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Butterfield Rewards Shareholders, Unveils Share-Buyback Plan
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Bank of N.T. Butterfield & Son Limited (NTB - Free Report) continues to reward its shareholders through dividend hikes or additional share repurchases. The company recently announced its latest share-buyback plan with authorization to repurchase 3.5 million shares through Feb 28, 2021.
Notably, the new plan will come into effect once Butterfield completes the previous authorization of 2.5 million ordinary shares, announced last December. The existing plan has around 225,000 shares remaining.
Butterfield has also been paying quarterly dividends, along with regular hikes. Since 2016, the company has raised its dividend four times. The dividend was last hiked in February 2019 by 15.8% to 44 cents per share.
With strong liquidity and balance-sheet position, we believe Butterfield will keep rewarding its shareholders in the upcoming period as well. So, keeping this in mind, is the company worth considering? Let’s dig deeper into its financials and fundamental strengths.
Revenue Growth: Organic growth is a key driver for Butterfield, with its sales witnessing a compound annual growth rate of 10.5% over the four-year period (2015-2018). The company’s projected sales growth (F1/F0) of 4.67% (against nil industry average) indicates continued improvement in revenues.
Earnings Strength: Butterfield’s long-term (three-five years) estimated EPS growth rate of 6% promises rewards for investors, over the long run. Also, the company recorded average positive earnings surprise of 2.82% over the trailing four quarters.
Superior Return on Equity: Butterfield has a return on equity of 22.09% compared with the industry average of 11.4%. This indicates that the company is efficient in utilizing shareholder funds.
Strong Leverage: Butterfield’s debt/equity ratio is valued at 0.15 compared with the industry average of 0.80, indicating a relatively lower debt burden. It highlights the company’s financial stability.
Butterfield’s shares have depreciated around 2.5% on the NYSE, in the past six months, compared with the industry’s decline of 1.9%. Despite a dismal price performance, the stock looks overvalued, with respect to its price-to-earnings (P/E) and price-to-book (P/B) ratios. It has a P/E (F1) ratio of nearly 10.34 compared with the industry’s average of 9.99. Furthermore, the company’s P/B ratio of 1.96 comes in above the industry average of 0.91. The stock currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
KB Financial Group Inc (KB - Free Report) has been witnessing upward estimate revisions for the past 60 days, with the company’s shares appreciating nearly 1.3% on the NYSE, in six months’ time. It sports a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lloyds Banking Group PLC (LYG - Free Report) has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has jumped around 4.8%, over the last six months. The stock carries a Zacks Rank of 2 (Buy), currently.
Barclays PLC (BCS - Free Report) has been witnessing upward estimate revisions for the past 60 days. In addition, the company’s shares have gained 12.1%, over the last six months. At present, it carries a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Butterfield Rewards Shareholders, Unveils Share-Buyback Plan
Bank of N.T. Butterfield & Son Limited (NTB - Free Report) continues to reward its shareholders through dividend hikes or additional share repurchases. The company recently announced its latest share-buyback plan with authorization to repurchase 3.5 million shares through Feb 28, 2021.
Notably, the new plan will come into effect once Butterfield completes the previous authorization of 2.5 million ordinary shares, announced last December. The existing plan has around 225,000 shares remaining.
Butterfield has also been paying quarterly dividends, along with regular hikes. Since 2016, the company has raised its dividend four times. The dividend was last hiked in February 2019 by 15.8% to 44 cents per share.
With strong liquidity and balance-sheet position, we believe Butterfield will keep rewarding its shareholders in the upcoming period as well. So, keeping this in mind, is the company worth considering? Let’s dig deeper into its financials and fundamental strengths.
Revenue Growth: Organic growth is a key driver for Butterfield, with its sales witnessing a compound annual growth rate of 10.5% over the four-year period (2015-2018). The company’s projected sales growth (F1/F0) of 4.67% (against nil industry average) indicates continued improvement in revenues.
Earnings Strength: Butterfield’s long-term (three-five years) estimated EPS growth rate of 6% promises rewards for investors, over the long run. Also, the company recorded average positive earnings surprise of 2.82% over the trailing four quarters.
Superior Return on Equity: Butterfield has a return on equity of 22.09% compared with the industry average of 11.4%. This indicates that the company is efficient in utilizing shareholder funds.
Strong Leverage: Butterfield’s debt/equity ratio is valued at 0.15 compared with the industry average of 0.80, indicating a relatively lower debt burden. It highlights the company’s financial stability.
Butterfield’s shares have depreciated around 2.5% on the NYSE, in the past six months, compared with the industry’s decline of 1.9%. Despite a dismal price performance, the stock looks overvalued, with respect to its price-to-earnings (P/E) and price-to-book (P/B) ratios. It has a P/E (F1) ratio of nearly 10.34 compared with the industry’s average of 9.99. Furthermore, the company’s P/B ratio of 1.96 comes in above the industry average of 0.91. The stock currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
KB Financial Group Inc (KB - Free Report) has been witnessing upward estimate revisions for the past 60 days, with the company’s shares appreciating nearly 1.3% on the NYSE, in six months’ time. It sports a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lloyds Banking Group PLC (LYG - Free Report) has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has jumped around 4.8%, over the last six months. The stock carries a Zacks Rank of 2 (Buy), currently.
Barclays PLC (BCS - Free Report) has been witnessing upward estimate revisions for the past 60 days. In addition, the company’s shares have gained 12.1%, over the last six months. At present, it carries a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>