OTCPK:NECB

Stock Analysis Report

Northeast Community Bancorp

Executive Summary

Northeast Community Bancorp, Inc. operates as the holding company for Northeast Community Bank that provides various financial services to consumers and businesses.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.8%

NECB

-0.2%

US Mortgage

0.9%

US Market


1 Year Return

-5.6%

NECB

21.3%

US Mortgage

16.8%

US Market

Return vs Industry: NECB underperformed the US Mortgage industry which returned 21.3% over the past year.

Return vs Market: NECB underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

NECBIndustryMarket
7 Day-0.8%-0.2%0.9%
30 Day2.5%3.0%4.5%
90 Day0.9%9.5%6.2%
1 Year-4.6%-5.6%23.9%21.3%19.4%16.8%
3 Year67.3%61.4%33.9%24.6%47.5%38.0%
5 Year80.6%68.3%72.3%53.7%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

10.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NECB ($11.7) is trading above our estimate of fair value ($4.73)

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


Price To Earnings Ratio

PE vs Industry: NECB is good value based on its PE Ratio (10.8x) compared to the Mortgage industry average (14.5x).

PE vs Market: NECB is good value based on its PE Ratio (10.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NECB is good value based on its PB Ratio (1.1x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

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

9.1%

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 Northeast Community 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

  • Examine whether Northeast Community Bancorp is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Northeast Community Bancorp's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has Northeast Community Bancorp performed over the past 5 years?

67.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NECB has high quality earnings.

Growing Profit Margin: NECB's current net profit margins (32.9%) are higher than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: NECB's earnings have grown significantly by 67.6% per year over the past 5 years.

Accelerating Growth: NECB's earnings growth over the past year (61.8%) is below its 5-year average (67.6% per year).

Earnings vs Industry: NECB earnings growth over the past year (61.8%) exceeded the Mortgage industry 22.9%.


Return on Equity

High ROE: NECB's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Northeast Community 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: NECB has a low level of unsold assets or inventory.

Debt Coverage by Assets: NECB's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: NECB has an appropriate level of bad loans (0.23%)


Next Steps

Dividend

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

1.03%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: NECB's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: NECB's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: NECB's dividend payments have been volatile in the past 10 years.

Growing Dividend: NECB's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.1%), NECB's dividend payments are thoroughly 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 Northeast Community Bancorp's salary, the management and board of directors tenure and is there insider trading?

10.1yrs

Average management tenure


CEO

Kenneth Martinek (67yo)

13.3yrs

Tenure

US$593,335

Compensation

Mr. Kenneth A. Martinek serves as the Chief Executive Officer of Northeast Community Bancorp, MHC and its holding company of Northeast Community Bancorp, Inc. Mr. Martinek has also been the Chairman and Ch ...


CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD593.34K) is about average for companies of similar size in the US market ($USD505.35K).

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


Management Age and Tenure

10.1yrs

Average Tenure

65.5yo

Average Age

Experienced Management: NECB's management team is seasoned and experienced (10.1 years average tenure).


Board Age and Tenure

13.0yrs

Average Tenure

63yo

Average Age

Experienced Board: NECB's board of directors are seasoned and experienced ( 13 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

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


Management Team

  • Donald Hom (64yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$364.68k
  • Kenneth Thomas (72yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$55.95k
  • Anne Stevenson-DeBlasi

    Corporate Secretary

    • Tenure: 0yrs
  • Kenneth Martinek (67yo)

    Chairman & CEO

    • Tenure: 13.3yrs
    • Compensation: US$593.34k
  • Jose Collazo (53yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$446.00k

Board Members

  • Kenneth Thomas (72yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$55.95k
  • Kenneth Martinek (67yo)

    Chairman & CEO

    • Tenure: 13.3yrs
    • Compensation: US$593.34k
  • Charles Martinek (58yo)

    Director

    • Tenure: 17.8yrs
  • Diane Cavanaugh (63yo)

    Independent Director

    • Tenure: 27.8yrs
    • Compensation: US$41.25k
  • John McKenzie (76yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$37.75k
  • Jose Collazo (53yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$446.00k
  • Eugene Magier (57yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$43.00k
  • Kevin O’Malley (73yo)

    Independent Director

    • Tenure: 3.8yrs
  • Charles Cirillo (53yo)

    Independent Director

    • Tenure: 1.8yrs

Company Information

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


Key Information

  • Name: Northeast Community Bancorp, Inc.
  • Ticker: NECB
  • Exchange: OTCPK
  • Founded: 1934
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$140.554m
  • Shares outstanding: 12.01m
  • Website: https://www.necommunitybank.com

Number of Employees


Location

  • Northeast Community Bancorp, Inc.
  • 325 Hamilton Avenue
  • White Plains
  • New York
  • 10601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NECBOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 2006

Biography

Northeast Community Bancorp, Inc. operates as the holding company for Northeast Community Bank that provides various financial services to consumers and businesses. The company accepts deposit products, su ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 00:01
End of Day Share Price2019/11/19 00:00
Earnings2018/12/31
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.