United Security Bancshares (UBFO) AI Stock Analysis

• Market Cap: $157.99M
• Dividend Yield: 5.37%
• Average Volume (3M): 27.07K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.67
• Revenue Growth: -1.42%
• EPS Growth: -37.11%
• Country: US
• Employees: 114
• Sector: Financial
• Sector Strength: 65
• Industry: Banks - Regional
• EPS (TTM): 0.13
• Shares Outstanding: 17,476,427
• 10 Day Avg. Volume: 29,649
• 30 Day Avg. Volume: 27,067
• PEG Ratio: -0.45
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 9.34
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 2.42
• Enterprise Value/Ebitda: 5.64
• 1Y Price Target: $9.50
• Price Target Upside: 6.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $9.50 ▲(6.26% Upside)

United Security Bancshares exhibits strong financial performance with solid profitability and low leverage, contributing significantly to the overall score. The stock's valuation is attractive due to a low P/E ratio and high dividend yield, appealing to value and income investors. However, technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

United Security Bancshares Business Overview & Revenue Model

Company Description

United Security Bancshares (UBFO) is a financial holding company based in the United States, primarily engaged in providing a range of banking and financial services through its subsidiary, United Security Bank. The company operates in the banking sector, focusing on retail and commercial banking services, including checking and savings accounts, loans, mortgages, and investment services. UBFO aims to serve individuals, businesses, and communities with competitive financial products tailored to meet their specific needs.

How the Company Makes Money

United Security Bancshares generates revenue primarily through traditional banking activities, which include interest income from loans and mortgages, as well as fees and service charges associated with deposit accounts and other banking services. The company earns interest income by lending out deposits to borrowers, charging interest on these loans, which is a significant source of earnings. Additionally, UBFO may generate non-interest income from various sources, such as service fees, transaction fees, and investment services. Key partnerships with financial service providers and a focus on community engagement also enhance its revenue streams by attracting a diverse customer base and fostering customer loyalty.

United Security Bancshares Financial Statement Overview

Summary

United Security Bancshares demonstrates robust financial health with solid profitability and low leverage. The company has maintained steady revenue growth and margins, though there is a slight decline in operational efficiency. The balance sheet is strong, but attention to enhancing equity growth is needed. Cash flow generation is solid, but declining free cash flow suggests potential areas for improvement.

Income Statement

United Security Bancshares shows strong profitability with a consistent increase in revenue over the past years. The TTM gross profit margin is 71.56%, and the net profit margin is 20.10%, both indicating a solid control over costs relative to revenue generation. However, there is a slight decline in EBIT and EBITDA margins from the previous year, reflecting potential challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.17, suggesting low leverage. The equity ratio is 11.15%, showcasing a stable equity position relative to total assets. However, the decrease in stockholders' equity over the last year indicates a potential need to enhance equity growth.

Cash Flow

Operating cash flow to net income ratio is 1.14, indicating good cash generation relative to profitability. However, free cash flow has declined from the previous year, resulting in a negative growth rate. The overall cash flow position remains stable, but attention to free cash flow sustainability is recommended.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.19M	65.46M	65.95M	51.00M	41.03M	39.67M
Gross Profit	47.38M	48.60M	53.43M	46.01M	36.84M	34.61M
EBITDA	20.36M	22.43M	29.58M	23.99M	14.46M	13.22M
Net Income	13.30M	14.78M	19.80M	15.69M	10.10M	8.96M
Balance Sheet
Total Assets	1.19B	1.21B	1.21B	1.30B	1.33B	1.09B
Cash, Cash Equivalents and Short-Term Investments	112.05M	213.59M	222.05M	246.14M	398.12M	376.41M
Total Debt	22.42M	14.73M	74.65M	12.98M	13.89M	13.89M
Total Liabilities	1.06B	1.08B	1.09B	1.19B	1.21B	974.85M
Stockholders Equity	132.88M	130.36M	122.54M	112.46M	120.21M	117.81M
Cash Flow
Free Cash Flow	14.50M	18.60M	20.59M	21.56M	15.30M	12.66M
Operating Cash Flow	15.21M	19.64M	21.38M	23.70M	16.55M	13.80M
Investing Cash Flow	12.73M	12.95M	87.58M	-174.23M	-319.37M	-65.55M
Financing Cash Flow	-33.04M	-17.16M	-106.77M	-30.09M	227.97M	126.82M

United Security Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UBFO, the sentiment is Positive. The current price of 8.94 is above the 20-day moving average (MA) of 8.71, above the 50-day MA of 8.60, and above the 200-day MA of 8.93, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 86.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UBFO.

United Security Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UBFO	76 Outperform	$157.99M	13.94	8.54%	5.37%	-1.42%	-37.11%
CFBK	75 Outperform	$160.80M	8.97	10.42%	1.17%	3.76%	38.14%
UNB	75 Outperform	$122.89M	13.35	13.63%	5.33%	11.50%	-8.24%
OVBC	72 Outperform	$166.30M	12.01	9.04%	2.59%	14.16%	24.72%
SFBC	71 Outperform	$120.25M	19.29	6.07%	1.63%	7.86%	59.25%
FCAP	68 Neutral	$125.42M	9.50	11.40%	3.14%	12.36%	9.45%
Sector *	68 Neutral	$17.53B	11.78	10.43%	3.83%	9.94%	1.31%

United Security Bancshares Corporate Events

United Security Bancshares Declares Cash Dividend

On June 24, 2025, United Security Bancshares declared a $0.12 per share cash dividend for shareholders of record as of July 7, 2025, with payment scheduled for July 22, 2025. This announcement reflects the company’s commitment to returning value to its shareholders, potentially impacting investor sentiment and market perception positively.

United Security Bancshares Appoints New Chief Banking Officer

On May 30, 2025, United Security Bancshares and its subsidiary United Security Bank announced the appointment of Kevin Williams as Senior Vice President, Chief Banking Officer. Williams, with a background at Bank of the Sierra and Comerica Bank, is expected to enhance the bank’s executive team and contribute to its strategic goals.

United Security Bancshares Shareholders Meeting Outcomes

On May 21, 2025, United Security Bancshares held its annual meeting of shareholders where 70.50% of the shares were represented. During the meeting, shareholders elected all 10 nominees to the Board of Directors, approved the 2025 Equity Incentive Award Plan, ratified Moss Adams LLP as the independent accounting firm for 2024, and approved executive compensation. However, the proposal to increase authorized common shares from 20,000,000 to 50,000,000 was not approved.

United Security Bancshares COO Retirement Announced

On May 9, 2025, United Security Bancshares announced the retirement of David Eytcheson, their Senior Vice President and Chief Operating Officer, effective the same day. This change in leadership may impact the company’s operations and strategic direction, though specific implications for stakeholders were not detailed in the announcement.