NasdaqGM:AMAL

Stock Analysis Report

Executive Summary

Amalgamated Bank, together with its subsidiaries, provides commercial banking and retail banking products and services in the United States.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Amalgamated Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMAL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

AMAL

0.3%

US Banks

0.9%

US Market


1 Year Return

-1.9%

AMAL

12.0%

US Banks

20.0%

US Market

Return vs Industry: AMAL underperformed the US Banks industry which returned 12.1% over the past year.

Return vs Market: AMAL underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

AMALIndustryMarket
7 Day-2.9%0.3%0.9%
30 Day-4.3%-1.3%1.4%
90 Day-4.4%1.2%8.8%
1 Year-0.8%-1.9%15.3%12.0%22.5%20.0%
3 Yearn/a25.1%16.2%49.9%40.3%
5 Yearn/a76.7%56.6%73.2%54.1%

Price Volatility Vs. Market

How volatile is Amalgamated Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Amalgamated Bank undervalued compared to its fair value and its price relative to the market?

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMAL ($18.14) is trading below our estimate of fair value ($32.41)

Significantly Below Fair Value: AMAL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMAL is good value based on its PE Ratio (12.2x) compared to the Banks industry average (12.6x).

PE vs Market: AMAL is good value based on its PE Ratio (12.2x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMAL is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: AMAL is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Amalgamated Bank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMAL's forecast earnings growth (8.2% per year) is above the savings rate (1.7%).

Earnings vs Market: AMAL's earnings (8.2% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: AMAL's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMAL's revenue (5.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AMAL's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMAL's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has Amalgamated Bank performed over the past 5 years?

5.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: AMAL has high quality earnings.

Growing Profit Margin: AMAL's current net profit margins (24.6%) are lower than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if AMAL's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare AMAL's past year earnings growth to its 5-year average.

Earnings vs Industry: AMAL earnings growth over the past year (5.8%) underperformed the Banks industry 12.2%.


Return on Equity

High ROE: AMAL's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amalgamated Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AMAL has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMAL's debt is covered by short term assets (assets are 1.9x debt).


Financial Institutions Analysis

Asset Level: AMAL's level of assets compared to its equity is moderate.

Allowance for Bad Loans: AMAL has a low allowance for bad loans.

Low Risk Liabilities: AMAL's liabilities are made up of primarily low risk sources of funding.

Loan Level: AMAL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AMAL's loans are broadly funded by customer deposits.

Level of Bad Loans: AMAL has an appropriate level of bad loans (1.9%)


Next Steps

Dividend

What is Amalgamated Bank's current dividend yield, its reliability and sustainability?

1.32%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 18 2020Ex Dividend DateFeb 20 2020Dividend Pay DateMar 06 202015 days from Ex DividendBuy in the next 1 day to receive upcoming dividend

Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: AMAL's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: AMAL's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether AMAL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AMAL's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.1%), AMAL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMAL's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Keith Mestrich (52yo)

6.1yrs

Tenure

US$2,124,451

Compensation

Keith R. Mestrich is President and Chief Executive Officer of Amalgamated Bank (the “Company”). He has three decades of experience in the finance, many of those assisting the Bank’s core constituencies in  ...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD2.12M) is about average for companies of similar size in the US market ($USD1.68M).

Compensation vs Earnings: Keith's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Keith Mestrich
President6.1yrsUS$2.12m0.0035% $19.9k
Andrew LaBenne
Senior EVP & CFO4.8yrsUS$1.02m0.034% $196.8k
Martin Murrell
Senior EVP & COO4.1yrsUS$782.64k0.00094% $5.4k
Edgar Romney
Executive VP24.6yrsUS$44.61k0.0094% $54.4k
Jason Darby
Chief Accounting Officer2yrsno data0.0065% $37.2k
Barbara Kissner
Executive VP & Chief Information Officer2.1yrsno datano data
James Paul
Executive VP & Chief Administrative Officer1.8yrsno data0.0094% $54.4k
Deborah Silodor
Executive VP & General Counsel5.1yrsno datano data
Peter Neiman
Chief Marketing Officer & Executive VP3.5yrsno datano data
Tanisa Williams
Senior VP & Director of Human Resources1.1yrsno datano data

3.5yrs

Average Tenure

56yo

Average Age

Experienced Management: AMAL's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Mestrich
President6.1yrsUS$2.12m0.0035% $19.9k
Edgar Romney
Executive VP24.6yrsUS$44.61k0.0094% $54.4k
Donald Bouffard
Independent Director8yrsUS$90.21k0.0038% $21.8k
Patricia Dennis
Independent Director1.5yrsUS$22.00k0.0035% $20.0k
Robert Romasco
Independent Director5.4yrsUS$90.21k0.0047% $27.2k
Robert Dinerstein
Independent Director8.5yrsUS$90.21k0.0032% $18.2k
Stephen Sleigh
Independent Director4.9yrsUS$44.61k0.0032% $18.2k
Lynne Fox
Chairman of the Board3.8yrsUS$90.21k0.0041% $23.6k
Julie Bracero-Kelly
Director9.8yrsUS$44.61k0.00094% $5.4k
John McDonagh
Independent Director7.1yrsUS$90.21k0.0094% $54.4k

6.6yrs

Average Tenure

69.5yo

Average Age

Experienced Board: AMAL's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Top Shareholders

Company Information

Amalgamated Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amalgamated Bank
  • Ticker: AMAL
  • Exchange: NasdaqGM
  • Founded: 1923
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$576.337m
  • Shares outstanding: 31.77m
  • Website: https://www.amalgamatedbank.com

Number of Employees


Location

  • Amalgamated Bank
  • 275 Seventh Avenue
  • New York
  • New York
  • 10001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMALNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDJun 2018

Biography

Amalgamated Bank, together with its subsidiaries, provides commercial banking and retail banking products and services in the United States. The company offers deposit products, including time deposits, non-interest and interest-bearing demand accounts, savings and money market accounts, NOW accounts, and certificates of deposit. It also provides residential mortgage and commercial real estate loans, commercial and industrial loans, multifamily mortgages, 1-4 family real estate loans, construction and land loans, leveraged loans for commercial loans, consumer/small business and purchased student loans, and home equity lines of credit; and debit and ATM card services. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; and institutional trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products; securities; and asset allocation, life insurance, brokerage, and asset management services. It serves advocacy-based non-profits, social welfare organizations, labor unions, political organizations, foundations, socially responsible businesses, and other for-profit companies, as well as their members and stakeholders. The company operates a network of 12 branches in New York City; 1 branch in Washington, D.C.; 1 branch in San Francisco; 1 representative office in Pasadena, California; and 1 loan production office in Boulder, Colorado, as well as a digital banking and mobile platform. The company was formerly known as Amalgamated Bank of New York and changed its name to Amalgamated Bank in 2000. The company was founded in 1923 and is headquartered in New York, New York. Amalgamated Bank is a subsidiary of Workers United. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 01:13
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.