What a fantastic six months it’s been for Amalgamated Financial. Shares of the company have skyrocketed 42.4%, hitting $40.03. This run-up might have investors contemplating their next move.
Is now still a good time to buy AMAL? Or are investors being too optimistic? Find out in our full research report, it’s free.
Why Does AMAL Stock Spark Debate?
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Two Positive Attributes:
1. Increasing Net Interest Margin Juices Financials
The net interest margin (NIM) is a key profitability indicator that measures the difference between what a bank earns on its loans and what it pays on its deposits. This metric measures how efficiently one can generate income from its core lending activities.
Over the past two years, Amalgamated Financial’s net interest margin averaged 3.6%, climbing by 27 basis points (100 basis points = 1 percentage point) over that period.
This expansion was a tailwind for its net interest income, and while prevailing interest rates matter the most for industry net interest margins, banks that consistently increase this figure generally boast higher-earning loan books (all else equal such as the risk of those loans) or provide differentiated services that give them the ability to charge higher rates (pricing power).
2. Growing TBVPS Reflects Strong Asset Base
Tangible book value per share (TBVPS) serves as a key indicator of a bank’s financial strength, representing the hard assets available to shareholders after removing intangible assets that could evaporate during financial distress.
Amalgamated Financial’s TBVPS increased by 9.7% annually over the last five years, and growth has recently accelerated as TBVPS grew at an excellent 16.1% annual clip over the past two years (from $19.73 to $26.59 per share).
One Reason to be Careful:
Lackluster Revenue Growth
Long-term growth is the most important, but within financials, a stretched historical view may miss recent interest rate changes and market returns. Amalgamated Financial’s recent performance shows its demand has slowed as its annualized revenue growth of 8.6% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
Final Judgment
Amalgamated Financial’s positive characteristics outweigh the negatives, and after the recent rally, the stock trades at 1.4× forward P/B (or $40.03 per share). Is now a good time to buy despite the apparent froth? See for yourself in our full research report, it’s free.
Stocks We Like Even More Than Amalgamated Financial
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
