BERKSHIRE HILLS BANCORP INC (BHLB) Stock Fundamental Analysis
NYSE:BHLB - New York Stock Exchange, Inc. - US0846801076 - Common Stock - Currency: USD
BHLB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 395 industry peers in the Banks industry. Both the profitability and financial health of BHLB have multiple concerns. BHLB is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year BHLB was profitable.
BHLB had a positive operating cash flow in the past year.
BHLB had positive earnings in 4 of the past 5 years.
BHLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BHLB has a Return On Assets (0.89%) which is comparable to the rest of the industry.
BHLB has a Return On Equity (8.93%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 8.93% | ||
| ROIC | N/A |
ROA(3y)0.62%
ROA(5y)-0.26%
ROE(3y)7.27%
ROE(5y)-2.61%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BHLB has a Profit Margin (23.50%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BHLB has declined.
The Operating Margin and Gross Margin are not available for BHLB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 23.5% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-17.67%
PM growth 5Y-6.62%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BHLB does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, BHLB has more shares outstanding
Compared to 5 years ago, BHLB has less shares outstanding
The debt/assets ratio for BHLB has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of BHLB is 0.92, which is an excellent value as it means it would take BHLB, only 0.92 years of fcf income to pay off all of its debts.
BHLB has a Debt to FCF ratio of 0.92. This is in the better half of the industry: BHLB outperforms 75.70% of its industry peers.
BHLB has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.10, BHLB is doing good in the industry, outperforming 69.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.68%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BHLB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.22%, which is quite good.
The Earnings Per Share has been decreasing by -1.63% on average over the past years.
BHLB shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.77%.
BHLB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.30% yearly.
EPS 1Y (TTM)14.22%
EPS 3Y-2.83%
EPS 5Y-1.63%
EPS Q2Q%22.45%
Revenue 1Y (TTM)28.77%
Revenue growth 3Y-2.71%
Revenue growth 5Y-2.3%
Sales Q2Q%1.85%
3.2 Future
The Earnings Per Share is expected to grow by 29.68% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 56.30% on average over the next years. This is a very strong growth
EPS Next Y19.46%
EPS Next 2Y29.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year36.67%
Revenue Next 2Y56.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.37, the valuation of BHLB can be described as very reasonable.
BHLB's Price/Earnings ratio is a bit cheaper when compared to the industry. BHLB is cheaper than 69.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of BHLB to the average of the S&P500 Index (27.28), we can say BHLB is valued rather cheaply.
BHLB is valuated cheaply with a Price/Forward Earnings ratio of 7.10.
BHLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. BHLB is cheaper than 90.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. BHLB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 7.1 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BHLB is valued a bit cheaper than 72.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BHLB's earnings are expected to grow with 29.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y29.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BHLB has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, BHLB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, BHLB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of BHLB decreases each year by -6.24%.
BHLB has been paying a dividend for at least 10 years, so it has a reliable track record.
BHLB has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.24%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
36.76% of the earnings are spent on dividend by BHLB. This is a low number and sustainable payout ratio.
DP36.76%
EPS Next 2Y29.68%
EPS Next 3YN/A
26.5
+0.45 (+1.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners95.05%
Inst Owner Change10.58%
Ins Owners0.87%
Ins Owner Change-0.07%
Market Cap1.23B
Analysts76.67
Price Target32.55 (22.83%)
Short Float %7.64%
Short Ratio7.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend0.69
Dividend Growth(5Y)-6.24%
DP36.76%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.3%
Min EPS beat(2)8.13%
Max EPS beat(2)10.47%
EPS beat(4)4
Avg EPS beat(4)6.66%
Min EPS beat(4)3.8%
Max EPS beat(4)10.47%
EPS beat(8)6
Avg EPS beat(8)3.06%
EPS beat(12)8
Avg EPS beat(12)0.2%
EPS beat(16)11
Avg EPS beat(16)3.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-2.5%
Revenue beat(4)0
Avg Revenue beat(4)-3.42%
Min Revenue beat(4)-4.58%
Max Revenue beat(4)-2.5%
Revenue beat(8)0
Avg Revenue beat(8)-4.74%
Revenue beat(12)4
Avg Revenue beat(12)3.73%
Revenue beat(16)8
Avg Revenue beat(16)14.07%
PT rev (1m)0%
PT rev (3m)-6.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.48%
EPS NY rev (1m)0%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 7.1 | ||
| P/S | 2.7 | ||
| P/FCF | 9.17 | ||
| P/OCF | 8.67 | ||
| P/B | 1.03 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.33
EY8.79%
EPS(NY)3.73
Fwd EY14.09%
FCF(TTM)2.89
FCFY10.91%
OCF(TTM)3.06
OCFY11.54%
SpS9.82
BVpS25.84
TBVpS25.54
PEG (NY)0.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 8.93% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.5% | ||
| GM | N/A | ||
| FCFM | 29.43% |
ROA(3y)0.62%
ROA(5y)-0.26%
ROE(3y)7.27%
ROE(5y)-2.61%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-17.67%
PM growth 5Y-6.62%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.92 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 69.68% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 125.24% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.68%
ROIC/WACCN/A
Cap/Depr(3y)21.12%
Cap/Depr(5y)22.6%
Cap/Sales(3y)0.65%
Cap/Sales(5y)0.84%
Profit Quality(3y)184.17%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.22%
EPS 3Y-2.83%
EPS 5Y-1.63%
EPS Q2Q%22.45%
EPS Next Y19.46%
EPS Next 2Y29.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.77%
Revenue growth 3Y-2.71%
Revenue growth 5Y-2.3%
Sales Q2Q%1.85%
Revenue Next Year36.67%
Revenue Next 2Y56.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.53%
FCF growth 3Y5.1%
FCF growth 5Y3.64%
OCF growth 1Y-3.74%
OCF growth 3Y5.87%
OCF growth 5Y2.35%