Blue Foundry (BLFY) AI Stock Analysis

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Blue Foundry

(NASDAQ:BLFY)

Rating:51Neutral

Price Target:―

Blue Foundry's overall stock score reflects significant financial performance challenges, with consistent losses and poor cash flow generation weighing heavily on the score. Despite some positive aspects from the earnings call, such as loan growth and strong liquidity, these were offset by a net loss and increased expenses. Technical analysis suggests weak long-term momentum, and valuation is unattractive due to a negative P/E ratio and no dividend yield. While there are areas of potential improvement, substantial strategic changes are necessary for a more positive outlook.

Blue Foundry (BLFY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$213.95M

Dividend YieldN/A

Average Volume (3M)60.27K

Price to Earnings (P/E)―

Beta (1Y)0.73

Revenue Growth7.45%

EPS Growth-41.97%

CountryUS

Employees184

SectorFinancial

Sector Strength81

IndustryBanks - Regional

Share Statistics

EPS (TTM)-0.13

Shares Outstanding21,720,825

10 Day Avg. Volume68,001

30 Day Avg. Volume60,269

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.10

Price to Sales (P/S)0.00

P/FCF Ratio44.49

Enterprise Value/Market Cap0.93

Enterprise Value/Revenue0.73

Enterprise Value/Gross Profit3.20

Enterprise Value/Ebitda-13.45

Forecast

1Y Price Target

$9.75

Price Target Upside4.61% Upside

Rating ConsensusHold

Number of Analyst Covering1

Blue Foundry Business Overview & Revenue Model

Company DescriptionBlue Foundry Bancorp operates as a bank holding company for Blue Foundry Bank, a savings bank that offers various banking products and services for individuals and businesses. The company offers deposits; and loans, such as one-to-four family residential property, home equity, commercial real estate, multi-family, construction, commercial and industrial, and other consumer loans, as well as home equity lines of credit. As of December 31, 2021, it operated 17 full-service branch offices located in northern New Jersey. The company was formerly known as Boiling Springs Bancorp and changed its name to Blue Foundry Bancorp in July 2019. Blue Foundry Bancorp was founded in 1939 and is based in Rutherford, New Jersey.

How the Company Makes MoneyBlue Foundry Bank generates revenue primarily through interest income from its lending activities, which include personal, commercial, and mortgage loans. The bank also earns money from fees associated with its banking services, such as account maintenance fees, transaction fees, and fees for additional services like wire transfers or overdraft protection. Additionally, the bank may earn interest income from investments in securities. Partnerships with technology providers enhance their digital banking capabilities, potentially attracting more customers and increasing fee-based revenue.

Blue Foundry Financial Statement Overview

Summary

Blue Foundry is facing significant financial challenges with declining revenues, consistent losses, and poor cash flow generation. The balance sheet is moderately leveraged, but negative profitability metrics and cash flow issues highlight the need for strategic improvements. The banking industry context suggests high competition and potential regulatory pressures, adding to the company's challenges.

Income Statement

Neutral

Blue Foundry has experienced declining revenue over the years, with a negative trend in EBIT and net income margins. The gross profit margin remains at 100% due to the nature of the business, but the company is struggling with profitability as evidenced by negative EBIT and net profit margins. The revenue growth rate is negative, indicating a shrinking top line. The declining financial performance and consistent losses suggest financial distress.

Balance Sheet

Neutral

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage levels. However, the return on equity is negative due to consistent net losses. The equity ratio is relatively stable, highlighting a reasonable proportion of equity financing. While the company maintains a significant level of cash and short-term investments, the decreasing stockholders' equity and increasing total debt are concerns.

Cash Flow

Negative

Cash flow analysis reveals challenges in generating positive free cash flow, with a negative free cash flow growth rate. The operating cash flow to net income ratio is not applicable due to negative figures, reflecting poor cash generation ability. The free cash flow to net income ratio cannot be assessed, indicating financial strain and inefficiencies in cash conversion.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
39.34M	43.72M	54.51M	45.41M	28.89M
	Gross Profit
39.34M	44.16M	54.51M	45.41M	28.89M
	EBIT
-6.46M	-2.12M	10.64M	-26.72M	-39.37M
	EBITDA
0.00	0.00	5.40M	-24.38M	-37.45M
	Net Income Common Stockholders
-11.91M	-7.40M	2.40M	-36.34M	-31.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.50M	46.02M	355.43M	518.34M	561.03M
	Total Assets
2.06B	2.04B	2.04B	1.91B	1.94B
	Total Debt
364.67M	424.28M	337.82M	212.20M	354.94M
	Net Debt
322.17M	378.25M	296.64M	18.75M	38.49M
	Total Liabilities
1.73B	1.69B	1.65B	212.20M	354.94M
	Stockholders Equity
332.20M	355.64M	393.72M	429.47M	205.60M
Cash Flow		Free Cash Flow
4.92M	-17.69M	-2.58M	-26.04M	-8.55M
	Operating Cash Flow
5.06M	-12.12M	2.78M	-14.14M	-1.25M
	Investing Cash Flow
-30.01M	10.30M	-306.24M	-105.33M	101.39M
	Financing Cash Flow
21.42M	6.66M	151.19M	-3.52M	92.27M

Blue Foundry Technical Analysis

Technical Analysis Sentiment

Negative

Last Price9.32

Price Trends

50DMA

9.36

Negative

100DMA

9.50

Negative

200DMA

9.98

Negative

Market Momentum

MACD

0.12

Positive

RSI

39.88

Neutral

STOCH

9.45

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLFY, the sentiment is Negative. The current price of 9.32 is below the 20-day moving average (MA) of 9.79, below the 50-day MA of 9.36, and below the 200-day MA of 9.98, indicating a bearish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 39.88 is Neutral, neither overbought nor oversold. The STOCH value of 9.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLFY.

Blue Foundry Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWBK	71 Outperform	$216.32M	11.35	6.62%	2.44%	4.86%	800.59%
OPOF	69 Neutral	$201.14M	20.10	8.85%	1.39%	4.92%	55.04%
BPRN	69 Neutral	$222.01M	19.52	4.43%	3.75%	10.64%	-56.22%
VABK	64 Neutral	$200.96M	11.30	11.15%	3.52%	2.26%	3.83%
Sector *	64 Neutral	$12.66B	9.79	7.67%	17015.07%	12.23%	-6.06%
PVBC	54 Neutral	$200.29M	42.70	1.93%	―	-4.32%	-68.19%
BLFY	51 Neutral	$213.95M	―	-3.48%	―	7.45%	-41.97%

* Financial Sector Average

Performance Comparison

BLFY

Blue Foundry

9.32

0.04

0.43%

HWBK

Hawthorn Bancshares

30.21

12.00

65.90%

OPOF

Old Point Financial

39.40

24.81

170.05%

PVBC

Provident Bancorp

11.02

1.69

18.11%

BPRN

Bank of Princeton

30.50

1.21

4.13%

VABK

Virginia National Bankshares

36.60

7.77

26.95%

Blue Foundry Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: -1.79%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture. While there were notable achievements in loan growth, deposit growth, net interest margin expansion, and share repurchases, the quarter was also marked by a net loss and increased non-interest expenses. Liquidity remains strong, but there is a slight rise in non-performing assets.

Q1-2025 Updates

Positive Updates

Loan and Deposit Growth

Achieved 3% loan growth and $44 million in deposit growth during the quarter. The yield on the loan portfolio improved by 15 basis points, and the cost of deposits decreased by 14 basis points.

Net Interest Margin Expansion

Net interest margin expanded by 27 basis points, contributing to an improvement in net interest income by $1.3 million or 13.4%.

Tangible Book Value Per Share Increase

Tangible book value per share increased to $14.81, up $0.07 from the prior quarter.

Strong Liquidity Position

Liquidity remains robust with $413 million in untapped borrowing capacity and an additional $208 million in liquidity from unencumbered available-for-sale securities and unrestricted cash.

Share Repurchases

Repurchased 464,000 shares at a weighted average price of $9.52, enhancing shareholder value.

Negative Updates

Net Loss for the Quarter

Reported a net loss of $2.7 million, or $0.13 per diluted share, primarily due to increased non-interest expense and provision build related to loan growth.

Increase in Non-Interest Expense

Non-interest expense increased by $748,000 driven by higher compensation and benefits, including merit-based salary adjustments and reset of variable compensation accruals.

Slight Rise in Non-Performing Assets

Non-performing assets increased by $619,000, and the ratio of non-performing loans to total loans increased by 2 basis points to 35 basis points.

Company Guidance

During the Blue Foundry Bancorp's First Quarter 2025 Earnings Call, the company outlined several key metrics reflecting its strategic focus and financial performance. The bank achieved a 3% loan growth, enhancing the yield on its loan portfolio by 15 basis points, while deposit growth reached $44 million, with a 14 basis point reduction in deposit costs. These efforts contributed to a 27 basis point expansion in net interest margin. Despite a net loss of $2.7 million, or $0.13 per share, tangible book value per share increased to $14.81, aided by share repurchases. Loan production during the quarter totaled $90 million, with a weighted average yield of 7.1%, including $33 million in commercial real estate loans and $35 million in credit-enhanced consumer loans. The bank's liquidity remains strong, with $413 million in untapped borrowing capacity, and both the bank and holding company are well-capitalized with a tangible equity to tangible common assets ratio of 15.6%. The guidance also highlighted a 3.2% increase in deposits, and the bank's strategy to maintain robust asset quality and diversify its portfolio for sustainable earnings growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.