NasdaqGS:ESSA

Stock Analysis Report

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Market Cap

US$163.2m

Last Updated

2021/08/01 22:20 UTC

Data Sources

Company Financials +

Executive Summary

ESSA Bancorp, Inc. operates as a bank holding company for ESSA Bank & Trust that provides a range of financial products and services to individuals, families, and businesses in Pennsylvania. More Details


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-0.6%

ESSA

0.9%

US Mortgage

-0.4%

US Market


1 Year Return

29.6%

ESSA

48.5%

US Mortgage

35.9%

US Market

Return vs Industry: ESSA underperformed the US Mortgage industry which returned 48.5% over the past year.

Return vs Market: ESSA underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

ESSAIndustryMarket
7 Day-0.6%0.9%-0.4%
30 Day0.3%-3.0%-0.3%
90 Day4.1%-12.5%3.1%
1 Year33.5%29.6%52.9%48.5%38.0%35.9%
3 Year13.6%4.4%24.8%15.5%62.9%52.7%
5 Year33.1%16.6%64.4%40.8%121.3%96.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESSA ($16.33) is trading below our estimate of fair value ($21.61)

Significantly Below Fair Value: ESSA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ESSA is good value based on its PE Ratio (10.1x) compared to the US Mortgage industry average (12x).

PE vs Market: ESSA is good value based on its PE Ratio (10.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ESSA is good value based on its PB Ratio (0.8x) compared to the US Mortgage industry average (1.1x).


Future Growth

How is ESSA Bancorp forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESSA's earnings are forecast to decline over the next 3 years (-3.3% per year).

Earnings vs Market: ESSA's earnings are forecast to decline over the next 3 years (-3.3% per year).

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

Revenue vs Market: ESSA's revenue (1.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: ESSA's revenue (1.9% 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 ESSA's Return on Equity is forecast to be high in 3 years time


Past Performance

How has ESSA Bancorp performed over the past 5 years?

21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESSA has high quality earnings.

Growing Profit Margin: ESSA's current net profit margins (26.2%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: ESSA's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: ESSA's earnings growth over the past year (14.1%) is below its 5-year average (21.2% per year).

Earnings vs Industry: ESSA earnings growth over the past year (14.1%) underperformed the Mortgage industry 40.2%.


Return on Equity

High ROE: ESSA's Return on Equity (8.2%) is considered low.


Financial Health

How is ESSA 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: ESSA's Assets to Equity ratio (9.1x) is low.

Allowance for Bad Loans: ESSA has a low allowance for bad loans (69%).

Low Risk Liabilities: 98% of ESSA's liabilities are made up of primarily low risk sources of funding.

Loan Level: ESSA has an appropriate level of Loans to Assets ratio (75%).

Low Risk Deposits: ESSA's Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: ESSA has an appropriate level of bad loans (1.8%).


Dividend

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

2.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESSA's dividend (2.94%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: ESSA's dividend (2.94%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: ESSA's dividends per share have been stable in the past 10 years.

Growing Dividend: ESSA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.3%), ESSA'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?

12.0yrs

Average management tenure


CEO

Gary Olson (67 yo)

15.5yrs

Tenure

US$950,667

Compensation

Mr. Gary S. Olson has been the President and Chief Executive Officer at ESSA Bancorp, Inc. and its subsidiary ESSA Bank & Trust since 2000. Mr. Olson began his career at ESSA Bank & Trust in 1977. He has b...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD950.67K) is about average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

Experienced Management: ESSA's management team is seasoned and experienced (12 years average tenure).


Board Members

Experienced Board: ESSA's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ESSA insiders have bought more shares than they have sold 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

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


Key Information

  • Name: ESSA Bancorp, Inc.
  • Ticker: ESSA
  • Exchange: NasdaqGS
  • Founded: 1916
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$163.226m
  • Shares outstanding: 10.00m
  • Website: https://ir.essabank.com

Number of Employees


Location

  • ESSA Bancorp, Inc.
  • 200 Palmer Street
  • Stroudsburg
  • Pennsylvania
  • 18360
  • United States

Listings


Biography

ESSA Bancorp, Inc. operates as a bank holding company for ESSA Bank & Trust that provides a range of financial products and services to individuals, families, and businesses in Pennsylvania. The company ac...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:20
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


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.