Beacon Financial Corporation (BBT) AI Stock Analysis

• Market Cap: $2.10B
• Dividend Yield: 0.78%
• Average Volume (3M): 866.00K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.88
• Revenue Growth: 21.37%
• EPS Growth: 9.95%
• Country: US
• Employees: 951
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.44
• Shares Outstanding: 84,272,240
• 10 Day Avg. Volume: 869,717
• 30 Day Avg. Volume: 865,995
• 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: 1.46
• Enterprise Value/Revenue: 4.71
• Enterprise Value/Gross Profit: 8.87
• Enterprise Value/Ebitda: 25.67
• 1Y Price Target: $31.00
• Price Target Upside: 18.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.01
• Revenue Forecast (FY): $577.11M

• Rating: 75 Outperform
• Price Target: $27.00 ▲(2.94% Upside)

Berkshire Hills' strong financial performance and attractive valuation are key strengths, supported by successful merger integration and deposit growth. However, technical indicators suggest potential short-term weakness, and the recent GAAP loss and challenges in the office loan portfolio present risks. Overall, the stock is positioned well for future growth, but investors should monitor the highlighted risks.

Beacon Financial Corporation Business Overview & Revenue Model

Company Description

Berkshire Hills Bancorp, Inc. (BHLB) is a bank holding company based in Massachusetts that operates through its wholly-owned subsidiary, Berkshire Bank. The company primarily serves the banking needs of individuals, businesses, and municipalities across the New England and New York regions. Berkshire Hills offers a wide range of financial products and services including personal and commercial banking, wealth management, insurance, and mortgage lending, with a strong emphasis on community engagement and customer service.

How the Company Makes Money

Berkshire Hills generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings. The bank provides various loan products such as residential mortgages, commercial real estate loans, and consumer loans, which contribute significantly to its interest income. Non-interest income comes from fees for services, wealth management products, insurance services, and transaction-based income. Additionally, Berkshire Hills has established partnerships with local businesses and community organizations, enhancing its market presence and driving deposits and loan growth, which are crucial for its overall earnings.

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	650.33M	654.50M	608.88M	373.43M	338.52M	475.97M
Gross Profit	345.39M	333.56M	333.44M	319.49M	317.20M	0.00
EBITDA	119.41M	106.33M	109.91M	146.47M	161.26M	25.33M
Net Income	78.80M	68.72M	75.00M	109.74M	115.44M	-533.02M
Balance Sheet
Total Assets	11.57B	11.91B	11.38B	9.19B	8.60B	12.87B
Cash, Cash Equivalents and Short-Term Investments	604.34M	1.44B	1.05B	1.04B	1.05B	0.00
Total Debt	1.20B	1.56B	568.29M	1.45B	377.83M	645.91M
Total Liabilities	10.31B	10.68B	10.18B	8.19B	7.61B	11.68B
Stockholders Equity	1.25B	1.22B	1.20B	992.13M	995.34M	1.19B
Cash Flow
Free Cash Flow	112.54M	99.97M	104.24M	113.37M	128.42M	224.70M
Operating Cash Flow	109.48M	104.95M	116.60M	120.76M	133.21M	231.91M
Investing Cash Flow	155.90M	-139.60M	-665.26M	-557.69M	131.11M	636.84M
Financing Cash Flow	-101.71M	445.29M	298.74M	492.15M	-371.51M	109.30M

Beacon Financial Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 26.23 is above the 20-day moving average (MA) of 24.39, above the 50-day MA of 24.83, and above the 200-day MA of 25.53, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 94.84 is Negative, 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	$2.06B	10.71	11.91%	9.27%	-6.44%	-1.18%
BBT	75 Outperform	$2.10B	24.11	1.12%	0.78%	21.37%	9.95%
PAX	74 Outperform	$2.42B	28.03	15.46%	3.95%	26.65%	-1.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WT	66 Neutral	$1.75B	18.46	25.47%	1.00%	12.05%	121.84%
GCMG	60 Neutral	$2.24B	81.26	―	3.76%	18.33%	109.57%
AAMI	58 Neutral	$1.56B	18.39	7024.00%	0.08%	21.32%	42.19%

Beacon Financial Corporation Corporate Events

Beacon Financial Reports Q3 Loss Amid Merger Costs

Beacon Financial Corporation, a full-service regional bank serving the Northeast, was formed through the merger of Berkshire Hills Bancorp, Inc. and Brookline Bancorp, Inc. The company offers a wide range of banking solutions and operates through multiple banking divisions.

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.

The most recent analyst rating on (BBT) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Beacon Financial Corporation stock, see the BBT Stock Forecast page.