Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Rainier Pacific Financial Group Inc. serves as the parent entity for Rainier Pacific Savings Bank, which delivers a comprehensive array of banking and financial solutions. Customers can access various deposit options, such as checking, money market, and savings accounts, along with certificates of deposit (CDs) and individual retirement accounts (IRAs). The institution's extensive loan portfolio encompasses real estate financing for residential properties (ranging from one-to-four family units), multi-family developments, and commercial ventures. It also provides construction funding for residential projects, single-family land acquisition and development, and lot inventory. For personal needs, Rainier Pacific offers consumer installment loans for vehicles, marine craft, recreational equipment, home equity, and general personal use. Furthermore, it provides unsecured personal lines of credit, home equity lines of credit, and credit cards. Beyond its core banking activities, the group extends into other services, including automobile and homeowners' insurance, financial planning, and investment solutions involving non-federally insured mutual funds. Its diverse clientele includes individual consumers, small and medium-sized businesses, and professionals. As of June 30, 2009, the company maintained 14 branch offices throughout the Tacoma-Pierce County market and the city of Federal Way in Washington State. This Tacoma, Washington-based company commenced operations in 1932.
Company Valuation
From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. Specifically, the stock is underpriced on P/FCF.