MeritValue

Eastern Bankshares, Inc.

EBCdata completeness 75%8 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'

The thesis, from the filings

Eastern Bankshares, Inc. earns about 13% on invested capital, but has diluted owners by 19% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $7.84 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$69.4M1$77.3M2$76.9M3$112.6M3$134.1M3
Net income$154.7M4$199.8M5$232.2M6$119.6M6$88.2M6
Operating cash flow$174.5M7$229.9M8$261.7M9$283.8M9$432.4M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$1.23B10$169.5M11$693.1M11$1.01B11$316.9M11
Diluted shares172.3M165.6M162.4M182.2M204.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$212.42
your share of equity
Profit it earned you last year
$4.32
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $212.42 of net worth that earned you $4.32 last year.

iii. Is this a good business?
Moat signal · return on invested capital
13% avg · 5y
FY21 7%FY22 9%FY23 4%FY24 22%FY25 20%

It earned an average 13% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+19% shares · 5y

Share count is up 19% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$7.84
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$154.7M
  • growthAssumed0.0%
Graham Number
$14.34
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-24-006922 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-25-008583 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-26-013126 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001628280-24-006922 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-25-008583 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-26-013126 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001628280-24-006922 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001628280-25-008583 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001628280-26-013126 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001628280-25-008583 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  11. 10-K · period ending 2022-12-31 · accession 0001628280-26-013126 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)