United Bancorp Inc (UBCP) stock analysis

P/E above its 5-year median

United Bancorp's P/E of 10.4 is above its own 5-year median of 9.9.

P/E below the industry

United Bancorp's P/E of 10.4 is below the Commercial Banks median of 12.1.

P/S against the industry

Not enough revenue data to compare.

P/B below the industry

United Bancorp's price-to-book of 1.14 is below the Commercial Banks median of 1.29.

Trading below fair value

The share price of $14.29 is below our fair value estimate of $15.61.

Margin of safety under 20%

The price is 8.5% below fair value, less than the 20% cushion we look for.

Revenue growth over 3 years

Needs three years of positive revenue.

EPS growing under 10% a year

Diluted EPS grew -3.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 6.9% over the last twelve months, against a 5-year average of -0.5% a year.

Growth against the industry

Needs revenue for this year and last.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 12.1% over the last twelve months and averaged 12.9% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.9%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

United Bancorp's return on equity of 12.1% is above the Commercial Banks median of 11.5%.

Earnings shrank over 5 years

Net income shrank 0.5% a year on average over the last five fiscal years.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

Well capitalized

Equity is 8.2% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 71.5% of deposits, so lending is funded by customer deposits.

Thin loan-loss reserve

The allowance for credit losses is 0.9% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 93.2% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 6.8% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

United Bancorp paid dividends worth 6.6% of the share price over the last twelve months.

Yield above Treasuries

The 6.6% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; United Bancorp yields 6.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 70.3% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.