Eastern Bankshares Return On Asset vs. Current Valuation
| EBC Stock | USD 17.99 0.16 0.88% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Profit Margin | 0.79 | 0.7534 |
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| Return On Assets | 0.0092 | 0.011 |
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| Return On Equity | 0.0699 | 0.078 |
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For Eastern Bankshares profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eastern Bankshares to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eastern Bankshares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eastern Bankshares's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eastern Bankshares over time as well as its relative position and ranking within its peers.
Eastern |
Eastern Bankshares' Revenue Breakdown by Earning Segment
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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Eastern Bankshares. If investors know Eastern will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Eastern Bankshares listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.46) | Dividend Share 0.44 | Earnings Share 0.53 | Revenue Per Share 3.554 | Quarterly Revenue Growth 0.049 |
The market value of Eastern Bankshares is measured differently than its book value, which is the value of Eastern that is recorded on the company's balance sheet. Investors also form their own opinion of Eastern Bankshares' value that differs from its market value or its book value, called intrinsic value, which is Eastern Bankshares' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Eastern Bankshares' market value can be influenced by many factors that don't directly affect Eastern Bankshares' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Eastern Bankshares' value and its price as these two are different measures arrived at by different means. Investors typically determine if Eastern Bankshares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eastern Bankshares' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Eastern Bankshares Current Valuation vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Eastern Bankshares's current stock value. Our valuation model uses many indicators to compare Eastern Bankshares value to that of its competitors to determine the firm's financial worth. Eastern Bankshares is rated # 5 in return on asset category among its peers. It is rated below average in current valuation category among its peers reporting about 721,443,314,872 of Current Valuation per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Eastern Bankshares' earnings, one of the primary drivers of an investment's value.Eastern Current Valuation vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Eastern Bankshares |
| = | 0.0039 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Eastern Bankshares |
| = | 2.81 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Eastern Current Valuation vs Competition
Eastern Bankshares is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 296.87 Billion. Eastern Bankshares maintains roughly 2.81 Billion in current valuation contributing less than 1% to equities under Financials industry.
Eastern Bankshares Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Eastern Bankshares, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eastern Bankshares will eventually generate negative long term returns. The profitability progress is the general direction of Eastern Bankshares' change in net profit over the period of time. It can combine multiple indicators of Eastern Bankshares, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -608.4 M | -577.9 M | |
| Net Income Applicable To Common Shares | 229.7 M | 241.2 M | |
| Income Tax Expense | -63.3 M | -60.1 M | |
| Net Interest Income | 567.1 M | 507.4 M | |
| Interest Income | 767.8 M | 565 M | |
| Operating Income | -62.7 M | -59.6 M | |
| Net Loss | -40 M | -38 M | |
| Income Before Tax | -126 M | -119.7 M | |
| Total Other Income Expense Net | -63.3 M | -60.1 M | |
| Net Loss | -62.7 M | -59.6 M | |
| Change To Netincome | 25 M | 30 M | |
| Net Income Per Share | 1.43 | 1.50 | |
| Income Quality | (4.17) | (3.97) | |
| Net Loss | (1.84) | (1.75) |
Eastern Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Eastern Bankshares. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Eastern Bankshares position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Eastern Bankshares' important profitability drivers and their relationship over time.
Use Eastern Bankshares in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Eastern Bankshares position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eastern Bankshares will appreciate offsetting losses from the drop in the long position's value.Eastern Bankshares Pair Trading
Eastern Bankshares Pair Trading Analysis
The ability to find closely correlated positions to Eastern Bankshares could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eastern Bankshares when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Eastern Bankshares - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Eastern Bankshares to buy it.
The correlation of Eastern Bankshares is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Eastern Bankshares moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eastern Bankshares moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Eastern Bankshares can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Eastern Bankshares position
In addition to having Eastern Bankshares in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Corporate ETFs theme has 223 constituents at this time.
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Check out Investing Opportunities. For information on how to trade Eastern Stock refer to our How to Trade Eastern Stock guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
To fully project Eastern Bankshares' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Eastern Bankshares at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Eastern Bankshares' income statement, its balance sheet, and the statement of cash flows.