United Bankshares, Inc.
United Bankshares, Inc. Fundamental Analysis
United Bankshares, Inc. (UBSI) shows moderate financial fundamentals with a PE ratio of 13.36, profit margin of 25.52%, and ROE of 8.60%. The company generates $1.8B in annual revenue with moderate year-over-year growth of 6.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze UBSI's fundamental strength across five key dimensions:
Efficiency Score
WeakUBSI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUBSI trades at attractive valuation levels.
Growth Score
ModerateUBSI shows steady but slowing expansion.
Financial Health Score
ExcellentUBSI maintains a strong and stable balance sheet.
Profitability Score
ModerateUBSI maintains healthy but balanced margins.
Key Financial Metrics
Is UBSI Expensive or Cheap?
P/E Ratio
UBSI trades at 13.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UBSI's PEG of 1.86 indicates fair valuation.
Price to Book
The market values United Bankshares, Inc. at 1.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.26 times EBITDA. This signals the market has high growth expectations.
How Well Does UBSI Make Money?
Net Profit Margin
For every $100 in sales, United Bankshares, Inc. keeps $25.52 as profit after all expenses.
Operating Margin
Core operations generate 32.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.60 in profit for every $100 of shareholder equity.
ROA
United Bankshares, Inc. generates $1.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
United Bankshares, Inc. generates strong operating cash flow of $496.04M, reflecting robust business health.
Free Cash Flow
United Bankshares, Inc. generates strong free cash flow of $493.24M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.51 in free cash annually.
FCF Yield
UBSI converts 7.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
28.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How UBSI Stacks Against Its Sector Peers
| Metric | UBSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.36 | 18.86 | Better (Cheaper) |
| ROE | 8.60% | 847.00% | Weak |
| Net Margin | 25.52% | 4202.00% | Weak |
| Debt/Equity | 0.17 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 28.21 | 667.17 | Strong Liquidity |
| ROA | 1.38% | -21543.00% (disorted) | Weak |
UBSI outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United Bankshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.96%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
7.95%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
120.66%
Industry Style: Value, Dividend, Cyclical
High Growth