Beacon Financial Corporation (BBT) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: 3.14%
• Average Volume (3M): 979.38K
• Price to Earnings (P/E): 25.0
• 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): 0.44
• Shares Outstanding: 83,908,860
• 10 Day Avg. Volume: 1,010,261
• 30 Day Avg. Volume: 979,378
• PEG Ratio: -1.64
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 10.63
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 4.30
• Enterprise Value/Gross Profit: 9.64
• Enterprise Value/Ebitda: 132.25
• 1Y Price Target: $31.00
• Price Target Upside: 12.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.01
• Revenue Forecast (FY): $577.11M

• Rating: 74 Outperform
• Price Target: $28.00 ▲(1.82% Upside)

Berkshire Hills demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The technical analysis supports a positive trend, while the valuation metrics indicate a balanced investment opportunity. The earnings call provided mixed signals with successful merger integration but also highlighted challenges such as a GAAP loss and elevated charge-offs. Overall, the stock is positioned well for future growth, but investors should remain cautious of the highlighted 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

Berkshire Hills exhibits a robust financial profile with consistent revenue growth, solid profitability margins, and efficient cash flow management. The company maintains a balanced leverage position and effectively utilizes its equity capital. While there are minor concerns regarding asset fluctuations and investing cash outflows, the overall financial health remains strong, positioning the company well for future growth.

Income Statement

Berkshire Hills has demonstrated a solid financial performance with consistent revenue growth, despite some fluctuations. The company's TTM (Trailing-Twelve-Months) gross profit margin is healthy at 59.66%, and its net profit margin stands at 15.36%. The revenue growth rate of 7.68% from 2024 to TTM indicates a positive upward trajectory. Both EBIT and EBITDA margins improved significantly in TTM, showcasing operational efficiency. However, the company experienced a dip in EBIT margin in 2024, which needs monitoring.

Balance Sheet

The balance sheet of Berkshire Hills reveals a moderate debt-to-equity ratio of 0.57 in TTM, indicating a balanced leverage position. The return on equity is strong at 8.93%, reflecting effective utilization of equity capital. The equity ratio is robust at 9.96%, suggesting a stable capital structure. However, the total assets have shown a slight decrease over the years, which may warrant attention.

Cash Flow

The cash flow position of Berkshire Hills is commendable, with a free cash flow growth rate of 10.99% from 2024 to TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 1.32 in TTM suggests efficient conversion of profits into cash. Additionally, the free cash flow to net income ratio of 1.25 indicates healthy cash flow management. A slight concern is the high investing cash outflows, which may affect future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	712.73M	654.50M	608.88M	373.43M	338.52M	475.97M
Gross Profit	318.12M	333.56M	333.44M	319.49M	317.20M	0.00
EBITDA	23.18M	106.33M	109.91M	146.47M	161.26M	25.33M
Net Income	8.42M	68.72M	75.00M	109.74M	115.44M	-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	100.59M	99.97M	104.24M	113.37M	128.42M	224.70M
Operating Cash Flow	108.09M	104.95M	116.60M	120.76M	133.21M	231.91M
Investing Cash Flow	1.73B	-139.60M	-665.26M	-557.69M	131.11M	636.84M
Financing Cash Flow	-1.20B	445.29M	298.74M	492.15M	-371.51M	109.30M

Beacon Financial Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.50
• 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 27.5 is above the 20-day moving average (MA) of 26.28, above the 50-day MA of 25.19, and above the 200-day MA of 24.91, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 64.29 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 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
TSLX	75 Outperform	$2.04B	10.58	11.91%	9.50%	-6.44%	-1.18%
PAX	74 Outperform	$2.50B	23.05	20.03%	3.83%	22.09%	58.98%
BBT	74 Outperform	$2.31B	24.98	1.46%	3.14%	21.37%	17.19%
WT	71 Outperform	$1.75B	19.45	25.27%	0.96%	12.05%	120.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AAMI	66 Neutral	$1.70B	20.06	7024.00%	0.08%	21.53%	42.18%
GCMG	60 Neutral	$2.31B	41.03	―	3.98%	18.33%	109.57%

Beacon Financial Corporation Corporate Events

Beacon Financial Reports Q3 Loss Post-Merger Costs

Beacon Financial Corporation reported a net loss of $56.3 million for the third quarter of 2025, following the merger of Berkshire Hills Bancorp, Inc. and Brookline Bancorp, Inc. The merger, completed on September 1, 2025, resulted in significant one-time costs of $129.8 million, affecting the financial results. Despite the loss, operating earnings were $38.5 million, excluding these costs. The merger is expected to enhance profitability and growth, with integration efforts progressing as planned.