Eastern Bankshares, Inc. (EBC) stock analysis
Close on Nov 11, 2026Market cap $5.25BP/E 13.3Yield 2.22%
StockData Score
Prices as of Nov 11, 2026How the score works
Solid17 of 30 checks passed
Eastern Bankshares passes 17 of the 30 checks behind our score; 4 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 3/6
- Past performance
- 5/6
- Financial health
- 4/6
- Dividend
- 3/6
What stands out
Earnings grew over 5 years
Net income grew 31.1% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 20.2% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 670% over the last twelve months, against a 5-year average of 31.1% a year.
P/E below its 5-year median
Eastern Bankshares's P/E of 13.3 is below its own 5-year median of 15.5.
What to watch
Margin of safety under 20%
The price is 3.6% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $22.98 is above our fair value estimate of $22.18.
Return on equity under 15%
Return on equity was 9.5% over the last twelve months and averaged 5.1% over five years; we look for 15% on both.
EPS growing under 10% a year
Diluted EPS grew -29.2% a year over the last three fiscal years.
Valuation2/6
P/E below its 5-year median
Eastern Bankshares's P/E of 13.3 is below its own 5-year median of 15.5.
P/E below the industry
Eastern Bankshares's P/E of 13.3 is below the Savings Institutions median of 13.7.
P/S above the industry
Eastern Bankshares's price-to-sales of 34.57 is above the Savings Institutions median of 3.77.
P/B above the industry
Eastern Bankshares's price-to-book of 1.25 is above the Savings Institutions median of 1.04.
Trading above fair value
The share price of $22.98 is above our fair value estimate of $22.18.
Margin of safety under 20%
The price is 3.6% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 20.2% a year over the last three fiscal years.
EPS growing under 10% a year
Diluted EPS grew -29.2% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 670% over the last twelve months, against a 5-year average of 31.1% a year.
Growing faster than the industry
Revenue grew 17.0% over the last twelve months; the Savings Institutions median is 9.0%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
Banks and insurers do not report gross profit.
Past performance5/6
Return on equity under 15%
Return on equity was 9.5% over the last twelve months and averaged 5.1% over five years; we look for 15% on both.
Return on assets over 1%
Return on assets was 1.3%; for a bank or insurer, 1% or more is considered good.
Return on equity above the industry
Eastern Bankshares's return on equity of 9.5% is above the Savings Institutions median of 6.1%.
Earnings grew over 5 years
Net income grew 31.1% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 251% over the last twelve months, against a 5-year average of 191%.
Net margin above the industry
Eastern Bankshares's net margin of 251% is above the Savings Institutions median of 20.3%.
Financial health4/6
Well capitalized
Equity is 13.2% of total assets; 8% or more is a comfortable cushion.
Loans funded by deposits
Loans equal 89.3% of deposits, so lending is funded by customer deposits.
Adequate loan-loss reserve
The allowance for credit losses is 1.4% of loans; we look for at least 1%.
High cost base
Non-interest expense takes 60.3% of revenue; under 60% is efficient for a bank.
Deposits growing
Deposits grew 23.2% over the past year.
Borrowings
Needs debt and equity figures.
Dividend3/6
Pays a dividend
Eastern Bankshares 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 3.8% or more; Eastern Bankshares 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 32.5% of net income.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itOur estimate per share
$22.18
The share price is 4% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 14.6× | 15.5× | 13.7× | $25.22 | 50% |
| P/B | 1.0× | 1.0× | 1.0× | $19.13 | 50% |
| Fair value | $22.18 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 15.5
- Savings Institutions median 13.7
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $49.64M
- Value traded per 1% price move
- $48.03M
Downside
Low risk
- Typical loss in a bad month
- 12.3%
- Volatility (annualized)
- 24%
- Sharpe ratio, 1 year
- 1.14
- Beta to the S&P 500 (5Y)
- 0.72
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2017 to 2025
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +19.1% | +20.2% | -2.8% | – | |
| Net income | -26.2% | -23.8% | +31.1% | – | |
| EPS, diluted | -34.8% | -29.2% | +27.0% | – | |
| Dividend per share | +13.3% | +8.4% | – | – |
Returns and balance sheet
9 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 0.9% | 2.2% | |
| Return on assets | – | 0.2% | 0.3% | |
| Diluted shares | – | 172M | 204M |
Cash use needs five years of cash flow figures
Eastern Bankshares does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 65.8% | 0.00× | 7.06× | 2.2% |
| FY2024 | 106.2% | 0.00× | 7.09× | 3.6% |
| FY2023 | 302.1% | 0.00× | 8.04× | 8.5% |
| FY2022 | 258.4% | 0.00× | 7.85× | 6.8% |
| FY2021 | 222.8% | 0.00× | 5.78× | 4.5% |
| FY2020 | 14.7% | 0.01× | 5.49× | 0.9% |
| FY2019 | 86.5% | 0.01× | 7.58× | 8.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$88.22M
- Cash generatingOperating cash flow above zero$432.42M
- Return on assets improvedROA up on the prior year0.6% → 0.3%
- Earnings backed by cashOperating cash flow above net income$432.42M vs $88.22M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise182M → 204M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.01 → 0.01
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