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EBC

Eastern BanksharesNasdaqGS:EBC Stock Report

Market Cap

US$3.3b

7D

3.1%

1Y

n/a

Updated

23 Sep, 2021

Data

Company Financials +
EBC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance1/6
Financial Health6/6
Dividends3/6

EBC Overview

Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides commercial banking products and services primarily to retail, commercial, and small business customers.

Eastern Bankshares Competitors

Eagle Bancorp

NasdaqCM:EGBN

US$1.7b

First Commonwealth Financial

NYSE:FCF

US$1.2b

OceanFirst Financial

NasdaqGS:OCFC

US$1.2b

Brookline Bancorp

NasdaqGS:BRKL

US$1.1b

Price History & Performance

Summary of all time highs, changes and price drops for Eastern Bankshares
Historical stock prices
Current Share PriceUS$19.39
52 Week HighUS$11.74
52 Week LowUS$23.03
Beta0
1 Month Change-0.51%
3 Month Change-7.75%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO59.59%

Recent News & Updates

Shareholder Returns

EBCUS BanksUS Market
7D3.1%-1.0%-1.7%
1Yn/a75.2%36.2%

Return vs Industry: Insufficient data to determine how EBC performed against the US Banks industry.

Return vs Market: Insufficient data to determine how EBC performed against the US Market.

Price Volatility

Is EBC's price volatile compared to industry and market?
EBC volatility
EBC Beta0
Industry Beta1.37
Market Beta1

Stable Share Price: EBC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EBC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18181,884Bob Rivershttps://www.easternbank.com

Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides commercial banking products and services primarily to retail, commercial, and small business customers. It operates in two segments, Banking Business and Insurance Agency Business. The company provides interest-bearing and non interest-bearing checking deposits, money market deposits, savings deposits, and certificates of deposits, as well as debit and credit cards.

Eastern Bankshares Fundamentals Summary

How do Eastern Bankshares's earnings and revenue compare to its market cap?
EBC fundamental statistics
Market CapUS$3.29b
Earnings (TTM)US$66.92m
Revenue (TTM)US$596.84m

49.8x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EBC income statement (TTM)
RevenueUS$596.84m
Cost of RevenueUS$0
Gross ProfitUS$596.84m
ExpensesUS$529.93m
EarningsUS$66.92m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.39
Gross Margin100.00%
Net Profit Margin11.21%
Debt/Equity Ratio1.7%

How did EBC perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

36%

Payout Ratio

Valuation

Is Eastern Bankshares undervalued compared to its fair value and its price relative to the market?

49.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EBC ($19.39) is trading above our estimate of fair value ($19.16)

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


Price To Earnings Ratio

PE vs Industry: EBC is poor value based on its PE Ratio (49.8x) compared to the US Banks industry average (10.7x).

PE vs Market: EBC is poor value based on its PE Ratio (49.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: EBC is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: EBC is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.1x).


Future Growth

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

34.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBC's forecast earnings growth (34.9% per year) is above the savings rate (2%).

Earnings vs Market: EBC's earnings (34.9% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: EBC's revenue (11.4% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: EBC's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EBC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Eastern Bankshares performed over the past 5 years?

-36.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: EBC has high quality earnings.

Growing Profit Margin: EBC's current net profit margins (11.2%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if EBC's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: EBC had negative earnings growth (-36.5%) over the past year, making it difficult to compare to the Banks industry average (36%).


Return on Equity

High ROE: EBC's Return on Equity (2%) is considered low.


Financial Health

How is Eastern Bankshares'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: EBC's Assets to Equity ratio (5x) is low.

Allowance for Bad Loans: EBC has a sufficient allowance for bad loans (254%).

Low Risk Liabilities: 97% of EBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: EBC has an appropriate level of Loans to Assets ratio (56%).

Low Risk Deposits: EBC's Loans to Deposits ratio (72%) is appropriate.

Level of Bad Loans: EBC has an appropriate level of bad loans (0.4%).


Dividend

What is Eastern Bankshares's current dividend yield, its reliability and sustainability?

1.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EBC's dividend (1.65%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: EBC's dividend (1.65%) is low compared to the top 25% of dividend payers in the US market (3.63%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether EBC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if EBC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), EBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EBC's dividends in 3 years are forecast to be well covered by earnings (29.9% payout ratio).


Next Steps

Management

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

7.7yrs

Average board tenure


CEO

Bob Rivers (56 yo)

4.67yrs

Tenure

US$4,824,157

Compensation

Mr. Robert F. Rivers, also known as Bob, has been the Chief Executive Officer of Eastern Bank since January 1, 2017 and serves as its Chairman since January 1, 2017. Mr. Rivers serves as Chairman and Chief...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD4.82M) is about average for companies of similar size in the US market ($USD5.28M).

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


Board Members

Experienced Board: EBC's board of directors are considered experienced (7.7 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: EBC only recently listed within the past 12 months.


Top Shareholders

Company Information

Eastern Bankshares, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Eastern Bankshares, Inc.
  • Ticker: EBC
  • Exchange: NasdaqGS
  • Founded: 1818
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.287b
  • Shares outstanding: 171.99m
  • Website: https://www.easternbank.com

Number of Employees


Location

  • Eastern Bankshares, Inc.
  • 265 Franklin Street
  • Boston
  • Massachusetts
  • 2110
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 23:03
End of Day Share Price2021/09/23 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.