Cambridge Bancorp
Market Cap
US$400.4m
Last Updated
2020/02/22 00:30 UTC
Data Sources
Company Financials +
Executive Summary
Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that provides commercial and consumer banking, and investment management and trust services.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Cambridge Bancorp's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CATC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.6%
CATC
-0.3%
US Banks
0.06%
US Market
1 Year Return
-14.8%
CATC
11.1%
US Banks
19.3%
US Market
Return vs Industry: CATC underperformed the US Banks industry which returned 11.1% over the past year.
Return vs Market: CATC underperformed the US Market which returned 19.3% over the past year.
Shareholder returns
| CATC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | -0.3% | 0.06% |
| 30 Day | -2.4% | -0.5% | 1.7% |
| 90 Day | -7.4% | 0.6% | 9.0% |
| 1 Year | -12.5%-14.8% | 14.4%11.1% | 21.8%19.3% |
| 3 Year | 24.7%14.8% | 24.7%15.7% | 49.5%39.9% |
| 5 Year | 93.3%65.0% | 74.9%55.1% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Cambridge Bancorp's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
How Much Did Cambridge Bancorp's (NASDAQ:CATC) CEO Pocket Last Year?2 weeks ago | Simply Wall St
There's A Lot To Like About Cambridge Bancorp's (NASDAQ:CATC) Upcoming US$0.53 Dividend3 weeks ago | Simply Wall St
Cambridge Bancorp Just Released Its Yearly Results And Analysts Are Updating Their EstimatesValuation
Is Cambridge Bancorp undervalued compared to its fair value and its price relative to the market?
43.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CATC ($73.98) is trading below our estimate of fair value ($129.02)
Significantly Below Fair Value: CATC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CATC is poor value based on its PE Ratio (13.7x) compared to the Banks industry average (12.6x).
PE vs Market: CATC is good value based on its PE Ratio (13.7x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: CATC is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: CATC is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is Cambridge Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
32.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CATC's forecast earnings growth (32.3% per year) is above the savings rate (1.7%).
Earnings vs Market: CATC's earnings (32.3% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CATC's revenue (12.7% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: CATC's revenue (12.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CATC's Return on Equity is forecast to be low in 3 years time (10.9%).
Next Steps
Past Performance
How has Cambridge Bancorp performed over the past 5 years?
10.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CATC has high quality earnings.
Growing Profit Margin: CATC's current net profit margins (22.3%) are lower than last year (24.9%).
Past Earnings Growth Analysis
Earnings Trend: CATC's earnings have grown by 10.5% per year over the past 5 years.
Accelerating Growth: CATC's earnings growth over the past year (5.8%) is below its 5-year average (10.5% per year).
Earnings vs Industry: CATC earnings growth over the past year (5.8%) underperformed the Banks industry 12.2%.
Return on Equity
High ROE: CATC's Return on Equity (8.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Cambridge Bancorp'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: CATC has a low level of unsold assets or inventory.
Debt Coverage by Assets: CATC's debt is not covered by short term assets (assets are 0.5x debt).
Financial Institutions Analysis
Asset Level: CATC's level of assets compared to its equity is low.
Allowance for Bad Loans: CATC has a sufficient allowance for bad loans.
Low Risk Liabilities: CATC's liabilities are made up of primarily low risk sources of funding.
Loan Level: CATC has an acceptable proportion of non-loan assets held.
Low Risk Deposits: CATC's loans are broadly funded by customer deposits.
Level of Bad Loans: CATC has an appropriate level of bad loans (0.25%)
Next Steps
Dividend
What is Cambridge Bancorp's current dividend yield, its reliability and sustainability?
2.89%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CATC's dividend (2.87%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: CATC's dividend (2.87%) is low compared to the top 25% of dividend payers in the US market (3.71%).
Stability and Growth of Payments
Stable Dividend: CATC's dividends per share have been stable in the past 10 years.
Growing Dividend: CATC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (37.8%), CATC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CATC's dividends in 3 years are forecast to be well covered by earnings (30.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Denis Sheahan (53yo)
4.8yrs
Tenure
US$1,925,402
Compensation
Mr. Denis K. Sheahan serves as Chief Executive Officer of Cambridge Bancorp and of Cambridge Trust Company. Prior to joining Cambridge Trust Company in 2015, Mr. Sheahan spent 19 years at Independent Bank ...
CEO Compensation Analysis
Compensation vs Market: Denis's total compensation ($USD1.93M) is about average for companies of similar size in the US market ($USD1.66M).
Compensation vs Earnings: Denis's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4.8yrs | US$1.93m | 0.44% $1.8m | |
| President & Director | 2.4yrs | US$1.09m | 0.18% $729.1k | |
| Senior VP | 3.3yrs | US$613.64k | 0.083% $330.7k | |
| Executive VP & Head of Wealth Management | 3.1yrs | US$880.86k | 0.088% $354.2k | |
| Executive VP & Chief Lending Officer | 0yrs | US$773.01k | 0.33% $1.3m | |
| Senior VP & Chief Information Officer | 0yrs | no data | 0.041% $163.6k | |
| Senior VP & Chief Marketing Officer | 0yrs | no data | 0.020% $80.1k | |
| Senior VP & Director of Human Resources | 0yrs | no data | 0.037% $150.1k | |
| Senior Vice President | 4yrs | no data | no data | |
| Senior Vice President of Private Banking | 2yrs | no data | no data |
3.2yrs
Average Tenure
53yo
Average Age
Experienced Management: CATC's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4.8yrs | US$1.93m | 0.44% $1.8m | |
| President & Director | 2.4yrs | US$1.09m | 0.18% $729.1k | |
| Independent Director | 10.3yrs | US$63.85k | 0.17% $661.9k | |
| Independent Director | 12.1yrs | US$52.80k | 0.085% $341.0k | |
| Independent Director | 3.8yrs | US$56.95k | 0.036% $143.4k | |
| Independent Director | 18.1yrs | US$65.70k | 0.10% $400.1k | |
| Independent Director | 3.8yrs | US$60.45k | 0.041% $165.6k | |
| Independent Director | 5.7yrs | US$69.05k | 0.041% $162.7k | |
| Independent Director | 7.8yrs | US$64.40k | 0.058% $233.3k | |
| Independent Director | 14.1yrs | US$65.15k | 0.092% $366.7k |
6.7yrs
Average Tenure
63.5yo
Average Age
Experienced Board: CATC's board of directors are considered experienced (6.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CATC 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 14%.
Top Shareholders
Company Information
Cambridge Bancorp's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cambridge Bancorp
- Ticker: CATC
- Exchange: NasdaqCM
- Founded: 1890
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$400.409m
- Shares outstanding: 5.41m
- Website: https://www.cambridgetrust.com
Number of Employees
Location
- Cambridge Bancorp
- 1336 Massachusetts Avenue
- Cambridge
- Massachusetts
- 2138
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CATC | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock | US | USD | Oct 1998 |
Biography
Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that provides commercial and consumer banking, and investment management and trust services. The company accepts various deposits, such as checking and savings accounts, certificates of deposit, money market accounts, individual retirement accounts, and time and demand deposits. Its loan products include residential and commercial real estate loans; home equity lines of credit and term loans; commercial and industrial loans; secured and unsecured loans, lines of credit, and personal installment loans; and construction loans. The company also offers cash management, online and mobile banking, and payments services. It serves commercial enterprises, non-profit organizations, and individuals. As of March 15, 2019, the company operated 10 Massachusetts locations in Cambridge, Boston, Belmont, Concord, Lexington, and Weston; and wealth management offices in Boston, Massachusetts, as well as in Concord, Manchester, and Portsmouth, New Hampshire. Cambridge Bancorp was founded in 1890 and is headquartered in Cambridge, Massachusetts.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 00:30 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.