A Business at a Glance
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Eastern Bankshares, Inc.
EBC
$4.7B
Mkt Cap
$22.92
+1.33%
Eastern Bankshares, Inc. (EBC) has a current P/E ratio of 53.3, compared to its historical median P/E of 20.4. The stock is currently considered Expensive based on its historical valuation range.
Eastern Bankshares, Inc. (EBC) has a 5-year average return on invested capital (ROIC) of 5.1%. This is below average and may indicate limited pricing power.
Eastern Bankshares, Inc. (EBC) has a market capitalization of $4.7B. It is classified as a mid-cap stock.
Yes, Eastern Bankshares, Inc. (EBC) pays a dividend with a trailing twelve-month yield of 2.25%. The company also returns capital through share buybacks, with a buyback yield of 2.27%.
Based on historical P/E analysis, Eastern Bankshares, Inc. (EBC) appears expensive. The current P/E of 53.3 is 162% above its historical median of 20.4. The estimated fair value CAGR (P/E method) is 28.1%.
Eastern Bankshares, Inc. (EBC) operates in the Savings Institution, Federally Chartered industry, within the Financials sector.
ITEM 1. BUSINESS General Corporate Overview Eastern Bankshares, Inc., a Massachusetts corporation, which we sometimes refer to as the “Company,” is a bank holding company headquartered in Boston, Massachusetts that was incorporated under Massachusetts law in 2020. We are the sole shareholder of Eastern Bank, which we sometimes refer to as the “Bank,” a Massachusetts-chartered bank founded in 1818. Through the Bank, we provide a variety of banking and trust and investment services. As of December 31, 2025, we had total consolidated assets of $30.6 billion, total gross loans of $23.6 billion, total deposits of $25.5 billion and total shareholders’ equity of $4.3 billion. We are subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks, the Federal Deposit Insurance Corporation (“FDIC”), the Federal Reserve Board, the Consumer Financial Protection Bureau and the New Hampshire Banking Department.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.1B | 1.1B | 1.1B | 559M | 682M | 533M |
| Net Income | 88M | 88M | 120M | 232M | 200M | 155M |
| EPS | $0.43 | $0.43 | $0.66 | $1.43 | $1.21 | $0.90 |
| Free Cash Flow | 413M | 413M | 270M | 254M | 221M | 169M |
| ROIC | 1.9% | 2.2% | 3.6% | 8.5% | 6.8% | 4.5% |
| Gross Margin | 66.1% | 66.1% | 62.2% | 55.9% | 91.9% | 97.6% |
| Debt/Equity | 0.05 | 6.05 | 6.08 | 6.10 | 8.16 | 5.90 |
| Dividends/Share | $0.52 | $0.51 | $0.45 | $0.41 | $0.40 | $0.30 |
| Operating Income | 23M | 23M | 28M | 16M | 238M | 176M |
| Operating Margin | 2.2% | 2.2% | 2.6% | 2.9% | 34.9% | 33.0% |
| ROE | 2.0% | 2.2% | 3.6% | 8.5% | 6.8% | 4.5% |
| Shares Outstanding | 205M | 205M | 181M | 162M | 165M | 172M |
| Metric | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 596M | 627M | 592M | 533M | 682M | 559M | 1.1B | 1.1B | 1.1B |
| Gross Margin | 0.0% | 93.6% | 91.4% | 97.6% | 91.9% | 55.9% | 62.2% | 66.1% | 66.1% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 239M | 252M | 262M | 228M | 233M | 253M | 288M | 336M | 336M |
| EBIT | 158M | 175M | 36M | 176M | 238M | 16M | 28M | 23M | 23M |
| Op. Margin | 26.5% | 27.8% | 6.1% | 33.0% | 34.9% | 2.9% | 2.6% | 2.2% | 2.2% |
| Net Income | 123M | 135M | 23M | 155M | 200M | 232M | 120M | 88M | 88M |
| Net Margin | 20.6% | 21.5% | 3.8% | 29.0% | 29.3% | 41.6% | 11.2% | 8.3% | 8.3% |
| Non-Recurring | -145K | -271K | -73K | -4.7M | 1.4M | 0 | 400K | 0 | 0 |
| Returns on Capital | |||||||||
| ROIC | 8.9% | 8.9% | 0.9% | 4.5% | 6.8% | 8.5% | 3.6% | 2.2% | 1.9% |
| ROE | 8.9% | 8.9% | 0.9% | 4.5% | 6.8% | 8.5% | 3.6% | 2.2% | 2.0% |
| ROA | 1.1% | 1.2% | 0.2% | 0.8% | 0.9% | 1.1% | 0.5% | 0.3% | 0.3% |
| Cash Flow | |||||||||
| Op. Cash Flow | 205M | 196M | 70M | 174M | 230M | 262M | 284M | 432M | 432M |
| Free Cash Flow | 196M | 189M | 65M | 169M | 221M | 254M | 270M | 413M | 413M |
| Owner Earnings | 185M | 177M | 54M | 163M | 207M | 233M | 238M | 369M | 369M |
| CapEx | 9.0M | 7.2M | 5.1M | 5.7M | 8.6M | 8.1M | 14M | 19M | 19M |
| Maint. CapEx | 20M | 19M | 16M | 12M | 12M | 12M | 27M | 47M | 47M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 20M | 19M | 16M | 12M | 12M | 12M | 27M | 47M | 47M |
| CapEx/OCF | N/A | N/A | 7.4% | 3.3% | 3.8% | 3.1% | 4.8% | 4.5% | 4.5% |
| Capital Allocation | |||||||||
| Dividends Paid | 0 | 0 | 0 | 52M | 66M | 67M | 83M | 106M | 106M |
| Dividend Yield | N/A | N/A | N/A | 1.7% | 2.2% | 3.3% | 3.2% | 3.1% | 2.2% |
| Share Buybacks | 0 | 0 | 0 | 23M | 202M | 0 | 28M | 107M | 107M |
| Buyback Yield | 0.0% | N/A | N/A | 0.7% | 7.9% | N/A | 0.9% | 2.8% | 2.3% |
| Stock-Based Comp | 0 | 0 | 0 | 0 | 11M | 16M | 19M | 17M | 17M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||
| Net Debt | N/A | N/A | N/A | -2.3B | 571M | -1.3B | -1.9B | -102M | -102M |
| Cash & Equiv. | 260M | 363M | 2.1B | 1.2B | 170M | 693M | 1.0B | 317M | 317M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 215M |
| Debt/Equity | 6.94 | 6.27 | 3.66 | 5.90 | 8.16 | 6.10 | 6.08 | 6.05 | 0.05 |
| Interest Coverage | 0.0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.1 |
| Equity | 1.4B | 1.6B | 3.4B | 3.4B | 2.5B | 3.0B | 3.6B | 4.3B | 4.3B |
| Total Assets | 11.4B | 11.6B | 16.0B | 23.5B | 22.6B | 21.1B | 25.6B | 30.6B | 30.6B |
| Total Liabilities | 9.9B | 10.0B | 12.5B | 20.1B | 20.2B | 18.2B | 21.9B | 26.2B | 26.2B |
| Intangibles | N/A | 8.7M | 7.1M | 18M | 10M | 8.6M | 135M | 184M | 184M |
| Retained Earnings | N/A | 1.6B | 1.7B | 1.8B | 1.9B | 2.0B | 2.1B | 2.1B | 2.1B |
| Working Capital | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||
| EPS | 0.00 | 0.00 | 0.13 | 0.90 | 1.21 | 1.43 | 0.66 | 0.43 | 0.43 |
| Owner EPS | N/A | N/A | 0.31 | 0.95 | 1.26 | 1.44 | 1.31 | 1.80 | 1.80 |
| Book Value | N/A | N/A | 19.60 | 19.82 | 14.97 | 18.32 | 19.94 | 21.16 | 21.16 |
| Cash Flow/Share | N/A | N/A | 0.40 | 1.02 | 1.39 | 1.61 | 1.57 | 2.11 | 0.66 |
| Dividends/Share | N/A | N/A | 0.00 | 0.30 | 0.40 | 0.41 | 0.45 | 0.51 | 0.52 |
| Shares Out. | N/A | N/A | 174.9M | 171.8M | 165.1M | 162.4M | 181.2M | 205.2M | 205.2M |
| Valuation | |||||||||
| P/E Ratio | N/A | N/A | 112.2 | 20.4 | 12.8 | 9.6 | 25.3 | 43.8 | 53.3 |
| P/FCF | N/A | N/A | 39.4 | 18.7 | 11.5 | 8.8 | 11.2 | 9.3 | 11.4 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | 313.2 | N/A | 199.7 |
| Price/Book | N/A | N/A | 0.7 | 0.9 | 1.0 | 0.7 | 0.8 | 0.9 | 1.1 |
| Price/Sales | N/A | N/A | 3.7 | 4.8 | 4.6 | 6.4 | 3.6 | 4.7 | 4.4 |
| FCF Yield | N/A | N/A | 2.5% | 5.4% | 8.7% | 11.4% | 8.9% | 10.7% | 8.8% |
| Market Cap | 0 | N/A | 2.6B | 3.2B | 2.6B | 2.2B | 3.0B | 3.9B | 4.7B |
| Avg. Price | 0.00 | N/A | 12.39 | 17.35 | 18.01 | 12.33 | 14.38 | 16.53 | 22.92 |
| Year-End Price | 0.00 | N/A | 14.59 | 18.34 | 15.48 | 13.72 | 16.73 | 18.82 | 22.92 |
Eastern Bankshares, Inc. passes 6 of 9 quality checks, suggesting mixed fundamentals.
Eastern Bankshares, Inc. trades at 53.3x trailing earnings, compared to its 15-year median P/E of 20.4x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 13.0x vs a median of 11.4x. The company's 5-year average ROIC is 5.1% with a gross margin of 74.8%. Total shareholder yield (dividends + buybacks) is 4.5%. At current prices, the estimated annualized return to fair value is +21.7%.
Eastern Bankshares, Inc. (EBC) reported annual revenue of $1.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
Eastern Bankshares, Inc. (EBC) has a net profit margin of 8.3%. This is a modest margin.
Eastern Bankshares, Inc. (EBC) generated $413 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Eastern Bankshares, Inc. (EBC) has a debt-to-equity ratio of 6.05. This indicates higher leverage, which may increase financial risk.
Eastern Bankshares, Inc. (EBC) reported earnings per share (EPS) of $0.43 in its most recent fiscal year.
Eastern Bankshares, Inc. (EBC) has a return on equity (ROE) of 2.2%. This indicates moderate shareholder returns.
Eastern Bankshares, Inc. (EBC) has a 5-year average gross margin of 74.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 8 years of financial data for Eastern Bankshares, Inc. (EBC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Eastern Bankshares, Inc. (EBC) has a book value per share of $21.16, based on its most recent annual SEC filing.