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.

Rewards

PE ratio (12.5x) is below the US market (18.5x)

Earnings are forecast to grow 10.42% per year

Earnings have grown 16% per year over the past 5 years

Pays a high and reliable dividend of 4.3%

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

M&T Bank

NYSE:MTB

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

PBCT

1.1%

US Banks

0.7%

US Market


1 Year Return

5.0%

PBCT

21.0%

US Banks

18.2%

US Market

Return vs Industry: PBCT underperformed the US Banks industry which returned 21% over the past year.

Return vs Market: PBCT underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

PBCTIndustryMarket
7 Day2.2%1.1%0.7%
30 Day-2.7%0.8%1.5%
90 Day3.1%10.5%5.0%
1 Year9.5%5.0%24.6%21.0%20.8%18.2%
3 Year-4.5%-15.2%31.6%22.4%45.2%35.8%
5 Year39.7%13.7%79.1%59.2%71.6%52.7%

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?

12.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PBCT ($16.5) is trading above our estimate of fair value ($15.42)

Significantly Below Fair Value: PBCT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PBCT is good value based on its PE Ratio (12.5x) compared to the Banks industry average (12.7x).

PE vs Market: PBCT is good value based on its PE Ratio (12.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PBCT is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: PBCT is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


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?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBCT's forecast earnings growth (10.4% per year) is above the savings rate (1.7%).

Earnings vs Market: PBCT's earnings (10.4% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: PBCT's revenue (7.4% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: PBCT's revenue (7.4% 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 (7.8%).


Next Steps

Past Performance

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

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBCT has high quality earnings.

Growing Profit Margin: PBCT's current net profit margins (29.1%) are higher than last year (27.9%).


Past Earnings Growth Analysis

Earnings Trend: PBCT's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: PBCT's earnings growth over the past year (17.5%) exceeds its 5-year average (16% per year).

Earnings vs Industry: PBCT earnings growth over the past year (17.5%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: PBCT's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


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 0.2x 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 (0.45%)


Next Steps

Dividend

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

4.30%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: PBCT's dividend (4.3%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: PBCT's dividend (4.3%) is in the top 25% of dividend payers in the US market (3.7%)


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 (53.6%), 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 (51.4% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Jack Barnes (64yo)

9.7yrs

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 ($USD5.70M) is about average for companies of similar size in the US market ($USD6.70M).

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


Management Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: PBCT's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

71yo

Average Age

Experienced Board: PBCT's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

Insider Buying: PBCT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$252,75024 Oct 19
George Carter
EntityIndividual
Role
Unit Chairman
Lead Director
Shares15,000
Max PriceUS$16.85
SellUS$77,53030 Apr 19
Mark Herron
EntityIndividual
Shares4,466
Max PriceUS$17.36
SellUS$231,56713 Mar 19
Galan Daukas
EntityIndividual
Shares13,534
Max PriceUS$17.11
SellUS$186,23206 Mar 19
George Carter
EntityIndividual
Role
Unit Chairman
Lead Director
Shares10,654
Max PriceUS$17.48
SellUS$86,35204 Mar 19
Jerry Franklin
EntityIndividual
Shares4,800
Max PriceUS$17.99
SellUS$111,74624 Jan 19
Mark Richards
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,800
Max PriceUS$16.43
SellUS$478,90720 Dec 18
David Norton
EntityIndividual
Shares32,163
Max PriceUS$14.89

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.1%.


Management Team

  • Kirk Walters (63yo)

    Senior EVP of Corporate Development & Strategic Planning and Director

    • Tenure: 8.8yrs
    • Compensation: US$1.68m
  • Jack Barnes (64yo)

    Chairman of the Board & CEO

    • Tenure: 9.7yrs
    • Compensation: US$5.70m
  • Jeff Hoyt (49yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0yrs
    • Compensation: US$610.85k
  • R. Rosato (57yo)

    Senior EVP & CFO

    • Tenure: 4.9yrs
    • Compensation: US$1.58m
  • Cynthia Belak

    First Vice President of Marketing

    • Tenure: 0yrs
  • Jeff Tengel (56yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$1.67m
  • Lee Powlus (58yo)

    Senior EVP & Chief Administrative Officer

    • Tenure: 8.6yrs
    • Compensation: US$1.71m
  • Kristy Berner (44yo)

    Executive VP

    • Tenure: 1.1yrs
  • Andrew Hersom

    Senior Vice President

    • Tenure: 5.9yrs
  • Michele Johnson

    Compliance Officer

    • Tenure: 0yrs

Board Members

  • Kirk Walters (63yo)

    Senior EVP of Corporate Development & Strategic Planning and Director

    • Tenure: 8.8yrs
    • Compensation: US$1.68m
  • Jack Barnes (64yo)

    Chairman of the Board & CEO

    • Tenure: 9.7yrs
    • Compensation: US$5.70m
  • John Dwight (74yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$175.06k
  • Mark Richards (73yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$202.54k
  • Bill Cruger (61yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$176.58k
  • Janet Hansen (76yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$188.08k
  • George Carter (82yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$357.08k
  • Collin Baron (71yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$164.08k
  • John Byrnes

    Chairman of People's United Insurance Agency

    • Tenure: 0yrs
  • Nancy McAllister (59yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$183.08k

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$7.321b
  • Shares outstanding: 443.68m
  • 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

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 indiv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:02
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.