OTCPK:MELR

Stock Analysis Report

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Executive Summary

Melrose Bancorp, Inc. operates as the bank holding company for Melrose Bank that provides various banking products and services.


Snowflake Analysis

Flawless balance sheet with poor track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

MELR

13.8%

US Banks

3.8%

US Market


1 Year Return

33.6%

MELR

-11.4%

US Banks

9.7%

US Market

Return vs Industry: MELR exceeded the US Banks industry which returned -19.4% over the past year.

Return vs Market: MELR exceeded the US Market which returned 9.2% over the past year.


Shareholder returns

MELRIndustryMarket
7 Day0%13.8%3.8%
30 Day1.7%22.2%11.4%
90 Day1.5%-1.2%6.8%
1 Year35.5%33.6%-8.3%-11.4%12.1%9.7%
3 Year49.9%42.6%-0.3%-8.1%36.2%27.2%
5 Year84.0%75.2%25.7%10.7%63.7%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

107.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MELR ($24.96) is trading above our estimate of fair value ($6.34)

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


Price To Earnings Ratio

PE vs Industry: MELR is poor value based on its PE Ratio (107.5x) compared to the Banks industry average (9.7x).

PE vs Market: MELR is poor value based on its PE Ratio (107.5x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MELR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MELR is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Melrose Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Melrose Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Melrose Bancorp performed over the past 5 years?

27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MELR has a large one-off loss of $600.0K impacting its December 31 2019 financial results.

Growing Profit Margin: MELR's current net profit margins (6.7%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: MELR has become profitable over the past 5 years, growing earnings by 27.6% per year.

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

Earnings vs Industry: MELR had negative earnings growth (-71.6%) over the past year, making it difficult to compare to the Banks industry average (2.8%).


Return on Equity

High ROE: MELR's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is Melrose 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: MELR's Assets to Equity ratio (8.4x) is low.

Allowance for Bad Loans: MELR has a sufficient allowance for bad loans (921%).

Low Risk Liabilities: 90% of MELR's liabilities are made up of primarily low risk sources of funding.

Loan Level: MELR has an appropriate level of Loans to Assets ratio (84%).

Low Risk Deposits: MELR's Loans to Deposits ratio (106%) is appropriate.

Level of Bad Loans: MELR has an appropriate level of bad loans (0.1%).


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MELR's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: MELR's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (4.39%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MELR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MELR's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (146.4%), MELR's dividend payments are not 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?

6.3yrs

Average management tenure


CEO

Jeff Jones (57yo)

6.33yrs

Tenure

US$450,792

Compensation

Mr. Jeffrey D. Jones, also known as Jeff, has been President and Chief Executive Officer at Melrose Bancorp, Inc since 2001. Mr. Jones has been President and Chief Executive Officer of Melrose Cooperative  ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD450.79K) is about average for companies of similar size in the US market ($USD589.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Jones
President6.33yrsUS$450.79k2.43% $1.2m
Diane Indorato
Senior VP & CFO6.33yrsUS$246.83k1.84% $909.3k
James Oosterman
Senior VP of Lending & Marketing2.42yrsUS$205.85k2.34% $1.2m
Susan Doherty Fernandes
Corporate Secretaryno datano datano data

6.3yrs

Average Tenure

58yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Jones
President6.33yrsUS$450.79k2.43% $1.2m
Frank Giso
Independent Chairman of the Board6.33yrsUS$35.20k2.23% $1.1m
Candy Brower
Independent Director6.33yrsUS$23.50k1.62% $798.7k
Elizabeth McNelis
Independent Director6.33yrsUS$24.19k1.52% $752.2k
F. Waystack
Independent Directorno dataUS$17.10k1.51% $748.8k
Alan Whitney
Independent Director6.33yrsUS$17.10k1.55% $764.2k
Stephen Anderson
Independent Director4.58yrsUS$16.60k0.076% $37.4k

6.3yrs

Average Tenure

69yo

Average Age

Experienced Board: MELR's board of directors are considered experienced (6.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Melrose Bancorp, Inc.
  • Ticker: MELR
  • Exchange: OTCPK
  • Founded: 1890
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$49.450m
  • Shares outstanding: 1.98m
  • Website: https://www.melrosebank.com

Number of Employees


Location

  • Melrose Bancorp, Inc.
  • 638 Main Street
  • Melrose
  • Massachusetts
  • 2176
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MELROTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2014

Biography

Melrose Bancorp, Inc. operates as the bank holding company for Melrose Bank that provides various banking products and services. The company offers various deposit products and services, such as certificate of deposit accounts, savings accounts, money market accounts, and demand and NOW accounts. Its loan products include one- to four-family residential real estate loans, home equity lines of credit, commercial real estate loans, construction loans, and consumer loans. The company also provides online and mobile banking services. It serves individuals, families, and businesses through a full-service banking office in Melrose, Massachusetts. Melrose Bancorp, Inc. was founded in 1890 and is based in Melrose, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 04:58
End of Day Share Price2020/05/29 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.