NasdaqCM:SAL

Stock Analysis Report

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Executive Summary

Salisbury Bancorp, Inc. operates as the bank holding company for Salisbury Bank and Trust Company that provides commercial banking, consumer financing, retail banking, and trust and wealth advisory services.

Rewards

Trading at 28.4% below our estimate of its fair value

Earnings grew by 6.8% over the past year

Pays a reliable dividend of 3.17%

Risk Analysis

No risks detected for SAL from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SAL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

SAL

0.02%

US Banks

2.5%

US Market


1 Year Return

-0.6%

SAL

-23.2%

US Banks

15.9%

US Market

Return vs Industry: SAL exceeded the US Banks industry which returned -23.5% over the past year.

Return vs Market: SAL underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

SALIndustryMarket
7 Day1.4%0.02%2.5%
30 Day-7.2%2.6%5.8%
90 Day6.5%7.1%18.2%
1 Year2.3%-0.6%-20.4%-23.2%18.4%15.9%
3 Year-9.4%-16.6%-15.3%-22.1%39.9%30.9%
5 Year43.3%23.2%9.0%-4.2%72.9%54.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAL ($36.65) is trading below our estimate of fair value ($51.17)

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


Price To Earnings Ratio

PE vs Industry: SAL's PE Ratio (9.7x) is in line with the US Banks industry average.

PE vs Market: SAL is good value based on its PE Ratio (9.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SAL is poor value based on its PEG Ratio (8x)


Price to Book Ratio

PB vs Industry: SAL's PB Ratio (0.9x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is Salisbury Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAL's forecast earnings growth (1.2% per year) is below the savings rate (2.2%).

Earnings vs Market: SAL's earnings (1.2% per year) are forecast to grow slower than the US market (22.3% per year).

High Growth Earnings: SAL's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAL's revenue is expected to decline over the next 3 years (-5% per year).

High Growth Revenue: SAL's revenue is forecast to decline over the next 3 years (-5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Salisbury Bancorp performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAL has high quality earnings.

Growing Profit Margin: SAL's current net profit margins (25.9%) are higher than last year (23.8%).


Past Earnings Growth Analysis

Earnings Trend: SAL's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: SAL's earnings growth over the past year (6.8%) is below its 5-year average (11.3% per year).

Earnings vs Industry: SAL earnings growth over the past year (6.8%) exceeded the Banks industry -2.8%.


Return on Equity

High ROE: SAL's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Salisbury 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: SAL's Assets to Equity ratio (10.9x) is moderate.

Allowance for Bad Loans: SAL has a sufficient allowance for bad loans (257%).

Low Risk Liabilities: 93% of SAL's liabilities are made up of primarily low risk sources of funding.

Loan Level: SAL has an appropriate level of Loans to Assets ratio (81%).

Low Risk Deposits: SAL's Loans to Deposits ratio (96%) is appropriate.

Level of Bad Loans: SAL has an appropriate level of bad loans (0.5%).


Next Steps

Dividend

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

3.16%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SAL's dividend (3.17%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: SAL's dividend (3.17%) is low compared to the top 25% of dividend payers in the US market (4.51%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), SAL'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?

5.7yrs

Average management tenure


CEO

Rick Cantele (60 yo)

11.17yrs

Tenure

US$837,404

Compensation

Mr. Richard J. Cantele, Jr., also known as Rick has been the Chief Executive Officer of Salisbury BanCorp. Inc., and Salisbury Bank & Trust Company since June 8, 2009 and has been its President since Janua ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD837.40K) is above average for companies of similar size in the US market ($USD607.19K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Cantele
President11.17yrsUS$837.40k0.97%
$ 987.7k
Peter Albero
Executive VP2.83yrsUS$463.62k0.23%
$ 235.2k
John Davies
President of NY Region & Chief Lending Officer of Salisbury Bank5.67yrsUS$501.20k0.49%
$ 504.2k
Shelly Humeston
Senior VP & Secretaryno datano datano data

5.7yrs

Average Tenure

57yo

Average Age

Experienced Management: SAL's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Cantele
President11.17yrsUS$837.40k0.97%
$ 987.7k
John Perotti
Independent Director22.58yrsUS$64.71k0.57%
$ 586.6k
Grace Schalkwyk
Independent Director0.75yrno data0.043%
$ 44.2k
Holly Nelson
Independent Director22.58yrsUS$38.69k0.18%
$ 179.0k
Nancy Humphreys
Independent Director19.58yrsUS$42.71k0.28%
$ 287.3k
David Farrell
Independent Chairman1.25yrsUS$50.55k0.25%
$ 255.2k
Arthur Bassin
Independent Director10.17yrsUS$45.51k0.59%
$ 600.4k
Charles Andola
Independent Director5.67yrsUS$38.49k0.94%
$ 954.7k
Neila Radin
Independent Director0.75yrno data0.016%
$ 16.4k
George Banta
Independent Director5.67yrsUS$35.96k2.53%
$ 2.6m

7.9yrs

Average Tenure

69.5yo

Average Age

Experienced Board: SAL's board of directors are considered experienced (7.9 years average tenure).


Ownership

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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Salisbury Bancorp, Inc.
  • Ticker: SAL
  • Exchange: NasdaqCM
  • Founded: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$102.081m
  • Shares outstanding: 2.80m
  • Website: https://www.salisburybank.com

Location

  • Salisbury Bancorp, Inc.
  • 5 Bissell Street
  • PO Box 1868
  • Lakeville
  • Connecticut
  • 6039
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SALNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 1975

Biography

Salisbury Bancorp, Inc. operates as the bank holding company for Salisbury Bank and Trust Company that provides commercial banking, consumer financing, retail banking, and trust and wealth advisory service ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 00:33
End of Day Share Price2020/08/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.