United Community Banks (UCB) AI Stock Analysis

• Market Cap: $3.66B
• Dividend Yield: 3.26%
• Average Volume (3M): 693.79K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.21
• Revenue Growth: 2.95%
• EPS Growth: 42.78%
• Country: US
• Employees: 2,982
• Sector: Financial
• Sector Strength: 67
• Industry: Banks - Regional
• EPS (TTM): 0.66
• Shares Outstanding: 121,499,280
• 10 Day Avg. Volume: 808,534
• 30 Day Avg. Volume: 693,787
• PEG Ratio: 0.47
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 12.79
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 9.76
• 1Y Price Target: $35.00
• Price Target Upside: 18.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $33.00 ▲(11.98% Upside)

United Community Banks has a solid financial foundation with strong earnings growth and effective cost management, as highlighted in the earnings call. While technical indicators suggest short-term weakness, the reasonable valuation and positive earnings outlook support a favorable stock score.

United Community Banks Business Overview & Revenue Model

Company Description

United Community Banks, Inc. operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. It accepts various deposit products, including checking, savings, money market, and other deposit accounts. The company also offers lending services, including real estate, consumer, and commercial loans, to individuals, small businesses, mid-sized commercial businesses, and non-profit organizations, as well as secured and unsecured, and mortgage loans. In addition, it originates loans partially guaranteed by the SBA and USDA loan programs. Further, the company provides wealth management services comprising financial planning, customized portfolio management, and investment advice; trust services to manage fiduciary assets; non-deposit investment products; and insurance products, including life insurance, long-term care insurance, and tax-deferred annuities, as well as invests in residential and commercial mortgage-backed securities, asset-backed securities, the U.S. treasury, the U.S. agency, and municipal obligations. Additionally, it offers reinsurance on a property insurance contract; insurance agency services; treasury management; credit cards; payment and commerce solution, equipment finance, investment advisory, and other related financial services; brokerage services; and payment processing, merchant, wire transfer, private banking, and other related financial services. The company was founded in 1950 and is headquartered in Blairsville, Georgia.

How the Company Makes Money

United Community Banks generates revenue primarily through interest income and non-interest income. Interest income is derived from loans and leases, encompassing consumer loans, commercial loans, and real estate mortgages. Non-interest income comes from various sources, including service charges on deposit accounts, fees from investment advisory services, gains from the sale of securities, and income from mortgage banking activities. The company also earns money through strategic partnerships with financial technology companies to enhance their service offerings, which contributes to customer acquisition and retention. Additionally, UCB's expansion strategy through mergers and acquisitions of smaller banks strengthens its market presence and customer base, further boosting its revenue streams.

United Community Banks Financial Statement Overview

Summary

United Community Banks demonstrates consistent revenue growth, stable profit margins, low financial leverage, and solid cash flow generation. While a slight decrease in ROE and net profit margin are areas for improvement, the company's financial stability and cash flow strength position it well for future growth.

Income Statement

United Community Banks has demonstrated solid revenue and profit growth over the years, with a TTM revenue increase of 14.2% from the previous year. The gross profit margin is stable at 60% in TTM. Although the net profit margin has slightly decreased to 17.7% from 17.9% in the previous annual report, it remains healthy. EBIT and EBITDA margins are consistent, at 22.6% and 25.4% respectively, indicating effective cost management and operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity position with a healthy equity ratio of 12.6% in TTM. The debt-to-equity ratio is low at 0.07, suggesting low financial leverage and reduced risk. However, the return on equity has decreased slightly to 7.5% in TTM from 7.4% last year, indicating a slight decline in profitability relative to equity.

Cash Flow

Cash flow analysis reveals a positive trend with free cash flow growing by 6.3% in TTM, supporting future investments and dividends. The operating cash flow to net income ratio is 1.38, reflecting robust cash conversion from profits. The free cash flow to net income ratio of 1.23 indicates strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.48B	1.29B	928.93M	716.27M	695.60M
Gross Profit	885.51M	879.09M	782.52M	804.22M	724.06M	558.93M
EBITDA	374.83M	363.94M	277.51M	402.70M	345.70M	200.86M
Net Income	261.18M	252.40M	187.54M	277.47M	269.80M	164.09M
Balance Sheet
Total Assets	27.87B	27.72B	27.30B	24.01B	20.95B	17.79B
Cash, Cash Equivalents and Short-Term Investments	4.96B	4.96B	4.33B	4.13B	6.79B	4.83B
Total Debt	254.29M	449.15M	324.82M	1.19B	247.36M	326.96M
Total Liabilities	24.37B	24.29B	24.04B	21.31B	18.72B	15.79B
Stockholders Equity	3.50B	3.43B	3.26B	2.70B	2.22B	2.01B
Cash Flow
Free Cash Flow	321.91M	302.69M	221.49M	564.60M	332.84M	140.22M
Operating Cash Flow	359.56M	349.73M	293.97M	607.31M	359.32M	158.68M
Investing Cash Flow	-925.11M	-991.04M	-163.29M	-2.02B	-1.81B	-1.58B
Financing Cash Flow	240.33M	157.31M	226.34M	-258.78M	2.16B	2.52B

United Community Banks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCB, the sentiment is Negative. The current price of 29.47 is below the 20-day moving average (MA) of 30.96, below the 50-day MA of 29.99, and below the 200-day MA of 29.91, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 38.73 is Neutral, neither overbought nor oversold. The STOCH value of 21.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCB.

United Community Banks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNST	78 Outperform	$3.46B	14.36	5.21%	2.47%	21.71%	-3.27%
FBP	75 Outperform	$3.32B	10.93	18.38%	3.33%	3.10%	3.14%
FHB	75 Outperform	$2.97B	12.31	9.40%	4.40%	-2.63%	12.05%
TCBI	72 Outperform	$3.72B	32.04	4.01%	―	6.86%	-8.81%
FULT	71 Outperform	$3.22B	10.36	10.08%	4.03%	17.62%	1.89%
UCB	69 Neutral	$3.66B	13.69	7.81%	3.26%	2.95%	42.78%
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%

United Community Banks Corporate Events

United Community Banks Reports Strong Q2 2025 Results

United Community Banks, Inc. reported strong financial results for the second quarter of 2025, with net income of $78.7 million and a pre-tax, pre-provision income of $112.3 million. The company achieved a 14% increase in operating diluted earnings per share compared to the previous year, driven by higher net interest income and lower credit loss provisions. The acquisition of American National Bank contributed to loan growth, and the company saw improvements in net interest margin and operating efficiency. The quarter also marked the company’s 75th anniversary, celebrated alongside its annual customer appreciation day.

The most recent analyst rating on (UCB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on United Community Banks stock, see the UCB Stock Forecast page.

United Community Banks Holds 2025 Shareholder Meeting

United Community Banks, Inc. held its 2025 annual meeting of shareholders on May 14, 2025, where shareholders voted on four proposals. All director nominees were elected, the compensation of Named Executive Officers was approved, and it was decided to hold future advisory votes on executive compensation annually. Additionally, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (UCB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on United Community Banks stock, see the UCB Stock Forecast page.