BERKSHIRE HILLS BANCORP INC(NYSE:BHLB) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to BHLB. BHLB was compared to 405 industry peers in the Banks industry. Both the profitability and financial health of BHLB have multiple concerns. BHLB is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year BHLB was profitable.

BHLB had a positive operating cash flow in the past year.

Of the past 5 years BHLB 4 years were profitable.

Of the past 5 years BHLB 4 years had a positive operating cash flow.

1.2 Ratios

BHLB has a worse Return On Assets (0.34%) than 81.70% of its industry peers.

BHLB has a worse Return On Equity (3.73%) than 82.71% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.34%
ROE	3.73%
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 worse Profit Margin (10.79%) than 81.95% of its industry peers.

BHLB's Profit Margin has declined in the last couple of years.

BHLB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	10.79%
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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

BHLB does not have a ROIC to compare to the WACC, probably because it is not profitable.

BHLB has more shares outstanding than it did 1 year ago.

Compared to 5 years ago, BHLB has less shares outstanding

The debt/assets ratio for BHLB is higher compared to a year ago.

2.2 Solvency

BHLB has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.

With a decent Debt to FCF ratio value of 0.88, BHLB is doing good in the industry, outperforming 79.45% of the companies in the same industry.

BHLB has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.

The Debt to Equity ratio of BHLB (0.11) is better than 69.92% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	0.88
Altman-Z	N/A

ROIC/WACCN/A

WACC9.69%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.83% over the past year.

Measured over the past years, BHLB shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.63% on average per year.

BHLB shows a decrease in Revenue. In the last year, the revenue decreased by -2.87%.

BHLB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.30% yearly.

EPS 1Y (TTM)1.83%

EPS 3Y-2.83%

EPS 5Y-1.63%

EPS Q2Q%9.09%

Revenue 1Y (TTM)-2.87%

Revenue growth 3Y-2.71%

Revenue growth 5Y-2.3%

Sales Q2Q%-1.77%

3.2 Future

Based on estimates for the next years, BHLB will show a very strong growth in Earnings Per Share. The EPS will grow by 32.13% on average per year.

The Revenue is expected to grow by 57.42% on average over the next years. This is a very strong growth

EPS Next Y16.36%

EPS Next 2Y32.13%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year37.2%

Revenue Next 2Y57.42%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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.

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4. Valuation

4.1 Price/Earnings Ratio

BHLB is valuated correctly with a Price/Earnings ratio of 12.64.

BHLB's Price/Earnings ratio is in line with the industry average.

BHLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.

A Price/Forward Earnings ratio of 10.86 indicates a reasonable valuation of BHLB.

The rest of the industry has a similar Price/Forward Earnings ratio as BHLB.

BHLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.

		Industry Rank	Sector Rank
PE	12.64
Fwd PE	10.86

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of BHLB indicates a somewhat cheap valuation: BHLB is cheaper than 74.44% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	9.38
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.

A more expensive valuation may be justified as BHLB's earnings are expected to grow with 32.13% in the coming years.

PEG (NY)0.77

PEG (5Y)N/A

EPS Next 2Y32.13%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.52%, BHLB has a reasonable but not impressive dividend return.

BHLB's Dividend Yield is comparable with the industry average which is at 3.18.

Compared to an average S&P500 Dividend Yield of 2.27, BHLB has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.52%

5.2 History

The dividend of BHLB decreases each year by -4.43%.

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)-4.43%

Div Incr Years1

Div Non Decr Years2

5.3 Sustainability

BHLB pays out 58.28% of its income as dividend. This is a bit on the high side, but may be sustainable.

DP58.28%

EPS Next 2Y32.13%

EPS Next 3YN/A

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BERKSHIRE HILLS BANCORP INC

NYSE:BHLB (2/21/2025, 8:04:00 PM)

After market: 28.06 0 (0%)

28.06

-0.55 (-1.92%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)01-30 2025-01-30/bmo

Earnings (Next)04-16 2025-04-16/bmo

Inst Owners88.31%

Inst Owner Change-92.93%

Ins Owners0.93%

Ins Owner Change-0.43%

Market Cap1.30B

Analysts76.67

Price Target34.64 (23.45%)

Short Float %3.9%

Short Ratio3.99

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.52%

Yearly Dividend0.72

Dividend Growth(5Y)-4.43%

DP58.28%

Div Incr Years1

Div Non Decr Years2

Ex-Date02-20 2025-02-20 (0.18)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)4.03%

Min EPS beat(2)3.8%

Max EPS beat(2)4.26%

EPS beat(4)4

Avg EPS beat(4)5.3%

Min EPS beat(4)2.21%

Max EPS beat(4)10.95%

EPS beat(8)5

Avg EPS beat(8)1.01%

EPS beat(12)7

Avg EPS beat(12)-1.31%

EPS beat(16)11

Avg EPS beat(16)7.78%

Revenue beat(2)0

Avg Revenue beat(2)-4.34%

Min Revenue beat(2)-4.58%

Max Revenue beat(2)-4.09%

Revenue beat(4)0

Avg Revenue beat(4)-4.97%

Min Revenue beat(4)-8.28%

Max Revenue beat(4)-2.92%

Revenue beat(8)2

Avg Revenue beat(8)-0.44%

Revenue beat(12)6

Avg Revenue beat(12)8.45%

Revenue beat(16)10

Avg Revenue beat(16)18.26%

PT rev (1m)0.37%

PT rev (3m)13.19%

EPS NQ rev (1m)-1.69%

EPS NQ rev (3m)-1.69%

EPS NY rev (1m)4.63%

EPS NY rev (3m)4.63%

Revenue NQ rev (1m)-0.27%

Revenue NQ rev (3m)-0.27%

Revenue NY rev (1m)3.44%

Revenue NY rev (3m)32.74%

Valuation

		Industry Rank	Sector Rank
PE	12.64
Fwd PE	10.86
P/S	3.52
P/FCF	9.38
P/OCF	9.24
P/B	1.22
P/tB	1.24
EV/EBITDA	N/A

EPS(TTM)2.22

EY7.91%

EPS(NY)2.58

Fwd EY9.21%

FCF(TTM)2.99

FCFY10.67%

OCF(TTM)3.04

OCFY10.82%

SpS7.97

BVpS23.06

TBVpS22.71

PEG (NY)0.77

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	0.34%
ROE	3.73%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	10.79%
GM	N/A
FCFM	37.56%

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-Score5

Asset Turnover0.03

Health

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	0.88
Debt/EBITDA	N/A
Cap/Depr	16.76%
Cap/Sales	0.55%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	348.16%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score5

WACC9.69%

ROIC/WACCN/A

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)1.83%

EPS 3Y-2.83%

EPS 5Y-1.63%

EPS Q2Q%9.09%

EPS Next Y16.36%

EPS Next 2Y32.13%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-2.87%

Revenue growth 3Y-2.71%

Revenue growth 5Y-2.3%

Sales Q2Q%-1.77%

Revenue Next Year37.2%

Revenue Next 2Y57.42%

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 1Y0.59%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y0.9%

OCF growth 3YN/A

OCF growth 5YN/A

BERKSHIRE HILLS BANCORP INC (BHLB) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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