Beacon Financial Corporation (BBT) AI Stock Analysis

• Market Cap: $2.38B
• Dividend Yield: 3.21%
• Average Volume (3M): 584.38K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.72
• Revenue Growth: 21.37%
• EPS Growth: 17.19%
• Country: US
• Employees: 951
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.79
• Shares Outstanding: 83,908,860
• 10 Day Avg. Volume: 763,839
• 30 Day Avg. Volume: 584,375
• PEG Ratio: -1.88
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 12.09
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 5.30
• Enterprise Value/Gross Profit: 12.71
• Enterprise Value/Ebitda: 103.55
• 1Y Price Target: $33.33
• Price Target Upside: 17.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.61
• Revenue Forecast (FY): $948.57M

• Rating: 65 Neutral
• Price Target: $30.00 ▲(5.82% Upside)

The score is driven primarily by mixed financial performance—strong cash generation and revenue growth but sharply weaker margins and ROE in the latest TTM period. Technicals add support with an uptrend and healthy momentum, while valuation is a mild headwind due to the higher P/E (partly offset by the dividend). Earnings-call commentary is moderately positive but constrained by integration costs, delayed conversion, and CRE/office-related risks.

Positive Factors

Successful Merger Integration

The successful integration of the merger enhances Beacon's market position and operational scale, potentially leading to increased profitability and competitive advantage.

Strong Dividend Increase

A significant dividend increase reflects strong cash flow management and confidence in future earnings, enhancing shareholder value and attracting income-focused investors.

Optimistic Loan Growth Outlook

Projected loan growth indicates expanding business opportunities and revenue potential, supporting long-term financial stability and market competitiveness.

Negative Factors

GAAP Loss for the Quarter

A GAAP loss due to merger-related charges indicates financial strain, which could impact short-term profitability and necessitate careful financial management.

Elevated Charge-Offs

High charge-offs suggest credit quality issues, potentially affecting future earnings and requiring enhanced risk management strategies.

Challenges in Office Loan Portfolio

Challenges in the office loan portfolio highlight sector-specific risks, which may lead to increased reserves and impact overall asset quality.

Beacon Financial Corporation Business Overview & Revenue Model

Company Description

Beacon Financial Corp. engages in the provision of financial planning, advisory, and banking services.

How the Company Makes Money

Beacon Financial Corporation generates revenue through several key streams. The primary source of income comes from net interest income, which is earned from the difference between interest paid on deposits and interest received on loans. Additionally, BBT generates fee-based income from service charges, investment management fees, and advisory services. The company also engages in capital markets activities, including underwriting and trading, which contribute to its revenue. Strategic partnerships with other financial entities and technology firms enhance its product offerings and market reach, further bolstering its earnings potential.

Beacon Financial Corporation Financial Statement Overview

Summary

Revenue growth is solid (TTM +9.6%) and cash generation is a strength (TTM FCF ~$101M; FCF ~0.93x net income). However, profitability has deteriorated sharply versus 2023–2024 (TTM net margin ~1.2%, EBIT margin ~1.0%) and ROE is very low (~0.5%), keeping the score moderate despite improved leverage (~0.49x debt/equity).

Income Statement

TTM (Trailing-Twelve-Months) revenue growth is solid at 9.6%, but profitability has compressed sharply versus recent annual results. Net margin is ~1.2% in TTM, down from ~10–11% in 2023–2024, and operating profitability is also much thinner (EBIT margin ~1.0% in TTM). The company has demonstrated it can generate strong earnings in prior years (notably 2021–2024), but the steep margin deterioration in the latest period is the key near-term concern.

Balance Sheet

Leverage looks moderate in TTM with debt at ~0.49x equity, an improvement versus 2024 (~1.28x). However, returns have weakened materially: return on equity is ~0.5% in TTM versus mid-single digits in 2023–2024, signaling reduced efficiency in generating profit from the capital base. Overall balance sheet risk appears manageable, but the drop in returns reduces balance-sheet quality from an investor perspective.

Cash Flow

Cash generation remains a relative strength: TTM operating cash flow (~$108M) and free cash flow (~$101M) are sizable and free cash flow remains high relative to net income (~0.93x), suggesting earnings are backed by cash. The main weakness is momentum: TTM free cash flow declined ~10.6% versus the prior period, indicating softer cash flow trajectory even as absolute cash flow remains healthy.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	631.88M	643.37M	606.54M	438.34M	460.73M	-643.24M
Gross Profit	263.49M	357.01M	367.29M	384.68M	423.33M	-812.12M
EBITDA	32.34M	86.50M	86.77M	123.39M	160.06M	-521.11M
Net Income	25.50M	61.00M	69.60M	92.53M	118.66M	-533.02M
Balance Sheet
Total Assets	22.82B	11.91B	11.38B	9.19B	8.60B	12.87B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.44B	1.05B	1.04B	1.05B	0.00
Total Debt	1.17B	1.56B	1.41B	1.45B	377.83M	645.91M
Total Liabilities	20.41B	10.68B	10.18B	8.19B	7.61B	11.68B
Stockholders Equity	2.41B	1.22B	1.20B	992.13M	995.34M	1.19B
Cash Flow
Free Cash Flow	95.20M	99.97M	104.24M	113.37M	128.42M	224.70M
Operating Cash Flow	100.49M	104.95M	116.60M	120.76M	133.21M	231.91M
Investing Cash Flow	1.85B	-139.60M	-665.26M	-557.69M	131.11M	636.84M
Financing Cash Flow	-1.14B	445.29M	298.74M	492.15M	-371.51M	109.30M

Beacon Financial Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBT, the sentiment is Positive. The current price of 28.35 is above the 20-day moving average (MA) of 27.63, above the 50-day MA of 26.79, and above the 200-day MA of 25.27, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 58.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBT.

Beacon Financial Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAX	74 Outperform	$2.33B	21.49	20.03%	3.78%	22.09%	58.98%
WT	73 Outperform	$2.28B	21.60	26.69%	0.95%	12.05%	120.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AAMI	66 Neutral	$1.98B	23.38	7024.00%	0.08%	21.53%	42.18%
BBT	65 Neutral	$2.38B	27.52	3.23%	3.21%	21.37%	17.19%
TSLX	64 Neutral	$2.07B	10.76	11.91%	9.64%	-6.44%	-1.18%
GCMG	60 Neutral	$2.31B	41.03	―	3.91%	18.33%	109.57%

Beacon Financial Corporation Corporate Events

Beacon Financial Posts Strong Q4 Results After Merger

Beacon Financial Corporation reported fourth-quarter 2025 net income of $53.4 million, or $0.64 per share, and full-year 2025 net income of $90.3 million, while operating earnings excluding $70.1 million of merger-related charges reached $142.3 million. Following the merger of equals with Brookline Bancorp, total assets more than doubled year over year to $23.2 billion, driven primarily by assumed assets, while deposits rose to $19.5 billion and borrowed funds declined, reflecting stronger combined liquidity. Fourth-quarter performance showed improving profitability and margins, with net interest income rising to $199.7 million, net interest margin widening to 3.82%, and non-interest income and non-interest expense both increasing as the first full quarter of combined operations was reflected in the results. Credit quality trends were mixed but generally stable, as the provision for credit losses and net charge-offs fell from the third quarter, even as nonperforming assets rose modestly due largely to a single Boston office loan, and the allowance for loan and lease losses edged up to 1.40% of total loans. Key return metrics rebounded, with annualized return on average assets improving to 0.94% and return on average tangible stockholders’ equity to 11.19% in the fourth quarter, while tangible book value per share climbed to $23.32, underscoring early synergy benefits and a stronger capital position. The Board also declared a dividend of $0.3225 per share, signaling continued capital return to shareholders amid the integration of the merger and adoption of updated credit loss accounting standards.

The most recent analyst rating on (BBT) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Beacon Financial Corporation stock, see the BBT Stock Forecast page.