NasdaqGS:EBSB

Stock Analysis Report

Executive Summary

Meridian Bancorp, Inc. operates as the holding company for East Boston Savings Bank that provides various financial products and services for individuals and businesses primarily in Suffolk, Norfolk, Middlesex and Essex Counties, Massachusetts.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Meridian Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

EBSB

2.1%

US Mortgage

2.3%

US Market


1 Year Return

13.8%

EBSB

12.0%

US Mortgage

5.6%

US Market

Return vs Industry: EBSB exceeded the US Mortgage industry which returned 12% over the past year.

Return vs Market: EBSB exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

EBSBIndustryMarket
7 Day0.7%2.1%2.3%
30 Day-1.5%-0.4%-1.0%
90 Day-1.1%3.0%-0.7%
1 Year15.8%13.8%14.4%12.0%7.9%5.6%
3 Year21.4%17.1%39.1%29.7%45.6%36.3%
5 Year73.6%65.8%70.4%52.4%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: EBSB ($18.25) is trading above our estimate of fair value ($7.83)

Significantly Undervalued: EBSB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EBSB is poor value based on its PE Ratio (15.6x) compared to the Mortgage industry average (14.6x).

PE vs Market: EBSB is good value based on its PE Ratio (15.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: EBSB is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: EBSB is overvalued based on its PB Ratio (1.3x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Meridian Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBSB's forecast earnings growth (10% per year) is above the savings rate (2.7%).

Earnings vs Market: EBSB's earnings (10% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: EBSB's revenue (9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: EBSB's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EBSB's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Meridian Bancorp performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EBSB's earnings have grown significantly by 23.5% per year over the past 5 years.

Accelerating Growth: EBSB's earnings growth over the past year (23.8%) exceeds its 5-year average (23.5% per year).

Earnings vs Industry: EBSB earnings growth over the past year (23.8%) underperformed the Mortgage industry 31.7%.


Return on Equity

High ROE: EBSB's Return on Equity (8.6%) is considered low.


Return on Assets

ROA vs Industry: EBSB has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate EBSB's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Meridian 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: EBSB has a low level of unsold assets or inventory.

Debt Coverage by Assets: EBSB's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: EBSB's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: EBSB has an appropriate level of bad loans (0.1%)


Next Steps

Dividend

What is Meridian Bancorp's current dividend yield, its reliability and sustainability?

1.53%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EBSB's dividend (1.53%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: EBSB's dividend (1.53%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: Whilst dividend payments have been stable, EBSB has been paying a dividend for less than 10 years.

Growing Dividend: EBSB's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.2%), EBSB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EBSB's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).


Next Steps

Management

What is the CEO of Meridian Bancorp's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Richard Gavegnano (71yo)

12.8yrs

Tenure

US$1,664,466

Compensation

Mr. Richard J. Gavegnano has been Chief Executive Officer of Meridian Bancorp, Inc. (formerly, Meridian Interstate Bancorp, Inc.) since 2007. Mr. Gavegnano serves as the Chief Executive Officer of Meridian ...


CEO Compensation Analysis

Compensation vs. Market: Richard's total compensation ($USD1.66M) is about average for companies of similar size in the US market ($USD2.69M).

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


Management Age and Tenure

5.6yrs

Average Tenure

63yo

Average Age

Experienced Management: EBSB's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

11.3yrs

Average Tenure

70yo

Average Age

Experienced Board: EBSB's board of directors are seasoned and experienced ( 11.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$110,30904 Feb 19
Gregory Natalucci
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,000
Max PriceUS$15.77
SellUS$44,24028 Jan 19
Edward Merritt
EntityIndividual
Role
Member of the Board of Directors
Secretary & Director
Shares2,800
Max PriceUS$15.80
BuyUS$2,55825 Jan 19
Edward Merritt
EntityIndividual
Role
Member of the Board of Directors
Secretary & Director
Shares165
Max PriceUS$15.50
SellUS$1,53110 Dec 18
Gregory Natalucci
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100
Max PriceUS$15.31
SellUS$39,00030 Nov 18
James Sartori
EntityIndividual
Shares2,400
Max PriceUS$16.25
SellUS$19,02030 Oct 18
James Sartori
EntityIndividual
Shares1,200
Max PriceUS$15.85
BuyUS$19,79326 Oct 18
Frank Romano
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Corporate Banking - East Boston Savings Bank
Shares1,264
Max PriceUS$15.90

Ownership Breakdown


Management Team

  • Ed Merritt (59yo)

    Secretary & Director

    • Tenure: 9.8yrs
    • Compensation: US$381.60k
  • Richard Gavegnano (71yo)

    Chairman

    • Tenure: 12.8yrs
    • Compensation: US$1.66m
  • Mark Abbate (63yo)

    Executive VP

    • Tenure: 9.8yrs
    • Compensation: US$400.89k
  • James Morgan

    Senior Vice President of Retail Banking

    • Tenure: 0yrs
  • John Migliozzi (61yo)

    Executive VP of Real Estate Lending - East Boston Savings Bank

    • Tenure: 0yrs
    • Compensation: US$429.74k
  • Eric Heath

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Paula Cotter

    Senior Vice President of Operations & Technology

    • Tenure: 3.3yrs
  • Keith Armstrong (66yo)

    Senior Vice President of Administration

    • Tenure: 3.3yrs
    • Compensation: US$255.14k
  • John Carroll (52yo)

    Executive VP & COO

    • Tenure: 5.6yrs
  • Frank Romano (64yo)

    Executive Vice President of Corporate Banking - East Boston Savings Bank

    • Tenure: 8.8yrs
    • Compensation: US$392.50k

Board Members

  • Ed Merritt (59yo)

    Secretary & Director

    • Tenure: 9.8yrs
    • Compensation: US$381.60k
  • Richard Gavegnano (71yo)

    Chairman

    • Tenure: 12.8yrs
    • Compensation: US$1.66m
  • Gregory Natalucci (73yo)

    Director

    • Tenure: 17.8yrs
    • Compensation: US$71.33k
  • Domenic Gambardella (73yo)

    Director

    • Tenure: 24.8yrs
    • Compensation: US$79.04k
  • Anna DiMaria (73yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$28.00k
  • Marilyn Censullo (61yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$49.00k
  • Cynthia Carney (69yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$63.00k
  • Carl LaGreca (72yo)

    Lead Director

    • Tenure: 1.7yrs
    • Compensation: US$43.00k
  • Tom Gunning (65yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$17.60k
  • Russell Chin (63yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$36.50k

Company Information

Meridian Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Meridian Bancorp, Inc.
  • Ticker: EBSB
  • Exchange: NasdaqGS
  • Founded: 1848
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$929.803m
  • Shares outstanding: 50.95m
  • Website: https://www.ebsb.com

Number of Employees


Location

  • Meridian Bancorp, Inc.
  • 67 Prospect Street
  • Peabody
  • Massachusetts
  • 1960
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EBSBNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 2008
3MRDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2008

Biography

Meridian Bancorp, Inc. operates as the holding company for East Boston Savings Bank that provides various financial products and services for individuals and businesses primarily in Suffolk, Norfolk, Middl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:02
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.