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

Flawless balance sheet established dividend payer.


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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

-0.7%

BHLB

-0.7%

US Banks

0.4%

US Market


1 Year Return

-4.9%

BHLB

10.4%

US Banks

13.1%

US Market

Return vs Industry: BHLB underperformed the US Banks industry which returned 10.4% over the past year.

Return vs Market: BHLB underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

BHLBIndustryMarket
7 Day-0.7%-0.7%0.4%
30 Day10.2%8.3%4.0%
90 Day11.4%19.0%7.4%
1 Year-1.9%-4.9%13.7%10.4%15.6%13.1%
3 Year7.4%-0.6%40.9%31.0%48.2%38.6%
5 Year44.0%25.9%72.2%53.1%62.6%44.6%

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?

18.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BHLB ($32.01) is trading above our estimate of fair value ($22.62)

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


Price To Earnings Ratio

PE vs Industry: BHLB is poor value based on its PE Ratio (18.9x) compared to the Banks industry average (12.6x).

PE vs Market: BHLB is poor value based on its PE Ratio (18.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BHLB is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BHLB is good value based on its PB Ratio (0.9x) 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?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHLB's forecast earnings growth (18.3% per year) is above the savings rate (2.7%).

Earnings vs Market: BHLB's earnings (18.3% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: BHLB's revenue (1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BHLB's revenue (1% 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 (7.7%).


Next Steps

Past Performance

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

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHLB has large one-off items impacting its financial results.

Growing Profit Margin: BHLB's current net profit margins (18.3%) are lower than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: BHLB's earnings have grown by 19.2% 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 (-7.8%) over the past year, making it difficult to compare to the Banks industry average (27.7%).


Return on Equity

High ROE: BHLB's Return on Equity (4.7%) 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 0.8x 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 (0.37%)


Next Steps

Dividend

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

2.87%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: BHLB's dividend (2.87%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BHLB's dividend (2.87%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 reasonable payout ratio (53.7%), BHLB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BHLB's dividends in 3 years are forecast to be well covered by earnings (33.7% payout ratio).


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Richard Marotta (60yo)

1yrs

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 ($USD1.48M) is below average for companies of similar size in the US market ($USD3.98M).

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


Management Age and Tenure

8.0yrs

Average Tenure

60yo

Average Age

Experienced Management: BHLB's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

71yo

Average Age

Experienced Board: BHLB's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$7,25812 Sep 19
John Davies
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares238
Max PriceUS$30.52
BuyUS$45526 Aug 19
Wm. Prescott
EntityIndividual
Role
Chief Legal Officer
Senior EVP
Shares16
Max PriceUS$28.45
SellUS$310,09102 Aug 19
Rheo Brouillard
EntityIndividual
Shares9,454
Max PriceUS$32.80
BuyUS$21,60710 Jun 19
John Davies
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceUS$30.87
BuyUS$7,92005 Jun 19
John Davies
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares260
Max PriceUS$30.46
SellUS$1,935,26919 Mar 19
Patrick Sheehan
EntityIndividual
Shares63,172
Max PriceUS$30.85
SellUS$858,36718 Mar 19
Patrick Sheehan
EntityIndividual
Shares28,100
Max PriceUS$30.60
SellUS$303,10915 Mar 19
Patrick Sheehan
EntityIndividual
Shares9,938
Max PriceUS$30.50
BuyUS$69601 Mar 19
Wm. Prescott
EntityIndividual
Role
Chief Legal Officer
Senior EVP
Shares22
Max PriceUS$31.63
BuyUS$11,29726 Feb 19
John Davies
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares365
Max PriceUS$30.96
BuyUS$30,63215 Feb 19
Wm. Prescott
EntityIndividual
Role
Chief Legal Officer
Senior EVP
Shares1,050
Max PriceUS$29.17
BuyUS$50,17320 Dec 18
Richard Marotta
EntityIndividual
Role
Chief Executive Officer
President
Shares1,860
Max PriceUS$26.97
BuyUS$20,99218 Dec 18
Laurie Moffatt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares750
Max PriceUS$27.99
BuyUS$35,10717 Dec 18
Wm. Prescott
EntityIndividual
Role
Chief Legal Officer
Senior EVP
Shares1,235
Max PriceUS$28.44
BuyUS$39,46817 Dec 18
John Davies
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,380
Max PriceUS$28.60
BuyUS$2,87314 Dec 18
Cornelius Mahoney
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$28.73
BuyUS$113,43314 Dec 18
David Brunelle
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$28.36

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.1%.


Management Team

  • Linda Johnston (66yo)

    Consultant

    • Tenure: 0.7yrs
    • Compensation: US$757.00k
  • Bob Curley (71yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$277.05k
  • Elizabeth Mach

    Senior VP & Marketing Officer

    • Tenure: 13.5yrs
  • Sean Gray (43yo)

    Senior Executive Vice President

    • Tenure: 11.6yrs
    • Compensation: US$1.15m
  • Mark Foster

    Executive VP and Regional Commercial Leader of Eastern Massachusetts & Asset Based Lending

    • Tenure: 9.9yrs
  • Richard Marotta (60yo)

    President

    • Tenure: 1yrs
    • Compensation: US$1.48m
  • Wm. Prescott (57yo)

    Senior EVP

    • Tenure: 0yrs
  • George Bacigalupo (64yo)

    Senior Executive Vice President

    • Tenure: 6.1yrs
    • Compensation: US$681.03k
  • Jamie Moses (42yo)

    Senior Executive VP

    • Tenure: 3.3yrs
    • Compensation: US$820.10k
  • Cassandra Giovanni

    Corporate Communications Manager

    • Tenure: 0yrs

Board Members

  • Bill Ryan (75yo)

    Non-Executive Chairman

    • Tenure: 5.4yrs
    • Compensation: US$149.10k
  • Cornelius Mahoney (73yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$93.10k
  • D. Templeton (78yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$93.10k
  • John Davies (70yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$99.10k
  • Bill Dunlaevy (73yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$99.23k
  • Bob Curley (71yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$277.05k
  • Thomas Unsworth

    Chairman of Berkshire Housing Development Corp & Berkshire Housings Svcs Inc

    • Tenure: 0yrs
  • Richard Marotta (60yo)

    President

    • Tenure: 1yrs
    • Compensation: US$1.48m
  • Laurie Moffatt (62yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$93.10k
  • David Brunelle (48yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$91.13k

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$1.584b
  • Shares outstanding: 49.47m
  • 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, r ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 23:33
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.