NasdaqGS:UCFC

Stock Analysis Report

United Community Financial

Executive Summary

United Community Financial Corp. operates as the holding company for Home Savings Bank that provides consumer and business banking services.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

UCFC

1.2%

US Mortgage

1.3%

US Market


1 Year Return

16.3%

UCFC

12.2%

US Mortgage

5.9%

US Market

Return vs Industry: UCFC exceeded the US Mortgage industry which returned 12.2% over the past year.

Return vs Market: UCFC exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

UCFCIndustryMarket
7 Day0.9%1.2%1.3%
30 Day0%-0.6%-1.9%
90 Day14.1%2.4%-1.8%
1 Year20.0%16.3%14.6%12.2%8.3%5.9%
3 Year60.7%49.9%39.9%30.4%45.6%36.2%
5 Year150.9%127.6%68.7%51.1%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: UCFC ($10.63) is trading below our estimate of fair value ($11.34)

Significantly Undervalued: UCFC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: UCFC is good value based on its PE Ratio (13.7x) compared to the Mortgage industry average (14.4x).

PE vs Market: UCFC is good value based on its PE Ratio (13.7x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: UCFC is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: UCFC is overvalued based on its PB Ratio (1.6x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is United Community Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCFC's forecast earnings growth (6.1% per year) is above the savings rate (2.7%).

Earnings vs Market: UCFC's earnings (6.1% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: UCFC's revenue is expected to decline over the next 3 years (-2.1% per year).

High Growth Revenue: UCFC's revenue is forecast to decline over the next 3 years (-2.1%).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: UCFC's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

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

-4.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UCFC's earnings have declined by -4.4% per year over the past 5 years.

Accelerating Growth: UCFC's earnings growth over the past year (26.9%) exceeds its 5-year average (-4.4% per year).

Earnings vs Industry: UCFC earnings growth over the past year (26.9%) underperformed the Mortgage industry 31.7%.


Return on Equity

High ROE: UCFC's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: UCFC has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate UCFC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is United Community 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: UCFC has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: UCFC has an appropriate level of bad loans (0.57%)


Next Steps

Dividend

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

3.01%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: UCFC's dividend (3.01%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: UCFC's dividend (3.01%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

Growing Dividend: UCFC's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), UCFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UCFC's dividends in 3 years are forecast to be well covered by earnings (38.1% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Gary Small (58yo)

5.5yrs

Tenure

US$967,019

Compensation

Mr. Gary M. Small has been the Chief Executive Officer and President of United Community Financial Corp. and Home Savings & Loan Company since March 2014. Prior to joining UCFC and Home Savings, Mr. Small  ...


CEO Compensation Analysis

Compensation vs. Market: Gary's total compensation ($USD967.02K) is below average for companies of similar size in the US market ($USD1.83M).

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


Management Age and Tenure

5.5yrs

Average Tenure

56yo

Average Age

Experienced Management: UCFC's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

62yo

Average Age

Experienced Board: UCFC's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$43,48002 Oct 19
Timothy Esson
EntityIndividual
Role
Chief Financial Officer
Chief Financial officer
Shares4,000
Max PriceUS$10.87
SellUS$46,88025 Jun 19
Timothy Esson
EntityIndividual
Role
Chief Financial Officer
Chief Financial officer
Shares5,000
Max PriceUS$9.38
SellUS$151,54101 Apr 19
Richard Schiraldi
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares16,369
Max PriceUS$9.26

Ownership Breakdown


Management Team

  • Tim Esson (69yo)

    Chief Financial officer

    • Tenure: 4.7yrs
    • Compensation: US$423.04k
  • Zahid Afzal (56yo)

    Executive VP & COO

    • Tenure: 1.6yrs
    • Compensation: US$788.69k
  • Gary Small (58yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$967.02k
  • Jude Nohra (50yo)

    Executive VP

    • Tenure: 10.3yrs
    • Compensation: US$465.68k
  • Matt Garrity (53yo)

    Executive VP of Commercial Lending & Credit Administration and Director of Home Savings Bank

    • Tenure: 10.3yrs
    • Compensation: US$514.35k
  • Doug Young

    Chief Information Officer and Senior Vice President

    • Tenure: 3.5yrs
  • Pamela Kloss

    Chief Risk Officer of Home Savings & Loan Company and Senior VP of Home Savings & Loan Company

    • Tenure: 9.3yrs
  • Troy Adair

    Vice President

    • Tenure: 0yrs

Board Members

  • Marty Adams (66yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$60.00k
  • Richard Schiraldi (64yo)

    Independent Chairman of the Board

    • Tenure: 9.1yrs
    • Compensation: US$89.50k
  • Pat Bevack (72yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$55.38k
  • Lou Altman (50yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$57.25k
  • Gary Small (58yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$967.02k
  • Scott Hunter (56yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$61.13k
  • Scott Crewson (62yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$60.25k
  • Lee Burdman (56yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$61.50k
  • Ellen Tressel (65yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$56.50k

Company Information

United Community Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Community Financial Corp.
  • Ticker: UCFC
  • Exchange: NasdaqGS
  • Founded: 1889
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$511.159m
  • Shares outstanding: 48.09m
  • Website: https://ucfconline.com

Number of Employees


Location

  • United Community Financial Corp.
  • 275 West Federal Street
  • Youngstown
  • Ohio
  • 44503
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UCFCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1998

Biography

United Community Financial Corp. operates as the holding company for Home Savings Bank that provides consumer and business banking services. The company offers various deposit instruments, including checki ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:40
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.