Atlantic Union Bankshares (AUB) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: 4.14%
• Average Volume (3M): 969.02K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.13
• Revenue Growth: 29.04%
• EPS Growth: -9.28%
• Country: US
• Employees: 1,804
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 2.29
• Shares Outstanding: 89,826,670
• 10 Day Avg. Volume: 1,191,833
• 30 Day Avg. Volume: 969,017
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.73
• Price to Cash Flow (P/CF): 7.30
• P/FCF Ratio: 3.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.67
• Price Target Upside: 42.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Atlantic Union Bankshares demonstrates solid fundamentals with strong revenue growth and strategic acquisitions. However, declining margins, cash flow challenges, and negative technical indicators weigh on the stock's performance. The company's reasonable valuation and positive earnings call outlook provide some support, but careful management of risks is crucial for future success.

Atlantic Union Bankshares Business Overview & Revenue Model

Company Description

Atlantic Union Bankshares Corp. is a bank holding company which engages in the provision of financial services. The company was founded in July 1993 and is headquartered in Richmond, VA.

How the Company Makes Money

Atlantic Union Bankshares generates revenue primarily through interest income and non-interest income. Interest income is derived from loans to individuals, businesses, and other financial institutions, including personal loans, commercial real estate loans, and residential mortgages. The company also earns interest from its investment securities portfolio. Non-interest income comes from fees and service charges, including fees from deposit accounts, wealth management services, and mortgage banking activities. Additionally, the company benefits from strategic partnerships and regional market expertise, which enhance its ability to attract deposits and loans, contributing to its overall earnings.

Atlantic Union Bankshares Financial Statement Overview

Summary

Atlantic Union Bankshares exhibits robust revenue growth and maintains a strong balance sheet with low leverage. However, declining margins and cash flows could pose risks to future profitability and liquidity. While the company is in a solid financial position, careful management of operational costs and cash flow is necessary to sustain growth and shareholder returns.

Income Statement

Atlantic Union Bankshares showed a mixed performance in the latest annual report. The gross profit margin remains strong at 100% due to the nature of the banking industry where revenue equals gross profit. The net profit margin improved from 28.99% in the previous year to 17.04% in the latest year. Revenue growth has been volatile, with a significant increase of 76.35% in the most recent year driven by mergers or acquisitions. Despite the revenue growth, EBIT and EBITDA margins have decreased, indicating rising operational costs or competitive pressures.

Balance Sheet

The balance sheet of Atlantic Union Bankshares reflects a stable financial position with a low debt-to-equity ratio improving to 0.02, indicating low financial leverage. The return on equity (ROE) decreased slightly to 6.66%, suggesting a drop in profitability for shareholders. The equity ratio improved to 12.78%, enhancing financial stability by maintaining a healthy buffer of equity against total assets.

Cash Flow

Cash flow analysis shows a decline in operating cash flow from $263.97M to $114.80M, indicating potential challenges in cash generation from core operations. Free cash flow decreased in the latest year, causing concern about the company's ability to finance growth without external funding. The operating cash flow to net income ratio of 0.55 suggests efficient cash generation relative to net income. However, the decline in free cash flow growth rate is a potential risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
817.42M	696.27M	696.21M	677.07M	686.78M
	Gross Profit
1.23B	696.27M	696.21M	677.07M	686.78M
	EBIT
13.65M	233.11M	390.75M	318.76M	186.29M
	EBITDA
0.00	261.60M	325.39M	369.49M	229.40M
	Net Income Common Stockholders
209.13M	201.82M	234.51M	263.92M	158.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.64B	2.43B	3.06B	4.28B	3.03B
	Total Assets
24.59B	21.17B	20.46B	20.06B	19.63B
	Total Debt
60.00M	1.11B	1.57B	388.72M	739.83M
	Net Debt
-136.44M	746.67M	1.25B	-410.95M	248.55M
	Total Liabilities
21.44B	18.61B	18.09B	388.72M	16.92B
	Stockholders Equity
3.14B	2.56B	2.37B	2.71B	2.71B
Cash Flow		Free Cash Flow
114.80M	258.87M	401.11M	328.39M	202.35M
	Operating Cash Flow
114.80M	263.97M	403.96M	337.79M	231.92M
	Investing Cash Flow
-4.30M	-591.99M	-1.26B	-345.44M	-1.92B
	Financing Cash Flow
-127.61M	383.42M	375.18M	316.86M	1.74B

Atlantic Union Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUB, the sentiment is Negative. The current price of 32.04 is below the 20-day moving average (MA) of 35.14, below the 50-day MA of 36.35, and below the 200-day MA of 36.70, indicating a bearish trend. The MACD of -1.32 indicates Positive momentum. The RSI at 23.97 is Positive, neither overbought nor oversold. The STOCH value of 7.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AUB.

Atlantic Union Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNB	74 Outperform	$4.71B	10.33	7.53%	3.67%	15.34%	-3.89%
TRMK	69 Neutral	$2.00B	10.05	2.68%	2.83%	-11.99%	-103.10%
HBNC	65 Neutral	$660.54M	18.89	4.78%	4.24%	10.94%	26.35%
WBS	65 Neutral	$8.35B	10.88	8.54%	3.36%	5.86%	-10.72%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
FULT	62 Neutral	$3.14B	11.10	9.69%	4.00%	21.10%	-4.20%
AUB	62 Neutral	$2.86B	14.38	7.34%	4.14%	29.04%	-9.28%

Atlantic Union Bankshares Corporate Events

Atlantic Union Bankshares Plans Merger with Sandy Spring

Atlantic Union Bankshares Corporation has announced a pending merger with Sandy Spring Bancorp, Inc., aiming to expand its market presence. This move is part of its strategic priorities to capitalize on market opportunities and take market share from larger banks. However, the company faces various risks and uncertainties associated with the merger and the broader economic environment, which could impact its future performance and operations.

Atlantic Union Bankshares Expands with Strategic Acquisitions

Atlantic Union Bankshares reported a net income of $54.8 million for the fourth quarter of 2024, and $197.3 million for the entire year, despite significant merger-related costs. The company completed the acquisition of American National Bankshares Inc. and announced plans to acquire Sandy Spring Bancorp, Inc. These strategic moves aim to expand its regional presence significantly. The bank’s net interest income slightly increased in the fourth quarter due to decreased interest expenses, while asset quality showed a rise in nonperforming assets, driven by a significant commercial and industrial nonaccrual loan.

Atlantic Union Bankshares Announces Merger with Sandy Spring

Atlantic Union Bankshares Corporation has announced a merger agreement with Sandy Spring Bancorp, Inc., resulting in Sandy Spring merging into Atlantic Union. As part of the merger process, Atlantic Union has filed a registration statement with the SEC regarding the shares of common stock to be issued. To mitigate potential tax implications under Section 280G of the Internal Revenue Code, Sandy Spring’s Compensation Committee approved accelerated compensation payments to certain executives, including bonuses and stock awards, to preserve corporate tax deductions and reduce tax burdens for the executives.