Northeast Community Bancorp (NECB) AI Stock Analysis

• Market Cap: $300.99M
• Dividend Yield: 4.96%
• Average Volume (3M): 42.99K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.89
• Revenue Growth: 4.02%
• EPS Growth: -0.62%
• Country: US
• Employees: 136
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.82
• Shares Outstanding: 14,025,800
• 10 Day Avg. Volume: 26,815
• 30 Day Avg. Volume: 42,987
• PEG Ratio: 0.87
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 6.67
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 2.74
• Enterprise Value/Gross Profit: 4.32
• Enterprise Value/Ebitda: 6.89
• 1Y Price Target: $25.00
• Price Target Upside: 18.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $24.50 ▲(15.68% Upside)

Northeast Community Bancorp's strong valuation, with a low P/E ratio and high dividend yield, is a significant positive factor. Financial performance shows operational efficiency but is offset by declining profitability and revenue challenges. Technical indicators suggest a neutral to slightly bearish trend, which tempers the overall score.

Positive Factors

Operational Efficiency

Strong operational efficiency with high EBIT and EBITDA margins indicates effective cost management, which supports long-term sustainability despite current profitability challenges.

Cash Generation

Positive free cash flow growth reflects improved cash generation capabilities, which enhances financial flexibility and supports future investment and expansion opportunities.

Shareholder Value

The special cash dividend demonstrates a strategic focus on rewarding investors, which can strengthen shareholder confidence and support the company's market position over time.

Negative Factors

Declining Profitability

The decline in net profit margin indicates reduced profitability, which could impact long-term financial health and limit reinvestment capabilities if not addressed.

Revenue Generation Challenges

Negative revenue growth suggests challenges in expanding market reach and product adoption, which could hinder future profitability and competitive positioning.

Profitability Decline

The decline in return on equity reflects reduced profitability, which may affect investor confidence and the company's ability to generate returns on investments over the long term.

Northeast Community Bancorp Business Overview & Revenue Model

Company Description

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers investment advisory and financial planning services; and life insurance products and fixed-rate annuities. It operates seven full-service branches in New York and three full-service branches in Massachusetts; and loan production offices in White Plains and New City, New York, as well as Danvers, Massachusetts. The company was founded in 1934 and is based in White Plains, New York.

How the Company Makes Money

NECB generates revenue primarily through interest income from loans and mortgages, which form a significant portion of its earnings. The bank offers a range of loan products, including commercial real estate loans, residential mortgages, and consumer loans, allowing it to earn interest over time. Additionally, NECB earns non-interest income through service fees on deposit accounts, transaction fees, and wealth management services. The bank may also engage in partnerships with local businesses and community organizations to expand its customer base and enhance its lending portfolio, driving further revenue growth.

Northeast Community Bancorp Financial Statement Overview

Summary

Northeast Community Bancorp demonstrates strong financial health with consistent growth in revenue and profit margins, supported by a stable balance sheet with low leverage. While cash flow generation is robust, attention to cash flow variability is advisable. Overall, the company is well-positioned in its industry with effective operational and financial management.

Income Statement

Northeast Community Bancorp exhibits strong profitability with a consistent upward trajectory in revenue and net income over the years. The TTM (Trailing-Twelve-Months) Gross Profit Margin is healthy, and the Net Profit Margin is robust, reflecting efficient cost management. The revenue growth rate shows a positive trend, indicating stable operational performance.

Balance Sheet

The balance sheet is solid with a low Debt-to-Equity Ratio, indicating low leverage and financial stability. The Return on Equity is strong, showcasing effective utilization of equity. The Equity Ratio is commendable, reflecting a well-capitalized structure, although there is room for improvement in asset utilization.

Cash Flow

Cash flow analysis reveals positive free cash flows and a strong Operating Cash Flow to Net Income Ratio, which suggests good cash generation from operations. However, the Free Cash Flow Growth Rate has shown fluctuation, partly due to capital expenditures and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	159.23M	159.84M	133.70M	73.59M	50.75M	51.55M
Gross Profit	100.99M	101.88M	97.44M	65.46M	42.04M	40.76M
EBITDA	63.32M	66.96M	65.96M	35.67M	16.69M	16.68M
Net Income	22.90M	47.07M	46.28M	24.84M	11.90M	12.33M
Balance Sheet
Total Assets	1.97B	2.01B	1.76B	1.43B	1.23B	968.22M
Cash, Cash Equivalents and Short-Term Investments	20.39M	78.36M	68.67M	95.41M	152.37M	69.29M
Total Debt	140.13M	4.72M	69.20M	23.90M	31.10M	31.57M
Total Liabilities	1.64B	1.69B	1.48B	1.16B	973.69M	814.40M
Stockholders Equity	336.68M	318.34M	279.32M	262.06M	251.38M	153.82M
Cash Flow
Free Cash Flow	49.77M	48.17M	42.21M	24.23M	15.11M	14.40M
Operating Cash Flow	51.22M	48.69M	42.84M	27.54M	21.56M	15.66M
Investing Cash Flow	-98.32M	-233.99M	-357.84M	-256.59M	-178.86M	-72.12M
Financing Cash Flow	-7.41M	194.89M	288.37M	172.09M	240.38M	-2.03M

Northeast Community Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NECB, the sentiment is Negative. The current price of 21.18 is below the 20-day moving average (MA) of 21.90, below the 50-day MA of 22.03, and below the 200-day MA of 23.07, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 15.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NECB.

Northeast Community Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIVB	81 Outperform	$406.73M	8.33	10.02%	3.22%	6.20%	18.80%
CZNC	79 Outperform	$313.71M	11.42	9.73%	5.59%	8.59%	14.56%
NECB	74 Outperform	$300.99M	6.40	14.25%	4.96%	4.02%	-0.62%
FMAO	74 Outperform	$363.69M	12.41	8.64%	3.40%	8.62%	37.01%
PBFS	73 Outperform	$338.19M	15.98	6.98%	―	31.28%	23.21%
FSBW	72 Outperform	$320.79M	10.04	11.31%	3.21%	5.10%	-7.22%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%

Northeast Community Bancorp Corporate Events

Northeast Community Bancorp Declares Special Cash Dividend

On August 21, 2025, NorthEast Community Bancorp announced a special cash dividend of $0.20 per share, to be paid on October 6, 2025, to shareholders on record as of September 8, 2025. This move is part of the company’s ongoing commitment to enhancing shareholder value, reflecting its strategic focus on rewarding investors and strengthening its market position.