NasdaqCM:CATC

Stock Analysis Report

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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. More Details


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CATC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

CATC

-2.3%

US Banks

2.3%

US Market


1 Year Return

3.6%

CATC

-6.6%

US Banks

23.7%

US Market

Return vs Industry: CATC exceeded the US Banks industry which returned -6.6% over the past year.

Return vs Market: CATC underperformed the US Market which returned 23.7% over the past year.


Shareholder returns

CATCIndustryMarket
7 Day2.3%-2.3%2.3%
30 Day9.1%6.8%4.7%
90 Day17.1%30.1%14.5%
1 Year7.3%3.6%-3.2%-6.6%26.5%23.7%
3 Year8.6%-0.1%-2.3%-10.7%45.0%35.4%
5 Year94.3%67.6%77.3%54.9%126.2%100.9%

Long-Term 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

Valuation

Is Cambridge Bancorp undervalued compared to its fair value and its price relative to the market?

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CATC ($77.09) is trading below our estimate of fair value ($145.56)

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 (17.2x) compared to the US Banks industry average (12.2x).

PE vs Market: CATC is good value based on its PE Ratio (17.2x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CATC is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1x).


Next Steps

Future Growth

How is Cambridge Bancorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CATC's forecast earnings growth (20.2% per year) is above the savings rate (2%).

Earnings vs Market: CATC's earnings (20.2% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CATC's revenue (10% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: CATC's revenue (10% 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 (10.8%).


Next Steps

Past Performance

How has Cambridge Bancorp performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CATC has high quality earnings.

Growing Profit Margin: CATC's current net profit margins (20.4%) are lower than last year (22.2%).


Past Earnings Growth Analysis

Earnings Trend: CATC's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: CATC's earnings growth over the past year (11.7%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: CATC earnings growth over the past year (11.7%) exceeded the Banks industry -3.6%.


Return on Equity

High ROE: CATC's Return on Equity (6.6%) is considered low.


Next Steps

  • Explore strong past performing companies in the Banks industry.

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


Financial Institutions Analysis

Asset Level: CATC's Assets to Equity ratio (10.1x) is moderate.

Allowance for Bad Loans: CATC has a sufficient allowance for bad loans (391%).

Low Risk Liabilities: 93% of CATC's liabilities are made up of primarily low risk sources of funding.

Loan Level: CATC has an appropriate level of Loans to Assets ratio (81%).

Low Risk Deposits: CATC's Loans to Deposits ratio (97%) is appropriate.

Level of Bad Loans: CATC has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

What is Cambridge Bancorp current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CATC's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: CATC's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (3.85%).


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 (46.8%), 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 (33.1% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Denis Sheahan (54 yo)

5.75yrs

Tenure

US$2,032,239

Compensation

Mr. Denis K. Sheahan serves as Chairman and Chief Executive Officer of Cambridge Trust Company and Cambridge Bancorp. Prior to joining Cambridge Trust Company in April 2015, Mr. Sheahan spent 19 years at I...


CEO Compensation Analysis

Compensation vs Market: Denis's total compensation ($USD2.03M) is about average for companies of similar size in the US market ($USD1.64M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Denis Sheahan
Chairman & CEO5.75yrsUS$2.03m0.44%
$ 2.4m
Michael Carotenuto
CFO, Treasurer & Corporate Secretary4.17yrsUS$635.89k0.078%
$ 415.4k
Jennifer Pline
Executive VP & Head of Wealth Management4yrsUS$930.80k0.056%
$ 299.6k
Martin Millane
Executive VP & Chief Lending Officerno dataUS$904.15k0.21%
$ 1.1m
Puneet Nevatia
Senior VP & Chief Information Officerno datano data0.055%
$ 293.9k
Jennifer Willis
Senior VP & Chief Marketing Officerno datano data0.0048%
$ 25.7k
Pilar Pueyo
Senior VP & Director of Human Resourcesno datano data0.038%
$ 205.4k
Scott Chamberlin
Senior Vice President4.92yrsno datano data
Marc Gearin
Senior Vice President of Private Banking2.92yrsno datano data
John Sullivan
Senior VP & Director of Consumer Lending2.5yrsno data0.012%
$ 62.1k
Kerri Mooney
Senior VP & Director of Private Banking Offices2.5yrsno data0.0075%
$ 39.8k
Daniel Morrison
CEO of New Hampshire Market & Director1.67yrsno data0.58%
$ 3.1m

4.0yrs

Average Tenure

54yo

Average Age

Experienced Management: CATC's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Denis Sheahan
Chairman & CEO5.75yrsUS$2.03m0.44%
$ 2.4m
Daniel Morrison
CEO of New Hampshire Market & Director1.67yrsno data0.58%
$ 3.1m
Thomas Fontaine
Chief Banking Officer & Director0.58yrno data0.40%
$ 2.1m
R. Stone
Independent Lead Directorno dataUS$69.00k0.15%
$ 817.0k
Mark Thompson
Director3.33yrsUS$1.20m0.11%
$ 563.4k
Jeanette Clough
Independent Director13yrsUS$52.35k0.076%
$ 405.5k
Edward Jankowski
Independent Director4.75yrsUS$64.25k0.037%
$ 199.6k
Cathleen Schmidt
Independent Director4.75yrsUS$57.45k0.042%
$ 222.7k
Hambleton Lord
Independent Director8.67yrsUS$65.75k0.062%
$ 331.8k
Leon Palandjian
Independent Director15yrsUS$64.00k0.23%
$ 1.2m
Thomas DeSimone
Advisory Board Memberno datano datano data
Christopher Collins
Advisory Board Memberno datano datano data

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: CATC's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CATC insiders have only sold shares 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 30%.


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$534.102m
  • Shares outstanding: 6.93m
  • Website: https://www.cambridgetrust.com

Number of Employees


Location

  • Cambridge Bancorp
  • 1336 Massachusetts Avenue
  • Cambridge
  • Massachusetts
  • 2138
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CATCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 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 d...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 23:57
End of Day Share Price2021/01/22 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.