United Community Banks, Inc. (UCB)
Financial Services · NYQ · US
Fundamentals
Valuation and ratings
United Community Banks, Inc. trades at USD37.09, which is 114% below the USD79.20 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 47 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 13.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About United Community Banks, Inc.
United Community Banks, Inc. operates as the bank holding company for United Community Bank that provides financial services in the United States. The company offers deposit products, including checking, savings, money market, and other deposit accounts. It also provides loans comprising owner occupied and income producing CRE, commercial and industrial, equipment financing, residential mortgage, home equity, manufactured housing, and consumer loans, as well as commercial and residential construction and land. In addition, the company offers private banking, investment management, investment advice, financial planning services, estate and retirement planning, and insurance products; non-deposit investment products and insurance products, such as life insurance, long-term care insurance and tax-deferred annuities; and trust services to manage fiduciary assets. Further, it provides reinsurance on property insurance contracts and payment processing services for commercial and small business customers. The company serves the commercial, retail, government, education, energy, health care, and real estate sectors. United Community Banks, Inc. was founded in 1950 and is headquartered in Greenville, South Carolina.
UCB passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Ken Fisher, Fisher Asset Management, LLC$29.88M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$11.77M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$7.75M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$6.81M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$3.28M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is United Community Banks, Inc. (UCB) undervalued?
Against our discounted cash flow estimate of USD79.20, UCB at USD37.09 is 114% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own UCB?
5 of the institutions we track reported a position in UCB in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is UCB's P/E ratio?
UCB trades at 13.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.