NYSE:FCF

Stock Analysis Report

First Commonwealth Financial

Executive Summary

First Commonwealth Financial Corporation, through its subsidiaries, provides consumer and commercial banking services to individuals, and small and mid-sized businesses in the United States.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

FCF

2.7%

US Banks

0.4%

US Market


1 Year Return

-9.3%

FCF

2.7%

US Banks

6.9%

US Market

Return vs Industry: FCF underperformed the US Banks industry which returned 2.7% over the past year.

Return vs Market: FCF underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

FCFIndustryMarket
7 Day2.1%2.7%0.4%
30 Day0.4%0.7%-1.1%
90 Day1.9%3.0%-0.5%
1 Year-6.7%-9.3%5.7%2.7%9.3%6.9%
3 Year45.9%35.2%52.1%41.6%45.8%36.4%
5 Year74.8%52.3%69.2%50.7%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First Commonwealth Financial undervalued compared to its fair value and its price relative to the market?

12.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FCF ($13.4) is trading below our estimate of fair value ($15.32)

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


Price To Earnings Ratio

PE vs Industry: FCF is poor value based on its PE Ratio (12.8x) compared to the Banks industry average (12.6x).

PE vs Market: FCF is good value based on its PE Ratio (12.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: FCF is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: FCF is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Commonwealth Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCF's forecast earnings growth (5.1% per year) is above the savings rate (2.7%).

Earnings vs Market: FCF's earnings (5.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: FCF's revenue (6.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FCF's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FCF's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has First Commonwealth Financial performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FCF's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: FCF's earnings growth over the past year (29%) exceeds its 5-year average (18.6% per year).

Earnings vs Industry: FCF earnings growth over the past year (29%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: FCF's Return on Equity (10.2%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is First Commonwealth 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: FCF has a low level of unsold assets or inventory.

Debt Coverage by Assets: FCF's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: FCF has an appropriate level of bad loans (0.59%)


Next Steps

Dividend

What is First Commonwealth Financial's current dividend yield, its reliability and sustainability?

2.99%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FCF's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FCF's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: FCF's dividend payments have been volatile in the past 10 years.

Growing Dividend: FCF's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.1%), FCF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCF's dividends in 3 years are forecast to be well covered by earnings (37.5% payout ratio).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Mike Price (56yo)

7.8yrs

Tenure

US$1,187,171

Compensation

Mr. Thomas Michael Price, also known as Mike, has been the Chief Executive Officer of First Commonwealth Financial Corporation since March 7, 2012 and serves as its Chief Executive Officer of First Commonw ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD1.19M) is below average for companies of similar size in the US market ($USD4.00M).

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


Management Age and Tenure

7.2yrs

Average Tenure

55.5yo

Average Age

Experienced Management: FCF's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

13.1yrs

Average Tenure

67.5yo

Average Age

Experienced Board: FCF's board of directors are seasoned and experienced ( 13.1 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$12,90029 May 19
Matthew Tomb
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,000
Max PriceUS$12.90
BuyUS$97,91719 Dec 18
Luke Latimer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$12.24
BuyUS$14,92907 Dec 18
Luke Latimer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,170
Max PriceUS$12.76
BuyUS$51,60030 Oct 18
Ray Charley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$12.90

Ownership Breakdown


Management Team

  • Jane Grebenc (60yo)

    President & Chief Revenue Officer

    • Tenure: 0yrs
    • Compensation: US$881.93k
  • Linda Metzmaier

    Chief Compliance Officer

    • Tenure: 7.9yrs
  • Mike Price (56yo)

    CEO & Director

    • Tenure: 7.8yrs
    • Compensation: US$1.19m
  • Teresa Ciambotti (58yo)

    Senior VP & Controller

    • Tenure: 0yrs
    • Compensation: US$160.56k
  • Jim Reske (55yo)

    Executive VP

    • Tenure: 5.5yrs
    • Compensation: US$825.62k
  • Matt Tomb (42yo)

    Executive VP

    • Tenure: 8.9yrs
    • Compensation: US$655.13k
  • Carrie Riggle (49yo)

    Executive Vice President of Human Resources

    • Tenure: 6.6yrs
  • Ryan Thomas (38yo)

    Vice President / Finance and Investor Relations

    • Tenure: 0yrs
  • Amy Jeffords

    Assistant Vice President of Communications & Community Relations

    • Tenure: 0yrs
  • Brian Karrip (58yo)

    Chief Credit Officer & Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$763.17k

Board Members

  • Jon Gorney (68yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$80.00k
  • David Dahlmann (69yo)

    Chairman of the Board & Lead Director

    • Tenure: 13.8yrs
    • Compensation: US$193.00k
  • Laurie Singer (67yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$72.00k
  • Ray Charley (67yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$68.00k
  • Johnston Glass (69yo)

    Independent Director

    • Tenure: 33.8yrs
    • Compensation: US$80.00k
  • Robert Ventura (69yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$80.00k
  • David Greenfield (68yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$76.00k
  • Mike Price (56yo)

    CEO & Director

    • Tenure: 7.8yrs
    • Compensation: US$1.19m
  • Julie Caponi (57yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: US$82.50k
  • Luke Latimer (42yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$62.67k

Company Information

First Commonwealth Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Commonwealth Financial Corporation
  • Ticker: FCF
  • Exchange: NYSE
  • Founded: 1934
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.318b
  • Shares outstanding: 98.36m
  • Website: https://www.fcbanking.com

Number of Employees


Location

  • First Commonwealth Financial Corporation
  • 601 Philadelphia Street
  • Indiana
  • Pennsylvania
  • 15701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCFNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1990
FCFDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1990

Biography

First Commonwealth Financial Corporation, through its subsidiaries, provides consumer and commercial banking services to individuals, and small and mid-sized businesses in the United States. Its consumer s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:34
End of Day Share Price2019/10/18 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.