OTCPK:MELR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

0%

MELR

1.4%

US Banks

1.0%

US Market


1 Year Return

-6.5%

MELR

0.2%

US Banks

6.7%

US Market

Return vs Industry: MELR underperformed the US Banks industry which returned 0.2% over the past year.

Return vs Market: MELR underperformed the US Market which returned 6.7% over the past year.


Share holder returns

MELRIndustryMarket
7 Day0%1.4%1.0%
30 Day-3.5%-2.6%-1.8%
90 Day-2.1%0.8%-1.8%
1 Year-4.8%-6.5%3.1%0.2%9.1%6.7%
3 Year19.7%15.5%52.0%41.5%46.0%36.6%
5 Yearn/a69.7%51.2%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

27.02x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: MELR ($17.62) is trading above our estimate of fair value ($3.32)

Significantly Undervalued: MELR is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: MELR is poor value based on its PE Ratio (27x) compared to the Banks industry average (12.5x).

PE vs Market: MELR is poor value based on its PE Ratio (27x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: MELR 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 Melrose Bancorp expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: MELR's forecast earnings growth (20% per year) is above the savings rate (2.7%).

Earnings vs Market: MELR's earnings (20% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: MELR's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: MELR's revenue is forecast to decline over the next 3 years (-1.2%).


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Melrose Bancorp performed over the past 5 years?

34.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MELR's earnings have grown significantly by 34.2% per year over the past 5 years.

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 (-12.8%) over the past year, making it difficult to compare to the Banks industry average (31.8%).


Return on Equity

High ROE: MELR's Return on Equity (3.7%) is considered low.


Return on Assets

ROA vs Industry: MELR's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate MELR's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: MELR has a low level of unsold assets or inventory.

Debt Coverage by Assets: MELR's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: MELR has an appropriate level of bad loans (0.06%)


Next Steps

Dividend

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

1.93%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: MELR's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: MELR's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 reasonable payout ratio (52.1%), MELR's dividend payments are 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

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

5.7yrs

Average management tenure


CEO

Jeff Jones (57yo)

5.7yrs

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 ($USD450.79K) is about average for companies of similar size in the US market ($USD495.80K).

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


Management Age and Tenure

5.7yrs

Average Tenure

58yo

Average Age

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


Board Age and Tenure

5.7yrs

Average Tenure

69yo

Average Age

Experienced Board: MELR's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jeff Jones (57yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$450.79k
  • Diane Indorato (63yo)

    Senior VP & CFO

    • Tenure: 5.7yrs
    • Compensation: US$246.83k
  • Jim Oosterman (58yo)

    Senior VP of Lending & Marketing

    • Tenure: 1.8yrs
    • Compensation: US$205.85k
  • Susan Doherty Fernandes

    Corporate Secretary

    • Tenure: 0yrs

Board Members

  • Frank Giso (70yo)

    Chairman of the Board

    • Tenure: 5.7yrs
    • Compensation: US$35.20k
  • Jeff Jones (57yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$450.79k
  • Candy Brower (69yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$23.50k
  • Elizabeth McNelis (59yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$24.19k
  • F. Waystack (74yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$17.10k
  • Alan Whitney (63yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$17.10k
  • Stephen Anderson (72yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$16.60k

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$35.224m
  • Shares outstanding: 2.00m
  • 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 certificat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:12
End of Day Share Price2019/10/03 00:00
Earnings2019/06/30
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.

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