United Bankshares Inc (UBSI) stock analysis

P/E below its 5-year median

United Bankshares's P/E of 13.0 is below its own 5-year median of 13.0.

P/E above the industry

United Bankshares's P/E of 13.0 is above the Commercial Banks median of 12.0.

P/S above the industry

United Bankshares's price-to-sales of 5.08 is above the Commercial Banks median of 3.61.

P/B below the industry

United Bankshares's price-to-book of 1.20 is below the Commercial Banks median of 1.28.

Trading above fair value

The share price of $47.86 is above our fair value estimate of $45.42.

Margin of safety under 20%

The price is 5.4% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 58.3% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 5.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 19.3% over the last twelve months, against a 5-year average of 10.0% a year.

Growing slower than the industry

Revenue grew 8.7% over the last twelve months; the Commercial Banks median is 11.3%.

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 9.4% over the last twelve months and averaged 8.2% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.5%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

United Bankshares's return on equity of 9.4% is below the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 10.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 40.0% over the last twelve months, against a 5-year average of 68.2%.

Net margin above the industry

United Bankshares's net margin of 40.0% is above the Commercial Banks median of 30.3%.

Well capitalized

Equity is 15.8% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Adequate loan-loss reserve

The allowance for credit losses is not reported.

Efficient operations

Non-interest expense takes 48.0% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 3.1% over the past year.

Modest borrowings

Borrowings other than deposits are 3.4% of equity.

Pays a dividend

United Bankshares paid dividends worth 3.2% of the share price over the last twelve months.

Yield below Treasuries

The 3.2% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; United Bankshares yields 3.2%.

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 41.3% of net income.

Covered by free cash flow

Dividends take 38.5% of free cash flow.