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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 49.6GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
6.2%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.38%
Trailing Yield
$3.38
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
56%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Dime Community Bancshares, Inc. /NY/ (DCOM) receives a "Hold" rating with a composite score of 49.3/100, ranked #391 out of 4446 stocks. Key factor scores: Quality 50/100, Value 72/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
Dime Community Bancshares, Inc. /NY/ (DCOM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Dime Community Bancshares, Inc. /NY/ Do?
Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that provides various commercial banking and financial services. It accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. The company also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; secured and unsecured commercial and consumer loans; home equity loans; and construction and land loans. In addition, it invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, the company offers certificate of deposit account registry services and insured cash sweep programs; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services. As of December 31, 2021, it operated 60 branch locations throughout Long Island and the New York City boroughs of Brooklyn, Queens, Manhattan, and the Bronx. Dime Community Bancshares, Inc. was founded in 1910 and is headquartered in Hauppauge, New York. Dime Community Bancshares, Inc. /NY/ (DCOM) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Kevin M. O'Connor and employs approximately 820 people, headquartered in HAUPPAUGE, New York. With a market capitalization of $1.5B, DCOM is one of the notable companies in the Financials sector.
Dime Community Bancshares, Inc. /NY/ (DCOM) Stock Rating — Hold (April 2026)
As of April 2026, Dime Community Bancshares, Inc. /NY/ receives a Hold rating with a composite score of 49.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.DCOM ranks #391 out of 4,446 stocks in our coverage universe. Within the Financials sector, Dime Community Bancshares, Inc. /NY/ ranks #133 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
DCOM Stock Price and 52-Week Range
Dime Community Bancshares, Inc. /NY/ (DCOM) currently trades at $36.09. The stock lost $0.36 (1.0%) in the most recent trading session. The 52-week high for DCOM is $36.86, which means the stock is currently trading -2.1% from its annual peak. The 52-week low is $23.25, putting the stock 55.2% above its annual trough. Recent trading volume was 147K shares, suggesting relatively thin trading activity.
Is DCOM Overvalued or Undervalued? — Valuation Analysis
Dime Community Bancshares, Inc. /NY/ (DCOM) carries a value factor score of 72/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 16.68x, compared to the Financials sector average of 14.88x — a premium of 12%. The price-to-book ratio stands at 1.04x, versus the sector average of 1.22x. The price-to-sales ratio is 81.93x, compared to 0.90x for the average Financials stock. On an enterprise value basis, DCOM trades at 12.08x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, Dime Community Bancshares, Inc. /NY/ appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Dime Community Bancshares, Inc. /NY/ Profitability — ROE, Margins, and Quality Score
Dime Community Bancshares, Inc. /NY/ (DCOM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 6.2%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.6% versus the sector average of 1.2%.
On a margin basis, Dime Community Bancshares, Inc. /NY/ reports gross margins of 0.0%. The operating margin is 670.1% (sector: 21.8%). Net profit margin stands at 486.4%, versus 17.7% for the average Financials stock. Revenue growth is running at 31.1% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
DCOM Debt, Balance Sheet, and Financial Health
Dime Community Bancshares, Inc. /NY/ has a debt-to-equity ratio of 940.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.11x, suggesting adequate working capital coverage. Total debt on the balance sheet is $780M. Cash and equivalents stand at $1.72B.
DCOM has a beta of 0.83, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Dime Community Bancshares, Inc. /NY/ is 77/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Dime Community Bancshares, Inc. /NY/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, Dime Community Bancshares, Inc. /NY/ reported revenue of $19M and earnings per share (EPS) of $2.36. Net income for the quarter was $92M. Gross margin was 0.0%. Operating income came in at $127M.
In FY 2025, Dime Community Bancshares, Inc. /NY/ reported revenue of $20M and earnings per share (EPS) of $2.36. Net income for the quarter was $111M. Revenue grew 19.0% year-over-year compared to FY 2024. Operating income came in at $157M.
In Q3 2025, Dime Community Bancshares, Inc. /NY/ reported revenue of $5M and earnings per share (EPS) of $0.59. Net income for the quarter was $28M. Revenue grew 22.1% year-over-year compared to Q3 2024. Operating income came in at $40M.
In Q2 2025, Dime Community Bancshares, Inc. /NY/ reported revenue of $5M and earnings per share (EPS) of $0.64. Net income for the quarter was $30M. Revenue grew 16.9% year-over-year compared to Q2 2024. Operating income came in at $40M.
Over the past 8 quarters, Dime Community Bancshares, Inc. /NY/ has demonstrated a growth trajectory, with revenue expanding from $4M to $19M. Investors analyzing DCOM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
DCOM Dividend Yield and Income Analysis
Dime Community Bancshares, Inc. /NY/ (DCOM) currently pays a dividend yield of 3.4%. At this yield, a $10,000 investment in DCOM stock would generate approximately $$338.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning DCOM offers above-average income for its sector. With a net margin of 486.4%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
DCOM Momentum and Technical Analysis Profile
Dime Community Bancshares, Inc. /NY/ (DCOM) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 2/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
DCOM vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing DCOM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full DCOM vs S&P 500 (SPY) comparison to assess how Dime Community Bancshares, Inc. /NY/ stacks up against the broader market across all factor dimensions.
DCOM Next Earnings Date
No upcoming earnings date has been announced for Dime Community Bancshares, Inc. /NY/ (DCOM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy DCOM? — Investment Thesis Summary
Dime Community Bancshares, Inc. /NY/ presents a balanced picture with arguments on both sides. The value score of 72/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 77/100) reduces downside risk.
In summary, Dime Community Bancshares, Inc. /NY/ (DCOM) earns a Hold rating with a composite score of 49.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on DCOM stock.
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Institutional Research Dossier
Dime Community Bancshares, Inc. /NY/ (DCOM) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Dime Community Bancshares (DCOM). While the company exhibits attractive valuation metrics and strong profitability relative to the sector, these strengths are offset by concerns regarding its capital allocation strategy, as evidenced by a low Investment score in our quant model, and the inherent risks associated with regional banking, particularly concerning interest rate sensitivity and credit quality. The bank's high operating and net margins, while impressive, warrant further scrutiny to ensure sustainability, and its relatively small market capitalization exposes it to volatility and potential liquidity constraints.
DCOM's strategic focus on commercial real estate lending in the competitive New York metropolitan area presents both opportunities and challenges. While the bank has demonstrated an ability to generate substantial profits, its future performance hinges on its ability to effectively manage credit risk, navigate the evolving regulatory landscape, and maintain its competitive position against larger, better-capitalized institutions. The Hold rating reflects a balanced view of DCOM's potential upside and downside risks, suggesting that investors should await further evidence of consistent performance and prudent capital management before considering a more aggressive investment stance.
Business Strategy & Overview
Dime Community Bancshares operates as a traditional community bank, primarily serving the New York City metropolitan area and Long Island. Its core business revolves around attracting deposits from local businesses, consumers, and municipalities, and deploying these funds into various loan products. The bank's loan portfolio is heavily weighted towards commercial real estate, multi-family mortgages, and residential mortgages, reflecting the dynamics of its operating region. This concentration in real estate lending exposes DCOM to the cyclicality of the real estate market and the potential for increased credit risk during economic downturns.
The company generates revenue primarily through net interest income, which is the difference between the interest earned on loans and investments and the interest paid on deposits. DCOM also derives income from fees associated with its various banking services, such as merchant credit card processing, cash management, and online banking. The bank's strategy involves maintaining a strong local presence through its branch network and leveraging technology to enhance customer service and operational efficiency. DCOM competes with a diverse range of financial institutions, including large national banks, regional banks, and credit unions, all vying for market share in the highly competitive New York metropolitan area.
DCOM's strategic positioning centers on providing personalized service and local expertise to its customers, differentiating itself from larger, more impersonal institutions. The bank emphasizes building long-term relationships with its clients and tailoring its products and services to meet their specific needs. This approach is particularly important in the commercial real estate market, where borrowers often value the flexibility and responsiveness of a community bank. However, this strategy also requires DCOM to maintain a higher cost structure than some of its larger competitors, as it relies on a more extensive branch network and a larger staff relative to its asset size.
The bank's recent financial performance suggests a focus on improving profitability and efficiency. The significant increase in operating and net margins over the past few years indicates that DCOM has been successful in controlling expenses and generating higher returns on its assets. However, it is crucial to assess the sustainability of these margins, as they may be influenced by temporary factors such as lower interest rates or one-time gains. Furthermore, the bank's investment in technology and digital banking services is essential for maintaining its competitive edge and attracting younger, tech-savvy customers. The absence of a detailed product pipeline in the provided data suggests a need for greater transparency regarding the bank's future growth initiatives.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
31.1%
Sector: 9.4%
+232% VS SCTR
Economic Moat Analysis
Dime Community Bancshares' economic moat is likely Narrow. While the bank benefits from certain advantages inherent to community banking, such as established local relationships and customer loyalty, these are not substantial enough to create a wide and sustainable competitive advantage. The primary source of DCOM's moat stems from its established presence in the New York metropolitan area, a region with high barriers to entry due to regulatory hurdles, high real estate costs, and intense competition.
The bank's local relationships provide a degree of customer stickiness, as businesses and individuals often prefer to bank with institutions that understand their specific needs and the local market dynamics. This can translate into lower customer acquisition costs and higher customer retention rates. However, these advantages are not insurmountable, as larger banks with greater resources can invest in building their own local presence and offering competitive products and services.
Switching costs for banking customers are generally low, particularly with the increasing prevalence of online banking and mobile payment platforms. Customers can easily transfer funds and switch accounts with minimal disruption. Therefore, DCOM cannot rely solely on switching costs to retain its customer base. The bank must continuously provide superior service and competitive pricing to maintain its market share.
DCOM's intangible assets, such as its brand reputation and local market knowledge, contribute to its narrow moat. However, these assets are difficult to quantify and may not be as valuable as those of larger, more established banks with national brands. The bank's cost advantages are also limited, as it operates in a high-cost region and faces intense competition for deposits and loans. While DCOM may be able to achieve some economies of scale through its branch network and operational efficiencies, these are unlikely to be significant enough to create a substantial cost advantage over its competitors.
Efficient scale is not a significant factor in DCOM's business, as the banking industry is not characterized by natural monopolies or significant barriers to entry based on size alone. While larger banks may benefit from certain economies of scale, community banks can still thrive by focusing on niche markets and providing personalized service. Overall, DCOM's narrow moat provides some protection against competition, but it is not a guarantee of long-term success. The bank must continuously adapt to changing market conditions and invest in its competitive advantages to maintain its position in the industry.
Financial Health & Profitability
Dime Community Bancshares exhibits a mixed financial profile. The company's revenue growth of 31.1% significantly outpaces the sector average of 9.3%, indicating strong business momentum. However, the reported revenue figures of approximately $20 million annually seem unusually low for a bank with a $1.41 billion market capitalization, warranting further investigation into the underlying accounting practices and revenue recognition policies. The extremely high operating and net margins, at 670.1% and 486.4% respectively, are also outliers compared to the sector averages of 22.0% and 17.8%, suggesting potential one-time gains or accounting anomalies that may not be sustainable in the long term.
The company's profitability, as measured by ROE, is 6.2%, which is below the sector average of 8.5%. This indicates that DCOM is not generating as much profit from its equity as its peers. The balance sheet reveals a substantial amount of total cash at $1.72 billion and total debt at $780.46 million. The current ratio of 1.11 suggests adequate liquidity to meet short-term obligations. However, the debt-to-equity ratio of 940.00 is significantly higher than the sector average of 115.00, indicating a high degree of leverage. This high leverage could amplify both gains and losses, making the company more vulnerable to economic downturns and interest rate fluctuations.
Analyzing the quarterly financial history reveals a consistent pattern of high operating margins, but also highlights the relatively low revenue base. The net income figures have fluctuated significantly over the past few years, suggesting potential volatility in the company's earnings. The absence of free cash flow data makes it difficult to assess the company's ability to generate cash from its operations. The lack of gross margin data is also a limitation, as it prevents a detailed analysis of the company's cost structure.
Overall, DCOM's financial health presents a complex picture. While the company exhibits strong revenue growth and high operating margins, its high leverage and relatively low ROE raise concerns. The sustainability of the high margins and the company's ability to generate consistent free cash flow are key factors that investors should monitor closely. Further investigation into the company's accounting practices and revenue recognition policies is also warranted to ensure the accuracy and reliability of its financial statements.
Valuation Assessment
Dime Community Bancshares appears attractively valued based on several key metrics. The company's P/E ratio of 13.6x is lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 2.3x is significantly lower than the sector average of 3.5x, further indicating undervaluation. These metrics suggest that investors are not fully appreciating the company's earnings potential.
However, it is important to consider the context of these valuation metrics. The company's high operating and net margins, while impressive, may not be sustainable in the long term. If these margins revert to the sector average, the company's earnings could decline, making the current valuation less attractive. Furthermore, the company's high debt-to-equity ratio increases its financial risk, which could justify a lower valuation multiple.
The absence of free cash flow data makes it difficult to assess the company's intrinsic value using discounted cash flow analysis. However, the company's strong revenue growth and high operating margins suggest that it has the potential to generate significant free cash flow in the future. If the company can successfully manage its debt and maintain its profitability, its valuation could increase significantly.
Compared to its historical valuation, DCOM's current P/E ratio is within its historical range, but the EV/EBITDA ratio is lower than its historical average. This suggests that the stock is currently undervalued relative to its historical performance. However, it is important to consider the changes in the company's business and financial profile over time. The merger with Bridge Bancorp in 2020 significantly altered the company's size and scope, making historical comparisons less relevant.
Overall, DCOM's valuation appears attractive based on its P/E and EV/EBITDA ratios. However, investors should carefully consider the sustainability of the company's high margins and its high debt-to-equity ratio. Further investigation into the company's free cash flow generation and its long-term growth prospects is also warranted before making an investment decision.
Risk & Uncertainty
Dime Community Bancshares faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its concentration in commercial real estate lending, particularly in the New York metropolitan area. A downturn in the real estate market could lead to increased loan defaults and reduced profitability. The bank's reliance on commercial real estate also exposes it to regulatory scrutiny, as regulators are increasingly concerned about the risks associated with CRE lending.
Interest rate risk is another significant concern. As a traditional bank, DCOM's profitability is highly sensitive to changes in interest rates. A rapid increase in interest rates could reduce the bank's net interest margin and negatively impact its earnings. The bank's high debt-to-equity ratio amplifies this risk, as higher interest rates would increase its borrowing costs.
Competition is also a major risk. The New York metropolitan area is a highly competitive banking market, with numerous large national banks, regional banks, and credit unions vying for market share. DCOM faces intense competition for deposits and loans, which could put pressure on its margins and limit its growth potential. The bank's relatively small size compared to its competitors also makes it more vulnerable to competitive pressures.
Regulatory risk is another important consideration. The banking industry is heavily regulated, and changes in regulations could significantly impact DCOM's business. For example, increased capital requirements or stricter lending standards could reduce the bank's profitability and limit its ability to grow. The bank's compliance with anti-money laundering regulations and other regulatory requirements is also critical.
Finally, operational risk is a concern. DCOM relies on technology and systems to process transactions and manage its operations. A failure of these systems could disrupt its business and negatively impact its reputation. The bank's cybersecurity defenses are also critical, as a data breach could expose sensitive customer information and lead to financial losses.
Bulls Say / Bears Say
The Bull Case
BULL VIEWDime Community Bancshares is undervalued relative to its peers, offering investors an attractive entry point with significant upside potential as the market recognizes its true value.
BULL VIEWThe bank's strong revenue growth and high operating margins demonstrate its ability to generate substantial profits, making it a compelling investment opportunity in the financial sector.
BULL VIEWDCOM's focus on the New York metropolitan area provides a stable and growing market for its services, ensuring long-term growth and profitability.
The Bear Case
BEAR VIEWDime Community Bancshares' high debt-to-equity ratio and concentration in commercial real estate lending expose it to significant financial risks, making it a potentially unstable investment.
BEAR VIEWThe bank's unusually high operating and net margins are unsustainable and likely to revert to the sector average, leading to a decline in earnings and a lower valuation.
BEAR VIEWDCOM's small market capitalization and limited geographic diversification make it vulnerable to economic downturns and competitive pressures, limiting its long-term growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score DCOM and 4,400+ other equities.
Dime Community Bancshares, Inc. /NY/ exhibits a 2318% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.6%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
670.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
486.4%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+36%
Income Projection audit
A $10,000 investment would generate approximately $338 annually in dividends at the current trailing rate.
