Berkshire Hills (BHLB) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 2.73%
• Average Volume (3M): 504.10K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.92
• Revenue Growth: 15.55%
• EPS Growth: 401.99%
• Country: US
• Employees: 1,186
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 46,389,915
• 10 Day Avg. Volume: 668,418
• 30 Day Avg. Volume: 504,098
• PEG Ratio: -1.88
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 10.02
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 10.96
• 1Y Price Target: $25.65
• Price Target Upside: -2.66% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $30.00 ▲(13.85% Upside)

Berkshire Hills Bancorp demonstrates strong financial performance and strategic growth potential, particularly through its merger with Brookline Bancorp. The stock's technical indicators suggest positive momentum, and its valuation metrics indicate potential undervaluation. The earnings call and corporate events further support a positive outlook, despite minor concerns in asset quality and investing cash outflows.

Berkshire Hills 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.

Berkshire Hills Financial Statement Overview

Summary

Berkshire Hills has strong financial performance with consistent revenue growth, solid profitability margins, and efficient cash flow management. Minor concerns include asset fluctuations and investing cash outflows.

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	695.76M	646.11M	619.08M	456.19M	419.37M	474.85M
Gross Profit	415.02M	359.76M	379.83M	402.53M	381.47M	305.97M
EBITDA	151.47M	91.10M	91.59M	128.53M	165.26M	-514.93M
Net Income	106.91M	61.00M	69.60M	92.53M	118.66M	-533.02M
Balance Sheet
Total Assets	12.01B	12.27B	12.43B	11.66B	11.55B	12.84B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.69B	2.23B	2.11B	3.51B	3.25B
Total Debt	684.60M	494.97M	568.29M	188.55M	176.38M	645.91M
Total Liabilities	10.82B	11.11B	11.42B	10.71B	10.37B	11.65B
Stockholders Equity	1.20B	1.17B	1.01B	954.06M	1.18B	1.19B
Cash Flow
Free Cash Flow	133.89M	120.64M	155.34M	109.24M	83.18M	220.43M
Operating Cash Flow	141.60M	125.21M	157.16M	110.74M	84.79M	227.64M
Investing Cash Flow	-656.26M	-317.25M	-284.46M	-1.26B	621.24M	641.10M
Financing Cash Flow	147.30M	117.21M	645.19M	207.69M	-636.10M	109.30M

Berkshire Hills Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.35
• 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 BHLB, the sentiment is Positive. The current price of 26.35 is above the 20-day moving average (MA) of 25.83, above the 50-day MA of 25.66, and below the 200-day MA of 26.44, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 63.74 is Neutral, neither overbought nor oversold. The STOCH value of 54.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHLB.

Berkshire Hills Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCRH	78 Outperform	$1.33B	11.81	11.36%	0.31%	-0.76%	-1.60%
BHLB	78 Outperform	$1.21B	10.32	10.13%	2.73%	15.55%	401.99%
BLX	76 Outperform	$1.64B	7.84	16.45%	5.36%	3.46%	12.88%
LOB	73 Outperform	$1.77B	31.63	5.54%	0.31%	10.13%	-50.08%
DCOM	73 Outperform	$1.36B	36.71	3.24%	3.26%	-3.08%	-45.24%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
BY	66 Neutral	$1.34B	10.91	10.69%	1.35%	2.23%	-1.13%

Berkshire Hills Corporate Events

Berkshire Hills: Beacon Financial and Brookline Bancorp Merge

On September 1, 2025, Beacon Financial Corporation completed a merger of equals with Brookline Bancorp, resulting in the formation of a $24 billion regional banking franchise known as Beacon Bank & Trust. The merger, which included changes such as a new ticker symbol ‘BBT’ on the NYSE and an expanded board of directors, aims to enhance financial performance and client services. The integration process will continue into 2026, with clients benefiting from fee-free ATM withdrawals and a seamless banking experience across the merged entities.

Berkshire Hills and Brookline Bancorp Merger Approved

On August 25, 2025, Berkshire Hills Bancorp and Brookline Bancorp announced they have received all necessary regulatory approvals to proceed with their merger of equals, forming Beacon Financial Corporation. The merger, expected to close on September 1, 2025, will create a $24 billion regional banking franchise with over 145 branches in the Northeast. This merger aims to enhance operational strength and efficiency, benefiting clients, employees, and stockholders, with full integration into the Beacon Bank brand anticipated by early 2026.

Berkshire Hills and Brookline Announce Merger Formation

On August 6, 2025, Berkshire Hills Bancorp and Brookline Bancorp announced their merger, forming Beacon Financial Corporation, which will be listed on the NYSE under the ticker ‘BBT’. The merger, expected to close in Q3 2025, aims to create a strong financial institution with a broad footprint and a commitment to stakeholders, with the combined bank operating under the Beacon Bank brand.

Berkshire Hills Announces Quarterly Cash Dividend

On August 1, 2025, Berkshire Hills Bancorp, Inc. announced a quarterly cash dividend of $0.18 per common share, payable to shareholders on August 21, 2025. This decision reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment positively.

Berkshire Hills Reports Strong Q2 2025 Financial Results

Berkshire Hills Bancorp, Inc. reported strong financial results for the second quarter of 2025, with a 36% year-over-year increase in operating earnings driven by revenue growth and reduced expenses. The company saw improvements in net interest margin and efficiency ratio, alongside growth in loans and deposits. The announcement highlighted Berkshire’s ongoing transformation program, recognition from TIME and Newsweek, and an upcoming merger with Brookline Bancorp, which is expected to enhance its market presence.