NasdaqGS:ESSA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


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


Market Performance


7 Day Return

0.9%

ESSA

2.6%

US Mortgage

1.0%

US Market


1 Year Return

1.2%

ESSA

18.4%

US Mortgage

8.0%

US Market

Return vs Industry: ESSA underperformed the US Mortgage industry which returned 18.4% over the past year.

Return vs Market: ESSA underperformed the US Market which returned 8% over the past year.


Shareholder returns

ESSAIndustryMarket
7 Day0.9%2.6%1.0%
30 Day-1.2%2.0%-0.07%
90 Day7.6%4.5%-1.0%
1 Year3.7%1.2%20.9%18.4%10.4%8.0%
3 Year26.7%17.9%42.3%32.6%46.2%36.7%
5 Year63.6%44.3%74.3%55.5%64.3%46.2%

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?

14.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESSA ($16.35) is trading above our estimate of fair value ($2.61)

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


Price To Earnings Ratio

PE vs Industry: ESSA is poor value based on its PE Ratio (14.7x) compared to the Mortgage industry average (14.3x).

PE vs Market: ESSA is good value based on its PE Ratio (14.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ESSA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESSA is good value based on its PB Ratio (0.9x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is ESSA Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.3%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ESSA Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ESSA Bancorp performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ESSA's earnings have declined by -1.5% per year over the past 5 years.

Accelerating Growth: ESSA's earnings growth over the past year (120%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: ESSA earnings growth over the past year (120%) exceeded the Mortgage industry 30.7%.


Return on Equity

High ROE: ESSA's Return on Equity (6.4%) is considered low.


Return on Assets

ROA vs Industry: ESSA's Return on Assets is below or equal to the Mortgage industry average last year.


Return on Capital Employed

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


Next Steps

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

Inventory Level: ESSA has a low level of unsold assets or inventory.

Debt Coverage by Assets: ESSA's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: ESSA has a low allowance for bad loans.

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

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

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

Level of Bad Loans: ESSA has an appropriate level of bad loans (1.39%)


Next Steps

Dividend

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

2.45%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ESSA's dividend (2.45%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ESSA's dividend (2.45%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (35.2%), 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

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

10.3yrs

Average management tenure


CEO

Gary Olson (65yo)

13.8yrs

Tenure

US$723,571

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 ($USD723.57K) is about average for companies of similar size in the US market ($USD1.18M).

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


Management Age and Tenure

10.3yrs

Average Tenure

59yo

Average Age

Experienced Management: ESSA's management team is seasoned and experienced (10.3 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ESSA's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

Insider Buying: ESSA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$14,48905 Aug 19
Peter Gray
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer
Shares1,000
Max PriceUS$14.50
BuyUS$5,07830 Jul 19
Charles Hangen
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares330
Max PriceUS$15.40
BuyUS$16,22801 Mar 19
Christine Davis-Gordon
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$16.23
BuyUS$25,32904 Feb 19
Peter Gray
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer
Shares1,650
Max PriceUS$15.36
SellUS$30,36331 Jan 19
Elizabeth Weekes
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$15.27
SellUS$9,07212 Dec 18
Robert Selitto
EntityIndividual
Role
Other Key Executive
Vice President
Shares567
Max PriceUS$16.00
SellUS$40,00029 Oct 18
Daniel J. Henning
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$16.00

Ownership Breakdown


Management Team

  • Allan Muto (59yo)

    Executive VP & CFO

    • Tenure: 13.8yrs
    • Compensation: US$381.54k
  • Diane Reimer (63yo)

    Senior Vice President of Administration & Operations Division

    • Tenure: 6.8yrs
    • Compensation: US$302.20k
  • Gary Olson (65yo)

    President

    • Tenure: 13.8yrs
    • Compensation: US$723.57k
  • Thomas Grayuski (58yo)

    Senior Vice President of Human Resources Services Division

    • Tenure: 19.8yrs
    • Compensation: US$388.33k
  • Suzie Farley

    VP of Investor & Community Relations

    • Tenure: 0yrs
  • Bob Selitto

    Vice President

    • Tenure: 0yrs
  • Chuck Hangen (46yo)

    Executive VP & COO

    • Tenure: 4.2yrs
    • Compensation: US$404.49k
  • Peter Gray

    Executive VP & Chief Banking Officer

    • Tenure: 1.8yrs
  • James Fareri

    General Counsel

    • Tenure: 0yrs
  • Stephanie Lefferson

    Corporate Secretary

    • Tenure: 0yrs

Board Members

  • Frederick Kutteroff (76yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$46.13k
  • Elizabeth Weekes (60yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$41.57k
  • John Schoonover (78yo)

    Director Emeritus

    • Tenure: 4.6yrs
    • Compensation: US$41.50k
  • Robert Selig (71yo)

    Chairman of the Board

    • Tenure: 0.6yrs
    • Compensation: US$41.66k
  • Gary Olson (65yo)

    President

    • Tenure: 13.8yrs
    • Compensation: US$723.57k
  • Daniel J. Henning (67yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$42.86k
  • Brian Regan (58yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$38.07k
  • Philip Hosbach (57yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$12.50k
  • Joseph Durkin (59yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$38.00k
  • Christine Davis-Gordon (42yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$38.00k

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$179.169m
  • Shares outstanding: 10.96m
  • Website: https://ir.essabank.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESSANasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDApr 2007

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:00
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.