NYSE:BHLB

Stock Analysis Report

Berkshire Hills Bancorp

Executive Summary

Berkshire Hills Bancorp, Inc. operates as a bank holding company for Berkshire Bank that provides various banking products and services.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

BHLB

-1.2%

US Banks

-1.1%

US Market


1 Year Return

-11.4%

BHLB

10.3%

US Banks

17.9%

US Market

Return vs Industry: BHLB underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: BHLB underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

BHLBIndustryMarket
7 Day-2.6%-1.2%-1.1%
30 Day-10.0%-0.3%1.4%
90 Day-13.3%-0.9%6.9%
1 Year-8.6%-11.4%13.5%10.3%20.3%17.9%
3 Year-16.3%-22.7%24.0%15.1%47.8%38.3%
5 Year18.3%3.3%73.8%54.1%71.9%53.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BHLB ($27.57) is trading below our estimate of fair value ($32.61)

Significantly Below Fair Value: BHLB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BHLB is poor value based on its PE Ratio (13.5x) compared to the Banks industry average (12.6x).

PE vs Market: BHLB is good value based on its PE Ratio (13.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BHLB is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BHLB is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Berkshire Hills Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHLB's forecast earnings growth (11.8% per year) is above the savings rate (1.7%).

Earnings vs Market: BHLB's earnings (11.8% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: BHLB's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BHLB's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BHLB's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Berkshire Hills Bancorp performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHLB has high quality earnings.

Growing Profit Margin: BHLB's current net profit margins (24.3%) are higher than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: BHLB's earnings have grown by 18.4% per year over the past 5 years.

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

Earnings vs Industry: BHLB had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Banks industry average (12.2%).


Return on Equity

High ROE: BHLB's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Berkshire Hills 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: BHLB has a low level of unsold assets or inventory.

Debt Coverage by Assets: BHLB's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: BHLB has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: BHLB has an appropriate level of bad loans (0.42%)


Next Steps

Dividend

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

3.48%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: BHLB's dividend (3.48%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BHLB's dividend (3.48%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.1%), BHLB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BHLB's dividends in 3 years are forecast to be well covered by earnings (35.3% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Richard Marotta (60yo)

1.3yrs

Tenure

US$1,484,477

Compensation

Mr. Richard M. Marotta has been President, Chief Executive Officer and Director of Berkshire Hills Bancorp, Inc. since November 26, 2018. Mr. Marotta has been the Chief Executive Officer and Director of th ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD1.48M) is below average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Marotta
President1.3yrsUS$1.48m0.14% $1.9m
James Moses
Senior Executive VP3.6yrsUS$820.10k0.024% $328.1k
Linda Johnston
Consultant0.9yrsUS$757.00k0.079% $1.1m
Sean Gray
Senior Executive Vice President11.8yrsUS$1.15m0.14% $1.9m
George Bacigalupo
Senior Executive Vice President6.3yrsUS$681.03k0.087% $1.2m
Wm. Prescott
Senior EVP0yrsno data0.026% $356.2k
Cassandra Giovanni
Corporate Communications Manager0yrsno datano data
Elizabeth Mach
Senior VP & Marketing Officer13.8yrsno datano data
James Hickson
Regional President of Pioneer Valley/ CT0yrsno datano data
Mark Foster
Executive VP and Regional Commercial Leader of Eastern Massachusetts & Asset Based Lending10.2yrsno datano data

6.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: BHLB's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Marotta
President1.3yrsUS$1.48m0.14% $1.9m
William Ryan
Independent Director5.7yrsUS$149.10k0.044% $598.2k
Cornelius Mahoney
Independent Director15.1yrsUS$93.10k0.045% $605.1k
D. Templeton
Independent Director15.1yrsUS$93.10k0.059% $792.9k
John Davies
Independent Director15.1yrsUS$99.10k0.073% $986.8k
James Dunlaevy
Chairman of the Board0.2yrsUS$99.23k0.16% $2.2m
Robert Curley
Director10.1yrsUS$277.05k0.045% $613.7k
Thomas Unsworth
Chairman of Berkshire Housing Development Corp & Berkshire Housings Svcs Inc0yrsno datano data
Laurie Moffatt
Independent Director6.8yrsUS$93.10k0.022% $297.0k
David Brunelle
Independent Director2.2yrsUS$91.13k0.017% $229.5k

6.8yrs

Average Tenure

71yo

Average Age

Experienced Board: BHLB's board of directors are considered experienced (6.8 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 been diluted in the past year, with total shares outstanding growing by 7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Berkshire Hills Bancorp, Inc.
  • Ticker: BHLB
  • Exchange: NYSE
  • Founded: 1846
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.354b
  • Shares outstanding: 49.12m
  • Website: https://www.berkshirebank.com

Number of Employees


Location

  • Berkshire Hills Bancorp, Inc.
  • 60 State Street
  • Boston
  • Massachusetts
  • 2109
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHLBNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2000

Biography

Berkshire Hills Bancorp, Inc. operates as a bank holding company for Berkshire Bank that provides various banking products and services. It offers various deposit accounts, including demand deposit, NOW, regular savings, money market savings, time certificates of deposit, and retirement deposit accounts; and loans, such as commercial real estate, commercial and industrial, consumer, and residential mortgage loans. The company also provides wealth management services comprising investment management, trust administration, and financial planning; and investment products, financial planning, and brokerage services. In addition, it provides retail and commercial electronic banking, commercial cash management, online banking, and mobile banking services; and debit cards and other electronic fee producing payment services to transaction account customers. Further, the company, through its subsidiary, Berkshire Insurance Group, Inc., offers personal and commercial property, and casualty insurance; employee benefits insurance; and life, health, and financial services insurance products. It serves retail, commercial, not- profit, and municipal deposit customers. As of December 31, 2018, the company operated 115 full-service branches in Massachusetts, New York, Connecticut, Vermont, Central New Jersey, and Eastern Pennsylvania. Berkshire Hills Bancorp, Inc. was founded in 1846 and is headquartered in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:44
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.