United Bankshares (UBSI) AI Stock Analysis

• Market Cap: $5.23B
• Dividend Yield: 3.98%
• Average Volume (3M): 757.73K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.72
• Revenue Growth: 8.83%
• EPS Growth: 15.49%
• Country: US
• Employees: 2,553
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.92
• Shares Outstanding: 140,416,600
• 10 Day Avg. Volume: 733,671
• 30 Day Avg. Volume: 757,732
• PEG Ratio: 9.24
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 3.13
• P/FCF Ratio: 11.69
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 3.29
• Enterprise Value/Gross Profit: 5.16
• Enterprise Value/Ebitda: 10.67
• 1Y Price Target: $42.50
• Price Target Upside: 14.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.18
• Revenue Forecast (FY): $1.23B

• Rating: 70 Outperform
• Price Target: $40.00 ▲(7.41% Upside)

United Bankshares is well-positioned with strong financial performance, characterized by consistent revenue growth and robust profitability margins. The valuation is fair with an attractive dividend yield. Technical indicators suggest a neutral market sentiment. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and profitability.

Profitability Margins

Improved profitability margins suggest efficient cost management and strong operational performance, enhancing the company's financial resilience.

Leverage Management

Prudent leverage management ensures financial stability and flexibility, allowing the company to navigate economic fluctuations effectively.

Negative Factors

Operating Cash Flow Conversion

Low cash flow conversion from profits may limit the company's ability to reinvest in growth opportunities and meet financial obligations efficiently.

Gross Profit Margin Decline

A declining gross profit margin could signal rising costs or pricing pressures, potentially impacting future profitability if not addressed.

Return on Equity

Lower ROE suggests the company may not be utilizing its equity as efficiently as competitors, which could impact investor returns and growth potential.

United Bankshares Business Overview & Revenue Model

Company Description

United Bankshares, Inc., a financial holding company, primarily provides commercial and retail banking products and services in the United States. It operates through two segments, Community Banking and Mortgage Banking. The company accepts checking, savings, and time and money market accounts; individual retirement accounts; and demand deposits, statement and special savings, NOW accounts, and interest-bearing checking accounts. Its loan products include commercial loans and leases; construction and real estate loans; personal, student, credit card, commercial, and floor plan loans; and home equity loans. In addition, the company provides credit cards; safe deposit boxes, wire transfers, and other banking products and services; investment and security services; services to correspondent banks, including buying and selling federal funds; automated teller machine services; and internet and telephone banking services. Further, it offers community banking services, such as asset management, real property title insurance, financial planning, mortgage banking, and brokerage services. As of December 31, 2021, the company operated 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.

How the Company Makes Money

United Bankshares generates revenue primarily through interest income and non-interest income. The majority of its revenue comes from net interest income, which is derived from the interest earned on loans and investments, minus the interest paid on deposits and borrowings. The bank offers a variety of loan products, including residential, commercial, and consumer loans, which contribute significantly to its interest income. Additionally, United Bankshares earns non-interest income from fees and commissions associated with banking services, such as service charges on deposit accounts, mortgage origination fees, and wealth management services. The company also engages in investment activities, further diversifying its revenue streams. Strategic partnerships with other financial institutions and community organizations enhance its service offerings and customer base, contributing to its overall earnings.

United Bankshares Financial Statement Overview

Summary

United Bankshares demonstrates solid financial health with consistent revenue growth and strong profitability margins. The balance sheet reflects prudent leverage management and a stable equity position. Cash flow metrics indicate efficient cash conversion, although there is room for improvement in operating cash flow generation.

Income Statement

United Bankshares shows strong revenue growth with a TTM increase of 3.6%, building on consistent annual growth. The gross profit margin remains robust at 63.8% TTM, indicating efficient cost management. Net profit margin improved to 24.4% TTM, reflecting enhanced profitability. EBIT and EBITDA margins are stable, suggesting operational efficiency. However, the slight decline in gross profit margin from previous years indicates potential cost pressures.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.15 TTM, showcasing prudent leverage management. Return on equity is solid at 8.1% TTM, indicating effective use of equity to generate profits. The equity ratio is strong, reflecting a stable financial structure. However, the decrease in debt-to-equity ratio over the years suggests improved financial stability, but the relatively low ROE compared to industry peers may indicate room for improvement in profitability.

Cash Flow

Operating cash flow and free cash flow have shown positive growth, with free cash flow increasing by 8.0% TTM. The free cash flow to net income ratio is high at 97.3%, indicating efficient cash conversion. However, the operating cash flow to net income ratio is low, suggesting potential challenges in converting accounting profits into cash flow. Overall, the cash flow position is strong, supporting future growth and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.76B	1.62B	1.53B	1.15B	1.06B	1.14B
Gross Profit	1.13B	1.00B	1.02B	1.02B	1.03B	922.62M
EBITDA	544.56M	474.98M	486.91M	499.45M	470.76M	343.30M
Net Income	430.18M	373.00M	366.31M	379.63M	367.74M	289.02M
Balance Sheet
Total Assets	33.41B	30.02B	29.93B	29.49B	29.33B	26.18B
Cash, Cash Equivalents and Short-Term Investments	2.82B	2.55B	5.38B	5.72B	7.80B	5.16B
Total Debt	796.33M	803.28M	2.08B	2.43B	1.03B	1.08B
Total Liabilities	27.96B	25.03B	25.16B	24.97B	24.61B	21.89B
Stockholders Equity	5.45B	4.99B	4.77B	4.52B	4.72B	4.30B
Cash Flow
Free Cash Flow	493.47M	433.33M	423.55M	743.96M	594.16M	121.42M
Operating Cash Flow	496.27M	445.45M	435.24M	760.82M	609.54M	140.45M
Investing Cash Flow	-510.68M	571.49M	38.99M	-3.45B	15.65M	137.59M
Financing Cash Flow	624.30M	-323.64M	-51.94M	105.32M	923.91M	1.09B

United Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.24
• 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 UBSI, the sentiment is Positive. The current price of 37.24 is above the 20-day moving average (MA) of 36.44, above the 50-day MA of 36.48, and above the 200-day MA of 35.68, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 85.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UBSI.

United Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNB	75 Outperform	$5.96B	11.90	7.87%	2.88%	4.54%	27.56%
VLY	71 Outperform	$6.31B	12.89	7.07%	4.34%	-1.94%	41.35%
UBSI	70 Outperform	$5.23B	12.22	8.24%	3.98%	8.83%	15.49%
OZK	70 Outperform	$5.22B	7.42	12.35%	3.78%	2.79%	2.11%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FFIN	63 Neutral	$4.47B	18.46	13.89%	2.39%	12.90%	16.92%
FLG	49 Neutral	$5.09B	―	-4.72%	0.36%	-18.33%	92.89%