NasdaqGS:FULT

Stock Analysis Report

Executive Summary

Fulton Financial Corporation operates as a multi-bank financial holding company that provides banking and financial services to businesses and consumers.

Rewards

Trading at 17.4% below its fair value

Earnings have grown 9.7% per year over the past 5 years

Pays a high and reliable dividend of 3.25%

Risk Analysis

Earnings are forecast to decline by an average of -4.5% per year for the next 3 years

Significant insider selling over the past 3 months



Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Fulton Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FULT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

FULT

-0.2%

US Banks

0.6%

US Market


1 Year Return

6.0%

FULT

15.3%

US Banks

24.6%

US Market

Return vs Industry: FULT underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: FULT underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

FULTIndustryMarket
7 Day-0.1%-0.2%0.6%
30 Day-2.6%-2.6%3.0%
90 Day2.7%5.6%10.6%
1 Year9.7%6.0%18.6%15.3%27.3%24.6%
3 Year1.2%-7.6%29.3%20.1%50.5%40.8%
5 Year79.8%54.9%89.1%67.9%78.9%59.1%

Price Volatility Vs. Market

How volatile is Fulton Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fulton Financial undervalued compared to its fair value and its price relative to the market?

17.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FULT ($17.23) is trading below our estimate of fair value ($20.85)

Significantly Below Fair Value: FULT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FULT is good value based on its PE Ratio (12.3x) compared to the Banks industry average (12.8x).

PE vs Market: FULT is good value based on its PE Ratio (12.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FULT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FULT is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Fulton Financial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FULT's earnings are forecast to decline over the next 3 years (-4.5% per year).

Earnings vs Market: FULT's earnings are forecast to decline over the next 3 years (-4.5% per year).

High Growth Earnings: FULT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FULT's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: FULT's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FULT's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

  • Explore growth companies in the Banks industry.

Past Performance

How has Fulton Financial performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FULT has high quality earnings.

Growing Profit Margin: FULT's current net profit margins (28.1%) are higher than last year (23.8%).


Past Earnings Growth Analysis

Earnings Trend: FULT's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: FULT's earnings growth over the past year (28.4%) exceeds its 5-year average (8.6% per year).

Earnings vs Industry: FULT earnings growth over the past year (11.6%) underperformed the Banks industry 25.9%.


Return on Equity

High ROE: FULT's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fulton Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FULT has a low level of unsold assets or inventory.

Debt Coverage by Assets: FULT's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: FULT's level of assets compared to its equity is low.

Allowance for Bad Loans: FULT has a sufficient allowance for bad loans.

Low Risk Liabilities: FULT's liabilities are made up of primarily low risk sources of funding.

Loan Level: FULT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FULT's loans are broadly funded by customer deposits.

Level of Bad Loans: FULT has an appropriate level of bad loans (0.81%)


Next Steps

Dividend

What is Fulton Financial's current dividend yield, its reliability and sustainability?

3.25%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: FULT's dividend (3.25%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: FULT's dividend (3.25%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: FULT's dividends per share have been stable in the past 10 years.

Growing Dividend: FULT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), FULT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FULT's dividends in 3 years are forecast to be well covered by earnings (42.7% payout ratio).


Next Steps

Management

What is the CEO of Fulton Financial's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Phil Wenger (61yo)

7yrs

Tenure

US$2,836,960

Compensation

Mr. E. Philip Wenger, also known as Phil, has been the Chairman and Chief Executive Officer of Fulton Financial Corporation since January 1, 2013. Mr. Wenger was the President at Fulton Financial Corporati ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD2.84M) is below average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: FULT's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

58yo

Average Age

Experienced Board: FULT's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: FULT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$105,54017 Dec 19
Daniel Stolzer
EntityIndividual
Role
Chief Legal Officer
Senior EVP
Shares6,000
Max PriceUS$17.59
BuyUS$101,64319 Nov 19
David Campbell
EntityIndividual
Shares5,900
Max PriceUS$17.23
SellUS$50,73021 May 19
Michael DePorter
EntityIndividual
Role
Chief Accounting Officer
Executive VP
Shares3,000
Max PriceUS$16.91
SellUS$87,72210 May 19
David Campbell
EntityIndividual
Shares5,160.12
Max PriceUS$17.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Phil Wenger (61yo)

    Chairman & CEO

    • Tenure: 7yrs
    • Compensation: US$2.84m
  • Mark McCollom (55yo)

    Senior EVP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$1.04m
  • Michael DePorter

    Executive VP

    • Tenure: 6.7yrs
  • Daniel Stolzer (62yo)

    Senior EVP

    • Tenure: 2yrs
  • Angela Snyder (54yo)

    Senior Executive VP and Head of Consumer & Community Banking

    • Tenure: 2yrs
    • Compensation: US$816.36k
  • Curt Myers (50yo)

    President

    • Tenure: 0.7yrs
    • Compensation: US$1.27m
  • Meg Mueller (54yo)

    Senior EVP & Head of Commercial Banking

    • Tenure: 7yrs
    • Compensation: US$785.02k
  • Angela Sargent (51yo)

    Senior EVP & Chief Information Officer

    • Tenure: 18yrs
  • Jason Weber

    Senior VP & Director of Corporate Development

    • Laura Wakeley

      Senior Vice President of Corporate Communications


      Board Members

      • Ron Spair (63yo)

        Independent Director

        • Tenure: 4.3yrs
        • Compensation: US$128.52k
      • John Scaldara (55yo)

        Chairman & CEO of the Columbia Bank

        • Patrick Freer (69yo)

          Independent Director

          • Tenure: 23.8yrs
          • Compensation: US$103.02k
        • Scott Snyder (54yo)

          Independent Director

          • Tenure: 3.5yrs
          • Compensation: US$103.02k
        • Rob Moxley (58yo)

          Independent Lead Director

          • Tenure: 1.6yrs
          • Compensation: US$149.02k
        • Phil Wenger (61yo)

          Chairman & CEO

          • Tenure: 7yrs
          • Compensation: US$2.84m
        • Warner Knobe

          Chair of The Bank

          • Lisa Crutchfield (55yo)

            Independent Director

            • Tenure: 5.6yrs
            • Compensation: US$119.52k
          • Ernie Waters (69yo)

            Independent Director

            • Tenure: 7.1yrs
            • Compensation: US$140.52k
          • Curt Myers (50yo)

            President

            • Tenure: 0.7yrs
            • Compensation: US$1.27m

          Company Information

          Fulton Financial Corporation's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Fulton Financial Corporation
          • Ticker: FULT
          • Exchange: NasdaqGS
          • Founded: 1882
          • Industry: Regional Banks
          • Sector: Banks
          • Market Cap: US$2.828b
          • Shares outstanding: 164.12m
          • Website: https://www.fult.com

          Number of Employees


          Location

          • Fulton Financial Corporation
          • One Penn Square
          • PO Box 4887
          • Lancaster
          • Pennsylvania
          • 17604
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          FULTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1984
          FU5DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1984

          Biography

          Fulton Financial Corporation operates as a multi-bank financial holding company that provides banking and financial services to businesses and consumers. It accepts various checking accounts and savings deposit products, certificates of deposit, and individual retirement accounts. The company also offers consumer loans, including home equity loans and lines of credit, automobile loans, automobile and equipment leases, personal lines of credit, and checking account overdraft protection; construction and jumbo residential mortgage loans; and commercial lending products comprising commercial, financial, agricultural, and real estate loans. In addition, it provides equipment leasing, letters of credit, cash management services, and traditional deposit products; and investment management, trust, brokerage, insurance, and investment advisory services. Further, the company owns investment securities and other investments, as well as trust preferred securities; and sells various life insurance products. It provides its products and services through branch banking, as well as through a network of automated teller machines, telephone banking, mobile banking, and online banking. As of December 31, 2018, the company operated 234 branches in Pennsylvania, Maryland, Delaware, New Jersey, and Virginia. Fulton Financial Corporation was founded in 1882 and is headquartered in Lancaster, Pennsylvania. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/22 23:39
          End of Day Share Price2020/01/22 00:00
          Earnings2019/12/31
          Annual Earnings2019/12/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.