positioning itself as a comprehensive financial partner for the business community in Vermont.

What Are CMTV's Competitive Advantages?

• **Established Local Presence:** Operating since 1851, Community Bancorp possesses deep historical roots and brand recognition within its specific Vermont service areas, fostering strong community trust.
• **Strong Customer Relationships:** Its localized focus as a community bank enables the development of personalized service and robust relationships with individual, business, and municipal clients, creating loyalty.
• **Comprehensive Localized Offerings:** The bank provides a wide array of retail, business, commercial, and municipal banking services tailored to the specific needs of its Vermont communities, differentiating it from generic offerings.
• **Regional Expertise:** A profound understanding of the local economy, real estate market, and community dynamics in northeastern and central Vermont allows for informed lending decisions and targeted service delivery.

What Does CMTV Do?

Community Bancorp. operates as the bank holding company for Community National Bank, a financial institution with a deep-rooted history dating back to its founding in 1851 in Derby, Vermont. The company has evolved to provide a comprehensive array of retail banking services tailored to residents, businesses, nonprofit organizations, and municipalities across its service area. Its consumer banking products include essential offerings such as checking accounts, diverse savings programs, ATM access, debit and credit cards, and night deposit facilities, complemented by modern conveniences like online, mobile, and telephone banking, ensuring accessibility for its client base. For its business clientele, Community Bancorp. extends a robust suite of products and services. This includes credit facilities designed for various business purposes, such as financing for commercial business properties, essential equipment, inventories, and accounts receivable, alongside specialized instruments like letters of credit. Additionally, businesses benefit from dedicated checking and other deposit accounts, sophisticated cash management services, repurchase agreements, ACH and wire transfer capabilities, and remote deposit capture solutions, all aimed at streamlining financial operations. The company is also a significant player in the real estate lending market, offering commercial real estate lending products to commercial developers and investors, residential builders, and community development entities. These products facilitate land purchases, construction of structures for business or residential development, and real estate-secured financing for existing businesses, including support for startups and other small enterprises. Its residential real estate portfolio features both fixed-rate and adjustable-rate residential mortgage and home equity loans. Beyond real estate, retail credit products encompass personal, automobile, and boat/recreational vehicle loans. Furthermore, Community Bancorp. provides specialized municipal and institutional banking products and services, catering to state and local governments, schools, charities, membership organizations, and not-for-profit associations, offering deposit accounts, tax-exempt loans, lines of credit, term loans, and collateralized secured deposit products. The company's operational footprint includes a main office in Derby and eleven branch offices strategically located throughout northeastern and central Vermont, underscoring its commitment to local community service.

What Products and Services Does CMTV Offer?

• Operates as the bank holding company for Community National Bank.
• Provides a full range of consumer banking services, including checking, savings, and digital banking.
• Offers various business banking products like credit facilities, deposit accounts, and cash management services.
• Engages in commercial real estate lending for developers, investors, and builders.
• Provides residential real estate lending, including mortgages and home equity loans.
• Extends retail credit products such as personal, automobile, and recreational vehicle loans.
• Delivers specialized municipal and institutional banking services to governments, schools, and non-profits.
• Operates through a main office and eleven branch offices across northeastern and central Vermont.

How Does CMTV Make Money?

• Generates interest income primarily from its diverse loan portfolio, including residential, commercial, retail, and municipal loans.
• Earns interest income from investments held on its balance sheet.
• Collects service charges and fees from deposit accounts, cash management services, and other banking transactions.
• Manages a stable deposit base from individuals, businesses, and institutions, which funds its lending activities.
• Leverages its branch network and digital platforms to deliver services and attract new customers, driving both loan and deposit growth.

What Industry Does CMTV Operate In?

Community Bancorp operates within the highly regulated and competitive regional banking industry, primarily serving communities in northeastern and central Vermont. As a smaller institution, its market position is characterized by a localized focus, which often translates into strong customer relationships and a deep understanding of local economic dynamics. The broader industry is currently navigating trends such as digital transformation, evolving regulatory landscapes, and fluctuating interest rate environments. Regional banks like Community Bancorp differentiate themselves from larger national institutions through personalized service and community engagement. Competition primarily stems from other regional banks, credit unions, and, increasingly, fintech companies offering specialized services. Community Bancorp's long operating history since 1851 provides a significant advantage in terms of trust and brand recognition within its specific geographic markets, allowing it to carve out a niche by catering to the specific financial needs of local residents, businesses, and municipalities.

Who Are CMTV's Key Customers?

• Individual residents seeking personal banking, savings, and various loan products.
• Small and commercial businesses requiring credit, deposit accounts, and cash management solutions.
• Commercial developers and real estate investors seeking financing for property acquisition and construction.
• Non-profit organizations and charities utilizing specialized deposit and lending services.
• State and local governments, schools, and other municipalities requiring institutional banking products.

Company Profile

Community Bancorp operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Derby, US. The company is led by CEO Christopher L. Caldwell. CMTV has traded publicly since 1999.

Return on equity for Community Bancorp stands at 15.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.4%, showing how much profit it generates from its asset base. CMTV trades at a trailing price-to-earnings ratio of 12.31, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 8.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.19 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 7.9%, the inverse of the P/E and a quick read on earnings relative to price.

CMTV Valuation & Market Position

With a $227M market cap, Community Bancorp sits in the micro-cap segment of the market. Relative to its peer group, CMTV's quantitative score of 57/100 is below the peer average of 91/100.

Quarterly Financial Performance: Community Bancorp

Revenue for Community Bancorp came in at $16.0M during Q2 FY2026, a 9.7% contraction versus the preceding quarter. The company recorded net income of $4.7M, with diluted EPS of $0.84. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Financial Services. Across the four most recent quarters, CMTV averaged $0.82 in diluted EPS.

Community Bancorp's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.80 places it in the distress zone, a signal of elevated financial risk.

Over the past six months, Community Bancorp insiders filed 4 SEC Form 4 transactions — 1 sales and 3 purchases. On net that is roughly 2K shares acquired (about $83K) — insiders putting money in tends to read as conviction.

CMTV Financials

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CMTV Analyst Consensus

CMTV MoonshotScore

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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