Beneficial Bancorp, Inc. – Value Analysis (NASDAQ:BNCL) : June 13, 2017

Capitalcube gives Beneficial Bancorp, Inc. a score of 61.

Our analysis is based on comparing Beneficial Bancorp, Inc. with the following peers – WVS Financial Corp., ESSA Bancorp, Inc. and Prudential Bancorp, Inc. (WVFC-US, ESSA-US and PBIP-US).

Fundamental Overview

Beneficial Bancorp, Inc. has a fundamental score of 61 and has a relative valuation of OVERVALUED.

Fundamental Score

Company Overview

  • It’s current Price/Book of 1.19 is about median in its peer group.
  • The market expects faster earnings growth from BNCL-US than from its peers and also a turnaround in its current ROE.
  • BNCL-US‘s relative capital efficiency and net profit margins are both around the median level.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • BNCL-US‘s return on equity currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • Compared with the peers chosen, BNCL-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company is likely overinvesting in a business with only 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 84.44% is around peer median suggesting that BNCL-US‘s lending operations does not benefit from any differentiating pricing advantage. In addition, BNCL-US‘s pre-tax margin of 23.16% is also around the peer median suggesting no operating cost advantage relative to peers.
  • The company’s comparatively healthy proportion of fee based income (i.e. non interest income/total revenues) of 15.56% versus peer median of 12.56% — suggests that BNCL-US‘s operating margins are likely to be less volatile. In addition, BNCL-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 72.06x is around peer median — suggesting no cost advantage on fee-based overhead operations.
Drivers of Margins

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Differentiated; High Cost, Commodity; High Cost, Commodity; Low Cost

Company Profile

Beneficial Bancorp, Inc. operates as a bank holding company for Beneficial Bank, which engages in the provision of banking and financial services to individuals and small-to medium-sized businesses. It also offers commercial real estate loans, commercial business loans, one- to four-family real estate loans, consumer loans, home equity loans and constructions loans. The company was founded on August 14, 2014 and is headquartered in Philadelphia, PA.