_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Brookline Bancorp, Inc. (XNAS:BRKL) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
BRKL
Name:
BROOKLINE BANCORP, INC. (XNAS:BRKL)
Sector:
15.65M
Industry:
Banks�Regional
CEO:
Mr. Paul Perrault
Total Employees:
786
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -200.27% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF BROOKLINE BANCORP, INC.(BRKL) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BANKS�REGIONAL INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
12.62
One Month Price Target:
$12.67
Six Month Price Target :
$12.91
Likely Price in One Year's Time:
Ticker:
$13.2
Likely Trading Range Today Under (Normal Volatility)
$12.57
Price Upper limit ($) :
$12.67
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$11.96
This week:
$11.15
This month :
$9.69
Other Primary facts
Market Cap:
961.62M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
76.68M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
17.44%
-14.2%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$15.66
$14.28
$9.58
$10.96
Medium risk (<10%) entry points
Buy Call
Sell Call
$13.83
Buy Put:
Sell Put:
$13.54
$11.41
$11.70
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
BRKL
Sharpe Ratio:
-0.50%
Comparison:
BRKL, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -140.84% lower than the industry
& is -122.01% lower than the market/S&P 500 average
Average Returns/Yield of
BRKL
Daily returns:
0.00%
Weekly returns:
-0.02%
Monthly returns:
-0.08%
Yearly returns:
10.91%
Comparison of returns:
Average annual returns/yield (last 3 years) is -108.42% below industry average
Classification:
BRKL, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.53
Statistical test of Returns:
BRKL has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.53%
Weekly Volatility:
5.65%
Monthly Volatility:
11.30%
Yearly Volatility:
39.14%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.99%
Volatility in last five trading days has been -60.68% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.19%
Weekly VaR:
-11.61%
Monthly VaR:
-23.22%
How Much Can the price of
BRKL
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-21%
Worst case (decline):
-80.44%
This translates to price declining to:
$10.02
This translates to price declining to:
$2.47
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
BRKL is a 63.89% riskier investment compared to the market/S&P 500 & is 40.40% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -11.56% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
BRKL
Beta in relation to market/S&P 500--0.68
Expected beta in 1 year's time:
0.6
Expected beta in 3 year's time:
0.849
Unlevered (debt free) Beta:
0.517
Beta in relation to Nasdaq (XNAS):
0.571
Beta in relation to all global stocks::
0.773
Beta Comparison & Analysis
Beta of competitors/peers::
1.053
Beta is -35.56% lower than peers
Average Industry Beta:
0.964
Beta is -29.56% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
7.96%
Sustainable growth rate is -12.84% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.087
Alpha is -851.44% below industry average alpha yield
Alpha is -555% below the market average
Analysis of Cost of Capital of
BRKL
Equity cost of capital:
0.078
Equity cost of capital is -20.01% below industry mean WACC
Unlevered (without debt) cost of capital:
5.94%
Before-tax cost of debt:
6.08%
After-tax cost of debt:
4.80%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
4.80%
WACC is -33.36% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$4.05
Revenue growth rate per share of (3Y):
0.99
Annual revenue growth rate is -51.38% below industry average
EPS:
$1.45
Expected Annual growth rate of EPS (3Y):
10.40%
Expected future EPS growth rate is -13.52% lower than the Banks�Regional industry
Free cash flow (FCF) per share:
$1.61
Balance sheet equity growth per share: 20.24%
Equity growth rate per share is -47.74% lower than the industry
Debt per share
$5.38
EBITDA per share
$2.40
Valuation Analysis Today of
BRKL
P/E Ratio:
9.16
P/E Ratio of Competitors/Peers:
14.49
P/E ratio is -36.80% lower than main peers & is -26.18% lower than the industry
Stock price/value with industry average P/E ratio: $17.99
BRKL is -29.86% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $29.07
Present value of the expected future dividends only: $7.73
P/S (Price to Sales ratio):
3.11
Price to sales ratio is -27.20% below the industry mean
P/B (Price to book value ratio):
0.99
Price to free cash flow: 7.83
Price to free cash flow ratio is -50.53% lower than the industry
Net income growth rate (3Y):
40.24%
Net income growth rate is -26.92% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 8.54%
Dividend yeild: 3.96%
Previous Dividend: $0.13
Previous adjusted dividend: $0.13
Previous Dividend: $0.50
Expected next dividend best case: $0.13
Expected next dividend worst case: $0.13
Average dividend payment (long-term): $0.12
Average dividend increase/decrease (growth rate) % per period: 1.25%
Expected next dividend payment date: 25/08/2022
Expected next dividend record date: 08/11/2022
Expected next dividend declaration date: 26/07/2022
Previous dividend payment date: 27/05/2022
Previous dividend record date: 13/05/2022
Previous dividend declaration date: 27/04/2022
Dividend History:
2022-05-12--$0.13
2021-11-10--$0.13
2021-05-13--$0.12
2022-02-10--$0.13
2021-08-12--$0.12
2021-02-11--$0.12
Dividend growth rate is -94.69% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
42.01%
Net debt to equity ratio:
32.94%
Debt to assets ratio:
4.78%
Net debt to assets ratio:
3.75%
Debt-to-asset ratio is -97.13% below industry average
Ability to repay debt:
Interest coverage ratio:
7.35
Interest coverage ratio is 786.69% more than industry average
Looking forward:
Debt growth rate:
-55.25%
Annual debt growth is -17547% lower than industry average debt growth rate
Debt repayment rate in last quarter: 32.04%
Analysis of Key Statistics
Correlation of price movement with the market:
0.574
Statistical significance of correlation:
BRKL has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.501
Stock price is 14.62% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.501
Correlation of price movement with Nasdaq (^IXIC):
0.048
Covariance of price movement with the market:
0.071
Kurtosis
6.799
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.301
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
BRKL
Gross Profit Margin Ratio:
-
Operating Profit Margin Ratio:
0.00%
-
Net Profit Margin Ratio:
-
Effective Tax Rate:
25.40%
Effective tax rate is 17.88% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
11.58%
Return on equity (ROE) is -2.94% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
1.32%
Return on assets (ROA) is -42.86% lower than the industry
Financial Leverage:
1.1x
Current Ratio:
0
-
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 0.0 years
Stock based compensation to net income ratio:
0.71%
In-depth Efficiency Analysis
Revenue generated per employee:
395.5K
Each employee generates 4% more revenue than industry average revenue per employee
EBITDA generated per employee:
234.3K
Each employee generates 4% more EBITDA than industry average revenue per employee
Profit generated per employee:
144.6K
Each employee generates 2% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
19.9K
Each employee generates -76% less free cash flow than industry average revenue per employee
Assets/Capital per employee
1.5M
Each employee generates -76% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
BRKL
OAKTREE SPECIALTY LENDING CORPORATION (XNAS:OCSL)
TRICO BANCSHARES (XNAS:TCBK)
FRONTIER ACQUISITION UNT (XNAS:FRONU)
NEW MOUNTAIN FINANCE CORPORATION (XNAS:NMFC)
LAKELAND BANCORP, INC. (XNAS:LBAI)
NORTHERN TRUST CORPORATION (XNAS:NTRSO)
CONNECTONE BANCORP, INC. (XNAS:CNOB)
OCEANFIRST FINANCIAL CORP. (XNAS:OCFC)
WORLD ACCEPTANCE CORPORATION (XNAS:WRLD)
Current Analyst Ratings
Strong buy�4%
Buy�4%
Hold�13%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
310.84M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
-
-
-
110.51M
114.85M
4.34M
-
-
308.17M
25.06M
6.71M
184.17M
-
113.69M
152.40M
38.71M
113.69M
Statement of Cash Flow
Date:
Period:
1.60M
Differed Income Tax :
376.00K
Stock Based Compensation :
805.00K
Change in Working Capital :
- 12928.00K
Accounts Receivables:
-
Other Working Capital:
- 252.00K
Other Non-Cash Items:
1.59M
Net Cash Provided by Operating Activities:
16.14M
Investments in PP&E:
- 497.00K
Net Acquisitions:
-
Purchases of Investments:
- 84135.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
89.03M
934.80M
1.02B
-
-
-
-
88.94M
160.43M
2.14M
934.80M
-
-
1.19B
9.82B
8.63B
-
-
-
-
-
-
412.47M
-
412.47M
8.06B
7.65B
852.00K
357.58M
- 29322.0K
652.83M
March 31, 2022 at 6:00:00 AM
-
981.94M
8.63B
1.87B
412.47M
323.4M
36.25M
- 72019.00K
- 120400.00K
- 194461.00K
-
-
- 9705.00K
273.96M
69.79M
-
- 34466.00K
293.27M
327.74M
16.14M
- 497.00K
15.65M
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
BRKL
2023
2024
2025
2026
2027
$13.27
$18.52
$19.37
$20.25
$21.18