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 Analysis

Flawless balance sheet with solid track record 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

ESSA

6.3%

US Mortgage

5.3%

US Market


1 Year Return

-9.2%

ESSA

-26.6%

US Mortgage

-10.7%

US Market

Return vs Industry: ESSA exceeded the US Mortgage industry which returned -26.6% over the past year.

Return vs Market: ESSA exceeded the US Market which returned -10.7% over the past year.


Shareholder returns

ESSAIndustryMarket
7 Day1.7%6.3%5.3%
30 Day-17.9%-26.5%-13.6%
90 Day-18.2%-34.1%-19.8%
1 Year-6.6%-9.2%-24.8%-26.6%-8.9%-10.7%
3 Year2.5%-5.0%-18.0%-23.8%15.5%8.0%
5 Year24.3%9.3%2.8%-8.7%35.2%20.4%

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?

11.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESSA ($13.98) is trading above our estimate of fair value ($5.22)

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 (11.4x) compared to the Mortgage industry average (10.5x).

PE vs Market: ESSA is good value based on its PE Ratio (11.4x) compared to the US market (13.1x).


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 (0.8x).


Next Steps

Future Growth

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

-6.4%

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 (-6.4% per year).

Earnings vs Market: ESSA's earnings are forecast to decline over the next 3 years (-6.4% per year).

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

Revenue vs Market: ESSA's revenue (4.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ESSA's revenue (4.9% 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


Next Steps

Past Performance

How has ESSA Bancorp performed over the past 5 years?

3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESSA has high quality earnings.

Growing Profit Margin: ESSA's current net profit margins (24.2%) are higher than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: ESSA's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: ESSA's earnings growth over the past year (16.5%) exceeds its 5-year average (3.8% per year).

Earnings vs Industry: ESSA earnings growth over the past year (16.5%) exceeded the Mortgage industry 11.1%.


Return on Equity

High ROE: ESSA's Return on Equity (6.8%) is considered low.


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 sufficient 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 (0.72%)


Next Steps

Dividend

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

3.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESSA's dividend (3.15%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: ESSA's dividend (3.15%) is low compared to the top 25% of dividend payers in the US market (5.37%).


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 (33.4%), 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?

10.8yrs

Average management tenure


CEO

Gary Olson (65yo)

14.25s

Tenure

US$972,566

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 ($USD972.57K) is above average for companies of similar size in the US market ($USD605.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Olson
President14.25yrsUS$972.57k1.04% $1.5m
Allan Muto
Executive VP & CFO14.25yrsUS$494.52k1.12% $1.6m
Charles Hangen
Executive VP & COO4.67yrsUS$520.72k0.35% $496.4k
Diane Reimer
Senior Vice President of Administration & Operations Division7.25yrsUS$302.20k1.24% $1.8m
Suzie Farley
VP of Investor & Community Relationsno datano datano data
James Fareri
General Counselno datano datano data
Thomas Grayuski
Senior Vice President of Human Resources Services Division20.25yrsUS$388.33k1.24% $1.8m
Robert Selitto
Senior VP & Controllerno datano data0.15% $212.5k
Peter Gray
Executive VP & Chief Banking Officer2.33yrsno data0.15% $212.9k
Stephanie Lefferson
Corporate Secretaryno datano datano data

10.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ESSA's management team is seasoned and experienced (10.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Olson
President14.25yrsUS$972.57k1.04% $1.5m
Elizabeth Weekes
Independent Director14.25yrsUS$38.80k0.28% $407.5k
John Schoonover
Director Emeritus5.08yrsUS$41.50kno data
William Viechnicki
Director Emeritusno dataUS$78.23k0.65% $925.6k
Robert Selig
Independent Chairman of the Board1.08yrsUS$63.11k0.85% $1.2m
Daniel J. Henning
Independent Director14.25yrsUS$41.07k0.55% $787.5k
Brian Regan
Independent Director9.08yrsUS$41.46k0.32% $453.9k
Philip Hosbach
Independent Director1.75yrsUS$36.50k0.031% $44.5k
Joseph Durkin
Independent Director4.08yrsUS$38.00k0.031% $43.7k
Christine Davis-Gordon
Independent Director4.08yrsUS$38.00k0.029% $40.9k

5.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ESSA's board of directors are considered experienced (5.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ESSA 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

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$142.975m
  • Shares outstanding: 10.47m
  • 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 accounts, interest bearing demand accounts, checking accounts, money market accounts, club accounts, certificates of deposit and IRAs, and other qualified plan accounts, as well as commercial checking accounts. Its loan portfolio includes first mortgage loans for the purchase, construction, or refinancing of one- to four-family residential real estate property; commercial real estate loans; home equity loans and lines of credit; and commercial and consumer loans, including indirect auto loans, as well as loans secured by deposits and personal unsecured loans. In addition, it the company offers insurance benefits consulting services, such as health insurance, life insurance, short term and long term disability, dental, vision, 401(K) retirement planning, and individual health products, as well as asset management and trust, and investment services. As of September 30, 2019, it operated 22 full-service banking offices, including 7 offices in Monroe County, 3 offices in Lehigh County, 6 offices in Northampton County, 1 office in Lackawanna County, 1 office in Luzerne County, 1 office in Chester County, 2 offices in Delaware County, and 1 office in Montgomery County, Pennsylvania. The company was founded in 1916 and is based in Stroudsburg, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 03:26
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.