NasdaqGM:AMAL

Stock Analysis Report

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Executive Summary

Amalgamated Bank, together with its subsidiaries, operates as a commercial bank and a chartered trust company in the United States. More Details


Snowflake Analysis

Undervalued with adequate 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AMAL's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

AMAL

5.7%

US Banks

2.1%

US Market


1 Year Return

-29.7%

AMAL

-17.0%

US Banks

19.8%

US Market

Return vs Industry: AMAL underperformed the US Banks industry which returned -17% over the past year.

Return vs Market: AMAL underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

AMALIndustryMarket
7 Day1.0%5.7%2.1%
30 Day21.2%23.3%8.1%
90 Day9.8%18.5%6.0%
1 Year-27.9%-29.7%-14.0%-17.0%22.5%19.8%
3 Yearn/a-3.3%-11.4%46.5%36.8%
5 Yearn/a40.4%22.9%96.9%75.3%

Long-Term 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?

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMAL ($13.52) is trading below our estimate of fair value ($22.87)

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 (9.5x) compared to the US Banks industry average (11.5x).

PE vs Market: AMAL is good value based on its PE Ratio (9.5x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: AMAL is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: AMAL is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

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

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMAL's forecast earnings growth (8% per year) is above the savings rate (2.2%).

Earnings vs Market: AMAL's earnings (8% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: AMAL's revenue (0.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: AMAL's revenue (0.5% 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 (8.5%).


Next Steps

Past Performance

How has Amalgamated Bank performed over the past 5 years?

38.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMAL has high quality earnings.

Growing Profit Margin: AMAL's current net profit margins (22.8%) are lower than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: AMAL's earnings have grown significantly by 38.5% per year over the past 5 years.

Accelerating Growth: AMAL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMAL had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Banks industry average (-4.3%).


Return on Equity

High ROE: AMAL's Return on Equity (8.5%) is considered low.


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


Financial Institutions Analysis

Asset Level: AMAL's Assets to Equity ratio (12.7x) is moderate.

Allowance for Bad Loans: AMAL has a low allowance for bad loans (60%).

Low Risk Liabilities: 99% of AMAL's liabilities are made up of primarily low risk sources of funding.

Loan Level: AMAL has an appropriate level of Loans to Assets ratio (54%).

Low Risk Deposits: AMAL's Loans to Deposits ratio (59%) is appropriate.

Level of Bad Loans: AMAL has a high level of bad loans (2.2%).


Next Steps

Dividend

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

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AMAL's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: AMAL's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AMAL has been paying a dividend for less than 10 years.

Growing Dividend: AMAL's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.5%), AMAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMAL's dividends in 3 years are forecast to be well covered by earnings (20.3% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Keith Mestrich (53 yo)

6.83yrs

Tenure

US$2,308,999

Compensation

Mr. Keith R. Mestrich is President and Chief Executive Officer of Amalgamated Bank since 2014 also serves as its Director. He has experience in the finance, many of those assisting the Bank’s core constitu...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD2.31M) is about average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Keith Mestrich
President6.83yrsUS$2.31m0.022%
$ 91.7k
Andrew LaBenne
Senior Executive VP & CFO5.58yrsUS$891.22k0.074%
$ 308.9k
Martin Murrell
Senior EVP & COO4.83yrsUS$744.81k0.0038%
$ 16.0k
Jason Darby
Chief Accounting Officer2.75yrsno data0.0085%
$ 35.8k
Bruce Rucinski
Acting Chief Information Officer0.17yrno datano data
Deborah Silodor
Executive VP & General Counsel5.83yrsno data0.0040%
$ 16.8k
Peter Neiman
Chief Marketing Officer & Executive VP4.25yrsno datano data
Tanisa Williams
Senior VP & Director of Human Resources1.83yrsno datano data
Margaret Stumpp
Senior Managing Director of Quantitative Management of Prudential Investmentsno datano datano data
James Herbst
Managing Director of U S Corporate Sector and Portfolio Manager of Prudential Investmentsno datano datano data
Wai Chiang
Managing Director of Quantitative Management - Prudential Investmentsno datano datano data
Barry Kipnis
Senior VP & Chief Investment Management Operations Officerno datano datano data

4.5yrs

Average Tenure

53yo

Average Age

Experienced Management: AMAL's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Mestrich
President6.83yrsUS$2.31m0.022%
$ 91.7k
Donald Bouffard
Independent Director8.75yrsUS$117.00k0.0039%
$ 16.2k
Patricia Dennis
Independent Director2.25yrsUS$103.00k0.0039%
$ 16.2k
Robert Romasco
Independent Director6.17yrsUS$122.00k0.0048%
$ 20.3k
Robert Dinerstein
Independent Director9.25yrsUS$111.00k0.0032%
$ 13.5k
Edgar Romney
Director25.33yrsUS$101.00k0.0097%
$ 40.6k
Maryann Bruce
Independent Director2.25yrsUS$102.00k0.026%
$ 108.3k
Mark Finser
Independent Director2.5yrsUS$93.00k0.099%
$ 417.0k
Stephen Sleigh
Independent Director5.67yrsUS$93.00k0.0032%
$ 13.5k
Lynne Fox
Chairman of the Board4.5yrsUS$135.00k0.0042%
$ 17.6k
Julie Bracero-Kelly
Director10.58yrsUS$94.00k0.00097%
$ 4.1k
John McDonagh
Independent Director7.83yrsUS$102.00k0.0097%
$ 40.6k

6.5yrs

Average Tenure

69yo

Average Age

Experienced Board: AMAL's board of directors are considered experienced (6.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AMAL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$419.790m
  • Shares outstanding: 31.05m
  • 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, operates as a commercial bank and a chartered trust company in the United States. The company offers deposit products, including non-interest and interest-...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:15
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.