NasdaqGS:DCOM

Stock Analysis Report

Dime Community Bancshares

Executive Summary

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that provides commercial banking and financial services in New York.

Rewards

Earnings are forecast to grow 21.39% per year

Pays a reliable dividend of 2.9%

Risk Analysis

No risks detected for DCOM from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Dime Community Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.4%

DCOM

-0.3%

US Banks

0.06%

US Market


1 Year Return

-5.4%

DCOM

11.1%

US Banks

19.3%

US Market

Return vs Industry: DCOM underperformed the US Banks industry which returned 11.1% over the past year.

Return vs Market: DCOM underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

DCOMIndustryMarket
7 Day-1.4%-0.3%0.06%
30 Day-3.9%-0.5%1.7%
90 Day-2.3%0.6%9.0%
1 Year-2.6%-5.4%14.4%11.1%21.8%19.3%
3 Year-3.5%-11.5%24.7%15.7%49.5%39.9%
5 Year43.9%23.7%74.9%55.1%73.1%54.1%

Price Volatility Vs. Market

How volatile is Dime Community Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dime Community Bancshares undervalued compared to its fair value and its price relative to the market?

19.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DCOM ($19.29) is trading above our estimate of fair value ($17.8)

Significantly Below Fair Value: DCOM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DCOM is poor value based on its PE Ratio (19.1x) compared to the Banks industry average (12.6x).

PE vs Market: DCOM is poor value based on its PE Ratio (19.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DCOM is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Dime Community Bancshares forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCOM's forecast earnings growth (21.4% per year) is above the savings rate (1.7%).

Earnings vs Market: DCOM's earnings (21.4% 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: DCOM's revenue (12.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: DCOM's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DCOM's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Dime Community Bancshares performed over the past 5 years?

-4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DCOM has high quality earnings.

Growing Profit Margin: DCOM's current net profit margins (25.4%) are lower than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: DCOM's earnings have declined by -4.2% per year over the past 5 years.

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

Earnings vs Industry: DCOM had negative earnings growth (-29.2%) over the past year, making it difficult to compare to the Banks industry average (12.2%).


Return on Equity

High ROE: DCOM's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dime Community Bancshares'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: DCOM has a low level of unsold assets or inventory.

Debt Coverage by Assets: DCOM's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: DCOM has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: DCOM has an appropriate level of bad loans (0.21%)


Next Steps

Dividend

What is Dime Community Bancshares's current dividend yield, its reliability and sustainability?

2.91%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: DCOM's dividend (2.9%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: DCOM's dividend (2.9%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: DCOM's dividends per share have been stable in the past 10 years.

Growing Dividend: DCOM's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.4%), DCOM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DCOM'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?

1.5yrs

Average management tenure


CEO

Ken Mahon (68yo)

3.1yrs

Tenure

US$1,946,523

Compensation

Mr. Kenneth J. Mahon, also known as Ken, has been the Chief Executive Officer of Dime Community Bancshares, Inc. (“Company”) and its subsidiary, Dime Community Bank (“Bank”) since January 1, 2017 and has b ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD1.95M) is about average for companies of similar size in the US market ($USD2.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Mahon
President3.1yrsUS$1.95m1.58% $10.7m
Roberto Volino
Senior EVP & COO3.1yrsUS$929.17k0.31% $2.1m
Stuart Lubow
Senior EVP & Chief Banking Officer0yrsUS$955.92k0.17% $1.1m
James Rizzo
Senior VP & Comptroller0yrsUS$309.12k0.079% $534.3k
Conrad Gunther
Executive VP & Chief Lending Officer0yrsUS$673.15k0.068% $457.8k
Avinash Reddy
Executive VP1.1yrsno data0.069% $467.7k
Leslie Veluswamy
Senior VP & Chief Accounting Officer1.1yrsno data0.020% $133.3k
Michael Fegan
Executive VP & CTO1yrsno data0.041% $280.5k
Patricia Schaubeck
Executive VP1.9yrsno data0.031% $207.2k
Angela Finlay
Executive VP & Chief Human Resources Officer0yrsno data0.060% $405.9k

1.5yrs

Average Tenure

54yo

Average Age

Experienced Management: DCOM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kenneth Mahon
President3.1yrsUS$1.95m1.58% $10.7m
Vincent Palagiano
Chairman of the Board24.2yrsUS$106.92k2.57% $17.5m
Michael Devine
Vice Chairman of the Board6yrsUS$108.57k1.89% $12.8m
Kevin Stein
Independent Director2.2yrsUS$117.56k0.041% $280.5k
Steven Cohn
Independent Director25.1yrsUS$123.42k0.22% $1.5m
Patrick Curtin
Director25.1yrsUS$118.67k0.26% $1.8m
Omer S. Williams
Independent Director13.6yrsUS$133.92k0.17% $1.1m
Kathleen Nelson
Lead Director3.2yrsUS$132.42k0.087% $587.3k
Joseph Perry
Independent Director14.4yrsUS$130.42k0.20% $1.3m
Rosemarie Chen
Independent Director2.4yrsUS$121.13k0.018% $123.3k

14.0yrs

Average Tenure

71.5yo

Average Age

Experienced Board: DCOM's board of directors are seasoned and experienced ( 14 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dime Community Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dime Community Bancshares, Inc.
  • Ticker: DCOM
  • Exchange: NasdaqGS
  • Founded: 1864
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$678.133m
  • Shares outstanding: 35.15m
  • Website: https://www.dime.com

Number of Employees


Location

  • Dime Community Bancshares, Inc.
  • 300 Cadman Plaza West
  • 8th Floor
  • Brooklyn
  • New York
  • 11201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DCOMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1996
DCOM.PNasdaqCM (Nasdaq Capital Market)5.5% NCUM PFD AUSUSDJan 2020

Biography

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that provides commercial banking and financial services in New York. It offers deposit products, such as savings, money market, and interest bearing and non-interest bearing checking accounts, as well as certificates of deposit. The company also offers multifamily residential and commercial real estate loans; commercial and industrial loans, such as lines of credit, revolving lines of credit, and term loans; one-to-four family residential and condominium/cooperative apartment loans; home equity and home improvement loans; equity lines of credit on multifamily residential and commercial real estate loans; acquisition, land development, and construction loans; small business administration loans; finance loans and leases; and consumer loans. In addition, it manages and owns real estate; sells non-Federal Deposit Insurance Corporation insured investment products; and invests in multifamily residential and commercial real estate loans. As of December 31, 2018, the company operated 29 full-service retail banking offices located throughout Brooklyn, Queens, the Bronx, Nassau County, and Suffolk County, New York. Dime Community Bancshares, Inc. was founded in 1864 and is headquartered in Brooklyn, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:35
End of Day Share Price2020/02/21 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.