Are Analysts Underestimating United Bankshares (UBSI)?

United Bankshares may be undervalued with mixed growth prospects, but the 6 analysts following the company give it an rating of hold. Their target prices range from $32.0 to $42.0 per share, for an average of $37.83. At today's price of $31.61, United Bankshares is trading -16.43% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.

United Bankshares, Inc., a financial holding company, primarily provides commercial and retail banking products and services in the United States. Based in Charleston, WV, the mid-cap Finance company has 2,765 full time employees. United Bankshares has provided a 4.4% dividend yield over the last 12 months.

United Bankshares has a trailing twelve month P/E ratio of 11.3, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of 2.77, the company has a forward P/E ratio of 11.4.

The average compound growth rate of the company's historical and projected earnings per share is 1.7%. On this basis, the company's PEG ratio is 7.93, which suggests that it is overpriced.

On the other hand, the market is potentially undervaluing United Bankshares in terms of its book value because its P/B ratio is 0.9. In comparison, the sector average P/B ratio is 1.57. The company's shares are currently -29.2% below their Graham number, indicating that its shares have a margin of safety.

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $732 $1,037 $1,009 $1,032
Revenue Growth n/a 41.6% -2.72% 2.28%
Net Margins 35.53% 27.88% 36.46% 36.8%
Net Margins Growth n/a -21.53% 30.77% 0.93%
Earnings Per Share $2.55 $2.4 $2.83 $2.8
EPS Growth n/a -5.88% 17.92% -1.06%
Diluted Shares (MM) 102 120 130 135
Free Cash Flow (MM) $137 $121 $594 $744
FCF Growth n/a -11.12% 389.33% 25.21%
Capital Expenditures (MM) -$11 -$19 -$15 -$17
Net Debt / EBITDA 1.5 -1.13 -2.32 0.85
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