BRKL  Brookline Bancorp Inc.

Exchange

NASDAQ

Sector

Finance

Industry

Savings Institutions

Market Cap.

1.18B

Current Price

$15.40
+0.10 (+0.65%)

Book Price

$10.90
Overvalued by 29.21%
Financial Institution

Company Metrics

  • P/E 20
  • P/S 5.22
  • P/B 1.47
  • EPS 0.77
  • Dividend 0.36 / 2.27%
  • Avg. Vol. 398,468.00
  • Shares 76.62M
  • Market Cap. 1.18B

Company Description

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank that provides various banking products and services. The company accepts various deposit products that include non-interest-bearing checking accounts, interest-bearing NOW accounts, savings accounts and money market savings accounts, certificate of deposit accounts, individual retirement accounts, and other qualified plan a... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BRKL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BRKL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

BRKL has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

BRKL has only created $- of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 5.15B 5.33B 5.80B 667.49M 695.54M
Cash ROIC - - - - -

Poor Return on Equity over the past 5 years

BRKL has shown an inability to deliver strong results for shareholders. This could be due to poor management, BRKL operating in a highly competitive industry, or having a weak business in general.

BRKL has only generated $6.70 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 37.14M 35.39M 42.77M 49.78M 52.36M
divided by
Stockholders' Equity 612.10M 613.87M 640.75M 667.49M 695.54M
Return on Equity 6.07% 5.76% 6.67% 7.46% 7.53%

Poor Business Performance over the past 10 years

BRKL's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

BRKL has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow - - - - - - - - - -

Consistent Reinvestment of Profits over the past 10 years

BRKL has consistently retained profits. This may put BRKL in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, BRKL can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 68.88M 38.09M 25.42M 32.36M 39.99M 53.36M 64.90M 83.79M 109.68M 136.67M
Retained Earnings Growth - -44.69% -33.27% 27.29% 23.60% 33.42% 21.64% 29.10% 30.89% 24.61%

Highly Competitive Industry over the past 10 years

It's likely that BRKL is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely BRKL invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 17.74M 12.85M 19.20M 26.87M 27.60M 37.14M 35.39M 42.77M 49.78M 52.36M
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

BRKL is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that BRKL has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

BRKL has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that BRKL may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 17.74M 12.85M 19.20M 26.87M 27.60M 37.14M 35.39M 42.77M 49.78M 52.36M
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

BRKL has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests BRKL is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 44.11M 44.01M 32.21M 20.42M 20.55M 24.69M 25.04M 25.49M 26.40M 25.37M
divided by
Shares Outstanding 59.66M 57.85M 58.41M 58.58M 58.64M 69.75M 69.88M 70.05M 70.24M 70.44M
Dividend Paid Per Share 0.74 0.76 0.55 0.35 0.35 0.35 0.36 0.36 0.38 0.36
Price at Year End 8.08 8.69 9.15 10.56 8.36 8.34 9.56 10.14 11.71 16.40
Dividend Yield 9.15% 8.75% 6.03% 3.30% 4.19% 4.24% 3.75% 3.59% 3.21% 2.20%

History of Stock Buybacks over the past 10 years

BRKL has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 59.66M 57.85M 58.41M 58.58M 58.64M 69.75M 69.88M 70.05M 70.24M 70.44M
Stock Bought Back - 3.13% -0.95% -0.30% -0.09% -15.93% -0.20% -0.24% -0.26% -0.30%
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