OTCPK:UBAB

Stock Analysis Report

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United Bancorporation of Alabama

Executive Summary

United Bancorporation of Alabama, Inc. operates as the holding company for United Bank that provides commercial banking services.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

UBAB

5.3%

US Banks

1.2%

US Market


1 Year Return

3.5%

UBAB

-17.7%

US Banks

16.8%

US Market

Return vs Industry: UBAB exceeded the US Banks industry which returned -19% over the past year.

Return vs Market: UBAB underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

UBABIndustryMarket
7 Day0%5.3%1.2%
30 Day2.5%6.6%4.9%
90 Day6.1%18.7%20.0%
1 Year4.5%3.5%-14.9%-17.7%19.3%16.8%
3 Year41.8%38.2%-9.6%-16.9%43.7%34.4%
5 Year177.9%164.0%15.0%1.0%75.5%56.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is United Bancorporation of Alabama undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UBAB ($20.8) is trading below our estimate of fair value ($56.04)

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


Price To Earnings Ratio

PE vs Industry: UBAB is good value based on its PE Ratio (7.3x) compared to the US Banks industry average (9.9x).

PE vs Market: UBAB is good value based on its PE Ratio (7.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UBAB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UBAB is overvalued based on its PB Ratio (0.9x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is United Bancorporation of Alabama forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.8%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as United Bancorporation of Alabama has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether United Bancorporation of Alabama is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access United Bancorporation of Alabama's filings and announcementshere.
  • Explore growth companies in the Banks industry.

Past Performance

How has United Bancorporation of Alabama performed over the past 5 years?

34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UBAB has high quality earnings.

Growing Profit Margin: UBAB's current net profit margins (28.5%) are lower than last year (30.2%).


Past Earnings Growth Analysis

Earnings Trend: UBAB's earnings have grown significantly by 34.2% per year over the past 5 years.

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

Earnings vs Industry: UBAB had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Banks industry average (-3%).


Return on Equity

High ROE: UBAB's Return on Equity (11.8%) is considered low.


Next Steps

  • Explore strong past performing companies in the Banks industry.

Financial Health

How is United Bancorporation of Alabama'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: UBAB's Assets to Equity ratio (8.8x) is low.

Allowance for Bad Loans: UBAB has a sufficient allowance for bad loans (232%).

Low Risk Liabilities: 96% of UBAB's liabilities are made up of primarily low risk sources of funding.

Loan Level: UBAB has an appropriate level of Loans to Assets ratio (62%).

Low Risk Deposits: UBAB's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: UBAB has an appropriate level of bad loans (0.5%).


Next Steps

Dividend

What is United Bancorporation of Alabama current dividend yield, its reliability and sustainability?

0.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UBAB's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: UBAB's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (4.35%).


Stability and Growth of Payments

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

Growing Dividend: UBAB's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.3%), UBAB's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

14.1yrs

Average board tenure


CEO

Bob Jones (68 yo)

14.25yrs

Tenure

US$431,307

Compensation

Mr. Robert R. Jones III, also known as Bob joined United Bank in 1990 and became President and CEO in 1992. He serves on the Auburn Magazine Board of Directors, the Industrial Development Board for the Cit ...


Board Members

NamePositionTenureCompensationOwnership
Robert Jones
President14.25yrsUS$431.31k1.85%
$ 1.4m
L. Crim
Independent Director23.58yrsUS$18.45k0.51%
$ 396.8k
Dale Ash
Independent Director18.58yrsUS$18.60k0.50%
$ 382.9k
David Swift
Chairman of the Board6.58yrsUS$8.72k1.03%
$ 794.1k
Michael Andreoli
Independent Director16.25yrsUS$40.32k0.68%
$ 528.7k
Richard Maxwell
Independent Director11.92yrsUS$16.75k0.27%
$ 207.9k
Ricky Smith
Director8.08yrsno data0.28%
$ 218.0k
Charles Cottrell
Director3.25yrsno data0.078%
$ 60.5k
Elmo Ziebach
Directorno datano datano data
Ida Ross Hicks
Directorno datano datano data

14.1yrs

Average Tenure

66yo

Average Age

Experienced Board: UBAB's board of directors are seasoned and experienced ( 14.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

United Bancorporation of Alabama, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Bancorporation of Alabama, Inc.
  • Ticker: UBAB
  • Exchange: OTCPK
  • Founded: 1904
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$77.220m
  • Shares outstanding: 3.71m
  • Website: https://www.unitedbank.com

Location

  • United Bancorporation of Alabama, Inc.
  • 200 East Nashville Avenue
  • PO Box 8
  • Atmore
  • Alabama
  • 36502
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UBABOTCPK (Pink Sheets LLC)YesClass A Common StockUSUSDAug 2004

Biography

United Bancorporation of Alabama, Inc. operates as the holding company for United Bank that provides commercial banking services. The company offers checking and savings accounts, certificates of deposit, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:40
End of Day Share Price2020/07/30 00:00
Earnings2019/12/31
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.