United Community Banks (NasdaqGS:UCBI) - Share price, News & Analysis

UCBI fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	3/6
Financial Health	6/6
Dividends	3/6

UCBI Stock Overview

Rewards

Trading at 49.1% below our estimate of its fair value

Earnings are forecast to grow 25.9% per year

Earnings have grown 20.8% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

United Community Banks Competitors

Truist Financial

NYSE:TFC

US$60.8b

Fifth Third Bancorp

NasdaqGS:FITB

US$24.5b

Regions Financial

NYSE:RF

US$18.8b

Signature Bank

NasdaqGS:SBNY

US$11.9b

Price History & Performance

Summary of all time highs, changes and price drops for United Community Banks
Historical stock prices
Current Share Price	US$29.86
52 Week High	US$39.32
52 Week Low	US$27.62
Beta	1.08
1 Month Change	-5.95%
3 Month Change	-21.11%
1 Year Change	-14.93%
3 Year Change	9.82%
5 Year Change	12.47%
Change since IPO	-57.69%

Recent News & Updates

Apr 05

Here's Why I Think United Community Banks (NASDAQ:UCBI) Is An Interesting Stock

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	UCBI	US Banks	US Market
7D	0.1%	-1.5%	-2.7%
1Y	-14.9%	-19.9%	-12.9%

Return vs Industry: UCBI exceeded the US Banks industry which returned -19.9% over the past year.

Return vs Market: UCBI underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is UCBI's price volatile compared to industry and market?
UCBI volatility
UCBI Average Weekly Movement	4.5%
Banks Industry Average Movement	4.0%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: UCBI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UCBI's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1950	2,893	Herbert Harton	https://www.ucbi.com

United Community Banks, Inc. operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. The company accepts various deposit products, including checking, savings, money market, and other deposit accounts. It also offers lending services, including real estate, consumer, and commercial loans, to individuals, small businesses, mid-sized commercial businesses, and non-profit organizations, as well as secured and unsecured, and mortgage loans.

United Community Banks Fundamentals Summary

How do United Community Banks's earnings and revenue compare to its market cap?
UCBI fundamental statistics
Market Cap	US$3.17b
Earnings (TTM)	US$235.81m
Revenue (TTM)	US$735.03m

13.4x

P/E Ratio

1.2x

P/B Ratio

Is UCBI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UCBI income statement (TTM)
Revenue	US$735.03m
Cost of Revenue	US$0
Gross Profit	US$735.03m
Other Expenses	US$499.23m
Earnings	US$235.81m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.22
Gross Margin	100.00%
Net Profit Margin	32.08%
Debt/Equity Ratio	13.9%

How did UCBI perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

31%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

49.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: UCBI ($29.86) is trading below our estimate of fair value ($58.67)

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

Price To Earnings Ratio

PE vs Industry: UCBI is poor value based on its PE Ratio (13.4x) compared to the US Banks industry average (9.7x).

PE vs Market: UCBI is good value based on its PE Ratio (13.4x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: UCBI is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

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

Future Growth

How is United Community Banks forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

25.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCBI's forecast earnings growth (25.9% per year) is above the savings rate (1.9%).

Earnings vs Market: UCBI's earnings (25.9% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UCBI's revenue (15.4% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: UCBI's revenue (15.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: UCBI's Return on Equity is forecast to be low in 3 years time (11.8%).

Past Performance

How has United Community Banks performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

20.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UCBI has high quality earnings.

Growing Profit Margin: UCBI's current net profit margins (32.1%) are higher than last year (30.9%).

Past Earnings Growth Analysis

Earnings Trend: UCBI's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: UCBI's earnings growth over the past year (18.4%) is below its 5-year average (20.8% per year).

Earnings vs Industry: UCBI earnings growth over the past year (18.4%) underperformed the Banks industry 20.9%.

Return on Equity

High ROE: UCBI's Return on Equity (9.1%) is considered low.

Financial Health

How is United Community Banks's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: UCBI's Assets to Equity ratio (9x) is low.

Allowance for Bad Loans: UCBI has a sufficient allowance for bad loans (332%).

Low Risk Liabilities: 97% of UCBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: UCBI has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: UCBI's Loans to Deposits ratio (67%) is appropriate.

Level of Bad Loans: UCBI has an appropriate level of bad loans (0.3%).

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UCBI's dividend (2.81%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: UCBI's dividend (2.81%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, UCBI has been paying a dividend for less than 10 years.

Growing Dividend: UCBI's dividend payments have increased, but the company has only paid a dividend for 8 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.5%), UCBI's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: UCBI's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).

Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure

CEO

Herbert Harton (59 yo)

7.25yrs

Tenure

US$3,015,446

Compensation

Mr. Herbert Lynn Harton has been Director of United Community Banks, Inc. since February 10, 2015 and has been its Chairman of the Board since May 8, 2019 and has been its Chief Executive Officer since Jun...

CEO Compensation Analysis

Compensation vs Market: Herbert's total compensation ($USD3.02M) is below average for companies of similar size in the US market ($USD6.86M).

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

Leadership Team

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

Board Members

Experienced Board: UCBI's board of directors are considered experienced (6.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 22.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31