Fact based stock research
Berkshire Hills Bancorp (NYSE:BHLB)

US0846801076

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Berkshire Hills Bancorp stock research in summary

ir.berkshirebank.com

ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% compared with investment alternatives), Berkshire Hills Bancorp (Regional Banks, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Berkshire Hills Bancorp are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives) and show below-average growth (Growth Rank of 21) but are safely financed (Safety Rank of 70), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 28, is a hold recommendation based on Berkshire Hills Bancorp's financial characteristics. As the company Berkshire Hills Bancorp's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 31) and low growth (Obermatt Growth Rank of 21), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 70) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	31
Growth Rank	21
Safety Rank	70
Combined Rank	28

Country	USA
Industry	Regional Banks
Index	Sound Pay USA
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Berkshire Hills Bancorp

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	67	7	25	31
GROWTH
GROWTH	78	43	32	21
SAFETY
SAFETY	87	99	87	70
SENTIMENT
SENTIMENT	n/a	6	67	^new
360° VIEW
360° VIEW	n/a	17	56	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Berkshire Hills Bancorp is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	67	7	25	31
GROWTH
GROWTH	78	43	32	21
SAFETY
SAFETY	87	99	87	70
COMBINED
COMBINED	97	41	48	28

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Berkshire Hills Bancorp the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), Berkshire Hills Bancorp shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Berkshire Hills Bancorp. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 53, which means that the stock price compared with what market professionals expect for future profits is lower than for 53% of comparable companies, indicating a good value concerning Berkshire Hills Bancorp's profit levels. But Price-to-Sales is 42 which means that the stock price compared with what market professionals expect for future profits is higher than for 58% of comparable companies, indicating a low value concerning Berkshire Hills Bancorp's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 47 and for dividend yield, which is lower than for 60% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a hold recommendation based on Berkshire Hills Bancorp's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Berkshire Hills Bancorp is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	75	13	52	42
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53	7	46	53
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	65	51	36	47
DIVIDEND YIELD
DIVIDEND YIELD	55	31	37	40
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	67	7	25	31

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Berkshire Hills Bancorp; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 21 (better than 21% compared with alternatives), Berkshire Hills Bancorp shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Berkshire Hills Bancorp. While Profit Growth has a good rank of 50, as professionals currently expect the company to grow its profits more than 50% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 37, which means that currently professionals expect the company to grow less than 63% of its competitors, while Capital Growth has a rank of 29 and Stock Returns have been below market median, with a rank of 33 (67% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	76	29	50	37
PROFIT GROWTH
PROFIT GROWTH	18	84	75	50
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	7	29
STOCK RETURNS
STOCK RETURNS	65	93	25	33
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	78	43	32	21

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Berkshire Hills Bancorp.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Berkshire Hills Bancorp has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Berkshire Hills Bancorp is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Berkshire Hills Bancorp.Leverage is at 76, meaning the company has a below-average debt-to-equity ratio. It has less debt than 76% of its competitors.Refinancing is at a rank of 56, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 56% of its competitors. Liquidity is at 42, meaning that the company generates less profit to service its debt than 58% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Berkshire Hills Bancorp has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Berkshire Hills Bancorp more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	88	68	76	76
REFINANCING
REFINANCING	41	52	61	56
LIQUIDITY
LIQUIDITY	94	96	45	42
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	87	99	87	70

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Berkshire Hills Bancorp and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	17	41	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	36	77	^new
MARKET PULSE
MARKET PULSE	n/a	6	38	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	6	67	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Berkshire Hills Bancorp.
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