Union Bankshares (UNB) AI Stock Analysis

• Market Cap: $114.74M
• Dividend Yield: 5.74%
• Average Volume (3M): 9.25K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.75
• Revenue Growth: 11.90%
• EPS Growth: -8.37%
• Country: US
• Employees: 191
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.52
• Shares Outstanding: 4,551,337
• 10 Day Avg. Volume: 10,457
• 30 Day Avg. Volume: 9,246
• PEG Ratio: -0.67
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 11.80
• Enterprise Value/Market Cap: 3.52
• Enterprise Value/Revenue: 5.50
• Enterprise Value/Gross Profit: 8.32
• Enterprise Value/Ebitda: 36.51
• 1Y Price Target: $29.00
• Price Target Upside: 18.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $29.00 ▲(18.37% Upside)

Union Bankshares' overall score reflects strong financial performance and attractive valuation, offset by technical indicators suggesting neutral to bearish momentum. The high leverage on the balance sheet is a risk factor, but the stock's valuation and dividend yield provide significant appeal.

Union Bankshares Business Overview & Revenue Model

Company Description

Union Bankshares, Inc. operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking products and services in northern Vermont and New Hampshire. It offers retail depository services, such as personal checking, savings, money market, IRA/SEP/KEOGH, and health savings accounts, as well as certificates of deposit. The company also provides commercial real estate loans; commercial loans for plant and equipment, working capital, real estate renovation, and other business purposes to business owners and investors; small business administration guaranteed loans; home improvement loans and overdraft; and residential construction and mortgage loans. In addition, it offers online cash management services, including account reconciliation, credit card depository, automated clearing house origination, wire transfers, and night depository services; merchant credit card services for the deposit and immediate credit of sales drafts; remote deposit capture services; and online mortgage application services. Further, the company provides business checking accounts; standby letters of credit, bank checks or money orders, and safe deposit boxes; ATM services; debit cards; telephone, Internet, and mobile banking services; and asset management, fiduciary, and trust services. The company offers retail banking services to individuals; and commercial banking services to small and medium sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts. It operates 18 banking offices, 3 loan centers, and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont.

How the Company Makes Money

Union Bankshares generates revenue primarily through interest income and non-interest income. Interest income is earned from loans made to customers, including commercial loans, personal loans, and mortgages, which typically have varying interest rates that contribute significantly to the bank's profitability. Additionally, Union Bankshares earns non-interest income through fees for services such as account maintenance, ATM usage, investment advisory services, and wealth management. The bank may also generate income from investment securities and other financial products. Strategic partnerships with other financial institutions and service providers enhance its offerings and contribute to revenue growth. Furthermore, economic factors such as interest rate changes and market demand for loans can significantly influence the bank's overall earnings.

Union Bankshares Financial Statement Overview

Summary

Union Bankshares demonstrates strong profitability and cash generation with a solid income statement and cash flow metrics. However, the high leverage indicated by the balance sheet poses a risk, suggesting a need to strengthen the equity base.

Income Statement

Union Bankshares shows solid performance in its income statement metrics. The company has achieved a gross profit margin of 59.2% and a net profit margin of 11.1% for the TTM, indicating strong profitability. The revenue growth rate from the previous period to the TTM is 4%, showcasing steady growth. The EBIT and EBITDA margins are 11.6% and 13.5%, respectively, which reflect efficient operational management. However, a decline in EBIT and EBITDA margins compared to earlier periods suggests some pressure on operational efficiency.

Balance Sheet

The balance sheet indicates a strong equity position with an equity ratio of 4.6% TTM. The debt-to-equity ratio is 3.67, which is high compared to industry norms, implying a significant reliance on debt. The return on equity (ROE) of 12.6% is healthy, indicating effective utilization of equity to generate profits. The company should focus on improving its equity position to reduce the high leverage.

Cash Flow

Cash flow shows positive trends with a free cash flow growth rate of 21.99% in the TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio stands at 1.62, indicating efficient conversion of net income into cash. The free cash flow to net income ratio is 1.53, reflecting strong cash flow relative to earnings. However, the company faces challenges in managing investing cash flows, which remain negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.53M	76.42M	66.11M	52.42M	51.34M	51.95M
Gross Profit	48.56M	45.90M	47.34M	47.90M	47.77M	44.61M
EBITDA	11.07M	10.72M	14.52M	17.05M	17.71M	17.29M
Net Income	9.52M	8.76M	11.26M	12.62M	13.17M	12.80M
Balance Sheet
Total Assets	1.48B	1.53B	1.47B	1.34B	1.21B	1.09B
Cash, Cash Equivalents and Short-Term Investments	370.00M	188.92M	283.50M	271.20M	285.67M	123.88M
Total Debt	305.70M	275.97M	81.94M	66.20M	16.17M	7.16M
Total Liabilities	1.41B	1.46B	1.40B	1.28B	1.12B	1.01B
Stockholders Equity	71.30M	66.48M	65.81M	55.22M	84.34M	80.87M
Cash Flow
Free Cash Flow	10.23M	11.08M	7.25M	28.37M	25.68M	-8.07M
Operating Cash Flow	11.39M	12.15M	9.19M	29.03M	29.19M	-7.06M
Investing Cash Flow	-79.84M	-124.83M	-82.25M	-207.58M	-190.01M	-125.91M
Financing Cash Flow	67.21M	50.85M	112.84M	150.51M	103.97M	204.61M

Union Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNB, the sentiment is Negative. The current price of 24.5 is below the 20-day moving average (MA) of 25.42, below the 50-day MA of 26.04, and below the 200-day MA of 28.59, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 35.08 is Neutral, neither overbought nor oversold. The STOCH value of 22.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNB.

Union Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNB	74 Outperform	$114.74M	12.46	13.63%	5.74%	11.90%	-8.37%
MGYR	69 Neutral	$111.36M	11.12	8.68%	1.68%	18.82%	35.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFBC	63 Neutral	$118.19M	18.96	6.07%	1.65%	7.86%	59.25%
RVSB	61 Neutral	$109.98M	21.39	3.25%	1.54%	10.30%	170.86%
SRBK	56 Neutral	$116.89M	24.19	1.91%	1.02%	26.46%	―
BSBK	55 Neutral	$117.08M	―	-0.25%	―	-12.23%	83.58%

Union Bankshares Corporate Events

Union Bankshares Announces Quarterly Dividend and Income Growth

On July 16, 2025, Union Bankshares, Inc. announced a quarterly cash dividend of $0.36 per share, payable on August 7, 2025, to shareholders of record as of July 26, 2025. The company reported a consolidated net income of $2.4 million for the second quarter of 2025, an increase from $2.0 million in the same period of 2024. Total assets grew to $1.48 billion, driven by a 9.8% increase in total loans. Despite economic uncertainties, the company’s asset quality remained strong, and it continued to show growth in its balance sheet and income statement.