NasdaqGM:AMAL

Stock Analysis Report

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Market Cap

US$482.8m

Last Updated

2021/07/31 02:01 UTC

Data Sources

Company Financials +

Executive Summary

Amalgamated Financial Corp. operates as a bank holding company for Amalgamated Bank that provides commercial banking and trust services for commercial and retail customers in the United States. More Details


Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AMAL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AMAL's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

AMAL

0.9%

US Banks

-0.5%

US Market


1 Year Return

33.0%

AMAL

59.1%

US Banks

35.9%

US Market

Return vs Industry: AMAL underperformed the US Banks industry which returned 60.1% over the past year.

Return vs Market: AMAL underperformed the US Market which returned 37.5% over the past year.


Shareholder returns

AMALIndustryMarket
7 Day-1.3%0.9%-0.5%
30 Day-1.7%-3.5%0.3%
90 Day-4.9%-4.4%3.1%
1 Year36.0%33.0%63.5%59.1%38.0%35.9%
3 Year3.1%-2.2%17.3%7.2%62.9%52.7%
5 Yearn/a89.6%65.9%121.7%97.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMAL ($15.36) is trading below our estimate of fair value ($35.69)

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 (9.8x) compared to the US Banks industry average (10.9x).

PE vs Market: AMAL is good value based on its PE Ratio (9.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMAL is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AMAL is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.1x).


Future Growth

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

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMAL's forecast earnings growth (10.4% per year) is above the savings rate (2%).

Earnings vs Market: AMAL's earnings (10.4% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: AMAL's revenue (6.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: AMAL's revenue (6.9% 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 (9.6%).


Past Performance

How has Amalgamated Financial performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMAL has high quality earnings.

Growing Profit Margin: AMAL's current net profit margins (24.4%) are higher than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: AMAL's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: AMAL's earnings growth over the past year (8.3%) is below its 5-year average (28.2% per year).

Earnings vs Industry: AMAL earnings growth over the past year (8.3%) underperformed the Banks industry 32.5%.


Return on Equity

High ROE: AMAL's Return on Equity (8.9%) is considered low.


Financial Health

How is Amalgamated Financial'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 (12x) is moderate.

Allowance for Bad Loans: AMAL has a low allowance for bad loans (47%).

Low Risk Liabilities: 98% 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 (48%).

Low Risk Deposits: AMAL's Loans to Deposits ratio (53%) is appropriate.

Level of Bad Loans: AMAL has a high level of bad loans (2.4%).


Dividend

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

2.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AMAL's dividend (2.08%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: AMAL's dividend (2.08%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.3%), 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 (21.7% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Priscilla Brown (64 yo)

no data

Tenure

Ms. Priscilla Sims Brown has been President, Chief Executive Officer and Director of Amalgamated Financial Corp. since June 1, 2021. She had been Group Executive of Marketing and Corporate Affairs of Commo...


Leadership Team

Experienced Management: AMAL's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: AMAL's board of directors are considered experienced (6.8 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 Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amalgamated Financial Corp.
  • Ticker: AMAL
  • Exchange: NasdaqGM
  • Founded: 1923
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$482.798m
  • Shares outstanding: 31.19m
  • Website: https://www.amalgamatedbank.com

Number of Employees


Location

  • Amalgamated Financial Corp.
  • 275 Seventh Avenue
  • New York
  • New York
  • 10001
  • United States

Listings


Biography

Amalgamated Financial Corp. operates as a bank holding company for Amalgamated Bank that provides commercial banking and trust services for commercial and retail customers in the United States. The company...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 02:01
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.