NasdaqGS:UBSI

Stock Analysis Report

Executive Summary

United Bankshares, Inc., a financial holding company, primarily provides commercial and retail banking products and services in the United States.

Rewards

Trading at 5.2% below its fair value

Earnings are forecast to grow 13.38% per year

Earnings have grown 16.5% per year over the past 5 years

Pays a high and reliable dividend of 3.71%

Risk Analysis

No risks detected for UBSI from our risk checks.


Snowflake Analysis

6 star dividend payer with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

UBSI

1.0%

US Banks

0.3%

US Market


1 Year Return

13.7%

UBSI

19.1%

US Banks

18.5%

US Market

Return vs Industry: UBSI underperformed the US Banks industry which returned 19.1% over the past year.

Return vs Market: UBSI underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

UBSIIndustryMarket
7 Day-0.2%1.0%0.3%
30 Day-7.1%1.0%1.5%
90 Day-2.2%12.4%5.7%
1 Year18.0%13.7%22.6%19.1%21.1%18.5%
3 Year-13.3%-21.6%30.2%21.1%45.9%36.4%
5 Year28.0%8.3%77.5%57.8%71.4%52.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is United Bankshares undervalued compared to its fair value and its price relative to the market?

5.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UBSI ($37.72) is trading below our estimate of fair value ($39.78)

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


Price To Earnings Ratio

PE vs Industry: UBSI is poor value based on its PE Ratio (14.8x) compared to the Banks industry average (12.7x).

PE vs Market: UBSI is good value based on its PE Ratio (14.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: UBSI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: UBSI is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is United Bankshares forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UBSI's forecast earnings growth (13.4% per year) is above the savings rate (1.7%).

Earnings vs Market: UBSI's earnings (13.4% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: UBSI's revenue (13.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: UBSI's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UBSI's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has United Bankshares performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UBSI has high quality earnings.

Growing Profit Margin: UBSI's current net profit margins (37.1%) are higher than last year (29.8%).


Past Earnings Growth Analysis

Earnings Trend: UBSI's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: UBSI's earnings growth over the past year (23.9%) exceeds its 5-year average (16.5% per year).

Earnings vs Industry: UBSI earnings growth over the past year (23.9%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: UBSI's Return on Equity (7.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is United Bankshares'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: UBSI has a low level of unsold assets or inventory.

Debt Coverage by Assets: UBSI's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: UBSI has a low allowance for bad loans.

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

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

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

Level of Bad Loans: UBSI has an appropriate level of bad loans (1.03%)


Next Steps

Dividend

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

3.71%

Current Dividend Yield


Upcoming Dividend Payment

Purchase United Bankshares before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: UBSI's dividend (3.71%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: UBSI's dividend (3.71%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.3%), UBSI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UBSI's dividends in 3 years are forecast to be covered by earnings (55.4% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Richard Adams (72yo)

35.9yrs

Tenure

US$3,255,935

Compensation

Richard M. Adams Sr. is the Chairman and Chief Executive Officer of United Bankshares, Inc. Mr. Adams served as the Chairman and Chief Executive Officer at United Bank, Inc. Mr. Adams began his banking car ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD3.26M) is below average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

5.1yrs

Average Tenure

55yo

Average Age

Experienced Management: UBSI's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

11.3yrs

Average Tenure

69yo

Average Age

Experienced Board: UBSI's board of directors are seasoned and experienced ( 11.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$80,94319 Aug 19
Mary Weddle
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,300
Max PriceUS$35.19
SellUS$561,52606 Mar 19
Richard Adams
EntityIndividual
Role
President
President
Shares14,790
Max PriceUS$37.97
BuyUS$7,37228 Dec 18
Robert Astorg
EntityIndividual
Shares244
Max PriceUS$30.22
BuyUS$29,70027 Dec 18
Paul Winter
EntityIndividual
Role
Lead Director
Lead Director
Shares1,000
Max PriceUS$29.70

Ownership Breakdown

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


Management Team

  • Rick Adams (51yo)

    President

    • Tenure: 5.1yrs
    • Compensation: US$1.18m
  • Jim Consagra (58yo)

    Executive VP & COO

    • Tenure: 5.1yrs
    • Compensation: US$1.17m
  • Richard Adams (72yo)

    Chairman & CEO

    • Tenure: 35.9yrs
    • Compensation: US$3.26m
  • Darren Williams (47yo)

    Executive VP & Chief Risk Officer

    • Tenure: 5.1yrs
  • Craige Smith (67yo)

    Executive VP and Chief Administrative & Information Officer

    • Tenure: 4.9yrs
    • Compensation: US$713.16k
  • W. Tatterson (44yo)

    Executive VP

    • Tenure: 4.9yrs
    • Compensation: US$1.11m
  • Doug Ernest (55yo)

    Executive VP & Chief Credit Officer

    • Tenure: 4.9yrs

Board Members

  • Theodore Georgelas (72yo)

    Independent Director

    • Tenure: 29.9yrs
    • Compensation: US$82.51k
  • Clinton Winter (71yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$123.51k
  • J. McNamara (70yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$106.03k
  • Peter Converse (68yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$202.76k
  • Richard Adams (72yo)

    Chairman & CEO

    • Tenure: 35.9yrs
    • Compensation: US$3.26m
  • Gary White (69yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$103.01k
  • Mary Weddle (69yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$105.76k
  • Mark Nesselroad (62yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$102.51k
  • Sonny Small (62yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$7.13k
  • Mike Fitzgerald (62yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$334.64k

Company Information

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


Key Information

  • Name: United Bankshares, Inc.
  • Ticker: UBSI
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.830b
  • Shares outstanding: 101.53m
  • Website: https://www.ubsi-inc.com

Number of Employees


Location

  • United Bankshares, Inc.
  • 300 United Center
  • 500 Virginia Street, East
  • Charleston
  • West Virginia
  • 25301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UBSINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1987
UNKDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1987

Biography

United Bankshares, Inc., a financial holding company, primarily provides commercial and retail banking products and services in the United States. It operates through two segments, Community Banking and Mo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:47
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.