Berkshire Hills Profitability Analysis

BHLB Stock  USD 31.40  0.50  1.62%   
For Berkshire Hills profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Berkshire Hills to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Berkshire Hills Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Berkshire Hills's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Berkshire Hills Bancorp over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
The current year Price to Sales Ratio is expected to grow to 3.75. The current year Return on Sales is expected to grow to 0.33. Berkshire Hills Consolidated Income is projected to decrease significantly based on the last few years of reporting. The past year's Consolidated Income was at 106.8 Million. The current year Net Income is expected to grow to about 147.2 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (3.8 M).

Berkshire Hills Revenues

375.33 Million

Is Berkshire Hills' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Berkshire Hills. If investors know Berkshire will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Berkshire Hills listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.667
Market Capitalization
1.4 B
Quarterly Revenue Growth
0.128
Return On Assets
0.008
Return On Equity
0.0866
The market value of Berkshire Hills Bancorp is measured differently than its book value, which is the value of Berkshire that is recorded on the company's balance sheet. Investors also form their own opinion of Berkshire Hills' value that differs from its market value or its book value, called intrinsic value, which is Berkshire Hills' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Berkshire Hills' market value can be influenced by many factors that don't directly affect Berkshire Hills' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Berkshire Hills' value and its price as these two are different measures arrived at by different means. Investors typically determine Berkshire Hills value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Berkshire Hills' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Berkshire Hills Bancorp Total Debt vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Berkshire Hills's current stock value. Our valuation model uses many indicators to compare Berkshire Hills value to that of its competitors to determine the firm's financial worth.
Berkshire Hills Bancorp is rated third in gross profit category among related companies. It is rated fourth in total debt category among related companies making up about  0.31  of Total Debt per Gross Profit. The ratio of Gross Profit to Total Debt for Berkshire Hills Bancorp is roughly  3.21 . Berkshire Hills Gross Profit is projected to increase significantly based on the last few years of reporting. The past year's Gross Profit was at 499.58 Million. Comparative valuation analysis is a catch-all model that can be used if you cannot value Berkshire Hills by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Berkshire Hills' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Berkshire Hills' earnings, one of the primary drivers of an investment's value.

Berkshire Total Debt vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Berkshire Hills 
Gross Profit 
 = 
Revenue 
-  
Cost of Revenue 
402.53 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Berkshire Hills 
Total Debt 
 = 
Bonds 
+  
Notes 
125.51 M
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Berkshire Total Debt vs Competition

Berkshire Hills Bancorp is rated fourth in total debt category among related companies. Total debt of Financials industry is currently estimated at about 2.01 Billion. Berkshire Hills holds roughly 125.51 Million in total debt claiming about 6% of equities under Financials industry.
Total debt  Valuation  Revenue  Capitalization  Workforce

Berkshire Hills Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Berkshire Hills, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Berkshire Hills will eventually generate negative long term returns. The profitability progress is the general direction of Berkshire Hills' change in net profit over the period of time. It can combine multiple indicators of Berkshire Hills, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2023
Accumulated Other Comprehensive Income-3.7 M-3.8 M
Consolidated Income106.8 M115.2 M
Net Income136.5 M147.2 M
Net Income Common Stock106.8 M115.2 M
Net Loss Income from Discontinued Operations22.8 M24.6 M
Operating Income133.7 M144.2 M
Preferred Dividends Income Statement Impact359.9 K538.3 K
Income Tax Expense34.9 M37.7 M
Net Income Per Employee103.5 K111.6 K

Berkshire Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Berkshire Hills. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Berkshire Hills position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Berkshire Hills' important profitability drivers and their relationship over time.

Berkshire Hills Profitability Trends

Berkshire Hills profitability trend refers to the progression of profit or loss within a business. An upward trend means that Berkshire Hills' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Berkshire Hills' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Berkshire Hills Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Berkshire Hills different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Berkshire Hills in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Berkshire Hills' future profitability.

Use Berkshire Hills in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Berkshire Hills position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Berkshire Hills will appreciate offsetting losses from the drop in the long position's value.

Berkshire Hills Pair Trading

Berkshire Hills Bancorp Pair Trading Analysis

The ability to find closely correlated positions to Berkshire Hills could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Berkshire Hills when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Berkshire Hills - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Berkshire Hills Bancorp to buy it.
The correlation of Berkshire Hills is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Berkshire Hills moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Berkshire Hills Bancorp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Berkshire Hills can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Berkshire Hills position

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Top FinTech
Top FinTech Theme
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The Top FinTech theme has 75 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Top FinTech Theme or any other thematic opportunities.
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To fully project Berkshire Hills' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Berkshire Hills Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Berkshire Hills' income statement, its balance sheet, and the statement of cash flows.
Potential Berkshire Hills investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Berkshire Hills investors may work on each financial statement separately, they are all related. The changes in Berkshire Hills's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Berkshire Hills's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.