Dime Commercial Bancshares, Inc. (DCOM.P) stock analysis

P/E below its 5-year median

Dime Commercial Bancshares's P/E of 13.6 is below its own 5-year median of 14.0.

P/E above the industry

Dime Commercial Bancshares's P/E of 13.6 is above the Commercial Banks median of 12.3.

P/S above the industry

Dime Commercial Bancshares's price-to-sales of 75.25 is above the Commercial Banks median of 3.64.

P/B below the industry

Dime Commercial Bancshares's price-to-book of 1.21 is below the Commercial Banks median of 1.27.

Trading above fair value

The share price of $41.76 is above our fair value estimate of $39.31.

Margin of safety under 20%

The price is 6.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -14.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 144% over the last twelve months, against a 5-year average of 21.2% a year.

Growing faster than the industry

Revenue grew 32.9% over the last twelve months; the Commercial Banks median is 11.4%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 9.6% over the last twelve months and averaged 8.4% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.9%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Dime Commercial Bancshares's return on equity of 9.6% is below the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 21.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 583% over the last twelve months, against a 5-year average of 581%.

Net margin above the industry

Dime Commercial Bancshares's net margin of 583% is above the Commercial Banks median of 30.0%.

Well capitalized

Equity is 9.8% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 82.3% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.0% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 50.7% of revenue; under 60% is efficient for a bank.

Deposits growing

Needs deposits a year ago.

Borrowings

Needs debt and equity figures.

Pays a dividend

Dime Commercial Bancshares paid dividends worth 2.4% of the share price over the last twelve months.

Yield below Treasuries

The 2.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Dime Commercial Bancshares yields 2.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Covered by earnings

Dividends take 30.2% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.