BayCom (BCML) Margins Hold Steady As Premium P/E Tests Bullish Narratives
BayCom (BCML) has wrapped up FY 2025 with fourth quarter total revenue of US$25.6 million and basic EPS of US$0.63, while trailing twelve month revenue came in at US$96.5 million with EPS of US$2.18. The company has seen revenue move from US$96.3 million and EPS of US$2.10 on a trailing basis at FY 2024 to the latest trailing totals of US$96.5 million and EPS of US$2.18. This sets the backdrop for investors to weigh consistent profitability against how margins might evolve from here.
See our full analysis for BayCom.With the headline numbers on the table, the next step is to see how these results line up with the widely held stories about BayCom’s growth, quality and risks, and where the fresh data pushes back on those narratives.
Curious how numbers become stories that shape markets? Explore Community Narratives
Loan Book Nears US$2.0b With Steady Credit Metrics
- Total loans were US$2,041.7 million in Q3 FY 2025 compared with US$1,952.7 million in Q4 FY 2024, while non performing loans sat between US$9.5 million and US$16.4 million over the last six quarters.
- What stands out for the general market view is that this growth in the loan book comes alongside non performing loans that move within a fairly tight US$9.5 million to US$16.4 million range, which
- aligns with the idea of BayCom as a relationship focused regional bank that leans on commercial and multifamily real estate, commercial and industrial and SBA lending rather than high volatility niches
- yet still leaves investors watching how those commercial real estate and small business exposures behave when credit quality is such a key focus for the sector.
Margins Hold Up As Costs Stay In The Low 60s%
- For the last year, net profit margin is 24.8% versus 24.5% a year earlier, while quarterly cost to income ratios sit between 62.1% and 65.7% and quarterly net interest margins range from 3.68% to 3.83%.
- Supporters of a more bullish angle on BayCom can point to these margins as a sign of solid core banking economics, yet the figures also invite questions, because
- earnings have compounded at 7.4% per year over five years, but the most recent one year earnings growth cited is only 1.3%, so profit growth has not kept pace with the long term trend
- revenue forecasts of 6% a year and earnings forecasts of 12.76% a year are below the US market forecasts that were provided, which may limit how much weight investors put on current margin levels alone.
DCF Discount Versus Higher 13.2x P/E
- The shares trade at US$29.18, which is about 25.7% below the stated DCF fair value of US$39.25, while the P/E of 13.2x sits above both peers at 9.7x and the US Banks industry average of 12.1x.
- Critics highlight that a richer P/E can be hard to justify when recent earnings growth is modest, yet the numbers present a mixed picture, because
- the trailing twelve month net income is US$23.9 million on revenue of about US$96.5 million, which lines up with that 24.8% net margin and helps explain why a premium P/E might appear
- at the same time, the stock price being below the DCF fair value and the five year earnings growth rate of 7.4% per year give investors a set of figures that both support and challenge a cautious stance around valuation.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on BayCom's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
See What Else Is Out There
BayCom’s modest recent earnings growth versus its longer term trend and a premium 13.2x P/E relative to peers suggest rewards that may not fully match the price.
If that trade off makes you cautious, shift your focus to these 866 undervalued stocks based on cash flows today to zero in on companies where valuations and growth expectations look more tightly aligned.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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