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NECB

Northeast Community Bancorp NasdaqCM:NECB Stock Report

Last Price

US$12.03

Market Cap

US$178.9m

7D

-0.3%

1Y

2.9%

Updated

24 Jun, 2022

Data

Company Financials +
NECB fundamental analysis
Snowflake Score
Valuation5/6
Future Growth5/6
Past Performance2/6
Financial Health6/6
Dividends3/6

NECB Stock Overview

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses.

Northeast Community Bancorp Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Northeast Community Bancorp
Historical stock prices
Current Share PriceUS$12.03
52 Week HighUS$13.06
52 Week LowUS$10.02
Beta0.67
1 Month Change8.48%
3 Month Change-0.50%
1 Year Change2.94%
3 Year Change42.03%
5 Year Change90.55%
Change since IPO46.55%

Recent News & Updates

Shareholder Returns

NECBUS MortgageUS Market
7D-0.3%7.4%6.6%
1Y2.9%-37.4%-18.5%

Return vs Industry: NECB exceeded the US Mortgage industry which returned -38.8% over the past year.

Return vs Market: NECB exceeded the US Market which returned -20.5% over the past year.

Price Volatility

Is NECB's price volatile compared to industry and market?
NECB volatility
NECB Average Weekly Movement3.3%
Mortgage Industry Average Movement3.7%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

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

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

About the Company

FoundedEmployeesCEOWebsite
1934131Kenneth Martinekhttps://www.necommunitybank.com

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans.

Northeast Community Bancorp Fundamentals Summary

How do Northeast Community Bancorp's earnings and revenue compare to its market cap?
NECB fundamental statistics
Market CapUS$178.88m
Earnings (TTM)US$12.31m
Revenue (TTM)US$43.25m

14.7x

P/E Ratio

0.7x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NECB income statement (TTM)
RevenueUS$43.25m
Cost of RevenueUS$0
Gross ProfitUS$43.25m
Other ExpensesUS$30.94m
EarningsUS$12.31m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.82
Gross Margin100.00%
Net Profit Margin28.45%
Debt/Equity Ratio8.3%

How did NECB perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

32%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NECB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NECB?

Other financial metrics that can be useful for relative valuation.

NECB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does NECB's PE Ratio compare to its peers?

NECB PE Ratio vs Peers
The above table shows the PE ratio for NECB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.8x

Price-To-Earnings vs Peers: NECB is good value based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (21.8x).


Price to Earnings Ratio vs Industry

How does NECB's PE Ratio compare vs other companies in the U.S. Mortgage Industry?

Price-To-Earnings vs Industry: NECB is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the US Mortgage industry average (11.3x)


Price to Earnings Ratio vs Fair Ratio

What is NECB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NECB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio16.3x

Price-To-Earnings vs Fair Ratio: NECB is good value based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.3x).


Share Price vs Fair Value

What is the Fair Price of NECB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NECB ($12.03) is trading below our estimate of fair value ($16.66)

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


Price to Earnings Growth Ratio

PEG Ratio: NECB is good value based on its PEG Ratio (0.5x)


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NECB's forecast earnings growth (27.6% per year) is above the savings rate (1.9%).

Earnings vs Market: NECB's earnings (27.6% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: NECB's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NECB's revenue (21% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: NECB's revenue (21% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NECB's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Northeast Community Bancorp performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


4.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NECB has high quality earnings.

Growing Profit Margin: NECB's current net profit margins (28.5%) are lower than last year (29.9%).


Past Earnings Growth Analysis

Earnings Trend: NECB's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: NECB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NECB had negative earnings growth (-0.1%) over the past year, making it difficult to compare to the Mortgage industry average (6.7%).


Return on Equity

High ROE: NECB's Return on Equity (4.8%) is considered low.


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Financial Health

How is Northeast Community Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: NECB's Assets to Equity ratio (5x) is low.

Allowance for Bad Loans: NECB has a sufficient allowance for bad loans (142%).

Low Risk Liabilities: 97% of NECB's liabilities are made up of primarily low risk sources of funding.

Loan Level: NECB has an appropriate level of Loans to Assets ratio (78%).

Low Risk Deposits: NECB's Loans to Deposits ratio (101%) is appropriate.

Level of Bad Loans: NECB has an appropriate level of bad loans (0.4%).


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NECB's dividend (2%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: NECB's dividend (2%) is low compared to the top 25% of dividend payers in the US market (4.34%).


Stability and Growth of Payments

Stable Dividend: NECB's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.6%), NECB'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 or that it will be covered by earnings.


Discover strong dividend paying companies

Management

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

9.5yrs

Average management tenure


CEO

Kenneth Martinek (69 yo)

15.92yrs

Tenure

US$775,209

Compensation

Mr. Kenneth A. Martinek served as the Chairman and Chief Executive Officer of Northeast Community Bancorp, MHC. Mr. Martinek has also been the Chairman and Chief Executive Officer at Northeast Community Ba...


CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD775.21K) is below average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Kenneth's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: NECB's management team is seasoned and experienced (9.5 years average tenure).


Board Members

Experienced Board: NECB's board of directors are seasoned and experienced ( 15.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NECB 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

Northeast Community Bancorp, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Northeast Community Bancorp, Inc.
  • Ticker: NECB
  • Exchange: NasdaqCM
  • Founded: 1934
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Implied Market Cap: US$178.882m
  • Shares outstanding: 15.01m
  • Website: https://www.necommunitybank.com

Number of Employees


Location

  • Northeast Community Bancorp, Inc.
  • 325 Hamilton Avenue
  • White Plains
  • New York
  • 10601
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.