NYSE:FCF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


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

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


Market Performance


7 Day Return

2.1%

FCF

-6.2%

US Banks

-0.8%

US Market


1 Year Return

-43.9%

FCF

-31.3%

US Banks

13.8%

US Market

Return vs Industry: FCF underperformed the US Banks industry which returned -31.3% over the past year.

Return vs Market: FCF underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

FCFIndustryMarket
7 Day2.1%-6.2%-0.8%
30 Day-10.2%-9.9%-5.7%
90 Day-10.0%-4.2%8.6%
1 Year-41.5%-43.9%-28.9%-31.3%16.4%13.8%
3 Year-42.8%-47.9%-22.5%-28.8%36.9%27.8%
5 Year-5.0%-18.1%14.9%0.8%85.0%64.2%

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?

25.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCF ($7.45) is trading below our estimate of fair value ($10.05)

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


Price To Earnings Ratio

PE vs Industry: FCF is good value based on its PE Ratio (8.9x) compared to the US Banks industry average (9.3x).

PE vs Market: FCF is good value based on its PE Ratio (8.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: FCF is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: FCF's PB Ratio (0.7x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is First Commonwealth Financial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCF's forecast earnings growth (6.1% per year) is above the savings rate (2.2%).

Earnings vs Market: FCF's earnings (6.1% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: FCF's revenue (1.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: FCF's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCF's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

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

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCF has high quality earnings.

Growing Profit Margin: FCF's current net profit margins (26.4%) are lower than last year (31.6%).


Past Earnings Growth Analysis

Earnings Trend: FCF's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: FCF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FCF had negative earnings growth (-21.1%) over the past year, making it difficult to compare to the Banks industry average (-3%).


Return on Equity

High ROE: FCF's Return on Equity (7.6%) is considered low.


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


Financial Institutions Analysis

Asset Level: FCF's Assets to Equity ratio (8.7x) is low.

Allowance for Bad Loans: FCF has a sufficient allowance for bad loans (145%).

Low Risk Liabilities: 94% of FCF's liabilities are made up of primarily low risk sources of funding.

Loan Level: FCF has an appropriate level of Loans to Assets ratio (73%).

Low Risk Deposits: FCF's Loans to Deposits ratio (88%) is appropriate.

Level of Bad Loans: FCF has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

5.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FCF's dividend (5.91%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: FCF's dividend (5.91%) is in the top 25% of dividend payers in the US market (4.94%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.4%), FCF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCF's dividends in 3 years are forecast to be covered by earnings (54.2% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

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

7.5yrs

Average management tenure


CEO

Mike Price (57 yo)

8.67yrs

Tenure

US$1,100,205

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.10M) is below average for companies of similar size in the US market ($USD3.05M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Price
President8.67yrsUS$1.10m0.25%
$ 1.8m
Jane Grebenc
Executive VP0.42yrUS$873.17k0.11%
$ 799.8k
James Reske
Executive VP6.42yrsUS$784.95k0.061%
$ 446.9k
Matthew Tomb
Executive VP9.83yrsUS$622.96k0.065%
$ 474.2k
Brian Karrip
Chief Credit Officer & Executive VP3.75yrsUS$737.94k0.051%
$ 372.6k
Ryan Thomas
Vice President / Finance and Investor Relationsno datano datano data
Linda Metzmaier
Chief Compliance Officer8.83yrsno datano data
Amy Jeffords
Assistant Vice President of Communications & Community Relationsno datano datano data
Carrie Riggle
Executive Vice President of Human Resources7.5yrsno data0.043%
$ 315.1k
Norman Montgomery
Executive VP & Business Integration Group Managerno dataUS$478.81k0.075%
$ 547.0k
Mark Lopushansky
Chief Treasury Officerno datano datano data
Ronald Nardis
Chief Administrative Officer of Residential Mortgage & Senior VP4.42yrsno datano data

7.5yrs

Average Tenure

54yo

Average Age

Experienced Management: FCF's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Price
President8.67yrsUS$1.10m0.25%
$ 1.8m
Jane Grebenc
Executive VP0.42yrUS$873.17k0.11%
$ 799.8k
Jon Gorney
Independent Director7.67yrsUS$92.00k0.027%
$ 200.1k
David Dahlmann
Independent Chairman of the Board & Lead Director14.67yrsUS$180.00k0.056%
$ 408.7k
Ray Charley
Independent Director22.67yrsUS$80.00k0.31%
$ 2.3m
Johnston Glass
Independent Director34.67yrsUS$92.00k0.080%
$ 583.8k
Robert Ventura
Independent Director16.67yrsUS$92.00k0.048%
$ 351.9k
David Greenfield
Independent Director10.42yrsUS$92.00k0.040%
$ 292.1k
Julie Caponi
Independent Director13.42yrsUS$94.50k0.047%
$ 345.3k
Luke Latimer
Independent Director9.42yrsUS$72.00k0.15%
$ 1.1m
Gary Claus
Independent Director9.42yrsUS$80.00k0.043%
$ 313.8k
Stephen Wolfe
Independent Director3.42yrsUS$72.00k0.011%
$ 78.9k

9.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: FCF's board of directors are considered experienced (9.9 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 not been meaningfully diluted in the past year.


Top Shareholders

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$729.811m
  • Shares outstanding: 97.96m
  • 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 Analysis2020/09/28 05:17
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.