Amalgamated Financial has been treading water for the past six months, recording a small loss of 1.4% while holding steady at $26.73. The stock also fell short of the S&P 500’s 24.7% gain during that period.
Is now the time to buy AMAL? Find out in our full research report, it’s free.
Why Are We Positive On Amalgamated Financial?
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
1. Net Interest Income Drives Additional Growth Opportunities
Net interest income commands greater market attention due to its reliability and consistency, whereas one-time fees are often seen as lower-quality revenue that lacks the same dependable characteristics.
Amalgamated Financial’s net interest income has grown at a 10% annualized rate over the last five years, a step above the broader banking industry and in line with its total revenue.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Amalgamated Financial’s EPS grew at an astounding 21.1% compounded annual growth rate over the last five years, higher than its 9.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Growing TBVPS Reflects Strong Asset Base
In the banking industry, tangible book value per share (TBVPS) provides the clearest picture of shareholder value, as it focuses on concrete assets while excluding intangible items that may not hold value during challenging times.
Amalgamated Financial’s TBVPS increased by 9.3% annually over the last five years, and growth has recently accelerated as TBVPS grew at an incredible 20.4% annual clip over the past two years (from $16.78 to $24.33 per share).
Final Judgment
These are just a few reasons Amalgamated Financial is a rock-solid business worth owning. With its shares lagging the market recently, the stock trades at 1× forward P/B (or $26.73 per share). Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
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