EBSB

Meridian BancorpNasdaqGS:EBSB Stock Report

Market Cap

US$978.6m

7D

1.5%

1Y

97.6%

Updated

22 Sep, 2021

Data

Company Financials +
EBSB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends2/6

EBSB Overview

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.

Meridian Bancorp Competitors

TFS Financial

NasdaqGS:TFSL

US$5.2b

WSFS Financial

NasdaqGS:WSFS

US$2.1b

Provident Financial Services

NYSE:PFS

US$1.7b

Northwest Bancshares

NasdaqGS:NWBI

US$1.6b

Price History & Performance

Summary of all time highs, changes and price drops for Meridian Bancorp
Historical stock prices
Current Share PriceUS$19.42
52 Week HighUS$9.75
52 Week LowUS$22.97
Beta1.07
1 Month Change-8.05%
3 Month Change-8.27%
1 Year Change97.56%
3 Year Change13.57%
5 Year Change24.57%
Change since IPO395.29%

Recent News & Updates

Shareholder Returns

EBSBUS MortgageUS Market
7D1.5%-1.0%-1.7%
1Y97.6%22.9%36.2%

Return vs Industry: EBSB exceeded the US Mortgage industry which returned 16.8% over the past year.

Return vs Market: EBSB exceeded the US Market which returned 31.5% over the past year.

Price Volatility

Is EBSB's price volatile compared to industry and market?
EBSB volatility
EBSB Beta1.07
Industry Beta1.13
Market Beta1

Stable Share Price: EBSB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EBSB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1848478Richard Gavegnanohttps://www.ebsb.com

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. The company accepts various deposit products, including non-interest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts, including NOW and money market accounts; savings accounts; and certificates of deposit, as well as commercial checking accounts. Its loan portfolio includes commercial real estate loans, which are secured by properties used for business purposes, such as office buildings, industrial facilities, and retail facilities; one- to four-family residential loans, such as mortgage loans that enable borrowers to purchase or refinance existing homes; multi-family real estate loans; construction loans; commercial and industrial loans; home equity lines of credit; and consumer loans, including automobile loans, loans secured by savings or certificate accounts, credit builders, and annuity and overdraft loans.

Meridian Bancorp Fundamentals Summary

How do Meridian Bancorp's earnings and revenue compare to its market cap?
EBSB fundamental statistics
Market CapUS$978.59m
Earnings (TTM)US$75.66m
Revenue (TTM)US$202.25m

12.9x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EBSB income statement (TTM)
RevenueUS$202.25m
Cost of RevenueUS$0
Gross ProfitUS$202.25m
ExpensesUS$126.59m
EarningsUS$75.66m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.51
Gross Margin100.00%
Net Profit Margin37.41%
Debt/Equity Ratio70.9%

How did EBSB perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

24%

Payout Ratio

Valuation

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

1.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBSB ($19.42) is trading below our estimate of fair value ($19.77)

Significantly Below Fair Value: EBSB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EBSB is poor value based on its PE Ratio (12.9x) compared to the US Mortgage industry average (11.8x).

PE vs Market: EBSB is good value based on its PE Ratio (12.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: EBSB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: EBSB is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (1x).


Future Growth

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

-3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBSB's earnings are forecast to decline over the next 3 years (-3.2% per year).

Earnings vs Market: EBSB's earnings are forecast to decline over the next 3 years (-3.2% per year).

High Growth Earnings: EBSB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EBSB's revenue (3.4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: EBSB's revenue (3.4% 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 EBSB's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Meridian Bancorp performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBSB has high quality earnings.

Growing Profit Margin: EBSB's current net profit margins (37.4%) are higher than last year (35.7%).


Past Earnings Growth Analysis

Earnings Trend: EBSB's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: EBSB's earnings growth over the past year (12.9%) is below its 5-year average (17.4% per year).

Earnings vs Industry: EBSB earnings growth over the past year (12.9%) underperformed the Mortgage industry 36.9%.


Return on Equity

High ROE: EBSB's Return on Equity (9.4%) is considered low.


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


Financial Institutions Analysis

Asset Level: EBSB's Assets to Equity ratio (7.8x) is low.

Allowance for Bad Loans: EBSB has a sufficient allowance for bad loans (614%).

Low Risk Liabilities: 89% of EBSB's liabilities are made up of primarily low risk sources of funding.

Loan Level: EBSB has an appropriate level of Loans to Assets ratio (79%).

Low Risk Deposits: EBSB's Loans to Deposits ratio (101%) is appropriate.

Level of Bad Loans: EBSB has an appropriate level of bad loans (0.2%).


Dividend

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

2.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EBSB's dividend (2.06%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: EBSB's dividend (2.06%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.9%), EBSB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Richard Gavegnano (73 yo)

14.67yrs

Tenure

US$2,327,952

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 ($USD2.33M) is about average for companies of similar size in the US market ($USD2.39M).

Compensation vs Earnings: Richard's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: EBSB's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: EBSB's board of directors are seasoned and experienced ( 11.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Meridian Bancorp, Inc.'s 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$978.588m
  • Shares outstanding: 50.39m
  • Website: https://www.ebsb.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 22:41
End of Day Share Price2021/09/22 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.