Eastern Bankshares (EBC) AI Stock Analysis

• Market Cap: $3.84B
• Dividend Yield: 2.73%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.96
• Revenue Growth: 4.80%
• EPS Growth: -111.49%
• Country: US
• Employees: 1,998
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 211,477,510
• 10 Day Avg. Volume: 2,400,118
• 30 Day Avg. Volume: 1,662,020
• PEG Ratio: -0.49
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 11.56
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 3.15
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 119.07
• 1Y Price Target: $19.63
• Price Target Upside: 8.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: $18.50 ▲(1.87% Upside)

Eastern Bankshares' overall score reflects a mixed financial performance with profitability challenges, offset by strong technical indicators and positive earnings call outcomes. The strategic merger and shareholder confidence add potential for future growth, but current valuation concerns and overbought technical signals suggest caution.

Eastern Bankshares Business Overview & Revenue Model

Company Description

Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers. It operates in two segments, Banking Business and Insurance Agency Business. The company provides interest-bearing and non interest-bearing checking deposits, money market deposits, savings deposits, and time certificates of deposits, as well as debit and credit cards. It also offers commercial and industrial loans, commercial real estate and construction loans, small business loans, residential real estate loans, home equity, and lines of credit, as well as other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans. In addition, the company provides cash reserves, cash management, merchant, escrow express, government banking, international banking, interest on lawyers trust accounts, retirement planning, and business telephone banking services, as well as products and services for not-for-profit and healthcare. Further, it offers trust and investment products and services; community development and asset-based lending services; financial planning, portfolio management, wealth management, private banking, and fiduciary products; online, mobile, and telephone banking services; and automated lock box collection and account reconciliation services, as well as various insurance products. As of December 31, 2021, the company operated 105 branch offices in eastern Massachusetts and southern New Hampshire; and 23 non-branch offices in eastern Massachusetts, one office in New Hampshire, and one office in Rhode Island. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Eastern Bankshares generates revenue primarily through interest income and non-interest income. Interest income is derived from loans extended to consumers and businesses, such as mortgages, personal loans, and commercial loans. The bank also earns interest on securities and other investments. Non-interest income includes fees from various financial services, such as deposit account maintenance fees, transaction fees, and advisory services in wealth management. Additionally, the bank earns revenue through insurance premium income and investment management fees. Strategic partnerships and acquisitions further enhance its market presence and contribute to its financial performance by expanding its service offerings and customer base.

Eastern Bankshares Financial Statement Overview

Summary

Eastern Bankshares presents a mixed financial picture. Revenue growth is evident, but profitability challenges persist with a negative net profit margin. The balance sheet is stable with low leverage, though ROE is negative. Cash flow shows positive growth, but cash conversion efficiency needs improvement.

Income Statement

Eastern Bankshares shows mixed performance in its income statement. The TTM data indicates a negative net profit margin of -6.56%, reflecting recent profitability challenges. Despite a 10.19% revenue growth rate, EBIT and EBITDA margins are weak, with EBIT margin at -1.55% and EBITDA margin at 2.64%. Historical data shows fluctuating profitability, with a strong net profit margin of 41.56% in 2023 but a decline in 2025. The company needs to address its operational inefficiencies to improve profitability.

Balance Sheet

The balance sheet of Eastern Bankshares is relatively stable. The debt-to-equity ratio is low at 0.013, indicating conservative leverage. However, the return on equity (ROE) is negative in the TTM period at -1.73%, suggesting inefficiencies in generating returns for shareholders. The equity ratio is strong, reflecting a solid capital structure. Overall, the balance sheet is robust, but improving ROE is crucial for enhancing shareholder value.

Cash Flow

Cash flow analysis reveals a positive trend with a 24.17% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is low at 1.74%, indicating potential issues in converting income into cash. The free cash flow to net income ratio is strong at 96.33%, suggesting efficient cash generation relative to net income. While cash flow growth is promising, the company should focus on improving cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	958.34M	1.07B	558.71M	681.93M	523.48M	582.52M
Gross Profit	548.97M	664.13M	292.60M	626.88M	527.84M	531.64M
EBITDA	25.34M	194.14M	-102.36M	261.65M	198.88M	63.81M
Net Income	-62.88M	119.56M	232.18M	199.76M	154.66M	22.74M
Balance Sheet
Total Assets	25.46B	25.56B	21.13B	22.65B	23.51B	15.96B
Cash, Cash Equivalents and Short-Term Investments	580.55M	5.03B	5.10B	6.86B	9.74B	5.24B
Total Debt	26.80M	45.31M	39.72M	726.40M	34.28M	28.05M
Total Liabilities	21.77B	21.95B	18.16B	20.18B	20.11B	12.54B
Stockholders Equity	3.68B	3.61B	2.97B	2.47B	3.41B	3.43B
Cash Flow
Free Cash Flow	354.79M	270.30M	253.55M	221.31M	168.76M	64.71M
Operating Cash Flow	368.31M	283.84M	261.69M	229.94M	174.49M	69.85M
Investing Cash Flow	590.21M	1.06B	2.40B	-1.08B	-1.99B	-2.39B
Financing Cash Flow	-1.15B	-1.03B	-2.14B	-215.57M	988.98M	4.01B

Eastern Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.16
• 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 EBC, the sentiment is Positive. The current price of 18.16 is above the 20-day moving average (MA) of 17.61, above the 50-day MA of 16.53, and above the 200-day MA of 16.15, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 67.14 is Neutral, neither overbought nor oversold. The STOCH value of 83.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBC.

Eastern Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBP	81 Outperform	$3.58B	11.89	17.90%	3.13%	3.10%	3.14%
INDB	79 Outperform	$3.54B	16.03	6.13%	3.30%	3.67%	-10.83%
RNST	76 Outperform	$3.55B	14.76	4.23%	2.35%	21.87%	-3.27%
FULT	71 Outperform	$3.44B	11.07	9.73%	3.76%	17.61%	1.89%
BMA	63 Neutral	$3.12B	7.28	8.04%	2.49%	-57.78%	-67.92%
EBC	60 Neutral	$3.84B	24.06	-1.89%	2.73%	4.80%	-111.49%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Eastern Bankshares Corporate Events

Eastern Bankshares Holds Annual Shareholder Meeting

On May 19, 2025, Eastern Bankshares, Inc. held its annual shareholder meeting, where three key proposals were addressed. Shareholders elected five directors for a term ending in 2027, approved executive compensation, and ratified Ernst & Young LLP as the independent auditor for the 2025 fiscal year, indicating continued confidence in the company’s leadership and financial oversight.

Eastern Bankshares Merger with HarborOne Approved

On August 20, 2025, HarborOne Bancorp, Inc. shareholders approved a merger with Eastern Bankshares, Inc., which will result in HarborOne merging into Eastern, with Eastern as the surviving entity. This merger is expected to close in the fourth quarter of 2025, and it includes a subsequent merger of HarborOne Bank into Eastern Bank. The merger aims to benefit customers and employees, with the conversion of HarborOne’s information systems to Eastern’s scheduled for February 2026. Shareholders of HarborOne will have the option to receive Eastern common stock, cash, or a combination of both, subject to proration. Eastern anticipates all regulatory approvals will be obtained by October 31, 2025, allowing the merger to become effective on November 1, 2025.

Eastern Bankshares Reports Strong Q2 2025 Results

Eastern Bankshares, Inc. reported strong financial results for the second quarter of 2025, with a net income of $100.2 million and an operating net income of $81.7 million. The company saw significant loan growth driven by higher commercial and industrial activity and maintained stable deposit costs. The announcement also highlighted the approval of a regular quarterly cash dividend and ongoing integration planning with HarborOne, emphasizing the company’s strategic focus on profitable growth and long-term value creation.