NasdaqGS:PBCT

Stock Analysis Report

People's United Financial

Executive Summary

People's United Financial, Inc. operates as the bank holding company for People’s United Bank, National Association that provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers.


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PBCT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.2%

PBCT

16.8%

US Banks

12.5%

US Market


1 Year Return

-30.7%

PBCT

-26.9%

US Banks

-12.7%

US Market

Return vs Industry: PBCT underperformed the US Banks industry which returned -26.9% over the past year.

Return vs Market: PBCT underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

PBCTIndustryMarket
7 Day8.2%16.8%12.5%
30 Day-17.2%-24.7%-14.7%
90 Day-31.5%-38.6%-21.5%
1 Year-27.7%-30.7%-24.8%-26.9%-10.9%-12.7%
3 Year-27.6%-35.8%-16.9%-23.0%12.6%5.4%
5 Year-6.1%-23.5%12.0%-0.7%31.9%17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is People's United Financial undervalued compared to its fair value and its price relative to the market?

29.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PBCT ($11.58) is trading below our estimate of fair value ($16.31)

Significantly Below Fair Value: PBCT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PBCT is poor value based on its PE Ratio (9x) compared to the Banks industry average (8.8x).

PE vs Market: PBCT is good value based on its PE Ratio (9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: PBCT is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PBCT is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is People's United Financial forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBCT's forecast earnings growth (6.2% per year) is above the savings rate (1.7%).

Earnings vs Market: PBCT's earnings (6.2% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: PBCT's earnings are forecast to grow, but not significantly.

Revenue vs Market: PBCT's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PBCT's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PBCT's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has People's United Financial performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBCT has high quality earnings.

Growing Profit Margin: PBCT's current net profit margins (27.9%) are lower than last year (28.9%).


Past Earnings Growth Analysis

Earnings Trend: PBCT's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: PBCT's earnings growth over the past year (11.5%) is below its 5-year average (16.8% per year).

Earnings vs Industry: PBCT earnings growth over the past year (11.5%) exceeded the Banks industry 11%.


Return on Equity

High ROE: PBCT's Return on Equity (6.5%) is considered low.


Next Steps

Financial Health

How is People's United 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: PBCT has a low level of unsold assets or inventory.

Debt Coverage by Assets: PBCT's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: PBCT has an appropriate level of bad loans (0.51%)


Next Steps

Dividend

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

6.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PBCT's dividend (6.13%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: PBCT's dividend (6.13%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.1%), PBCT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PBCT's dividends in 3 years are forecast to be covered by earnings (56.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Jack Barnes (64yo)

9.92s

Tenure

US$5,700,285

Compensation

Mr. John P. Barnes, also known as Jack, serves as Chief Executive Officer and Director of People's United Bank, National Association (“Bank”) and serves as its Chairman of the Board since June 2018. He ser ...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD5.70M) is about average for companies of similar size in the US market ($USD7.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Barnes
Chairman of the Board & CEO9.92yrsUS$5.70m0.15% $7.3m
Jeffrey Tengel
President1.83yrsUS$1.67m0.038% $1.9m
R. Rosato
Senior EVP & CFO5.17yrsUS$1.58m0.026% $1.3m
Lee Powlus
Senior EVP & Chief Administrative Officer8.83yrsUS$1.71m0.031% $1.6m
Kirk Walters
Senior EVP of Corporate Development & Strategic Planning and Director9yrsUS$1.68m0.074% $3.7m
Jeffrey Hoyt
Senior VP & Chief Accounting Officerno dataUS$610.85k0.0059% $298.3k
Andrew Hersom
Senior Vice President6.17yrsno datano data
Michele Johnson
Compliance Officerno datano datano data
Kristy Berner
Executive VP1.33yrsno data0.0070% $352.1k
Cynthia Belak
First Vice President of Marketingno datano datano data

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: PBCT's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Barnes
Chairman of the Board & CEO9.92yrsUS$5.70m0.15% $7.3m
Kirk Walters
Senior EVP of Corporate Development & Strategic Planning and Director9yrsUS$1.68m0.074% $3.7m
John Dwight
Independent Director12.17yrsUS$175.06k0.047% $2.4m
Mark Richards
Independent Director12.17yrsUS$202.54k0.047% $2.3m
William Cruger
Independent Director5.5yrsUS$176.58k0.0081% $408.3k
Janet Hansen
Independent Director16yrsUS$188.08k0.034% $1.7m
George Carter
Lead Directorno dataUS$357.08k0.045% $2.3m
Collin Baron
Independent Director13.17yrsUS$164.08k0.057% $2.9m
John Byrnes
Chairman of People's United Insurance Agencyno datano datano data
Nancy McAllister
Independent Director6.5yrsUS$183.08k0.0089% $448.5k

10.6yrs

Average Tenure

71yo

Average Age

Experienced Board: PBCT's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.2%.


Top Shareholders

Company Information

People's United Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: People's United Financial, Inc.
  • Ticker: PBCT
  • Exchange: NasdaqGS
  • Founded: 1842
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$5.023b
  • Shares outstanding: 433.74m
  • Website: https://www.peoples.com

Number of Employees


Location

  • People's United Financial, Inc.
  • 850 Main Street
  • Bridgeport
  • Connecticut
  • 6604
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBCTNasdaqGS (Nasdaq Global Select)YesCommon Stock with Par Value 0.01USUSDJul 1988
PP21DB (Deutsche Boerse AG)YesCommon Stock with Par Value 0.01DEEURJul 1988
0KH6LSE (London Stock Exchange)YesCommon Stock with Par Value 0.01GBUSDJul 1988
PBCT.PNasdaqGS (Nasdaq Global Select)PERP PFD SER AUSUSDOct 2016
P1BC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

People's United Financial, Inc. operates as the bank holding company for People’s United Bank, National Association that provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers. The company operates in two segments, Commercial Banking and Retail Banking. The Commercial Banking segment offers commercial real estate lending, commercial and industrial lending, and commercial deposit gathering services. This segment also provides equipment financing; cash management, correspondent banking, and municipal banking services; and institutional trust, corporate trust, private banking, and commercial insurance services. The Retail Banking segment offers consumer lending, including residential mortgage and home equity lending; and consumer deposit gathering services. This segment also provides brokerage, financial advisory, investment management, life insurance, and non-institutional trust services. In addition, the company offers online banking, investment trading, and telephone banking services. It operates through a network of 422 branches in Connecticut, southeastern New York, Massachusetts, Vermont, Maine, and New Hampshire, as well as 607 ATMs. The company was founded in 1842 and is headquartered in Bridgeport, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 03:25
End of Day Share Price2020/03/27 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.