NB Bancorp, Inc. (NBBK) AI Stock Analysis

• Market Cap: $617.55M
• Dividend Yield: N/A
• Average Volume (3M): 270.35K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.07
• Revenue Growth: 28.78%
• EPS Growth: 208.59%
• Country: US
• Employees: 376
• Sector: General
• Sector Strength: N/A
• Industry: Banks - Regional
• EPS (TTM): 1.07
• Shares Outstanding: 41,842,640
• 10 Day Avg. Volume: 285,634
• 30 Day Avg. Volume: 270,351
• PEG Ratio: 0.07
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.51
• Price to Cash Flow (P/CF): 9.50
• P/FCF Ratio: 4.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.00
• Price Target Upside: 18.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

NB Bancorp's overall performance is mixed. Strong profitability and a solid balance sheet are offset by declining revenue and investment concerns. Technical indicators suggest cautious optimism, while the fair valuation supports the stock's stability. Recent corporate events are a double-edged sword, with strategic financial management moves balanced by promising leadership changes.

NB Bancorp, Inc. Business Overview & Revenue Model

Company Description

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.

How the Company Makes Money

NB Bancorp, Inc. generates revenue through a variety of channels inherent to the banking industry. The primary source of income is interest earned on loans provided to individuals and businesses, such as personal loans, mortgages, and commercial loans. Additionally, the company earns revenue from fees associated with banking services, including account maintenance fees, transaction fees, and overdraft charges. NB Bancorp also benefits from wealth management services, where it earns fees from managing client assets and providing financial advisory services. The company may also engage in investment activities, generating income from securities and other investment vehicles. Furthermore, strategic partnerships with financial institutions and fintech companies can enhance revenue through co-branded services and technology solutions.

NB Bancorp, Inc. Financial Statement Overview

Summary

NB Bancorp, Inc. exhibits strong profitability with improved net income and a solid balance sheet, marked by a favorable debt-to-equity ratio and growth in stockholders' equity. However, challenges are evident in declining revenue and significant investment outflows, which may affect future liquidity and returns.

Income Statement

NB Bancorp, Inc. exhibits significant fluctuations in revenue, with a concerning decline in total revenue in the latest period. Despite this, net income has improved, suggesting cost management or one-time gains. The gross profit and net profit margins have been negatively impacted by the revenue drop, indicating potential issues in core operations. EBIT and EBITDA margins are strong in the latest period, reflecting operational efficiency or one-time financial restructuring benefits.

Balance Sheet

NB Bancorp maintains a solid balance sheet with no debt, resulting in a favorable debt-to-equity ratio. The equity ratio is strong, indicating a stable financial position. There has been notable growth in stockholders' equity, suggesting robust asset management and retention of earnings, which is positive for long-term stability.

Cash Flow

The cash flow statement shows a stable operating cash flow, which is crucial for a banking institution. However, the significant negative investing cash flow suggests large investments or asset purchases, which may impact liquidity. Free cash flow remains positive, indicating sound cash management, although the growth rate has declined, highlighting potential concerns in investment returns or operational adjustments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
-1.87M	145.63M	113.17M	86.17M
	Gross Profit
-1.87M	145.63M	113.17M	86.17M
	EBIT
45.48M	11.84M	36.39M	27.63M
	EBITDA
0.00	0.00	38.86M	29.73M
	Net Income Common Stockholders
42.15M	9.82M	30.07M	21.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
439.37M	279.95M	376.55M	716.93M
	Total Assets
5.16B	4.53B	3.59B	2.92B
	Total Debt
120.83M	283.34M	293.08M	256.00K
	Net Debt
-90.33M	192.85M	162.01M	-456.93M
	Total Liabilities
4.39B	3.78B	293.08M	256.00K
	Stockholders Equity
765.17M	757.96M	344.06M	326.13M
Cash Flow		Free Cash Flow
43.19M	50.09M	31.22M	42.04M
	Operating Cash Flow
43.19M	52.96M	39.71M	43.84M
	Investing Cash Flow
-546.44M	-831.62M	-667.99M	-41.94M
	Financing Cash Flow
594.52M	894.71M	317.77M	242.43M

NB Bancorp, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBBK, the sentiment is Negative. The current price of 16 is below the 20-day moving average (MA) of 17.75, below the 50-day MA of 18.45, and below the 200-day MA of 18.35, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 37.89 is Neutral, neither overbought nor oversold. The STOCH value of 28.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NBBK.

NB Bancorp, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQBK	71 Outperform	$618.06M	8.83	11.98%	1.61%	49.89%	736.40%
HAFC	71 Outperform	$618.28M	9.98	8.60%	4.99%	8.33%	-21.76%
CAC	70 Neutral	$615.31M	10.06	10.33%	4.61%	14.18%	22.19%
IBCP	66 Neutral	$598.14M	9.01	15.55%	3.44%	10.58%	13.51%
GSBC	65 Neutral	$586.39M	9.62	10.55%	3.16%	8.68%	-6.27%
NBBK	64 Neutral	$617.55M	14.95	5.53%	―	28.78%	208.59%
Sector *	54 Neutral	$3.91B	-17.92	-14.99%	6.44%	25.52%	-80.16%

NB Bancorp, Inc. Corporate Events

NB Bancorp Freezes Director Retirement and Compensation Plans

On January 28, 2025, Needham Bank announced amendments to freeze benefits under its Director Retirement Plan and participation in its Nonqualified Deferred Compensation Plan for Officers. This decision indicates a strategic move to manage financial obligations, potentially impacting future retirement benefits and compensation structures for stakeholders.