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. More Details
Flawless balance sheet with acceptable track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: EBSB's weekly volatility (7%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: EBSB exceeded the US Mortgage industry which returned 49% over the past year.
Return vs Market: EBSB exceeded the US Market which returned 39.4% over the past year.
Long-Term 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
1 month ago | Simply Wall StWe Think The Compensation For Meridian Bancorp, Inc.'s (NASDAQ:EBSB) CEO Looks About Right
2 months ago | Simply Wall StShould Meridian Bancorp, Inc. (NASDAQ:EBSB) Be Part Of Your Dividend Portfolio?
3 months ago | Simply Wall StMeridian Bancorp, Inc. (NASDAQ:EBSB) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
Is Meridian Bancorp undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EBSB ($20.33) is trading above our estimate of fair value ($18.55)
Significantly Below Fair Value: 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 (13.4x) compared to the US Mortgage industry average (12.7x).
PE vs Market: EBSB is good value based on its PE Ratio (13.4x) compared to the US market (19.4x).
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 (1.3x) compared to the US Mortgage industry average (1.1x).
How is Meridian Bancorp forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
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 (-2.7% per year).
Earnings vs Market: EBSB's earnings are forecast to decline over the next 3 years (-2.7% per year).
High Growth Earnings: EBSB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: EBSB's revenue (4% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: EBSB's revenue (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
How has Meridian Bancorp performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EBSB has high quality earnings.
Growing Profit Margin: EBSB's current net profit margins (38.5%) are higher than last year (34.7%).
Past Earnings Growth Analysis
Earnings Trend: EBSB's earnings have grown by 18.5% per year over the past 5 years.
Accelerating Growth: EBSB's earnings growth over the past year (17.7%) is below its 5-year average (18.5% per year).
Earnings vs Industry: EBSB earnings growth over the past year (17.7%) underperformed the Mortgage industry 25.6%.
Return on Equity
High ROE: EBSB's Return on Equity (9.7%) is considered low.
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
Financial Institutions Analysis
Asset Level: EBSB's Assets to Equity ratio (8.2x) is low.
Allowance for Bad Loans: EBSB has a sufficient allowance for bad loans (2033%).
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 (80%).
Low Risk Deposits: EBSB's Loans to Deposits ratio (102%) is appropriate.
Level of Bad Loans: EBSB has an appropriate level of bad loans (0.1%).
What is Meridian Bancorp current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EBSB's dividend (1.97%) is higher than the bottom 25% of dividend payers in the US market (1.29%).
High Dividend: EBSB's dividend (1.97%) is low compared to the top 25% of dividend payers in the US market (3.43%).
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 (22.3%), 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Richard Gavegnano (72 yo)
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 ($USD2.38M).
Compensation vs Earnings: Richard's compensation has increased by more than 20% in the past year.
Experienced Management: EBSB's management team is seasoned and experienced (5.2 years average tenure).
Experienced Board: EBSB's board of directors are seasoned and experienced ( 11.4 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Meridian Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Meridian Bancorp, Inc.
- Ticker: EBSB
- Exchange: NasdaqGS
- Founded: 1848
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: US$1.022b
- Shares outstanding: 50.29m
- Website: https://www.ebsb.com
Number of Employees
- Meridian Bancorp, Inc.
- 67 Prospect Street
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/19 22:21|
|End of Day Share Price||2021/06/18 00:00|
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.