Fulton Financial Corp. – Value Analysis (NASDAQ:FULT) : August 4, 2017

Capitalcube gives Fulton Financial Corp. a score of 43.

Our analysis is based on comparing Fulton Financial Corp. with the following peers – Bryn Mawr Bank Corporation, First Commonwealth Financial Corporation, Peoples Financial Services Corp., F.N.B. Corporation, DNB Financial Corporation, M&T Bank Corporation, Penns Woods Bancorp, Inc., PNC Financial Services Group, Inc., AmeriServ Financial, Inc. and ACNB Corporation (BMTC-US, FCF-US, PFIS-US, FNB-US, DNBF-US, MTB-US, PWOD-US, PNC-US, ASRV-US and ACNB-US).

Fundamental Overview

Fulton Financial Corp. has a fundamental score of 43 and has a relative valuation of OVERVALUED.

Fundamental Score

Company Overview

  • It’s current Price/Book of 1.45 is about median in its peer group.
  • The market expects FULT-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • FULT-US‘s relative capital efficiency and net profit margins are both around the median level.
  • Changes in the company’s annual revenue and earnings are around the median among its peers.
  • FULT-US‘s return on equity currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
  • While FULT-US‘s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
  • The company’s equity capital investment program suggests it is under-investing in a business that is producing peer median returns.

Drivers of Margin

  • Margins do not suggest any relative benefit from a pricing or an operating cost advantage.
  • The company’s net interest income (net interest income/total revenues) of 72.90% is around peer median suggesting that FULT-US‘s lending operations does not benefit from any differentiating pricing advantage. In addition, FULT-US‘s pre-tax margin of 29.43% is also around the peer median suggesting no operating cost advantage relative to peers.
  • The company’s proportion of fee based income (i.e. non interest income/total revenues) of 27.10% is around peer median. In addition, FULT-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 67.62x is also around peer median — suggesting no cost advantage on fee-based overhead operations.
Drivers of Margins

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Differentiated; High Cost, Commodity; High Cost, Commodity; Low Cost

Company Profile

Fulton Financial Corp. is financial holding company, which engages in the provision of consumer and commercial banking products and services. It provides personal banking services include various checking account and savings deposit products, certificates of deposit and individual retirement accounts. The company also offers investment management, trust, brokerage, insurance and investment advisory services to consumer and commercial banking customers in the market areas serviced by the subsidiary banks. Fulton was founded on February 8, 1982 and is headquartered in Lancaster, PA.