NasdaqGS:EBSB

Stock Analysis Report

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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 Analysis

Flawless balance sheet with proven 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

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


Market Performance


7 Day Return

-0.9%

EBSB

-12.0%

US Mortgage

0.5%

US Market


1 Year Return

-32.9%

EBSB

-18.0%

US Mortgage

18.7%

US Market

Return vs Industry: EBSB underperformed the US Mortgage industry which returned -14% over the past year.

Return vs Market: EBSB underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

EBSBIndustryMarket
7 Day-0.9%-12.0%0.5%
30 Day2.1%-1.0%4.9%
90 Day21.4%29.0%19.8%
1 Year-31.5%-32.9%-15.7%-18.0%21.2%18.7%
3 Year-25.9%-29.2%-1.2%-8.4%46.2%36.8%
5 Year3.4%-3.0%10.3%-1.9%85.3%65.1%

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?

9.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EBSB ($12.1) is trading above our estimate of fair value ($11.34)

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


Price To Earnings Ratio

PE vs Industry: EBSB is good value based on its PE Ratio (9.2x) compared to the US Mortgage industry average (11.1x).

PE vs Market: EBSB is good value based on its PE Ratio (9.2x) compared to the US market (19.2x).


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's PB Ratio (0.8x) is in line with the US Mortgage industry average.


Next Steps

Future Growth

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

-8.5%

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 (-8.5% per year).

Earnings vs Market: EBSB's earnings are forecast to decline over the next 3 years (-8.5% per year).

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

Revenue vs Market: EBSB's revenue (2.2% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: EBSB's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EBSB's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Meridian Bancorp performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBSB has high quality earnings.

Growing Profit Margin: EBSB's current net profit margins (35.7%) are higher than last year (34.4%).


Past Earnings Growth Analysis

Earnings Trend: EBSB's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: EBSB's earnings growth over the past year (11.7%) is below its 5-year average (22.1% per year).

Earnings vs Industry: EBSB earnings growth over the past year (11.7%) exceeded the Mortgage industry 7.2%.


Return on Equity

High ROE: EBSB's Return on Equity (9.1%) is considered low.


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


Financial Institutions Analysis

Asset Level: EBSB's Assets to Equity ratio (8.7x) is low.

Allowance for Bad Loans: EBSB has a sufficient allowance for bad loans (1585%).

Low Risk Liabilities: 85% 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 (88%).

Low Risk Deposits: EBSB's Loans to Deposits ratio (117%) is appropriate.

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


Next Steps

Dividend

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

2.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EBSB's dividend (2.64%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: EBSB's dividend (2.64%) is low compared to the top 25% of dividend payers in the US market (4.29%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.4%), 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 (30.8% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Richard Gavegnano (72 yo)

13.58yrs

Tenure

US$1,560,358

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 ($USD1.56M) is below average for companies of similar size in the US market ($USD3.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Gavegnano
Chairman13.58yrsUS$1.56m1.94%
$ 12.2m
Frank Romano
Executive Vice President of Corporate Banking - East Boston Savings Bank9.58yrsUS$424.97k0.40%
$ 2.5m
Edward Merritt
Secretary & Director10.58yrsUS$401.00k0.18%
$ 1.1m
Kenneth Fisher
Executive VP0.17yrno data0.062%
$ 392.9k
John Carroll
Executive VP & COO6.42yrsno data0.099%
$ 624.3k
Paula Cotter
Senior Vice President of Operations & Technology4.17yrsno datano data
Keith Armstrong
Senior Vice President of Administration4.17yrsUS$255.14kno data
Eric Heath
Senior Vice President of Human Resourcesno datano datano data
James Morgan
Senior Vice President of Retail Bankingno datano datano data
David Lahive
Senior VP & Chief Credit Officer2.5yrsno datano data
Joseph Nash
Senior Vice President of Residential Lendingno datano datano data

4.4yrs

Average Tenure

60yo

Average Age

Experienced Management: EBSB's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Gavegnano
Chairman13.58yrsUS$1.56m1.94%
$ 12.2m
Edward Merritt
Secretary & Director10.58yrsUS$401.00k0.18%
$ 1.1m
Gregory Natalucci
Independent Director18.58yrsUS$117.52k0.11%
$ 700.1k
Domenic Gambardella
Independent Director25.58yrsUS$108.93k0.26%
$ 1.6m
Anna DiMaria
Independent Director14.58yrsUS$24.50k0.16%
$ 1.0m
Marilyn Censullo
Independent Director13.58yrsUS$51.35k0.15%
$ 959.5k
Cynthia Carney
Independent Director4.08yrsUS$72.85k0.027%
$ 169.2k
Peter Scolaro
Independent Director2.58yrsUS$24.00k0.026%
$ 161.5k
Thomas Gunning
Independent Director10.58yrsUS$24.50k0.076%
$ 481.4k
Patricia Simboli
Director of East Boston Savings Bankno datano datano data
Russell Chin
Independent Director4.08yrsUS$46.30k0.011%
$ 71.4k
Joyce Murphy
Independent Director2.42yrsUS$18.25k0.0060%
$ 37.7k

10.6yrs

Average Tenure

70yo

Average Age

Experienced Board: EBSB's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EBSB insiders have only sold shares 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

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$630.018m
  • Shares outstanding: 50.16m
  • 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 Analysis2020/08/14 00:03
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.