Dime Community Bancshares, Inc. /NY/ (NASDAQ: DCOM)

Sector: Financial Services Industry: Banks - Regional CIK: 0000846617
Market Cap 1.41 Bn
P/B 0.97
P/E 27.65
P/S 4.15
ROIC (Qtr) 2.81
Div Yield % 4.11
Rev 1y % (Qtr) 34.71
Total Debt (Qtr) 828.60 Mn
Debt/Equity (Qtr) 0.57

About

Dime Community Bancshares, Inc., often referred to as Dime Community Bank, is a bank holding company that operates primarily in the financial services industry. The company's main business activities encompass a broad spectrum of services, including commercial and consumer banking, real estate loans, mortgage loans, and investment securities. Dime Community Bank's operations span across various regions, with its primary market area being Greater Long Island, which includes the counties of Kings, Queens, Nassau, Suffolk, and Manhattan. The company...

Read more

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 14.38B provides 17.35x coverage of total debt 828.60M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 228.96M exceeds capital expenditure of 637000 by 359.43x, indicating strong organic growth funding capability.
  • Operating cash flow of 229.59M provides strong 30.83x coverage of stock compensation 7.45M, indicating sustainable incentive practices.
  • Operating cash flow of 229.59M provides strong 6.42x coverage of operating expenses 35.77M, showing operational efficiency.
  • Retained earnings of 835.08M provide strong 5.25x coverage of intangibles 158.97M, indicating quality earnings retention.

Bear case

  • Operating cash flow of 229.59M provides thin coverage of dividend payments of (41.71M) with a -5.50 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 228.96M represents just -12050.26x of debt issuance (19000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 835.08M provide limited buffer against comprehensive income items of (33.60M), which is -24.86x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 212.43M, indicating potential underinvestment in innovation relative to administrative overhead.
  • R&D spending of 0 represents just 0x of capital expenditure 637000, indicating potential underinvestment in innovation relative to physical assets.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.07 0.14
EV to Cash from Ops. EV/CFO 4.73 7.21
EV to Debt EV to Debt 1.31 5.20
EV to EBIT EV/EBIT 11.81 14.98
EV to EBITDA EV/EBITDA 11.17 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 4.74 8.87
EV to Market Cap EV to Market Cap 0.77 1.04
EV to Revenue EV/Rev 3.19 -3.76
Price to Book Value [P/B] P/B 0.97 1.17
Price to Earnings [P/E] P/E 27.65 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.04 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 90.90 35.28
Dividend per Basic Share Div per Share (Qtr) 1.00 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 19.17 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -106.00 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 173.94 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11.23 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2.61 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.11 61.46
EBT Growth (1y) % EBT 1y % (Qtr) -2.11 61.37
EPS Growth (1y) % EPS 1y % (Qtr) -26.67 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 1,281.34 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.54 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.19 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.57 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 28.40 147.97
EBIT Margin % EBIT Margin % (Qtr) 26.98 155.41
EBT Margin % EBT Margin % (Qtr) 26.98 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 15.00 115.63