Capitalcube gives Bank of Marin Bancorp a score of 43.
Our analysis is based on comparing Bank of Marin Bancorp with the following peers – Western Alliance Bancorporation, Guaranty Bancorp, Westamerica Bancorporation, Heritage Commerce Corp, SVB Financial Group and Umpqua Holdings Corporation (WAL-US, GBNK-US, WABC-US, HTBK-US, SIVB-US and UMPQ-US).
Bank of Marin Bancorp has a fundamental score of 43 and has a relative valuation of UNDERVALUED.
- It’s current Price/Book of 1.67 is about median in its peer group.
- The market expects BMRC-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
- BMRC-US‘s relative capital efficiency and net profit margins are both around the median level.
- Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
- BMRC-US‘s return on equity currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
- While BMRC-US‘s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
- The company’s equity capital investment program suggests it is under-investing in a business that is producing peer median returns.
Drivers of Margin
- Margins do not suggest any relative benefit from a pricing or an operating cost advantage.
- The company’s net interest income (net interest income/total revenues) of 89.57% is around peer median suggesting that BMRC-US‘s lending operations does not benefit from any differentiating pricing advantage. In addition, BMRC-US‘s pre-tax margin of 42.17% is also around the peer median suggesting no operating cost advantage relative to peers.
- The company’s comparatively low proportion of fee based income (i.e. non interest income/total revenues) of 10.43% versus peer median of 17.95% — suggests that BMRC-US‘s operating margins are likely to be more volatile. In addition, BMRC-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 58.19x is around peer median — suggesting no cost advantage on fee-based overhead operations.
Quadrant label definitions. Hover to know more
Bank of Marin Bancorp operates as a bank holding company. It operates through its subsidiary, the Bank of Marin, which provides financial services to customers, who are predominantly professionals, small and middle-market businesses, and individuals who work and reside in Marin, San Francisco and Sonoma counties. The company provides traditional community banking activities and wealth management and trust services. It offers personal and business checking and savings accounts; certificates of deposit, individual retirement accounts, health savings accounts, remote deposit capture, direct deposit of payroll, social security and pension checks and fraud prevention services. Bank of Marin Bancorp was founded on July 01, 2007 and is headquartered in Novato, CA.