First Commonwealth (FCF) AI Stock Analysis

• Market Cap: $1.82B
• Dividend Yield: 3.05%
• Average Volume (3M): 579.97K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.82
• Revenue Growth: 4.57%
• EPS Growth: -15.68%
• Country: US
• Employees: 1,538
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.32
• Shares Outstanding: 104,538,800
• 10 Day Avg. Volume: 779,721
• 30 Day Avg. Volume: 579,969
• PEG Ratio: -1.25
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 15.14
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: 12.01
• 1Y Price Target: $20.00
• Price Target Upside: 14.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $20.00 ▲(14.94% Upside)

First Commonwealth's overall stock score of 76 is driven by strong financial performance and positive earnings call highlights, including robust loan and deposit growth and successful acquisition integration. Technical indicators support a bullish outlook, although valuation metrics suggest the stock is fairly priced. Challenges such as increased nonperforming loans and potential pressure on loan spreads are noted but do not overshadow the positive aspects.

First Commonwealth Business Overview & Revenue Model

Company Description

First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (atm) services, as well as internet, mobile, and telephone banking services. The company's commercial banking services comprise commercial lending, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. It also offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. As of December 31, 2021, the company operated 118 community banking offices in western and central Pennsylvania, as well as northeastern, central, and southwestern Ohio; corporate banking centers in Pittsburgh, Pennsylvania, as well as Columbus, Canton, and Cleveland, Ohio; and mortgage banking offices in Wexford, Pennsylvania, and Hudson, Westlake, as well as Lewis Center, Ohio. It also operates 136 automated teller machines. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania.

How the Company Makes Money

First Commonwealth generates revenue primarily through interest income and non-interest income. Interest income is derived from the loans it extends to customers, including personal loans, mortgages, and commercial loans, as well as interest earned on securities in its investment portfolio. Non-interest income comes from various sources, including fees for services such as account maintenance, ATM transactions, wealth management, and insurance services. Additionally, FCF benefits from partnerships with other financial institutions and service providers, which can enhance its product offerings and customer reach. The company also focuses on cross-selling its products to existing customers, thereby increasing customer retention and overall profitability.

First Commonwealth Financial Statement Overview

Summary

First Commonwealth demonstrates solid financial health with consistent revenue growth and strong margins. The balance sheet is robust with low leverage, providing financial stability. Cash flow generation is improving, although there is a slight decline in the conversion of earnings to cash. Overall, the company is well-positioned in the regional banking sector, with opportunities to enhance profitability and cash flow efficiency.

Income Statement

First Commonwealth shows a consistent revenue growth trend with a TTM revenue growth rate of 1.11%. The gross profit margin remains strong at 64.31% TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 18.94% TTM from 20.38% in the previous year, suggesting some pressure on profitability. EBIT and EBITDA margins are stable, reflecting solid operational performance.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.018 TTM, indicating strong financial stability and low leverage risk. Return on equity is modest at 3.25% TTM, showing room for improvement in generating returns for shareholders. The equity ratio is robust, reflecting a strong capital structure.

Cash Flow

Operating cash flow to net income ratio is healthy at 0.68 TTM, indicating good cash generation relative to earnings. Free cash flow growth is positive at 4.37% TTM, showing improvement in cash flow generation. However, the free cash flow to net income ratio is slightly lower at 0.89 TTM compared to previous periods, suggesting some challenges in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	707.59M	699.69M	626.61M	428.66M	400.60M	395.69M
Gross Profit	455.07M	448.95M	467.47M	389.82M	386.67M	306.03M
EBITDA	174.65M	184.01M	201.66M	170.74M	184.26M	101.86M
Net Income	134.03M	142.57M	157.06M	128.18M	138.26M	73.45M
Balance Sheet
Total Assets	12.24B	11.58B	11.46B	9.81B	9.55B	9.07B
Cash, Cash Equivalents and Short-Term Investments	1.27B	1.28B	1.17B	916.90M	1.44B	1.19B
Total Debt	225.87M	343.12M	784.59M	553.92M	320.58M	350.63M
Total Liabilities	10.72B	10.18B	10.15B	8.75B	8.44B	8.00B
Stockholders Equity	12.24B	1.41B	1.31B	1.05B	1.11B	1.07B
Cash Flow
Free Cash Flow	135.87M	113.92M	128.72M	140.21M	154.41M	98.08M
Operating Cash Flow	153.42M	129.46M	150.76M	151.41M	165.05M	105.70M
Investing Cash Flow	-323.80M	-121.72M	-574.27M	-588.79M	-565.30M	-483.14M
Financing Cash Flow	142.25M	-21.32M	416.26M	196.25M	439.05M	612.16M

First Commonwealth Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCF, the sentiment is Neutral. The current price of 17.4 is below the 20-day moving average (MA) of 17.58, above the 50-day MA of 17.05, and above the 200-day MA of 16.14, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 35.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FCF.

First Commonwealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	78 Outperform	$1.99B	10.53	14.59%	2.46%	4.15%	4.39%
FCF	76 Outperform	$1.82B	13.31	9.31%	3.05%	4.57%	-15.68%
CHCO	74 Outperform	$1.83B	15.25	16.03%	2.50%	8.28%	6.96%
NWBI	74 Outperform	$1.83B	11.17	8.74%	6.39%	14.86%	40.09%
CASH	71 Outperform	$1.73B	10.10	20.05%	0.26%	6.51%	13.68%
VBTX	70 Outperform	$1.85B	16.04	7.03%	3.14%	-1.28%	32.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First Commonwealth Corporate Events

First Commonwealth Promotes Michael McCuen to Chief Banking Officer

On August 1, 2025, Jane Grebenc, Executive Vice President and Chief Revenue Officer of First Commonwealth Financial Corporation, announced her intention to retire in the first quarter of 2026. Subsequently, on August 4, 2025, Michael P. McCuen was promoted to Chief Banking Officer, indicating a strategic leadership transition within the company.

First Commonwealth Reports Q2 2025 Financial Results

On July 29, 2025, First Commonwealth Financial Corporation announced its financial results for the second quarter of 2025, reporting a net income of $33.4 million, which is a slight increase from the previous quarter but a decrease from the same period in 2024. The company declared a quarterly cash dividend of $0.135 per share, reflecting its continued commitment to returning value to shareholders. The financial results showed an increase in core net income and net interest income compared to both the previous quarter and the second quarter of 2024, highlighting the company’s strong operational performance despite challenges such as reduced card-related interchange income due to regulatory changes.